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San Francisco environment office warns COVID-driven budget gap could cut programs tied to other departments
Summary
Department of the Environment staff told the commission that a projected $1.7 billion city shortfall and mayoral guidance to cut general-fund departments by up to 15% could translate into deep, uneven losses for programs funded via interdepartmental work orders — especially EV charging, climate and urban forestry efforts.
The San Francisco Department of the Environment on Wednesday warned commissioners that the city’s COVID-19 revenue collapse has created a severe budget uncertainty that could hit programs that rely on interdepartmental work orders.
In a presentation to the Commission on the Environment, fiscal manager Joe Salem said the mayor’s budget office projects a roughly $1.7 billion shortfall through fiscal 2022 and has instructed general-fund departments to prepare for an ongoing 10% reduction, plus an additional 5% contingency that could take the total to 15% for the next two fiscal years. Salem noted the revision has pushed the city’s budget schedule back: the mayor will submit a proposed budget Oct. 1 and the Board of Supervisors will consider it thereafter.
Why it matters: the Department of the Environment receives little to no general-fund support but depends on “work orders” — payments for services from other city departments — for an estimated 11% of overall revenue. Those work orders fund whole programs in some cases: Salem said the climate program is over 50% funded by work orders, the electric vehicle program is more than 90% dependent on them, and urban forestry operations are effectively 100% supported by such agreements. If partner departments reduce or cancel work orders to meet their own 10–15% targets, the department could face disproportionate cuts to those programs.
Commissioners pressed for specifics. Commissioner Holden asked whether non‑general‑fund departments must still balance to revenue assumptions; Salem confirmed they must, but added the department had not yet received written notices from partner agencies about cuts. Director Deborah Raphael said staff was working urgently to confirm which work orders are secure and warned that some programs could experience “very severe reductions.”
Public input echoed concerns about transparency and timing. Callers asked that staff provide department‑by‑department details showing which work orders are at risk (for example, amounts from the Airport, Public Utilities Commission and SFMTA). Staff said they were pursuing that information and that any new funds approved under the delayed October timeline would be retroactive to July 1.
Next steps: staff will submit a revised balanced budget to the mayor’s office per the mayor’s timeline and continue outreach to partner departments to confirm work-order stability. The commission did not take formal action on the budget that night; it heard the briefing and directed staff to continue outreach and report back.
