Budget and Appropriation Committee continues hearing after six‑month report shows $115M shortfall and $98M departmental surplus

The Budget and Appropriation Committee of San Francisco County on March 5, 2025 received an update from the Controller’s Office on the city’s six‑month budget status showing an estimated current‑year net revenue shortfall of about $115 million, a department operating surplus of about $98 million and a two‑year projected shortfall reduced by roughly $36 million to about $840 million. After discussion, the committee voted 4‑0, with one member absent, to continue the hearing to the call of the chair.

Michelle Eller Smith of the Controller’s Office summarized the report and its drivers. “We are improved from our prior projection by about $36,000,000 which reduces our 2 year projected shortfall by a like amount, so to $840,000,000,” she said. She told supervisors the report updates revenue projections and midyear department operating results and incorporates the full population of assessment appeals filed for tax year 2024.

The report separates a revenue story and an expenditure story. On the revenue side, the Controller’s Office flagged assessment‑appeal refunds, weakness in business tax related to the passage of…