City budget balloons to $5.7 billion
May 26, 2006
Mayor Newsom will present the $5.7 billion City budget next
Wednesday with a projected deficit of $35 million, his budget
director reported yesterday.
The deficit "is largely the result of increased labor costs,"
Budget Director Noelle Simmons told the Sentinel.
City budget for the coming year marks a 7.5% increase over the
current year, compared to the proposed 9% hike in the state budget,
In return for wage hikes, "We are demanding more employee
accountability," she added, noting Newsom administration
efforts aimed at reforming the civil service system.
The Health Department again is the largest budget
recipient slated to receive $1.2 billion.
A rainy day fund, mandated by legislation authored by Supervisor
Tom Ammiano, jumps from its initial $48 million to $77 million.
Few fee increases are included in the budget, continued Simmons.
"Most fees have already been brought up to cost recovery
and the law doesn't permit raising fees above cost."