South Central Fresno is the city’s economic engine with an outsized role | Opinion

Once again, this year was one for the history books as the City of Fresno approved a whopping $1.87 billion budget and a nearly $480 million general fund for the 2023-24 fiscal year.

But let’s step back for a moment and look at the 2022-23 fiscal year budgetadopted just one year ago. A year in which Fresno, at the time, adopted a record-breaking budget containing a surging general fund, which topped nearly $450 million — providing more funding for police and fire departments, park maintenance, neighborhood programs and other vital city services.

What was the source of the city’s massive general fund? The answer lies in the city’s recent explosion of sales tax revenue, projected to reach $158.4 million in 2023 — which has propelled Fresno’s general fund to new heights.

To better understand this historic growth in revenue, INVEST Fresno, a non-profit public advocacy organization, commissioned a study of Fresno’s economic engine, South Central Fresno. The study is based on 2022 economic data and shows that this small area delivers an outsize impact for the city.

South Central Fresno’s Business District, as outlined in the city’s proposed South Central Specific Plan, is a 5,629-acre planning area — less than 7.5% of Fresno’s land area — yet it is home to over 440 businesses, including retail, manufacturing, wholesaling and agriculture.

The study found that these businesses provide more than 22,000 direct, full-time equivalent (FTE) jobs and create nearly 48,000 FTE jobs citywide. That equates to roughly 25% of Fresno’s 195,000 FTE employment. And the annual average wage for these jobs is slightly higher than the rest of the city at $68,000.

Beyond just the direct benefit of providing quality employment opportunities, the economic study showed that South Central Fresno greatly impacts economic output and tax revenue generated for the city.

The South Central Fresno Business District accounts for 35.1% of the city’s total economic output. Of the roughly $318 million in property and sales tax revenue collected by the city, approximately $90.4 million — or 28% — are generated in South Central Fresno alone. This is thanks in large part to Amazon and Ulta.

Unlike traditional sales-tax revenue that is only generated from purchases within the city, Fresno receives sales-tax revenue from items that are shipped from our local retail distribution centers, whether the shopper lives in Fresno, Los Angeles or even another state. In other words, shoppers from all across the state and the nation pay to keep Fresno great, and Fresnans pay less for critical city services.

Let this sink in for a moment: In 2022, South Central Fresno generated $102.7 million in tax revenue — enough to fund the city’s entire fire department.

As Fresno’s economic engine, South Central Fresno’s Business District is delivering for residents by supporting essential services — from the hiring of an additional 44 positions in the police department, the safety and maintenance of Fresno’s roughly 80 parks and over $1 million to support mental health programs. All of these efforts are aided by the overwhelming impact of businesses in South Central Fresno.

Fresno is a great city with enormous potential. It’s clear we need to facilitate an environment that supports policies to not only retain existing businesses, but attract new businesses and industries to the area so Fresno can continue to grow and thrive for future generations.

South Central Fresno is the city’s economic engine, and its benefits to the city go far beyond just the 5,600-acre planning area.