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Board adopts budget package and approves reallocation of homelessness gross‑receipts tax revenue
Summary
The San Francisco Board of Supervisors voted to finally pass a multi‑year budget and related ordinances and approved a divided ordinance to reallocate previously appropriated homelessness gross‑receipts tax revenue and authorize additional expenditures.
The San Francisco Board of Supervisors on July 22 adopted a package of budget and related ordinances for the coming fiscal years and approved an ordinance reallocating previously appropriated revenues from the city's homelessness gross‑receipts tax to expand services.
The board took final action on the budget and appropriation ordinances and companion measures that together appropriate estimated receipts and expenditures for multiple city departments and set salary and fee changes for fiscal years ending June 30, 2026 and June 30, 2027. The board approved the grouped ordinance items after roll‑call votes. Several items were taken in batches; items 6 through 21 passed on an 11‑0 vote and the remaining budget ordinances were passed after separate roll calls.
Why it matters: the ordinances set city spending and staffing levels for upcoming fiscal years and change fee and permit structures across multiple departments. One contested element — an ordinance authorizing the reallocation and expanded use of homelessness gross‑receipts tax revenues — required a divided vote and a supermajority for passage.
On the homelessness item (ordinance item 25), the board considered a divided question. Section 4 of that ordinance (the divided portion) passed 8‑3, with Supervisors Fielder, Walton and Chen voting no. On the remaining balance of the ordinance the board voted 11‑0 in favor, and with both votes the ordinance as a whole was finally passed. The ordinance authorizes reallocation of approximately $34,800,000 in previously appropriated revenue and unappropriated earned interest, allows the city to use homelessness gross‑receipts tax revenues through fiscal year 2026‑27 for certain homelessness services where future revenue to the fund exceeds amounts already appropriated, authorizes expansion of up to $19,100,000 of additional revenues and interest for programs addressing homelessness, and temporarily suspends the limit on funding for short‑term rental subsidies, among other provisions. The clerk noted the item requires at least eight affirmative votes pursuant to the business and tax regulations code.
Other fiscal measures adopted included emergency and fee changes for departments across public works, parks, building inspection, and public health, authorization for water revenue bonds estimated at roughly $1.1 billion for the Public Utilities Commission, and appropriations and deappropriations for capital projects. Several grant acceptances and contract amendments were adopted as resolutions on the consent calendar.
The board approved the meeting minutes and consent items earlier in the session, and the clerk recorded the roll calls for each ordinance and resolution. No additional amendments to the budget package were taken on the floor after the votes recorded in the clerk's roll calls. The ordinances were recorded as finally passed during the meeting.
The board’s final passage of the budget ordinances and the homelessness revenue reallocation moves those funding decisions forward; departments will implement the authorized appropriations as directed by the ordinances and the mayor’s budget office.
