REVENUE AND EXPENDITURE ASSUMPTIONS
Key Indicators One of the most important factors that impact businesses and residents is the job market. Chapman University is forecasting Orange County employment growth to be approximately 1.7 percent in 2019. The unemployment rate in the Orange County metropolitan area, which includes Anaheim, Santa Ana, and Irvine, improved again this year to 2.8 percent, and in Irvine, even lower at 2.7 percent (as of November 2018), both well within the range of what most economists consider full employment.
Vehicle sales and leasing is a significant component of the City’s overall sales tax revenue. According to the Orange County Auto Dealers Association (OCADA), Orange County’s new vehicle market declined slightly over the last year, but sales remain at an elevated level and 2018 marked the sixth consecutive year that new registrations exceeded 165,000 units. OCADA indicates that there are a few signs pointing to a market slowdown, but a strong labor market combined with a steady stream of new products should limit declines.
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FY 2019-21 Proposed Budget
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