Budget projections show deficits rising in S.F.

The San Francisco Chronicle reports:

Everything about San Francisco’s budget is big — even, it turns out, its deficits. The booming center of tech and tourism isn’t quite so booming these days, and new budget projections show the city’s books over the next five years are out of whack to the tune of $848 million.

Even more mind-boggling is a new actuarial report on the city’s pension system. In just one year, the city’s long-term pension liabilities have shot up from $2.3 billion to $5.48 billion. That’s because returns on investments have been low, and life expectancies have risen, a problematic combination when you’re paying retired people.

But first, the immediate news: Mayor Ed Lee will alert his departments this week they need to help him rebalance the books. For the 2017-18 fiscal year, the budget deficit is $119 million. For the next year, it’s $283 million. Take the projected deficits for the next five years together, and you get that eye-popping $848 million figure.

The mayor isn’t anticipating layoffs or major cutbacks. In a city where the budget next year will almost surely top $10 billion for the first time, $119 million is more of a trim than a full-on shave.

The struggles of Blue America.