Study Projects $1.6B Deficit For Muni Over 20 Years
SAN FRANCISCO (AP) - Financial experts are warning the San Francisco Municipal Transportation Agency that it is facing a $1.6 billion deficit over the next 20 years unless it slashes $30 million in spending and creates $50 million in additional revenue each year.
The experts delivered the news to the agency's Board of Directors on Tuesday.
The $1.6 billion figure is based on an assessment of Muni's finances by a team of financial consultants. The consultants found that if Muni were to maintain its current level of service, the agency's revenue would grow 2.47 percent and salaries and benefits rise at least 3 percent.
The San Francisco Chronicle reports that a parcel tax is among five revenue-generating ideas the consultants suggested. Muni and city officials have until August to decide which of the proposals to put before voters on the November 2012 ballot.
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