The City of San Francisco held a government meeting on July 4, 2025, to discuss the proposed budget for the upcoming fiscal year, focusing on funding allocations and challenges related to homelessness services. The meeting highlighted a budget of $689 million, with a significant portion directed towards contracted community-based organizations (CBOs) aimed at increasing housing stability and supporting the homeless population.

The discussion began with an overview of the budget's structure, noting that approximately 60% of the funds are allocated to housing initiatives, while 19% is dedicated to shelter and crisis interventions. The budget also includes 9% for homelessness prevention and a small percentage for outreach and administrative costs. Notably, the budget does not propose new services or enhancements, maintaining a status quo approach to professional services and capital expenditures.

A critical point raised during the meeting was the anticipated decline in revenue sources, particularly a reduction of $19.8 million in Prop C funding and a further $13.4 million in the subsequent year. This decline is attributed to a lower revenue target, which has been factored into the budget planning process. The city has also relied heavily on the state's Homeless Housing Assistance Prevention (HAP) grants, which have supported various shelter and outreach programs. However, the HAP funding is expected to diminish, with the current grant cycle concluding soon.

The meeting also addressed the loss of the Encampment Resolution Fund, which has been vital for establishing emergency shelter programs. The city has applied for a new grant under this program and remains hopeful for continued support. Additionally, the CalAIM initiative, aimed at transforming Medi-Cal to be more client-centered, was discussed. While the city partners with health plans to implement this program, it currently subsidizes costs that are not fully covered by CalAIM funds.

In conclusion, the meeting underscored the city's ongoing challenges in addressing homelessness amid declining revenue and the need for strategic planning to sustain essential services. The discussions set the stage for future budget considerations and potential adjustments to ensure continued support for vulnerable populations in San Francisco.