San Francisco’s budget outlook is brighter than it’s been in months, but the city still has a projected $644 million two-year deficit to contend with this spring.
The city has outspent its annual tax revenue in the years since the pandemic, creating a recurring budget gap that’s prompted recent cuts to jobs and services. A report released Tuesday estimated that the city’s projected two-year shortfall had dropped by about $234 million since last month.
The city controller credited the improvement to a decrease in spending on retirement funds and increased revenue from city hospitals, as well as growing revenue from hotel, sales and transfer taxes. Mayor Daniel Lurie celebrated that progress, but warned that San Francisco was “not out of the woods” yet…