DAS executive director warns federal and state budget proposals could cut Medicaid and threaten services; Dignity Fund funding uncertain

Kelly Dearman, executive director of the San Francisco Department of Disability and Aging Services, told commissioners on March 5 that federal and state budget actions could significantly affect services for older adults and people with disabilities.

“The budget resolution has passed [that] instructs the House Energy and Commerce Committee to find at least $880,000,000,000 in cuts over the next 10 years,” Dearman said, adding that the House Agriculture Committee was asked to identify roughly $230,000,000,000 in savings in the same window. She told the commission those committee jurisdictions mean the committees likely will consider reductions that could include Medicaid and SNAP benefits.

Dearman said the department is also awaiting the Older Americans Act reauthorization; although there is no immediate expiration of programs if Congress uses a continuing resolution, she said the uncertainty complicates planning. At the state level, she said Governor Gavin Newsom’s 2025–26 budget projects a small positive balance but that fires, federal trade and immigration policy, and potential federal cuts could erode revenues.

On local preparations, Dearman said DAS submitted its proposed budget to the mayor’s office; the proposal includes $1,500,000 of proposed reductions in the Office of Community Partnerships (OCP) achieved by rightsizing under‑spent items, with some program eliminations possible. She said DAS leadership is working to preserve core services and will notify community partners about planned changes.

Dearman also told the commission it is “very doubtful that the Dignity Fund will be funded this year” given fiscal uncertainty, and she described the mayor’s current hiring approach as a “soft freeze” that still allows critical hires after review by the budget office. Dearman said the mayor’s office sent staff guidance asking all employees to be in the office four days per week beginning in April.

Commissioners asked about contingency planning and whether the city and mayor’s office are coordinating responses. Dearman said city offices — including the city attorney and Mayor’s Office — are actively coordinating and that DAS is participating in state and national conversations about budget implications for aging services.

Dearman also said she is meeting individually with members of the Board of Supervisors and has identified at least two current champions for services on the board: Supervisor Matt Haney (transcript identified as “Melgar” — staff clarified as Supervisor Haney in subsequent contact) and Supervisor Sandra Lee Fewer (transcript reference: Chen was mentioned; staff follow‑up recommended to verify Supervisor names). She said those visits have provided opportunities to explain DAS priorities.

Why it matters

IHSS, nutrition, and other DAS services rely in part on federal and state funding streams. Significant reductions to Medicaid or SNAP at the federal level would cascade to state and local budgets and could reduce service hours, eligibility or benefits for vulnerable residents. Local cuts to OCP and uncertainty about the Dignity Fund would further tighten resources available to community‑based partners.

What staff said they are doing

Dearman told the commission DAS is "right‑sizing" some programs where underspending occurred and prioritizing core services. She said DAS is participating in cross‑jurisdictional planning but that much remains uncertain until federal and state decisions are final.

Speakers (attribution whitelist for quotes in this article): - Kelly Dearman — Executive Director, Department of Disability and Aging Services (direct quotes, ED report) - Janet Y. Spears — President, DAS Commission (chairing and asking questions)

Clarifying details extracted from the meeting: - Federal House instructions cited by staff: $880,000,000,000 in deficit reductions to be found by the House Energy and Commerce Committee; $230,000,000,000 to be found by the House Agriculture Committee (as reported by executive director Kelly Dearman). - DAS local budget submission includes proposed OCP reductions totaling $1,500,000; staff said reductions would be realized by rightsizing under‑spent programs and possible elimination of some services. - Dearman said it is "very doubtful" the Dignity Fund will be funded this year due to broader fiscal pressures (statement attributed to Dearman in the transcript). - Hiring guidance: mayor’s office memo asking staff to be in office four days a week starting in April (as reported by Dearman).

Authorities referenced in the meeting record: - Brown Act — noted at the start of the meeting for meeting conduct (informational). - Older Americans Act — referenced as the statutory funding framework for the area plan and as awaiting reauthorization.

Proper names (selected):[{"name":"Dignity Fund","type":"program"},{"name":"Older Americans Act","type":"statute"},{"name":"Board of Supervisors","type":"agency"},{"name":"San Francisco City","type":"location"}]

Searchable tags:["budget","federal cuts","Medicaid","SNAP","Dignity Fund","Older Americans Act","DAS budget","staffing"]