San Francisco’s expenditures outpace its revenues. This is a structural problem that must take into account a number of systemic problems including financial forecasting, better planning with regard to overtime expenses, and pension and healthcare reform to get costs under control.
From a historical perspective, San Francisco has seen phenomenal growth. In the year 2000, San Francisco’s budget stood at $4.2 billion. Our current budget now stands at $7.2 billion.
But the dramatic increase in revenues does not tell the whole story. In fact, our city’s expenses are slated to grow at an alarmingly fast rate compared to current revenue projections. In the next fiscal year, there is already an anticipated $375 million funding gap.
We must work actively to engage every department and interest group to work toward a plan that aligns our city with stronger longtime solvency.