SAN FRANCISCO—On Tuesday, November 10, the San Francisco City Controller’s Office projected a $116 million shortfall due to economic impacts as a result of the Coronavirus pandemic.
According to the report, the Citywide General Fund revenue is projected to decline by $143.5 million. City Controller Ben Rosenfield cites a slower re-opening and increase in telecommuting as a concern for the city’s budget.
“If the level of telecommuting returned to its pre-Covid levels at the beginning of Fiscal Year 2020-21, our projections for business would be about $190 million higher than our current projections,” Rosenfield said.
In addition, there was a decrease in business, hotel, parking and sales taxes. A surplus in property tax offsets the deficit of other streams of revenue.
The San Francisco International Airport (SFO) witnessed a significant shortfall. In April 2020, enplanements at SFO decreased by 97 percent compared to 2019. As of September 2020, it has slightly improved, but 79 percent below the projected total.
The report also stated the COVID Emergency response revenues and expenditures are currently projected to remain on budget.
A final budget fund balance is not currently available, but the City Controller’s Office currently estimates an ending balance of roughly $21.3 million above the assumed balance for the 2020-2021 Fiscal Year.