Analyst: San Diego's $2.75B Budget 'Generally Accurate'

The $2.75 billion budget proposed by Mayor Bob Filner two weeks ago is generally accurate in anticipated revenues and expenses, San Diego's Independent Budget Analyst reported today.

However, IBA Andrea Tevlin warned that the use of one-time income to close a $38.4 million shortfall in the fiscal year starting July 1 and reductions in infrastructure spending are causes for concern.

The overall budget proposal is 0.1 percent smaller than the current fiscal year, but general fund spending, which includes basic city services such as public safety and libraries, would be increased by 3.1 percent to $1.2 billion.

The mayor expects general fund revenue to increase by 3.9 percent, which is "appropriate" given trends on sales, property and hotel room tax income, the IBA report said. The authors also said they had "no significant concerns" with the proposed spending increase.

"The reliance on one-time solutions to balance the budget is a concern," and runs counter to City Council budget principles, the report said.

The IBA made a series of proposals to better match one-time revenue with single-year expenses.

The mayor has defended the use of one-time solutions by describing his proposals as a "transitional budget" that would not be repeated next year when the administration will have more time to squeeze efficiencies out of city departments.

The IBA also criticized the mayor's plans to delay the issuance of infrastructure bonds so the city can save $6.6 million in debt service and other payments.

The City Council is scheduled to comb through the proposed spending plan beginning Wednesday.

—City News Service