Six‑month fiscal update shows $36 million improvement; committee continues hearing to chair’s call

At its March 5, 2025 meeting, the San Francisco Budget and Appropriation Committee received a six‑month fiscal update from the controller’s office showing an improvement of about $36,000,000 from the prior projection, a projected current‑year net revenue shortfall of about $115,000,000 against budget and a roughly $98,000,000 combined departmental operating surplus.

The controller’s presenter, Michelle Ellersmith of the controller’s office, told supervisors the midyear update incorporates recently filed property assessment appeals and department fiscal performance. “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,” Ellersmith said. She also reported the current‑year net revenue shortfall is “about a hundred and 15,000,000 from budget.”

Why it matters: the six‑month report updates the revenue base used to craft the upcoming mayoral budget and informs choices about reserve use, department hiring and midyear adjustments. The controller noted that any use of the general reserve in the current year is likely to require a like deposit in the budget year to maintain required funding levels.

Key revenue and expenditure items

- Assessmen…