You’d think a $43 million deficit would be bad enough – especially when the city has already cut twice that much in the last couple of years. But now comes a sharp warning from City Treasurer Russ Fehr:
Fehr: “We should not – absolutely not – base any of our planning on us growing out of the problem, that revenue growth will take away the need to make these horrible, painful realignments of expenditures.”
In other words, don’t expect boosts in property or sales tax, even if the region’s economy starts to rebound. Fehr says those revenues wouldn’t show up in city coffers in time – and probably won’t be that high anyway.
Fehr also says Sacramento’s comeback is ahead of some of the state’s hardest-hit areas like the San Joaquin Valley and Inland Empire, but it’s lagging behind the Bay Area, San Diego and the Coast.
City officials have yet to propose their specific budget cuts. That won’t come until early next month.