Arts Commission approves proposed FY25–26 and FY26–27 budget with hotel-tax contingency

The San Francisco Arts Commission voted unanimously to approve its proposed operating and capital budgets for fiscal years 2025–26 and 2026–27 following a presentation by Deputy Director of Finance and Administration Sarah Hollenbeck.

Hollenbeck told commissioners on Feb. 3 that the city faces a budget shortfall driven by slower-than-expected growth in major revenues, particularly hotel tax receipts, and that the mayor had instructed departments to reduce ongoing general‑fund spending by 15 percent. She said the Arts Commission’s recommended budget includes a new hotel‑tax revenue contingency line to buffer against downward revisions in the hotel‑tax forecast.

The contingency is intended to hold a portion of budgeted hotel‑tax revenue in reserve so the commission can avoid committing grant funds that later may be unsupported by actual collections. Hollenbeck showed that hotel tax actuals have trailed prior budget projections in recent years and explained that the commission budgeted a smaller community investments operating budget in part because hotel‑tax fund balance and one‑time sources used in prior years are no longer available.

Hollenbeck also outlined capital priorities included in the request, among them a $10 million request for the SoMa arts facility, and a continued request for civic art collection conservation funding. She noted the civic art team estimates roughly $1.5 million per year is a steady‑state need for conservation and said the department currently manages about $20 million in art‑enrichment budgets transferred from other city capital projects.

Commissioners asked clarifying questions about which revenue lines are general fund versus pass‑through charter allocations (Hollenbeck said the Symphony charter allocation is passed through to the Symphony per Charter Section 16106 and a portion is returned to support department operations). Commissioners also discussed coordination with other city departments to route arts funding and projects through the Arts Commission where appropriate.

Commissioner Beltran moved approval of the proposed FY25–26 and FY26–27 budget; the motion was seconded and carried unanimously.

The approved proposal is the department’s submission to the mayor’s office; the mayor and the Board of Supervisors will review and may revise the budget before final adoption in mid‑2025.

Votes at a glance

- Motion: Approve proposed FY25–26 and FY26–27 budget (operating and capital requests). - Mover: Commissioner Beltran. Second: recorded. Outcome: approved unanimously.