Anaheim Forecasts Another Budget Shortfall, Blames Lagging Tax Revenue

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Only months after eliminating jobs to balance the city’s budget, officials already are projecting another multimillion-dollar budget shortfall next year in Anaheim.

City Councilman Tom Daly said Tuesday that the shortfall is forecast at between $3 million and $6 million because of lagging sales tax revenue and a slowed tourist industry.

City officials said sales tax revenue is already $1.4 million behind initial projections, while revenues from the city’s hotel-occupancy tax are lagging by about $800,000.


Daly placed much of the blame for the lean sales tax revenues on the continued failure of the Anaheim Plaza shopping center.

The plaza has seen a steady decline in shopper traffic in recent years as neighboring cities have constructed new regional malls and shopping centers.

Developers have presented plans for a renovation of the plaza, which is in a redevelopment district of the city, but those plans have been the target of recent criticism by council members.