[ad_1]
Pedestrians walk on a street in San Francisco, California.
Photographer: David Paul Morris / Bloomberg
Photographer: David Paul Morris / Bloomberg
San Francisco officials expect to see budget deficits reaching $ 503 million in five years, and said it was not clear whether high-paying workers will return to the tech hub after the pandemic has subsided. coronavirus.
In one report released Friday by financial analysts in the city, San Francisco forecast a gap of $ 411 million in the next fiscal year. Until June 2026 from June 2021, expenses, driven by increases in salaries and compensation costs, will increase by 24%, with revenues only increasing by 15.5% over the same period. Meanwhile, city officials have largely exhausted point sources to fill the previous two-year budget deficit of $ 1.5 billion, according to the report.
Additionally, as analysts expected most of San Francisco’s revenue streams to rebound to pre-pandemic levels in five years, they raised flags over the tourism, office and small business prognosis. . They Noted that sales tax revenue fell more than 70% in the second quarter of last year compared to the same period in 2019 in shops, hotels and downtown business districts. And the city has seen virtually no online sales tax growth, unlike other communities, showing that San Franciscans have indeed moved, at least temporarily, while working remotely.
“While we hope the economic consequences of COVID-19 will become less severe as the vaccine rollout continues and we reopen again, we still have to make tough choices now to ensure we are able to deliver. the services our residents depend on. The Mayor of London Breed said in a statement.
If people return to their offices after the outbreak is over, San Francisco will bounce back and return to normal, according to the report. “On the other hand, if office tenants and their employees decide that the cost benefits of prolonged work from home – or an outright move – outweigh any loss in productivity, then expensive office and real estate markets like San Francisco face an uncertain future. ”
[ad_2]
Source link