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DAS director warns federal and state budget moves could cut Medicaid, SNAP and local programs

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Summary

DAS Executive Director Kelly Dearman told commissioners the department is preparing for potential federal cuts to Medicaid and SNAP and local budget pressure that could reduce the department’s discretionary programs by about $1.5 million, with the Dignity Fund at risk.

Kelly Dearman, executive director of the San Francisco Department of Disability and Aging Services, opened the March 5 commission meeting with a budget update that placed concern for upcoming federal and state budget decisions at the center of departmental planning.

Dearman said recent House budget resolutions direct the House Energy and Commerce Committee to identify $880 billion in cuts over 10 years and the House Agriculture Committee to identify $230 billion in cuts over the same period; those committee jurisdictions include major spending for Medicaid and SNAP. She told the commission DAS is bracing for “big cuts” to Medicaid and SNAP while acknowledging the fight in Congress is ongoing. Dearman said the department is also awaiting the Older Americans Act reauthorization and that Congress faces a possible March 14 funding deadline if no continuing resolution is passed.

At the state level, Dearman said Governor Newsom’s proposed 2025–26 budget projects a small positive balance after two years of deficits, but wildfire costs, trade and tariff issues, and federal cuts could affect revenues. Locally, DAS submitted a proposed budget that included roughly $1,500,000 in proposed reductions coming from the Office of Community Partnerships; Dearman said staff are “right sizing” underspent programs and that some programs may be eliminated. She said the Dignity Fund’s continued funding is doubtful under current projections.

Dearman described ongoing coordination with the city attorney’s office and the mayor’s office; she said the mayor’s office intends a four‑day in‑office work week starting in April and that DAS is meeting individually with members of the Board of Supervisors to advocate for departmental priorities, noting supervisors Melgar and Chen as current champions.

Commissioner questions and staff answers Commissioners asked how the department is preparing for possible federal reductions. Dearman said DAS is participating in state and national planning conversations and coordinating locally with the Mayor’s Office, city attorney, and relevant coalitions, but emphasized mixed signals from Washington have made scenario planning difficult. Commissioners noted the uncertainty creates pressure on staff and thanked Dearman for leadership.

Why it matters: DAS supports services used by older adults and adults with disabilities that rely in part on Medicaid, SNAP and Older Americans Act funding. Large cuts at the federal level would cascade to state and local funding and could reduce hours, service levels or program availability for affected clients.

Provenance (selected evidence spans) - Executive director report (topicintro): transcript excerpt at 287.20 — "First, happy social workers month... I'll start at the federal level." (topicintro) - Federal budget cuts detail (topicfinish): transcript excerpt at 350.445 — "The budget resolution is passed instructs the House Energy and Commerce Committee to find at least $880,000,000,000 in cuts over the next 10 years..." (topicfinish)