Our City, Our Home oversight committee hears revenue forecast, midyear spending update as Prop M and litigation cloud outlook

The Our City, Our Home Oversight Committee met in San Francisco on March 4, 2025, to review a new revenue forecast for the OCO fund and a midyear fiscal update showing program spending, reserves and outstanding obligations as the city prepares budget recommendations for the mayor and the Board of Supervisors.

The presentations, led by Radhika from the Controller’s Office Budget and Analysis Division and Robbie (budget staff), showed the fund faces a structural gap between recurring spending and projected annual revenue, and identified litigation claims and the phased implementation of Proposition M as key risks to near-term availability of money.

Radhika said, "Forecasts are, of course, just our best thinking, at 1 point in time," and emphasized the timing of budget steps: departments submit proposals to the mayor in March, the mayor’s budget is released June 1, and the Board completes final action in July. She told the committee the current five‑year forecast focuses on the next two fiscal years and projects roughly $325 million in revenue for the first budget year and $336 million for the following year, while noting a 3% growth assumption and persistent volatility tied to office vacancies, business tax disputes and national economic conditions.

Key figures from the midyear presentation:

- The OCO fund’s revised budget authority is $785 million, which includes unspent prior-year allocations plus the $274 million budgeted for FY 2024–25.

- Departments reported $167 million spent in the first half of FY 2024–25 and project an additional $247 million in spending in the second half of the year.

- About $99 million is listed as obligated (mostly…