The city of San Diego will not have a projected budget surplus for five years, according to a financial outlook given Wednesday to the City Council's Budget Committee.
San Diego’s projected budget deficit for next year has dropped from $41.0 million to $31.8 million mainly because of projected increases in sales and hotel tax revenues, according to Communications Direction Darren Pudgil.
Pudgil expects the deficit to be even lower after the city calculates the savings from reform measures such as managed competition, which allows the private sector to compete for the right to provide city services.
The projected budget means city council members and the mayor will have to find ways to cut spending and increase revenue for the next five fiscal years. Actual revenues will depend on the economy, which could fluctuate at any time.