Stockton, San Bernadino, and Mamoth Lakes are all cities in California that filed bankruptcy.
http://www.sfgate.com/bayarea/article/S-F-budget-surplus-grows-nearly-80-million-3314439.php
The current budget cycle will end with a $129.1 million surplus, $80 million more than previously anticipated, according to a new budget report released Monday by the Office of the Controller.
"We're still not out of the woods, but it's very good news," said Kate Howard, the mayor's budget director.
The new
deficit for the fiscal year that starts July 1 is now $229 million, down from the earlier projection of $263 million. And that was whittled from an earlier assumption of $458 million.
The new projected
deficit for the fiscal year that starts July 1, 2013, is now $364 million, down from the $375 million estimate that came out two months ago, and far less than the original $619 million estimated shortfall.
Driving the better-than-expected budget news is a bounce in revenue from the city's property, payroll, sales, hotel and parking taxes.
The city's economy, mirroring the nation's, imploded in late 2008 and began a slow climb back starting last year, said City Controller Ben Rosenfield. The new numbers show continued recovery that is more robust than City Hall numbers crunchers expected.
And while deficits still loom, the projected shortfalls are more manageable. "We won't have to rely as much on significant service reductions and fee increases as we have had to in recent years," said Board of Supervisors President David Chiu.
The Municipal Transportation Agency, which is bracing for two more years - at least - of escalating deficits, is set to benefit from the stronger tax revenue, in the range of $13 million next year.
Mayor Ed Leesaid that, while the economy is improving, there's still a lot of work to do.
The city, with a $6.8 billion budget this year, faces continued increases in the cost of employee salaries and benefits.
