Sales tax income for San Luis Obispo drops again
April 25, 2010
San Luis Obispo officials are bracing for the possibility of more spending cuts following reports that the city’s sales tax revenue continued to decline in late 2009. [Tribune]
Sales tax revenue, the main source of income for the city’s general fund, dropped by 4.9 percent during the fourth quarter of 2009, compared to the same quarter of 2008. The figures are especially disconcerting since they include the all-important holiday sales.
Sales tax revenue have declined in San Luis Obispo for two straight years. The latest numbers translate into a loss of $150,000 for the general fund, meaning City Hall will begin the new fiscal year on July 1 with less money than expected.
San Luis Obispo typically pulls in around $11.5 million from the sale tax each year. Officials believes the city’s fiscal situation is consistent with what other towns are facing.
The city council will consider possible cuts to fill the budget gap in June.