San Francisco Budget Committee Finalizes FY 2023-2025 Budget on June 28, 2023
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San Francisco Board of Supervisors Budget and Appropriations Committee Recessed Meeting - June 28, 2023
The Budget and Appropriations Committee, chaired by Supervisor Connie Chan and joined by Vice Chair Rafael Mandelman, Supervisor Hillary Ronen, Supervisor Shamann Walton, and Supervisor Ahsha Safaí, convened a series of recessed meetings on June 28, 2023, to finalize the Fiscal Years 2023-2024 and 2024-2025 budget and related trailing legislation. The meeting spanned from 6:15 PM through late evening, with multiple recesses for negotiations. The committee successfully approved a $60 million reallocation from the Our City, Our Home fund, passed several business fee waivers, and forwarded a balanced budget package to the full Board of Supervisors.
Discussion Items
- Our City, Our Home Fund Reallocation (Items 6 & 7): Supervisor Ronen introduced amendments to preserve $60 million originally diverted from TAY and family homelessness for adult homeless services, instead keeping the funds for youth and family prevention. The $60 million will remain for TAY/family housing, and $4 million in accrued interest from Prop C lawsuits will fund other priorities from the Mayor's budget. The amendments were substantive, requiring continuation to the next meeting; Item 7 (expenditure plan) was sent to the full board with positive recommendation.
- Small Business Fee Waiver (Item 5): Supervisor Ronen amended the ordinance to limit the first-year permit/license/business registration fee waiver to one year (FY 2023-2024) instead of multiple years, aligning with the Mayor's funded budget. The amendment was adopted, and the item was forwarded to the full board.
- Curbside Shared Spaces Permit Fee Waiver (Item 3): Supervisor Safaí proposed an amendment to reduce the fee waiver period from two years to one year (ending June 30, 2024). The amendment passed, and the item was sent to the full board.
- Gross Receipts Tax Rate Postponement and Credit (Item 10): Chair Chan proposed amendments to limit the tax credit to downtown zip codes, exclude home-based businesses, and require the credit be taken on original returns. The substantive amendments were adopted, and the item was continued to the July 12 committee meeting.
- Early Care and Education Commercial Rents Tax Sublessor Deduction (Item 11): Chair Chan moved to table the item; the motion passed.
- Building Code Fee Increase (Item 4): The committee discussed a 15% increase in Department of Building Inspection fees, temporary until a comprehensive fee study is completed in fall 2023. The item was forwarded to the full board without amendment.
- Ambassador Programs (Items 8 & 9): Grant amendments for the Downtown Welcome Ambassador Program ($21.4 million total) and Mid-Market/Tenderloin Safety Program ($61.09 million total) were approved and sent to the full board.
- Early Care and Education Baseline Funding (Item 12): Amended on June 26, the ordinance was sent to the full board with positive recommendation.
- Final Budget Approval (Items 1 & 2): After multiple recesses, the committee reached an agreement with the Mayor's office. Chair Chan made a motion to adopt the spending plan, authorize the Controller to make adjustments, and forward the budget and salary ordinances to the July 11 full board meeting with a positive recommendation. The motion passed 5-0.
Key Outcomes
- Budget Approved: The committee forwarded the FY 2023-2024 and FY 2024-2025 budget to the full Board of Supervisors with a positive recommendation (5-0).
- Prop C Reallocation Preserved: $60 million in Our City, Our Home funds was preserved for TAY and family homelessness prevention, with $4 million in accrued interest redirected to other priorities.
- Small Business Relief: First-year fee waiver program reduced to one year and forwarded; shared spaces permit fee waiver also reduced to one year.
- Downtown Business Tax Incentive: Gross receipts tax credit limited to downtown zip codes, continued for further consideration.
- Building Code Fees: Temporary 15% fee increase for DBI forwarded.
- Ambassador Grants: Both grant amendments approved.
- Early Care and Education: Sublessor deduction tabled; baseline funding ordinance forwarded.
- All votes were 5-0 unless otherwise noted.
Meeting Transcript
Good morning. Uh, the meeting will come to order. Welcome back. Uh, as we reconvene the recess budget and appropriation meeting from uh Monday, uh, June twenty sixth. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Supervisors Asha Safay and Shaman Walton. Our clerk, it's Brent Halipa. Again, I would like to thank uh Michael Baltazar uh from SFGov TV for broadcasting this meeting. Uh, Mr. Clerk, do you have any announcement? Thank you, Madam Chair, just a friendly reminder for those in attendance. Uh, to please make sure the sounds all cell phones and electronic devices so as to not to interrupt our proceedings here in the chamber. Uh, the board, uh, the board of supervisors and committees are convening hybrid meetings. That'll allow in personal attendance and public comment while still uh providing remote access and public comment via telephone. Uh so public comment for the um for the items on this agenda. Uh, for one and two were satisfied on Monday, and the duration was satisfied uh last Thursday. And uh, but in the event uh we were to open uh we were to reopen public comment. Uh, those attending in person would be allowed to speak first. And uh, those on telephone uh and then we will take those on the telephone line. Uh, if uh if public comment were to be reopened, uh those joining us in person should line up to speak first, and those of the telephone should dial star three to be added to the speaker line. And if you are on your telephone, uh, please remember to turn down your TV and all this thing devices you may be using. Um, and alternatively, you may uh submit public comment in writing in either of the following ways, email them to myself, the budget and appropriations committee clerk at B R E N T. A L I P A at S F G O V dot O R G. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. You may also send your written comments by U.S. Postal Service to our office in City Hall, that's one Dr. Carlton. Be good at place, room two forty-four, San Francisco, California, nine for one oh two. And thank you, Madam Chair. That concludes my announcements. I want to let the public know how we're going to proceed today. Much of the day will be spent working with the controller's office on the final items needed so we may forward a balanced budget package to the full board. At which time we plan to give updates on some of the issues remaining from the from last week's deliberations and also discussions of potential amendments to trailing legislations. After dispensing with that business, we will go back into recess and plan to reconvene approximately every two hours until we get this done. The meeting is now in recession. For our ancestors who have struggled for our freedom, and all others who have dared to define, defend, and develop our interests as a people, we pour for our elders who have helped us give us wisdom, wisdom, and strength for our fathers, mothers who rest in the valley of the departed. We pour for the youth who represent the future. And tomorrow, we pour for remembrance of many women, men, and the human rights struggle. We pour for the new world, we struggle to build. We pour for the principles. As our guide in and out of everyday life, we pour for our I Almighty Creator who makes all things possible. We pour you. For today, Mr. Sean William. Nope. Nope. We are not doing that. Some of y'all acting like you don't have hot comb burns on the back of your neck right now. Acting real uppity. This is our celebration.
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