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Commission approves Environment Department budget for FY2025–26, flags general fund concerns and federal grant risks
Summary
The commission voted to approve the San Francisco Environment Department’s proposed FY2025–26 AEO budget (and review of FY2026–27) while noting the department’s heavy reliance on grants and the risk to new federal funds; commissioners and public urged continued general fund support for the Climate Equity Hub and other programs.
The San Francisco Commission on the Environment approved the Environment Department’s proposed annual appropriation ordinance (AAO) budget for fiscal year 2025–26 and reviewed a projection for 2026–27 during the Feb. 4 meeting.
Budget Manager Joseph Salem, Deputy Director Leo Chi and Director Tyrone Zhu presented the draft two‑year submission, describing an operating budget that would use approximately $52 million in FY25‑26, including new federal grants and increased impound account support. The department’s AAO request to the mayor totals approximately $37.7 million for FY25‑26; staff emphasized that the operating budget is larger because it includes projected grant revenues and carryforward amounts.
Staff highlighted three points of tension: (1) the department’s growing reliance on grants (47% in the current year) amid federal funding uncertainty following executive actions; (2) the relative decline of general fund support (proposed at roughly 2% of department funding), which staff said reduces capacity to match grants, fund pilot projects and provide flexible planning support; and (3) proposed increases in the solid‑waste impound account to support expanded 0‑waste programming.
Director Zhu and staff said they had secured accept‑and‑expend approvals from the Board of Supervisors in record time to prepare for federal funds, but cautioned that several recently awarded federal grants and prize funds may be at risk while federal policy and agency actions are in flux. The department asked for continued general‑fund support to preserve capacity for the Climate Equity Hub and other equity‑focused pilots. Public commenters, including residents who had benefited from the Climate Equity Hub and community organizations, urged the commission to advocate for full funding of the department and the Climate Equity Hub’s incentives and outreach work.
The commission voted to approve the department’s AEO submission for FY25‑26 and the discussed FY26‑27 projection. Roll‑call votes recorded “Aye” by President Wong, Vice President Sullivan, Commissioner Bermejo, Commissioner Hunter and Commissioner Tompkins; Commissioner Ahn and Commissioner Yuan were recorded as excused. Commissioners asked staff to continue refining grant risk analysis, coordinate with the Refuse Rates Administrator on proposed impound account increases and return with updated staffing details.
The approved submission will be forwarded to the Mayor’s Office and Controller’s Office for consideration in the city budget process; the Mayor will publish a proposed budget by June and the Board of Supervisors must adopt a final budget in July.
