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Record of Proceedings

Budget and Appropriation Committee Hearing on Mayor's Proposed Budget for Enterprise and Self-Funded Departments - May 13, 2026

Budget and Appropriations Committee — Wednesday, May 13, 2026
BodySan Francisco, California
SessionBudget and Appropriations Committee
DateWednesday, May 13, 2026
StatusFILED
Video Record
0:00 / 3:08:44
Transcript — Verbatim
0:18

The meeting will come to order.

0:19

Welcome to the May 13, 2026 meeting of the budget and appropriation committee.

0:24

I'm Supervisor Connie Chan, Chair of the Committee.

0:27

I'm joined by Vice Chair, Supervisor Matt Dorsey and members Supervisor Danny Souter, Supervisor Shaman Walton, and our clerk is Brent Hutt Lipa.

0:37

I would like to thank Kalina Mendoza from Essekov TV for broadcasting this meeting.

0:46

Mr.

0:46

Clerk, do you have any announcements?

0:48

Thank you, Madam Chair.

0:49

Just a friendly reminder to those in attendance to please silence all cell phones and electronic devices to prevent interruptions to our proceedings.

0:56

Should you have any documents to be included as part of the files, they should be submitted to myself, the clerk.

1:01

Public comment will be taken on each item on this agenda.

1:04

When your item of interest comes up and public comment is called, please line up to speak on the west side of the chamber to your right, my left along those curtains.

1:12

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 the doors if you wish for your name to be accurately recorded for the minutes.

1:23

Alternatively, you may submit public comment in writing in either of the following ways.

1:27

Email them to myself, the budget and appropriations committee clerk at Br ENT.j SFGO V dot or G.

1:38

If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file.

1:45

You may also send your written comments via U.S.

1:47

Postal Service to our office in City Hall at 1.

1:50

Dr.

1:51

Carleton be good at place.

1:52

Room 244, San Francisco, California, 94102.

1:56

And thank you, Madam Chair.

1:57

Then that concludes my announcements.

2:00

Thank you, Mr.

2:00

Clerk.

2:01

And before we start, we will need to excuse President Rafael Mendelman.

2:06

Um like to move to excuse him.

2:09

Second by Vice Chair Dorsey and roll call, please.

2:15

And on that motion, do we excuse Supervisor Mandelman for attending today's meeting?

2:20

Moved by Chair Chan, seconded by Vice Chair Dorsey.

2:23

Vice Chair Dorsey.

2:24

Dorsey, I.

2:25

Member Sauter.

2:26

Sauter, aye.

2:27

Member Walton.

2:28

Aye.

2:28

Walton, aye.

2:30

Chair Chan.

2:31

Aye.

2:31

Chan, I.

2:32

We have four eyes.

2:33

Thank you.

2:33

The motion passes.

2:35

And um before we start and call the um items today, I would like to limit public comments to one minute.

2:45

And with that, uh Mr.

2:47

Clerk, please call items one, two, and three together.

2:50

Item numbers one through three.

2:52

Item one is our hearing to consider the mayor's May proposed budget for the Airport Commission, Board of Appeals, Department of Building Inspection, Planning Department, Child Support Services, Department of the Environment, Law Library, Municipal Transportation Agency, Port, the Public Library, the Public Utilities Commission, Rent Arbitration Board and Retirement System as of May 1st, 2026 for fiscal years 2026 to 2027 and 2027 to 2028.

3:21

Item number two is the proposed appropriation ordinance appropriating all estimated receipts and all estimated expenditures of the aforementioned departments, and item number three is the proposed annual salary ordinance, enumerating positions in the same.

3:35

Madam Chair.

3:37

Thank you.

3:38

And I before we start our department presentations, I would like to make just brief remarks, colleagues, and kind of set the tone for today.

3:46

It is the beginning of the budget process, and in the even numbers, uh years, we consider um certain department budgets, including our four enterprise agencies, uh, in the month of May.

3:59

This give us additional opportunity to review these budgets and city spending, ensure we're equitably and efficiently delivering critical public services.

4:08

Earlier this year, the Board of Supervisor unanimously passes a budget process motion that lay out our guiding principles as we evaluate a city budget by prioritizing services for the most vulnerable, including our immigrants, LGBTQ community, seniors and people with disabilities, children and youth, tenants and in-house people, BIPOC and African American communities and working families.

4:33

We also lay out the areas of the city budget and process.

4:38

We would scrutinize it.

4:40

We would be scrutinizing in order to help close our budget deficits, reviewing vacancies across all departments, including the ratio of management positions in to frontline workers, leveraging federal and state funding, reviewing large contract and administrative process, and reducing administrative and non-personnel costs.

4:59

Invest in oversight to root out wasteful and wasteful spending and corruption and streamlining capital costs.

5:12

Today we start that process review, starting that process by reviewing with uh basing on these principles and priorities.

Discussion Breakdown — Share of Meeting
Budget and Finance███████████████████████████████31%
Technology and Innovation█████████████████17%
Miscellaneous███████████████15%
Transportation██████6%
Energy Management█████5%
Engineering And Infrastructure█████5%
Property Lease█████5%
Procedural████4%
Public Safety████4%
Summary of Proceedings

Budget and Appropriation Committee Hearing on Mayor's Proposed Budget for Enterprise and Self-Funded Departments - May 13, 2026

The Budget and Appropriation Committee, chaired by Supervisor Connie Chan and joined by Vice Chair Matt Dorsey and members Danny Souter and Shaman Walton, convened on May 13, 2026, at 9:45 AM to hear the Mayor's proposed budget for 13 departments for fiscal years 2026-27 and 2027-28. The committee reviewed presentations from department heads, heard public comment, and voted to continue the items to the next meeting.

Public Comments & Testimony

  • Griffin Lee (Connect SF) commented on the MTA budget, noting discrepancies in transit budget percentages presented in different meetings and calling for clearer transparency.

Discussion Items

  • Opening Remarks: Chair Chan outlined guiding principles for budget review, prioritizing services for vulnerable communities and scrutinizing vacancies, management ratios, and administrative costs. Mayor's Budget Director Sophia Kittler introduced the May 1st budget, highlighting SFO's passenger growth and general fund contribution, DBI's full grant portfolio funding, MTA's fiscal discipline and reliance on ballot measures, and the Port's Fisherman's Wharf initiative.
  • Airport (SFO): Director Mike Nakornket reported robust recovery with 98% of pre-pandemic employment. The proposed operating budget is $1.79B (FY27) and $1.95B (FY28). SFO contributes a record $60M annual service payment to the general fund. No new positions proposed; 200+ vacancies being filled. Management is 7% of FTEs. Chair Chan asked about federal immigration enforcement, autonomous vehicles, and labor harmony; Director affirmed sanctuary city policy and partnership with Waymo.
  • Board of Appeals: Legal Assistant Alec Longway presented a small, self-supporting department. Proposed budget decreases slightly due to lower system costs. Filing fees unchanged since 2010; a surcharge analysis is underway.
  • Child Support Services: Director Karen Roy reported $21M delivered to families in FY24-25, fully funded by federal/state revenue. 73 budgeted positions, 77% filled. Demand expected to rise due to cost of living.
  • Department of the Environment: Director Ty presented a complex budget with 86% decline in direct general fund support over five years (from $2.9M to $391K). Clean transportation team reduced from 5 to 1.5 FTE due to cuts. A $200K year-two cut threatens further position elimination. The department brings in $85M in grants but capacity to apply for new grants is diminished.
  • Law Library: Director Diane Rodriguez noted a 37% drop in filing fee revenue since 2008. 80% of civil filings are self-represented. The library serves as the only public law library in San Francisco. A technology position remains vacant due to budget constraints.
  • Public Library: COO Maureen Singleton presented a $400M total budget over two years, with 735 FTEs and 27 branches. Circulation is on track to reach 14.9M, breaking records. Patron satisfaction is 9.0 out of 10. Five branches exceed pre-COVID foot traffic.
  • Municipal Transportation Agency (MTA): Director Julie Kirschbaum described an unprecedented fiscal cliff. The two-year budget protects Muni and Paratransit service, assuming passage of regional and local revenue measures. If measures fail, 30% headcount reduction, 20 route eliminations, and service cuts after 9 PM. The budget eliminates 500+ vacant positions and an additional 54 operating and 35 project positions. Fare increases and efficiency measures are included.
  • Department of Building Inspection (DBI) and Planning: CFO Alex Koskin presented the merger of permitting functions. No direct cost savings; focus on efficiency. Permit modernization with OpenGov is a $5.9M pilot contract expiring September 2026; proposed $7.1M/year for continued implementation. Chair Chan expressed strong concerns about metrics, alternatives, and a letter from the Building Inspection Commission opposing leadership merger. She requested a written response and a backup plan if OpenGov fails.
  • Port: Director Mike and Deputy Director Megan Wallace presented a $234M (FY27) and $188M (FY28) budget. Revenues exceed pre-pandemic levels but expenditures grow faster. $1.9B deferred maintenance. Focus on safety, cleanliness, and 24/7 operations. Illegal vending enforcement task force deployed at over 50 events. Requesting 10 additional FTEs (total 317).
  • Public Utilities Commission (PUC): General Manager Dennis Herrera and Budget Director Anna Dunning presented a $2.2B operating budget. Rate increases: water 7%, wastewater 15% and 14.5%, power 7%, but CleanPowerSF rates down 20-25%. Average single-family bill rises from $160-170 to $180-190 per month. Capital budget focuses on regulatory compliance and system resiliency.
  • Rent Arbitration Board: Executive Director Christina Varner reported 3,861 filings in FY24-25, projected 4,400 this year. 50 FTEs, 49 filled. Annual per-unit fee remains $59 for two years due to fund balance. Department is modernizing case management system.
  • Retirement System (SFERS): CEO Alison Romano reported 97% funded status, $48B in assets, and $62.6M proposed budget. Investment returns exceeded actuarial expectations, saving the city $42.4M in contributions this year. 60% of city employees participate in the deferred compensation plan.

Key Outcomes

  • Motion to Excuse Supervisor Mandelman: Passed 4-0 (Chan, Dorsey, Sauter, Walton).
  • Motion to Continue Items 1-3: The committee voted 4-0 to continue the hearing and both ordinances (appropriation and salary) to the May 20, 2026 meeting for further review.

Meeting Transcript

The meeting will come to order. Welcome to the May 13, 2026 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 Supervisor Danny Souter, Supervisor Shaman Walton, and our clerk is Brent Hutt Lipa. I would like to thank Kalina Mendoza from Essekov 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 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 files, 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 and 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 the doors if you wish for your name 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 Br ENT.j SFGO V dot or 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 1. Dr. Carleton be good at place. Room 244, San Francisco, California, 94102. And thank you, Madam Chair. Then that concludes my announcements. Thank you, Mr. Clerk. And before we start, we will need to excuse President Rafael Mendelman. Um like to move to excuse him. Second by Vice Chair Dorsey and roll call, please. And on that motion, do we excuse Supervisor Mandelman for attending today's meeting? Moved by Chair Chan, seconded by Vice Chair Dorsey. Vice Chair Dorsey. Dorsey, I. Member Sauter. Sauter, aye. Member Walton. Aye. Walton, aye. Chair Chan. Aye. Chan, I. We have four eyes. Thank you. The motion passes. And um before we start and call the um items today, I would like to limit public comments to one minute. And with that, uh Mr. Clerk, please call items one, two, and three together. Item numbers one through three. Item one is our hearing to consider the mayor's May proposed budget for the Airport Commission, Board of Appeals, Department of Building Inspection, Planning Department, Child Support Services, Department of the Environment, Law Library, Municipal Transportation Agency, Port, the Public Library, the Public Utilities Commission, Rent Arbitration Board and Retirement System as of May 1st, 2026 for fiscal years 2026 to 2027 and 2027 to 2028. Item number two is the proposed appropriation ordinance appropriating all estimated receipts and all estimated expenditures of the aforementioned departments, and item number three is the proposed annual salary ordinance, enumerating positions in the same. Madam Chair.

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