Budget and Appropriations Committee Meeting on Financial Plan and Community Funding - April 23, 2025
Budget and Appropriations Committee Meeting on Five-Year Financial Plan and Community Development Funding - April 23, 2025
The San Francisco Board of Supervisors Budget and Appropriations Committee held a regular meeting on April 23, 2025, chaired by Supervisor Connie Chan. The committee heard two major items: a five-year financial plan update and a detailed review of proposed funding reductions for community development programs, including civil legal services, gender-based violence services, and community building. The meeting featured extensive public testimony from over 70 speakers, many of whom shared personal stories of how proposed cuts would impact their lives.
Discussion Items
Item 1: Five-Year Financial Plan Update and Mayor's Budget Instructions
The committee heard from Mayor's Budget Director Sophia Kitler and the Controller's Office. The March 2025 update showed an $817.5 million shortfall over the next two years, an improvement of $58.5 million from the December 2024 report, but with continued structural deficits exceeding $1 billion over five years. Key revenue changes included increased business tax projections (14% rise in worldwide sales), lower hotel and sales tax forecasts, and reduced FEMA reimbursement expectations. The Mayor's office has instructed departments to reduce the structural deficit by about one-third. Director Kitler noted significant uncertainty from federal policy changes, including potential impacts on Medicaid, food stamps, and immigration enforcement rhetoric damaging hotel tax. The Mayor's office is using four levers: reviewing federal grants, essential contracts, vacancies, and as a last resort, filled positions. Supervisor Walton asked whether the state's May revise would bring good news; Director Kitler responded "I wouldn't count on it." The committee voted 5-0 to hear and file the item.
Item 2: Funding for Community Collaboration, Community Building, Domestic Violence, Financial Capability, and General Legal Services
The committee heard from Dan Adams, Director of the Mayor's Office of Housing and Community Development (MOHCD), and Deputy Director Julia Savori. MOHCD manages community development programs funded primarily through general fund (38% of total grant making). The department received 300 proposals totaling $198 million in requests, nearly double available funding. After initial budget reductions and additional cuts, the department reduced an $11 million reduction target to roughly $5 million by eliminating 11 positions and moving programs to off-budget sources. Key recommendations: maintaining flat funding for immigrant legal services, eviction prevention, and gender-based violence services; but eliminating funding for general civil legal services, financial literacy, and community building portfolios. The department acknowledged additional reduction targets of about $2 million received the prior week, with no proposal yet on how to address them. Supervisor Chen noted District 11 would be disproportionately impacted, with 95% of clients extremely low-income, 71% primarily non-English speaking, and 61% over age 60. Supervisor Engardio stressed the importance of looking beyond neighborhood facades and the cost-effectiveness of early legal intervention. Supervisor Walton asked about conversations with the Mayor's office for restoration; Director Adams said they are in frequent conversation but have no full view of overall budget dynamics. The committee voted 5-0 to hear and file the item.
Public Comments & Testimony
Over 70 members of the public testified, the majority opposing the proposed cuts. Key themes:
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General Civil Legal Services: Speakers from Open Door Legal, Justice and Diversity Center, Bay Area Legal Aid, and others testified that cutting these services would increase homelessness and cost the city more in the long run. Several clients shared stories of how free legal aid prevented eviction, secured benefits, or stopped domestic violence. One speaker noted that each homeless individual costs $80,000 per year, while preventing homelessness through legal aid costs far less. Open Door Legal faces a $2.2 million cut (one-third of its budget), which would force layoffs of 15 attorneys and close at least one office, reducing client representation by 900 per year.
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Gender-Based Violence Services: Speakers from the Cooperative Restraining Order Clinic (CROC), St. James Infirmary legacy programs, Lion Martin Community Health Services, Freedom Forward, and others described cuts to restraining order legal services, street outreach to sex workers, and youth trafficking prevention. CROC's coordinating attorney said 516 domestic violence survivors and their children would lose legal services. The sex worker outreach program (late-night van) faced a $500,000 cut, jeopardizing the only program of its kind for black and brown trans sex workers. Freedom Forward's Hype Center, the only drop-in center preventing commercial sexual exploitation for youth 14-24, would lose 85% of its budget. Several survivors testified that CROC helped them obtain restraining orders that saved their lives.
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Community Building and Financial Capability: Speakers from Soma Pilipinas, the Latino Parity and Equity Coalition, and the LGBT Center emphasized that community building grants are essential infrastructure for organizing, cultural preservation, and coordinating services. The Filipino community described how community building funds supported language classes, anti-displacement work, and cultural events. Financial coaching programs at the LGBT Center and others would be eliminated, affecting clients working toward financial stability.
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Workforce Development: Joe Wilson from Hospitality House urged prioritizing neighborhood job centers and earn-and-learn programs, noting that the locus of suffering is concentrated in six to eight zip codes.
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Public Safety: A police officer testified that he gives referral cards to CROC and other services, and cutting them would undermine his ability to help victims.
Key Outcomes
- The committee voted 5-0 to hear and file both agenda items.
- Chair Chan noted that this hearing is a start, and further budget hearings will follow as the Mayor proposes his budget by June 1, 2025.
- Supervisor Chan stated the committee shares a commitment to preventing homelessness and that civil legal services are critical. She urged continued dialogue with the Mayor's office and community partners.
- The committee acknowledged the unprecedented fiscal uncertainty at the federal level and the need to protect the city's most vulnerable residents.
Meeting Transcript
Good afternoon. The meeting will come to order. Welcome to the tw April 23, 2025 meeting of the Budget and Appropriation Committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair, Supervisor Matt Dorsey and members, Supervisors Jo and Guardio, Shaman Walton, and welcome to Supervisor Cheyenne Chen, who is substituting for President Rafael Mandelman today. Our clerk is Brent Halipa. And I would like to thank uh Colina Mendoza from SFGov TV for broadcasting this meeting. Mr. Clark, do you have any announcement? Uh yes, Madam Chair. Just a friendly reminder to those in attendance to please make sure to silence all cell phones and electronic devices to prevent interruptions to our proceedings. And should you have any documents to be included as part of the file, they should be submitted to myself, the clerk. Public comment will be taken on each item on this agenda. And when uh your item of interest comes up in public comment is called. Please line up to speak on the west side of the chamber to your right, my left along those curtains. And while not required to provide public comment, we do invite you to fill out a comment card and leave them on the trade by the television to your left by those doors. If you wish to be accurately recorded for the minutes. Alternatively, you may 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 dot J 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 via U.S. Postal Service to our office in City Hall at one, Dr. Carlton be good at place. Room 244, San Francisco, California, 94102. And uh I do realize it is a uh very busy chamber, but uh we do have a rule about standing in the chamber. So if we could have the uh like those who have joined us today to be seated, it would be very much appreciated. Thank you much. Madam Chair. Thank you, Mr. Clark, and giving the constraints of all five members uh of uh this committee um of in terms of schedules as to ensure that we have consistently quorum and also to accommodate everybody to that seeing to see that there's a numbers of members of public come out today and probably also looking forward to hearing from you and your public comments. We will be uh limited to one minute for public comment today so we can get to everybody, but also for all the members to be present to hear all the public comment. Um and so with that, Mr. Clark, please call item number one. Okay, ahead of that may I have a motion to excuse um member Mandelman. Uh yes, a motion to excuse President Mandelman and the roll call. Uh oh thank you. Second Vice Supervisor Walton and the roll call, please. And on the motion to excuse Supervisor Mandelman from attending today's meeting. Vice Chair Dorsey. I Dorsey, aye, member and Guardio and Guardio, I. Member Walton, Walton, I. Member Chen. Chen, I. Chair Chan. Aye. Chan, I. We have five eyes. The motion passes. And with that, Mr. Clark, please call item number one.
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