LOS ANGELES (CBSLA) – The city is expected to have a $550 million revenue shortfall by the end of the fiscal year even as revenues could rebound during the next fiscal year, officials said Monday.
Los Angeles Controller Ron Galperin said for the current fiscal year through June 30, General Fund revenues are projected to be 8.3% lower than the $6.14 billion that was budgeted.READ MORE: 2 Hospitalized After Large Explosion At Valley Glen Home
While property tax revenues increased 6.1% and cannabis business taxes increased 79%, the revenues were offset by sharp declines in the transient occupancy tax on hotels and motels, the parking occupancy tax; and the telephone users tax, according to Galperin.
Starting July 1, the date the next fiscal year begins, The General Fund is expected to increase 4.4% to $6.4 billion, and revenues from property tax, sales tax and the cannabis business tax are expected to increase, Galperin said.READ MORE: City Of LA Expands Eligibility To Residents 16 And Older, County Announces New Household Vaccination Effort
Transient occupancy tax revenue, which fell 75% from its peak the previous fiscal year, is expected to increase but it likely won’t return to pre-COVID levels, he added.
“With a $550 million revenue shortfall, the end of this fiscal year is going to be a tough one,” Galperin said. “Our ability to continue delivering the same level of services to Angelenos is imperiled by our financial situation.
“But because COVID-19 vaccines are becoming more available, it is quite possible that the economy could begin to turn the corner sometime this summer, resulting in an uptick in city revenues during the next fiscal year. There is reason to be cautiously optimistic, but it will be a long road to full recovery.”MORE NEWS: LASD Deputies Disperse Large Crowd In East LA
Visit the LA Controller’s interactive dashboard for more information on the revenue forecast.