Budget and Appropriation Committee Meeting – June 17, 2026
Budget and Appropriation Committee Meeting – June 17, 2026
The Budget and Appropriation Committee, chaired by Supervisor Connie Chan, met on June 17, 2026 to consider 18 items of trailing legislation accompanying the mayor’s proposed budget. The committee voted on most items, with several amendments and continuances.
Discussion Items
Item 1: First Year Free Program Extension (Ordinance)
- Supervisor Sherrow presented an ordinance to extend the first-year fee waiver for new small businesses through June 30, 2027 or until funds are exhausted. The program has enrolled over 14,000 businesses. $2.5M was appropriated, with $2.4M spent; OEWD transferring $880k from commercial vacancy tax revenues to cover pipeline businesses. Average fee waiver is $1,100 per business. A non-substantive amendment was adopted to allow expiration on the earlier of June 30, 2027 or 30 days after all funds are drawn down.
- Public comment: None.
- Vote: 4-0 (Mandelman absent) to amend; 4-0 to refer to full board.
Item 2: Chinatown Branch Library Renovation Grant (Resolution)
- The library presented acceptance of up to $1.5M in cash and in-kind from Friends of the San Francisco Public Library for furnishings and equipment. Temporary library at 950 Grand Avenue during construction. Groundbreaking expected fall 2026.
- Public comment: Emily Garvey (Executive Director of Friends) expressed support.
- Vote: 4-0 (Mandelman absent) to refer.
Items 3-5: Health Code Patient Rates, Admin Code Fees, and State Grants
- DPH presented combined ordinances: amending health code to set patient rates for FY26-27 and FY27-28 (maximizing revenue from insurers), increasing certain utility meter fees, and accepting ~$85M in recurring state grants (including $10M for behavioral health bridge housing, $9M for substance abuse treatment). Financial assistance programs remain.
- Public comment: None.
- Vote: 4-0 (Mandelman absent) to refer all three items.
Items 6 & 7: Elections Code Amendments
- Item 6 (increasing ballot argument filing fees): Tabled at mayor’s office request. Fee remains unchanged.
- Item 7 (removing full legal text from voter information pamphlet and allowing director to format without ballot simplification committee approval): Continued to the call of the chair after extensive public opposition and supervisor concerns about voter access, preservation, and cost savings of approximately $330,000 per election.
- Public comment: Speakers Heather Davies, Eileen Bogan, Sani Yangulo, Kristen Evans, and Michelle Martz opposed both items, citing democratic access, checks and balances, and disproportionate impact on low-income communities.
- Votes: Table item 6: 5-0. Continue item 7: 5-0.
Items 8 & 9: Administrative Provisions of AAO and ASO (Hearings)
- BLA presented changes including a behavioral health services fund, more frequent reviews of inactive funds (section 12.10), and a $98M emergency housing revenue risk reserve. Committee voted to revert section 12.10 to existing language and correct a typo.
- Public comment: None.
- Vote: 5-0 to hear and file both items.
Items 10 & 11: CPI Adjustment and Neighborhood Beautification Fund
- Controller’s office presented adjustments. Access line tax increased by CPI of 3.04% (from $4.36 to $4.49 per line). Neighborhood beautification fund (Community Challenge Grant) maximum contribution set at 6.2% of gross receipts tax liability, estimated to generate $2.8M.
- Public comment: None.
- Vote: 5-0 to refer.
Item 12: Surety Bond Fund Amendments (Ordinance)
- City administrator’s office presented ordinance to allow pausing, reducing, or returning annual contributions to the self-insurance surety bond fund. Fund balance is $4.3M; minimum $2M required.
- Public comment: None.
- Vote: 4-0 (Mandelman absent) to refer.
Items 13 & 14: Proposition J Contracting Out Resolutions
- Item 13 (11 previously approved services): Approved 5-0.
- Item 14 (3 new services – adult probation security, DPH security, DPW materials testing lab): The committee amended the original file to remove the DPW lab services, then approved the remaining two services 5-0. A duplicate file containing only the DPW lab was continued to the June 18 meeting for further discussion about costs and feasibility. Extensive public comment from DPW lab workers and union representatives (over 15 speakers) opposed outsourcing, citing loss of institutional knowledge, safety risks, higher long-term costs, and a petition with 575 signatures. Chair Chan expressed intent to work with the mayor’s office to maintain the city lab.
Item 15: Golden Gate Park Polo Field Concerts Extension (Resolution)
- Recreation and Park Department presented an amended permit for Another Planet Entertainment to hold ticketed concerts (50,000-57,000 attendees) on the weekend before or after Outside Lands, 2027-2029, with options to extend to 2035. Minimum permit fee $1.5M (2-day) or $2.3M (3-day) per year. A 2024 economic impact study found $37.8M from the Zach Bryan concert alone and $245M total from summer concerts. Community benefits include $30k to D1 and D4 each from Outside Lands, $10k per district for polo concerts, free Muni, shuttle service, and free concerts downtown.
- Public comment: Numerous supporters (residents, small business owners, vendors) emphasized economic benefits and Another Planet’s stewardship.
- Vote: 5-0 to refer.
Item 16: Early Care and Education Baseline Modification (Ordinance)
- Department of Early Childhood presented an ordinance to modify baseline funding requirements to use interest earned from the early care and education commercial rents tax ($16.9M in FY26-27, $16.65M in FY27-28). Baseline spending remains ~$87M. Chair Chan noted this is a continuation of past practice to address budget deficits, with a long-term goal to stop using interest.
- Public comment: Several speakers from Parent Voices and community organizations urged protecting Prop C funds and expanding access for children with special needs and non-traditional hour care.
- Vote: 5-0 to refer.
Items 17 & 18: Homelessness Gross Receipts Tax – Cap Suspension and HSH Expenditure Plan
- HSH presented an ordinance to suspend the 12% cap on short-term rental subsidies for FY26-27 and FY27-28 to allow 800 new subsidies (350 families, 250 adults, 200 youth). Cost: $33.6M in FY27, $47.5M in FY28. Also approved the HSH fund expenditure plan ($23.1M in FY27, $23.4M in FY28). A $98M reserve was established to address potential federal funding loss. Chair Chan supported immediate rapid rehousing and suggested future use of the reserve for longer-term subsidies when capacity allows.
- Public comment: Many advocates and families urged long-term subsidies, citing instability and out-of-county placements. Coalition on Homelessness, Parent Voices, and community members spoke in favor of permanent housing solutions.
- Vote: 5-0 to refer both items.
Key Outcomes
- All items forwarded to the July 14, 2026 full Board of Supervisors meeting, except item 7 (continued to call of chair) and the duplicate of item 14 (continued to June 18, 2026 committee meeting).
- Item 6 (ballot argument fees) tabled permanently.
- Item 14 (DPW materials testing lab) removed from original file and will be reconsidered on June 18; committee signaled intent to maintain the city lab.
- Several items passed with amendments (Items 1, 8, 14).
- Votes throughout the meeting were unanimous (4-0 or 5-0) where recorded.
Meeting Transcript
Good morning. The meeting will come to order. Welcome to the June 17, 2026 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 members supervisors Danny Sauter and Shaman Walton. President Rafael Mandelman will be joining us shortly. Our clerk is Bretton Haliba. I would like to thank Jamie Avercherry 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 again 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. When your vice 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 required to provide public comment. Um 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 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.org 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 two forty-four, San Francisco, California, 94102. And finally, hacked uh items acted upon and referred out of committee today are expected to appear with the first appearance of the budget on the full board of supervisors agenda of July 14th, unless otherwise stated. Madam Chair. Thank you. And um, we call the items on today's agenda. First that these are actually what we identify as trailing legislation, which actually uh typically goes with the budget. Uh it means that any amendments to the legislation is a conversation with the mayor and um and his budget office and team. Um and it will require a conversation and agreement to come to amend these legislation. That with that also is each item will also be allowed for public comment and has indicated that today uh with this committee the public comment is limited to one minute. Um, and of course, for those item that has budget and legislative analyst report, as usual. We will have department presentation first, followed by the budget and legislative analysts. Then we'll we'll have questions and comments from this body, then we will proceed to public comment. Um, and so with that, Mr. Clerk, please call item number one. Yes, item number one is an ordinance amending the business and tax regulations code to extend through June 30th, 2027 the waiver of certain first year permit license and business. Oh, sorry. Um is that right? I'm sorry, one second. Leave that in the wrong notes. It is. It is an ordinance awarding the business and tax regulations goes to extend through June 30th, 2027, the waiver of certain first year permit license and business registration fees for specified small businesses that newly form or that opening new location. Madam Chair. Thank you, Mr. Clerk, and uh would like to welcome uh Supervisor Steven Sherrow to the chamber and joining this committee, and you're welcome to have your remark. Well, good morning, um colleagues. Thank you, Chair Chan, uh Vice Chair Dorsey, committee members for hearing this item today. Um, this ordinate extends ordinance extends the uh the city's first year free program, which is set to expire on June 30th, after which new small businesses uh will face significant cost increases when attempting to open new storefronts in the city. Um I introduce this ordinance because I believe it's vital uh that we extend the program. Investing in our small businesses not only helps our merchant corridors and economy, but injects life and vibrancy into our neighborhoods citywide.
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