San Francisco expects its deficit to skyrocket almost 200% over the next five years if nothing is done to fix its budget problems.
The gap between city revenues and costs will rise to $829 million in fiscal 2016 from $283 million from fiscal 2012, according to the city’s first five-year plan released Tuesday.
City officials said employee pension costs, wages and other benefits are expected to be the largest contributor to the deficit, growing 32% or $648 million over the next five years. They said benefit costs are projected to rise 62% by fiscal 2016.
The report said general fund revenues are expected to grow by only 11%, or $416 million, over the same period. Capital and debt service is projected to jump 157%, or $100 million, during the five years, according to the report.
Several different groups of city officials, unions and politicians are working on ballot proposals to try to fix the rising pension and retiree health care costs.
“Despite the fall-off and slow recovery, San Francisco’s current budget and financial status is relatively stable compared to many municipalities in California and to other parts of the United States,” said the report, which was a coordinated between several departments.
Officials said the city expects tax revenues to continue to return to pre-recession levels in fiscal 2013 or later.