SAN ANTONIO – The City of San Antonio could be facing a hefty budget deficit in the near future if changes are not made.
On Wednesday, San Antonio officials briefed councilmembers on the city’s budget through its second quarter for FY 2025 and provided a five-year financial forecast for future fiscal years.
The main takeaway from the budget update was that the city’s major revenue sources were seeing slower growth than anticipated.
Those sources included property tax, sales tax, airport revenues, hotel occupancy tax and development services.
Officials say because of the smaller estimated amount, they project the city to be $9.7 million below budget in total revenue for this year.
FY 26 to FY 30 Financial Forecast
Due to less incoming revenue and other expenses, they could face a nearly $31 million budget deficit in 2026, officials said.
That deficit could increase five times even more to $148 million by 2027, according to a presentation.
To offset this potentially growing deficit, officials said they are using the Comprehensive Budget Review this year to review programs and services under Public Works, Parks & Recreation, Metro Health and Human Services. City Manager Erik Walsh told council recommendations made for these departments will be built into the budget for the next fiscal year.
A discussion surrounding potential adjustments for the 2025 budget will happen on May 15 and a budget goal-setting meeting for fiscal year 2026 is planned for June 27.
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