The San Francisco City Council convened on July 4, 2025, to discuss critical budgetary matters concerning the allocation of funds under the "Our City, Our Home" (OCO) legislation, particularly focusing on transitional age youth (TAY) and family services. The meeting highlighted significant financial adjustments and the implications of these changes on the city's homelessness strategy.

The discussion began with clarifications regarding the funding amounts, specifically a one-time reduction of $20.6 million in the first year of the budget, which would impact the TAY and family programs. Officials noted that while the Prop C funds are constrained in their use—excluding shelter and drop-in centers—the budget proposal aims to reallocate existing funds to enhance prevention and housing solutions for TAY youth and families.

A key point raised was the city's $66 million fund balance earmarked for housing acquisitions, which officials believe could support two Homekey projects. However, concerns were expressed about the sustainability of these funds, given the uncertain revenue projections from the comptroller's office. The second year of the budget is expected to align with the original voter-approved allocations, ensuring that new revenue will be distributed according to the OCO guidelines.

Commissioners voiced apprehensions about the potential deviation from the commitments made to voters regarding the use of Prop C funds. They emphasized the importance of prioritizing youth and family services to prevent long-term homelessness, arguing that any reallocation of funds could undermine the original intent of the legislation.

The meeting also addressed procedural aspects of the budget process, noting that the mayor's office had proposed changes that had not been previously discussed with the Oversight Committee. This raised questions about transparency and the decision-making process surrounding the budget allocations.

In conclusion, the council agreed on the necessity for further hearings to gather public input on the proposed budget changes, particularly regarding their impact on vulnerable populations. The discussions underscored the ongoing challenges in balancing budgetary constraints with the urgent need for effective homelessness solutions in San Francisco.