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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Budget and Appropriation Committee Hearing on Mayor's Proposed Budget – June 10, 2026

Budget and Appropriations Committee — Wednesday, June 10, 2026

BodySan Francisco, California

SessionBudget and Appropriations Committee

DateWednesday, June 10, 2026

StatusFILED

Video Record

0:00 / 6:03:57

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:03

Good morning.

0:04

The meeting will come to order.

0:06

Welcome to the June 10 meeting of the budget and appropriation committee.

0:10

I am Supervisor Connie Chan, Chair of the Committee, and I'm joined by Vice Chair, Supervisor Matt Dorsey and members Supervisor Danny Sauter, Shaman Walton, and our clerk, it's Brent Halipa.

0:22

I would like to thank uh Jeanette uh Akinolf uh from SFGov TV for broadcasting this meeting.

0:30

Mr.

0:31

Clark, do you have any announcement?

0:33

Thank you, Madam Chair.

0:34

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

0:41

And should you have any documents to be included as part of the file, it should be submitted to myself the clerk.

0:46

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

0:49

When your out 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.

0:57

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.

1:05

If you 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.

1:13

Email them to myself, the budget and appropriations committee clerk at B R E N T.j.

1:20

at SFGO V dot ORG.

1:22

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

1:29

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

1:31

postal service to our office in City Hall at one.

1:34

Dr.

1:34

Carlton because the place room 244, San Francisco, California, 94102.

1:40

And finally, items acted upon today, are expected to appear on the board of supervisors' agenda of June 16th, unless otherwise stated.

1:47

Madam Chair.

1:49

Thank you, Mr.

1:50

Clerk.

1:51

Before we start, we will need to excuse President Raphael Mendelman, and I would like to make the motion to excuse him.

2:00

Second.

2:00

Second by Vice Chair Dorsey and a roll call, please.

2:04

And on the motion, excuse Supervisor Manelman from attending today's meeting.

2:09

Seconded by Vice Chair Dorsey.

2:11

Vice Chair Dorsey.

2:12

Dorsey, I.

2:13

Member Sauter.

2:14

Sauter, aye.

2:15

Member Walton.

2:16

Walton, aye.

2:17

Chair Chan.

2:18

Aye.

2:18

Chan I.

2:19

We have four eyes.

2:20

The motion passes.

2:22

And also would like to announce that today's for today, the public comments will be limited to one minute.

2:30

And so with that, Mr.

2:32

Clerk, please call item number one.

2:34

Yes, item number one is our hearing to discuss the controller's nine-month budget status report for fiscal year 2025 to 2026.

2:42

Madam Chair.

2:43

Thank you.

2:43

And today we have the controller's office here.

2:48

Good morning, supervisors.

2:50

Michelle Ellersma from the controller's office.

2:52

This is our final update on the current fiscal year's operating performance.

2:57

We have a short slide deck.

3:00

Thank you.

3:04

In general, uh approvement of $54 million from the last time we came to you to talk about the current fiscal year, which part of two-thirds of which gets applied to the budget that you will consider later today.

3:18

Overall, the improvement in revenue from the last time we came is $53 million.

3:23

And we have some department surpluses in the Department of Public Health and Human Services agency largely.

3:30

You have heard all of this year's overtime supplementals with the exception of the Sheriff's Department, which is on 30-day hold.

3:38

And we'll come to you later this month, or I believe.

3:45

Very quickly, looking at the green box all the way to the right hand side, you can see the citywide revenue improvement.

3:51

That's really our tax revenue.

Discussion Breakdown — Share of Meeting

Budget and Finance█████████████████████████████████████37%

Miscellaneous██████████████14%

Procedural█████████9%

Engineering And Infrastructure████████8%

Economic Development██████6%

Technology And Infrastructure█████5%

Personnel Matters█████5%

Public Health████4%

Audit And Compliance████4%

Summary of Proceedings

Budget and Appropriation Committee Hearing on Mayor's Proposed Budget – June 10, 2026

The Budget and Appropriation Committee, chaired by Supervisor Connie Chan and joined by Vice Chair Matt Dorsey and members Danny Sauter and Shaman Walton, convened on June 10, 2026, to review the controller's nine-month budget status report, the revenue letter for fiscal years 2026-2028, the Office of Community Investment and Infrastructure (OCII) budget, and the mayor's proposed city budget for fiscal years 2026-2027 and 2027-2028. The meeting included presentations from multiple departments, public testimony, and a series of votes. The committee heard and filed reports, forwarded resolutions to the full board, and continued consideration of the mayor's proposed budget and appropriation ordinances to June 11, 2026.

Consent Calendar

No consent calendar was presented. All items were discussed individually.

Public Comments & Testimony

Gabriela Cascianos Rumble spoke on health equity and dental coverage impacts from HR1, urging attention to children's oral health.
Marie Jobling (Dignity Fund Coalition) urged preservation of senior services, noting that many seniors rely on Social Security and fixed incomes.
Janet Crane and Jack Willen Zimmer Jones (Next Village) opposed cuts to District 2 University and senior workforce programs, arguing they prevent isolation and reduce costly city services.
Kate Cookrow (Community Living Campaign) urged restoration of a $500,000 cut to the SF Reserve workforce program for older adults and people with disabilities.
Ugo Baldasari, Kathy Spenceley, Marty Garcia, Marvin Ronquillow, and others (Felton Institute) spoke in support of senior workforce programs (CSEP, Back to Work), stating that cuts would shift costs to more expensive services and that the programs pay for themselves through tax revenue.
Christina Irving (Dignity Fund Coalition) urged rejection of cuts to older adult services, emphasizing that the city has already suspended dignity fund allocations.
Jeanette Longton (HSS EAP counselor) opposed elimination of internal EAP positions, disputing the claim that counselors do only 20% of the work.
Damon, Josephine Wong, Chris Kennedy, Kurtising, Wallace Hall, Francis, Rob Urbanessis, Sean Stoggy McManus, Jocelyn Cohn, Wallace Lee, Minerva Walston (IFPTE Local 21), and others opposed contracting out the Materials Testing Lab (MTL), citing loss of institutional knowledge, potential loss of state/federal funding, and accountability concerns. They urged rejection of the Prop J certification.
Edith Yamanoha (Felton Institute) supported workforce development programs.
Additional speakers supported senior services and opposed cuts to the dignity fund and workforce programs.

Discussion Items

Controller's Nine-Month Budget Status Report (Item 1): Michelle Ellersma reported a $54 million improvement over the prior forecast, with $53 million in revenue improvement driven largely by transfer tax ($31 million). Overtime supplementals were noted, and the Sheriff's Department supplemental was on 30-day hold. The report sets the stage for the mayor's budget. The committee heard and filed the report.
Revenue Letter (Item 2): Controller Greg Wagner and Carol Lou presented the revenue letter for FY26-27 and FY27-28. They found the mayor's revenue assumptions reasonable. The budget uses $41.4 million (FY27) and $43.5 million (FY28) from the federal/state risk reserve. Risks include up to $700 million downside from potential ballot measures (e.g., Muni funding, transfer tax restriction). The budget makes $300 million progress on the structural deficit, closing a $643 million gap. Chair Chan expressed concern about multiple proposals to set aside funds (housing trust fund, affordable housing guarantee act) amid fiscal uncertainty.
OCII Budget and Bond Authorization (Items 3 & 4): Thor Kazlovski presented the $665 million OCII budget for FY26-27, with $275 million in bond proceeds for affordable housing. Over 70% of housing is for households earning ≤50% AMI. The budget was approved and forwarded to the full board with a correction to the referral date (July 14, 2026).
Mayor's Proposed Budget (Items 5-10): Budget Director Sophia Kittler framed the $16.9 billion (FY27) and $17.2 billion (FY28) budget. It balances a $643 million deficit by eliminating 550 positions, reducing grants/contracts by $75 million, and assuming $80 million in unspecified salary savings in year two. Key priorities: preserving the social safety net (backfilling HR1 losses), clean/safe streets, capital investment, and technology modernization. Departments presented their budgets:
- Assessor Recorder: $43.3M (FY27), $45.1M (FY28); flat staffing vs. record-high assessment appeals (8,000/year).
- Treasurer: $50M budget; $146M in delinquent tax collections, $206M in audit recoveries.
- Department of Technology: $172.5M (FY27); 23 positions eliminated.
- City Administrator: $594M (FY27); $20M in reductions; 4.3M unallocated attrition in year two. Transferring grants for the arts and permit center.
- Health Service System: $17.5M (FY27); 3 positions eliminated (EAP counselors and accountant). Concerns about service ratios.
- Civil Service Commission: Lean budget; retaining FTEs; addressing appeals backlog.
- Department of Human Resources: $164M; 13 FTE eliminated (2 layoffs).
- Department of Elections: $22.1M (FY27); no program cuts.
- Controller's Office: $86.2M (flat); 12 FTE eliminated (5 layoffs).
- Human Services Agency: $1.38B; $10.5M in reductions; 31 FTE eliminated (9 layoffs). Child care drop-in services cut.
- Ethics Commission: Budget reduction; 2 positions eliminated (1 layoff); warning of reduced compliance training and support.
- Public Works: $428.5M operating; 4 management positions eliminated; $41M additional capital for paving and curb ramps. Contracting out Materials Testing Lab under Prop J certification.
- Clerk of the Board: No new requests; approved as is.

Key Outcomes

Item 1: Motion to hear and file the nine-month budget status report passed 4-0.
Item 2: Motion to hear and file the revenue letter passed 4-0.
Items 3 & 4: Resolutions approving OCII interim budget and bond issuance (up to $275M) forwarded to the full board with recommendation. Initial vote on Item 4 was rescinded and re-referred to the July 14, 2026 Board of Supervisors meeting; passed 4-0.
Item 5: Motion to hear and file the mayor's proposed budget hearing passed 4-0.
Items 6 & 7: Interim appropriation and salary ordinances forwarded to the full board with recommendation; passed 4-0.
Items 8, 9, 10: The hearing and ordinances for the proposed annual budget and salary ordinance were continued to the June 11, 2026 meeting of this committee; passed 4-0.
The committee acknowledged the need for further review of the mayor's budget and will continue deliberations on June 11.

Meeting Transcript

Good morning. The meeting will come to order. Welcome to the June 10 meeting of the budget and appropriation committee. I am Supervisor Connie Chan, Chair of the Committee, and I'm joined by Vice Chair, Supervisor Matt Dorsey and members Supervisor Danny Sauter, Shaman Walton, and our clerk, it's Brent Halipa. I would like to thank uh Jeanette uh Akinolf uh from SFGov TV for broadcasting this meeting. Mr. Clark, do you have any announcement? Thank you, Madam Chair. Just a friendly reminder to those in attendance to please make sure to sound 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, it should be submitted to myself the clerk. Public comment will be taken on each item on this agenda. When your out 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 those doors. If you 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 B R E N T.j. at SFGO V dot ORG. 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 because the place room 244, San Francisco, California, 94102. And finally, items acted upon today, are expected to appear on the board of supervisors' agenda of June 16th, unless otherwise stated. Madam Chair. Thank you, Mr. Clerk. Before we start, we will need to excuse President Raphael Mendelman, and I would like to make the motion to excuse him. Second. Second by Vice Chair Dorsey and a roll call, please. And on the motion, excuse Supervisor Manelman from attending today's meeting. Seconded by Vice Chair Dorsey. Vice Chair Dorsey. Dorsey, I. Member Sauter. Sauter, aye. Member Walton. Walton, aye. Chair Chan. Aye. Chan I. We have four eyes. The motion passes. And also would like to announce that today's for today, the public comments will be limited to one minute. And so with that, Mr. Clerk, please call item number one. Yes, item number one is our hearing to discuss the controller's nine-month budget status report for fiscal year 2025 to 2026. Madam Chair. Thank you. And today we have the controller's office here. Good morning, supervisors. Michelle Ellersma from the controller's office.

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