San Francisco BOS Budget and Appropriations Committee Meeting - June 11, 2025
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San Francisco Board of Supervisors Budget and Appropriations Committee Meeting - June 11, 2025
The Budget and Appropriations Committee, chaired by Supervisor Connie Chan, met on June 11, 2025, to consider the Mayor's proposed interim and full budgets for fiscal years 2025-2026 and 2026-2027, along with related trailing legislation. The meeting opened with a special tribute to retiring Budget Analyst Harvey Rose, who served for 52 years. The committee heard presentations from the Mayor's Budget Office, the Controller, and numerous city departments, and took public testimony on budget cuts and program funding. Key votes included forwarding the interim budget to the full board and continuing several items for further discussion.
Consent Calendar
- Items 1-3 (Interim Budget): The committee voted 5-0 to file the hearing on the Mayor's proposed interim budget and forward the interim appropriation and salary ordinances to the full Board of Supervisors for the June 17 meeting.
Public Comments & Testimony
- On Trailing Legislation (Item 10 - First Year Free Program): Moses Corrett (Planning Department employee, personal capacity) expressed concern that the $2.5 million set aside for department reimbursements may be insufficient and could lead to layoffs.
- On Overall Budget (Items 7-9): Numerous city workers and community members spoke against proposed cuts. Key positions:
- Kristen Schumacher (Local 21) presented evidence that restoring six positions in the Assessor's office could generate $17-32 million in additional revenue, enough to avoid all layoffs.
- Maggie Loush (Planning Department staff) argued that layoffs are not necessary and the premise of pain is false.
- Representatives from the Tenderloin Housing Clinic, Central City SRO Collaborative, and Code Enforcement Outreach Program urged full restoration of funding, citing critical services for vulnerable tenants.
- Project Open Hand's Vice President Anna Ayala noted that withholding Dignity Fund dollars would force a reduction of 100,000 meals and cut weekend services.
- Workers' Rights Community Collaborative speakers (La Raza, Chinese Progressive Association) highlighted the program's role in recovering stolen wages for immigrant workers and opposed elimination in FY26-27.
- Lydia Sandoval (Community Ambassador) opposed elimination of the CAP program, noting life-saving interventions.
Discussion Items
- Tribute to Harvey Rose: Supervisors and Controller Greg Wagner praised Rose's independence and legacy. Rose noted his office's role in providing unbiased budget analysis.
- Controller's Revenue Letter (Item 4): Revenue Manager Carol Liu reported that general fund tax revenue grows by $138.8 million in FY25-26 and nearly $300 million in FY26-27, driven by business tax growth. However, the structural deficit remains at ~$700 million for FY27-28. Risks include federal cuts (e.g., FEMA disallowing 97% of $415 million claimed) and potential Medicaid cuts. The budget creates a $400 million federal/state uncertainty reserve.
- OCII Budget (Items 5-6): Executive Director Thor Kaslofsky presented the $620 million budget for the Office of Community Investment and Infrastructure, focusing on affordable housing, parks, and infrastructure in Mission Bay, Transbay, and Hunters Point. The budget includes up to $223 million in bond issuance. The committee forwarded both items to the full board with different dates.
- Department Presentations: The committee heard from the Assessor-Recorder, Treasurer, Department of Technology, Board of Appeals, City Administrator, Health Service System, Civil Service Commission, Human Resources, Department of Elections, General City Responsibility, Controller's Office, Human Services Agency, Department of Building Inspection, Planning Department, Ethics Commission, Department of Public Works, and Board of Supervisors (Clerk). Key themes included:
- Assessor-Recorder: Appeals surged to over 9,000 (from 1,400 average), leading to a reassessment backlog of 14,000 items. The Assessor requested six additional positions to clear the backlog in 2.5 years instead of 5, which could generate tens of millions in revenue.
- Treasurer: Jose Cisneros highlighted $7.4 billion collected annually, $212 million from audits, and the First Year Free program (over 10,500 enrollments, $5 million waived). The department faced four layoffs and 13 vacant position deletions.
- City Administrator: Carmen Chu presented a $611 million budget with $14 million in general fund reductions, including elimination of 30 Community Ambassador positions (sunset) and 3 layoffs at 311. The CAP program will phase out over three years.
- Human Services Agency: Trent Rhorer reported $13 million in general fund savings (25% of discretionary funds), achieved by deleting 81 vacant positions (no layoffs). Cuts include $400,000 to the Workers' Rights Community Collaborative in FY27 and $250,000 to immigrant support grants. The Dignity Fund remains flat at $3 million, causing reduced purchasing power for nutrition services.
- Department of Public Works: Director Carla Short proposed $13.8 million in cuts, including closure of 10 Pit Stop locations and layoffs of two managers. The department deleted 46 positions (44 vacant).
- Ethics Commission: Director Patrick Ford warned that losing four funded positions (three filled) would reduce training, compliance, and policy work. He requested restoration of two positions.
- Board of Supervisors (Clerk): Angela Calvillo requested restoration of cuts and funding for three new 1406 senior clerk positions to handle the surge in assessment appeals, as well as a stipend increase for Assessment Appeals Board members from $125 to $175 per session.
Key Outcomes
- Items 1-3 (Interim Budget): Voted 5-0 to forward to full board (June 17).
- Item 4 (Controller's Revenue Letter): Voted 5-0 to file as heard.
- Items 5-6 (OCII Budget): Voted 5-0 to forward to full board (June 17 and July 8).
- Item 10 (First Year Free Extension): Continued to the call of the chair (4-0, with one absent), after Chair Chan expressed concern about waiving fees while the Treasurer laid off staff.
- Items 11-14 (Trailing Legislation): Voted 5-0 to forward to July 8 full board meeting.
- Items 15-16 (Administrative Provisions): Voted 5-0 to file as heard. The City Attorney agreed to add a sunset date of January 20, 2029, and provide annual reports on gifts accepted under the new section 12.16.
- Item 17 (Assessment Appeals Board Stipend): Voted 4-0 (one absent) to forward to June 17 full board with positive recommendation.
- Meeting adjourned to June 12, 2025, at 10:00 AM.
Meeting Transcript
Good morning. The meeting will come to order. Welcome to the June 11, 2025 meeting of the budget and appropriation committee. I am Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair Supervisor Matt Dorsey and Member Supervisor Joan Guardio, Shaman Walton, and shortly President Rafael Mendelman. Our clerk today is Brent Haliba, and I would like to thank uh Eugene uh Labadia and Jamie Umary from SFGov TV for broadcasting this meeting. Mr. Clerk, do you have any announcements? Thank you, 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. 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. When 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 necessary 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 the 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 Hat 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 the place. Room 244, San Francisco, California, 94102. And thank you, Madam Chair. That concludes my announcements. Thank you, Mr. Clerk. And uh before we call item number one on the agenda today, I would like to invite a very special guest uh to make opening remark um to this body. I certainly hope it's not gonna be the last time he does this, but um we know that we um just very honored to have his presence joining us today. Mr. Harvey Rose, the floor is yours. Thank you very much, uh Chair Chan. Chair Chan and members of the committee, uh I have decided to retire, but I want you to know that it has been an honor and privilege for me to serve the San Francisco Board of Supervisors as their budget analyst for 52 years. As a matter of fact, Chair Chan, I am so old. I knew basket I knew Baskin Robbins when they only had two flavors. My first budget review was uh uh Mayor Joe Aliota's proposed budget in 1971 when Diane Feinstein was serving as the President of the Board. When the Board of Supervisors established the budget analyst office in 1971, the objective was to retain a budget analyst who is totally independent. An objective in reporting the facts to the board and every single Board of Supervisors that I have served over the years has permitted the budget and legislative analysts office to maintain complete independence when we report the facts uh on the on the budget and operations of the city and county apartments, and we very much appreciate that. I want to thank this committee and the full board of supervisors and all prior boards for permitting our office to maintain complete independence, which is essential in order for the Board of Supervisors to get the facts. We are not here to win a popularity contest with the department heads. We are here to make certain that the board has the facts needed to make their crucial decisions. We are committed to continue in this very crucial budget year to provide you with recommendations and save money for the Board of Supervisors and for the taxpayers of the city and county of San Francisco. Our staff and I would be happy to respond to any questions. Thank you, Mr. Rose. And uh I know that uh our controller Greg Ratner probably want to say a few words to that as well. Uh thank you, Chair Chan, Greg Wagner, controller. Um it is uh I would say it's the end of an era. Um, but I think one of the things about Harvey Rose is that he has not only impacted the government, he has made an institutional change that is gonna last. Uh there are a lot of people who make a difference while they're in the government. Harvey has created a foundation for the way our budget process works uh that is gonna last into the future.
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