Mayor Faulconer Warns Tax Losses From Pandemic Will Require Major Budget Cuts

San Diego Mayor Kevin Faulconer said Thursday the city faces significant budget cuts because hotel and sales tax revenues are falling sharply amid the coronavirus pandemic.

He said preliminary estimates are that hotel tax revenues will fall by $83 million and sales tax collections by $26 million before the end of the city’s fiscal year on June 30.

“This is money that we count on to pay for public services like police, fire-rescue and libraries. This is a new reality,” he said at an afternoon press conference.

Faulconer said the city’s reserves will cover some of the shortfall, as will potential federal assistance, but “difficult belt tightening will need to occur.” He promised that essential city services would be preserved.

“We have been saving for a rainy day, but this is a hurricane,” he said.”These are going to be some of the most significant cutbacks we’ve seen in San Diego in some time,”

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