San Diego released its mid-year budget report today, and city officials are predicting the city will end the 2009 fiscal year in the black, with general fund revenues exceeding expenses by $1.7 million.
But that’s a razor-thin margin in a $1.1 billion budget. The report also notes that the revenue projections don’t include sales tax figures for the last quarter in 2008, which includes the lackluster holiday shopping season, which has been called one of the worst in years.
Sales tax money is the city’s second-largest source of revenue, making up one-fifth of the general fund. The report notes that actual sales tax receipts may be less than estimated, causing a hit on the general fund.
In the fall, the City Council approved cuts meant to address a $43 million budget gap. Council members rejected Mayor Jerry Sanders’ proposal to close libraries and recreation centers, instead drawing from other funds to make up the shortfall.