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Mayor Lee’s Statement on Five-Year Financial Plan Update for FY 2014-15 Through FY 2017-18

Mayor Edwin M. Lee today issued the following statement on the Joint Report, a report updating the City’s Five-Year Financial Plan jointly issued by the Mayor’s Budget Office, Controller’s Office and Board of Supervisors’ Budget Analyst for Fiscal Year 2014-15 through Fiscal Year 2017-18:

“The Joint Report indicates that our economic policies and fiscal discipline are working. San Francisco is experiencing a broad-based economic recovery with more jobs for our residents and a record high credit rating.

However, even as our economy has strengthened, we must not waiver from the responsible fiscal approach we have taken to get us here. There are important priorities that we must address, including affordability challenges, raising the minimum wage and investing in deferred capital and technology needs as well as resolving other critical City issues. And, of course, we still face rising budget deficits in the years ahead. In the coming months, we will present a balanced and responsible budget to the residents of San Francisco – one that safeguards vital City services, is affordable over the long term and one that supports our continued economic recovery.

By continuing our long term planning, we are better preparing ourselves to weather economic impacts, maintain our fiscal stability and create greater government efficiency.”

The Joint Report provides updated expenditure and revenue projections assuming no changes to current policies and staffing levels, and projects shortfalls of $66.7 million in FY 2014-15, $133.4 million in FY 2015-16, $282.6 million in FY 2016-17 and $339.4 million in FY 2017-18.

The four-year Joint Report is required under Proposition A, a Charter amendment approved by voters in November 2009. While the projected shortfalls reflect the difference in projected revenues and expenditures over the next four years if current service levels and policies continue, San Francisco’s Charter requires that each year’s budget be balanced. These projections assume no ongoing solutions are implemented. To the extent budgets are balanced with ongoing solutions, future shortfalls will decrease.