San Francisco Budget and Appropriations Committee Meeting - February 17, 2021
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San Francisco Budget and Appropriations Committee Meeting - February 17, 2021
The committee held hearings on the city's economic outlook, five-year finance plan, mayor's budget instructions, six-month budget status report, and an appropriations limit resolution. Key findings included a projected $125 million surplus for the current fiscal year, a $653 million two-year shortfall, and significant economic disparities from COVID-19.
Public Comments & Testimony
- David Pilpel commented on the six-month report, asking about the availability of the $652 million projection and noting difficulty navigating department budget meetings.
- A caller (Jeff Lucas) pointed out an inconsistency in the appropriations limit resolution language, requesting correction of the wording regarding "percentage change in the local assessment role" versus "from 2019." He also noted an error in the calculation of the cost of living factor.
Discussion Items
- Economic Update (Item 5): Ted Egan (Controller's Office) presented data on employment, migration, rents, and office vacancy. San Francisco lost 175,000 jobs in April 2020, recovered 90,000, with unemployment above 6%. Professional services recovered fully, but restaurants were down 40%. Outmigration saw 35,000 more people moving out than in, mostly to nearby suburbs. Rents fell 27% year-over-year, office vacancy rose above 16%. Supervisors Safai, Ronan, Mar, and Chan discussed impacts on inequality, working-class residents, and the need for a diverse economy.
- Five-Year Finance Plan and Mayor's Budget Instructions (Items 1 & 2): Ashley Graffenberger (Mayor's Budget Office) presented a projected two-year shortfall of $653 million for FY22-23, driven by slower revenue recovery, unfunded labor costs, and continued COVID expenses. Departments were asked to propose 7.5% reductions with an additional 2.5% contingency. The mayor emphasized an equity lens, requiring departments to assess the equity impact of proposed changes.
- Six-Month Budget Status Report (Item 3): Controller Ben Rosenfield reported a projected $125 million surplus in the current fiscal year, primarily from state and federal actions: $50 million from ERAF, $20–30 million from redevelopment property tax, $50 million from disproportionate share hospital funding, and $30 million from behavioral health reconciliation. Additionally, the COVID response fund showed a $77 million surplus due to FEMA's 100% reimbursement rate. Key uncertainties include the pending federal stimulus (potentially $600 million for San Francisco), FEMA changes, and lagging hotel and sales tax revenues.
- Appropriations Limit (Item 4): The controller's office presented the annual Gann limit calculation, resulting in a limit of $8.36 billion for FY2020-21, well above net tax proceeds of $4.6 billion. Voter-approved tax measures added $1.4 billion in capacity. The resolution was forwarded to the full board.
Key Outcomes
- All hearings were filed or continued: Items 1, 2, and 3 were filed; Item 5 was continued to the call of the chair.
- Resolution 210071 (Appropriations Limit) was approved to the full board with a positive recommendation (5-0 vote). Chair Haney noted possible minor wording changes per public comment.
- Chair Haney announced a planned special hearing to address the $125 million surplus and other pending proposals in a coordinated process, involving the mayor's office and board colleagues.
Meeting Transcript
This meeting will come to order. This is the February 17th, 2021 Budget and Appropriations Committee meeting. I am Matt Haney, Chair of the Budget and Appropriations Committee. I'm joined by committee members supervisors Asha Safai, Gordon Maher, Hilary Ronan, and Connie Chan, who is temporarily replacing Supervisor Walton for today's meeting. Our clerk is Ms. Linda Wong, and I would like to thank Kalina Mendoza from SFGov TV for broadcasting this meeting. Madam Clerk, do you have any announcements? Yes, Mr. Chair. Due to the COVID 19th health emergency, and to protect board members, city employees and the public, the Board of Supervisors, Legislative Chamber, and Committee Room are closed. However, members will be participating in the meeting remotely. This precaution is taken pursuant to the various local, state, and federal orders, declarations and directives. Committee members will attend the meeting through video conference and participate in the meeting to the same extent as if they're physically present. Public comment will be available on each item on this agenda.org are streaming the number across the screen. Each speaker will be allowed two minutes to speak. Comments or opportunities to speak during public comment period are available via phone call by calling 415 65501 again, 415 65501 meeting ID 1874794354. Again, it's 1874 794354, then press down twice. When connected, you will hear the missed meeting discussion, but you will be muted and in listening mode only. When your item of interest comes up, please be added to the speaker line. Best practices are to come from a quiet location, speak clearly and slowly and turn down your television or radio. Alternatively, you may submit public comment in the following way. Email to myself, the budget and finance committee clerk at L-I-N D A dot W O N G at SFGO V Docor G. If you submit public comment via email, it will be forwarded to the supervisors and will be included as part of the official file. Finally, items acted upon today are expected to appear on the Board of Supervisors agenda of February 23rd, unless otherwise stated. Thank you. Uh Madam Clerk, I want to make a motion uh to excuse Supervisor Walton from attending today's budget and appropriations committee meeting. Can I have a second, please? Second, Ronan. Seconded by Ronan. Roll call vote, please. Yes, on the motion, Vice Chair Safai. Safai Aye, Member Ma. Aye. Mar I, uh Member Ronin. Aye. Ronan I. Member Ken. Aye. Can I, Chair Haney? Aye. Haney, I there five eyes. Thank you, Madam Clerk. Uh, Supervisor Walton will be excused. Uh and uh he will be joining us at the next meeting. Uh we have a very full agenda today, so I am going to uh save some of my comments uh for another meeting. Uh I do want to to just say to start out that uh I am very much looking forward to working with all of you, the committee members, uh, and our our guest today, Supervisor Chan, as well as all of our other colleagues uh on the budget this year. This this meeting really kicks off uh the beginning of our part of the budget process here at the Board of Supervisors, and I am uh honored to serve uh as the new chair of the budget and appropriations committee. I also want to thank uh Supervisor Safai for serving as the vice chair and all of us I know are going to be working very closely together on what uh will be and what is uh one of I think the most important uh budget cycles uh in perhaps in San Francisco history. Um we are coming out of what was uh really a devastating year for our city and its residents. Um, San Francisco spent much of the last year uh and still uh in full or partial shutdown.
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