The San Francisco Fire Commission on Jan. 8 heard an overview of city budget instructions that direct departments to identify ongoing reductions equal to 15% of general-fund support, Deputy Director of Finance and Planning Mark Corso said.

Corso told commissioners the two-year budget cycle projects structural shortfalls: about $253 million for fiscal 2025–26 and $623 million for 2026–27, for a combined projected gap near $876 million. He said the mayor's office has asked departments to submit budgets to the mayor on Feb. 21; the mayor must then submit a balanced budget to the Board of Supervisors by June 1.

The instruction asking departments to identify permanent, ongoing reductions is significant for the San Francisco Fire Department. Corso said a 15% reduction applied to the department’s general-fund support would be roughly $21 million and “would not be achievable without reducing frontline staffing.” He also told the commission departments should reexamine nonpersonnel expenditures, not add new positions, and consider eliminating unneeded vacancies.

Why it matters: the guidance sets the scope for the department’s upcoming budget proposal and could affect staffing and response capacity if the mayor and Board adopt reductions. Corso noted the guidance reflects a five-year forecast the city issued in December showing revenues rising but expenditures rising faster, driven largely by salary and benefit growth.

Supporting details: Corso highlighted other budget risks the city is monitoring, including a large outstanding FEMA reimbursement request tied to pandemic response (he said roughly $250 million of citywide reimbursement remains pending) and potential state and federal funding changes. The mayor’s instructions also include a travel freeze and continued transparency requirements for public input into the budget process.

Commissioners asked for additional detail on revenue sources and requests for a “sources-and-uses” breakdown; Corso said he would include that in the next presentation. The commission scheduled a deeper discussion of the fire department’s budget for its Jan. 22 meeting, with a departmental submission targeted for Feb. 21.

No formal action on the budget guidance was taken by the commission at the meeting.