Supervisors hear controller's 9‑month budget report; FEMA reimbursements and proposed layoffs dominate public comment

The Budget and Appropriations Committee on June 4 heard the controller's nine‑month budget status report showing an estimated $32.7 million net shortfall in general fund discretionary revenues for fiscal 2024–25, and received extensive public comment urging the Board of Supervisors to avoid layoffs and preserve community programs.

Michelle Elersema, a budget analyst in the Controller's Office, told the committee the nine‑month results largely continued the trends reported at six months: revenue weakness in hotel and some sales taxes, offset in part by stronger business tax receipts and some recovery in real property transfer taxes. The controller's office reported a $145 million net operating surplus across departments driven partly by patient revenue at the Department of Public Health and salary savings from restrained hiring. The office also identified a roughly $11 million shortfall at the Sheriff's Department and continuing revenue pressure in Planning and Public Works.

The report noted a major uncertainty tied to FEMA reimbursements for non‑congregate sheltering during the pandemic, including shelter‑in‑place (SIP) hotel costs. Elersema said the city submitted about $410 million in non‑congregate shelter expenses, has been reimbursed about $148…