San Mateo finance director outlines FY25-26 proposed budget, warns of recurring shortfall and $352M of unfunded capital needs

Finance Director Karen Hwan presented the City of San Mateo's fiscal year 2025-26 proposed budget and five-year capital improvement program on June 2, 2025, calling attention to a multi-year structural shortfall and an extensive list of unfunded capital needs.

"Tonight, I'm here to present the fiscal year 2025, 26 proposed budget and the 5 year capital improvement plan," Hwan told the council. Her staff later published the full proposed budget in the agenda packet.

Why it matters: Hwan said the city faces a structural funding gap because key tax revenues are flat or constrained, and the state's distribution mechanism for vehicle license fees (VOF) is uncertain. The proposed citywide budget totals about $333.5 million for FY25-26; the general fund budget projects $187.7 million in expenditures and $172.5 million in revenue. After planned contributions to capital and other uses, staff…