California – City To Use Coronavirus Relief Funds to Offset Pandemic-Related Tax Revenue Deficit

The city of San Diego will use federal and state COVID-19 relief funds to offset major budget cuts proposed last month to manage pandemic-related revenue shortfalls, San Diego Mayor Kevin Faulconer announced Tuesday.

The city faces a budget deficit exceeding $350 million. City officials have cited a lack of tourism and sales tax revenues, which has only been exacerbated by the cancellation of major San Diego tourist draws such as Comic-Con.

However, Mayor Faulconer said $270 million in federal and state funding will help prevent some cuts he proposed last month.

The mayor proposed using $189 million in relief funds for COVID-19- related operational expenses such as personnel and supplies, $50 million to continue housing the homeless at the San Diego Convention Center, $13 million for the city’s Small Business Relief Fund and $5 million for child-care services for essential workers.

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BY City News Service
May 19, 2020