Planning Commission adopts department budget for fiscal years 2025–2027

The San Francisco Planning Commission on Feb. 13 adopted the Planning Department's proposed budget and work program for fiscal years 2025 through 2027, voting 6-0 to send the proposal to the mayor's office.

The vote follows a staff presentation that outlined a multiyear revenue decline driven by lower entitlement and permit volume and a resulting reduction in department staffing. Thomas DeSanto, director of administration for the Planning Department, summarized the department's financial picture and recommended adoption of the proposed budget for final submission to the mayor.

DeSanto told the commission that revenues from entitlements and permitsthe department's principal revenue sourcefell sharply during and after the COVID-19 years and remain below pre-pandemic levels. The proposal reduces assumed fee revenue by roughly $2 million and ''eats' an additional roughly $1 million of annual CPI-driven fee growth rather than passing it on, producing about $3 million in lower projected revenue. The budget also relies on a $7 million pro-housing grant from HUD in the near term, DeSanto said.

To align staffing with revenue, the department proposed removing six vacant positions in the current year; DeSanto said the department had already eliminated 17 positions the prior year and about 20 in an earlier cycle, reducing total positions from about 250 to roughly 200 in budgeted headcount. Non-personnel operating expenses are largely unchanged.

Commissioners asked about the drivers of lower revenue per case and whether further staff reductions or layoffs were likely. DeSanto and other staff said the revenue decline reflects a mix of fewer large entitlement projects, a rise in smaller or ministerial projects that generate less fee revenue, and state law changes that shifted some reviews to ministerial processes. He said the department is trying to avoid layoffs by holding vacancies open and would return to the commission with recommended changes to work programs if further cuts became unavoidable.

Commissioner Brown moved to adopt the budget; the motion was seconded and passed on a roll-call vote. Commissioners Campbell, McGarry, Williams, Braun, Moore and President Tsao all voted aye.

The adopted package will be transmitted to the mayor's office; the department noted the budget will later be considered by the Board of Supervisors' Finance Committee in June and the full board in July for final citywide adoption.

Budget documents presented to the commission show a multiyear scenario in which fee revenue and entitlement volume remain lower than pre-pandemic levels and grant funding temporarily offsets some pressures. Staff emphasized that grants are contingent on awarding agencies and that the department will not hire for grant-funded positions until grant agreements are finalized.

Commissioners asked for continued advance notice if the department must consider further reductions, and staff said they would return with proposals and request commission input in that event.

The commission's action was a final adoption of the department's proposed fiscal years 2025'27 budget and work program for submittal to the mayor's office.