Page 9 - FY 2021-22 CAO Overview of Proposed Budget

REVENUES: CONCERNS

Revenues assumption dependent on U.S. Department of Treasury guidance

and an end to pandemic conditions and are heavily one-time reliant:

• American Rescue Plan projected $677 million revenues in each of 2020-21

and 2021-22 require:

– Treasury guidance that provide the City with spending flexibility.

– Timely receipt of the second tranche during 2021-22, which the law states will be

sent no sooner that 12 months after the first, so earliest would be May 2022.

• Revenues generally based on an assumption:

– That pandemic conditions would end around August 1, 2021 and the economy

would grow after that time.

– That, for some revenue sources, recovery would be rapid and strong once it begins.

• $715 million in one-time revenues is an all time high and puts the 2021-22

spending level at risk in future years.

2021-22 Proposed Budget

Presentation to the Budget and Finance Committee