What is a structural deficit?
A structural deficit occurs when ongoing revenues are not sufficient to cover ongoing expenses. For the City, the most significant sources of ongoing revenue (that is, revenue that is received every year) are property taxes and sales taxes. As is the case in most organizations the most significant ongoing expense is employee salaries and benefits, which represent approximately 70% of the City’s budget.
Related Questions
- How is a structural deficit different from an annual operating budget deficit that we would experience if we did not reduce spending to make up for state funding cuts and investment losses?
- What policies should the state enact to address the continued structural state budget deficit?
- What is a structural deficit and how does it impact our budget?
