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Tuesday, Jan 31, 2023
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City of San Fernando Hurting From State Budget Cuts

City of San Fernando Hurting From State Budget Cuts The approved State Budget has left the already strained City of San Fernando facing revenue losses of approximately $2.9 million, directly impacting the City’s General Fund and Redevelopment Agency’s revitalization efforts in six project areas. The San Fernando City Council will be forced to revise its $41 million budget, approved July 20, which already struggled to eliminate a $3.2 million deficit through a series of efficiency cuts, hiring freezes and the lay-offs of 21 part-time staff. The City’s General Fund, which is nearly half of the City’s budget, relies largely on sales and property tax revenues, which have taken a significant hit from the rise in home foreclosures, a general decline in property values, and the closure and downsizing of two local auto dealerships. “Trying to close a $3.2 million budget gap was extremely difficult for the City, and now the State of California has jeopardized our ability to deliver the quality services that our constituents deserve,” said Mayor Steve Veres, adding that the General Fund pays for ongoing critical services like public safety, recreational programming and street maintenance. Through Proposition 1A the State will be taking approximately 8 percent or nearly $350,000 from the City’s General Fund, according to Veres. The City’s Redevelopment Agency will also lose nearly $2.1 million this fiscal year and $500,000 next fiscal year through the State’s supplemental Education Revenue Augmentation Fund (ERAF), which will slow the City’s revitalization efforts in its six redevelopment project areas. “The economic uncertainties we face today are painfully shared by other California cities, counties and redevelopment agencies. Nevertheless, as a community, we are determined to weather this severe budget storm by making prudent financial decisions that keeps the City around for another 100 years,” Veres said. -Andrea Alegria

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