The City of San Francisco held a government meeting on July 4, 2025, focusing on the departmental budget submission for fiscal years 2024, 2025, and 2026. The chief of finance and administration led the discussion, expressing gratitude to the finance and budget team for their contributions during a challenging budget process.

The meeting began with an overview of the budget development process, which included stakeholder input meetings. The chief highlighted the city's significant two-year general fund deficit, driven by declining revenues and slow growth in major tax areas. The mayor's budget instructions called for a 10% ongoing general fund reduction for the Department of Homelessness and Supportive Housing (HSH), amounting to $27 million, along with a potential 5% contingency reduction of $13 million.

The chief emphasized the department's commitment to maintaining current programming while exploring ways to reallocate funds and leverage federal and state resources. A significant revenue source for the budget, the homelessness gross receipts tax, is projected to experience a shortfall of approximately $134.3 million over the next three years, with HSH's share being about $100 million.

The proposed budget reflects year-over-year reductions, primarily due to declining revenue sources. The adopted budget was initially set at $113 million but is now reduced to $689.4 million, with further reductions anticipated in the following year. Despite these challenges, a small increase in the general fund is expected, reflecting a 3% cost of doing business increase for community-based providers.

The chief concluded by noting that the budget proposal aims to balance revenue shortfalls while addressing the needs of housing providers. The final balancing of the budget is ongoing, with adjustments expected through the weekend. The meeting underscored the city's efforts to navigate financial constraints while prioritizing essential services.