Budget chair proposes holding overtime and non‑personnel growth in reserve, seeks 10% salary reserve

Chair Supervisor Connie Chan on June 21 proposed a trio of budget controls intended to curb fiscal growth and force a public process before re‑spending recent midyear cuts. Chan told the Budget & Appropriations Committee she would introduce three motions for the board to consider at a later hearing: to appropriate savings identified by the Budget and Legislative Analyst (BLA) into a reserve fund for deliberative reallocation; to place 10% of the salaries of elected officials and department heads into a reserve; and to place the growth in overtime and in non‑personnel services spending on reserve pending the city’s annual five‑year financial plan and a full‑board vote.

Why it matters: Chan said the measures are not permanent cuts but temporary controls designed to force deliberation — and to prevent the city from “continuing business as usual” while one‑time solutions are exhausted and long‑term revenue shortfalls loom. The chair estimated that combining the proposed overtime and non‑personnel reserves would amount to roughly $56 million (growth amount presented in committee spreadsheets), while the 10% salary reserve would be approximately $1.5 million (exact figure to be computed and provided by the controller).

Committee discussion focused on how the reserves would be implemented and enforced. Controller Greg Wagner said the reserves would be controlled at the level of department appropriations and noted that overtime is legally owed if worked; therefore management is exercised at the overall salary appropriation level rather than by preventing earned overtime. Vice Chair Rafael Mendelmann and other supervisors asked for more time to digest the spreadsheets and the mechanics by which departments would operate under the reserve constraints.

Next steps: Chair Chan said she would present the motions formally for seconding and action at the committee’s next meeting; she also proposed releasing any reserved funds only after the city issues its annual five‑year financial plan (typically released in early December) and after a full‑board public hearing, with a target timing to consider release in January 2025. The committee did not vote on those motions June 21; Chan asked colleagues to review the proposals before a scheduled June 26 or June 24 committee follow‑up.

Quotes: “We cannot continue business as usual,” Chair Chan said, urging a more deliberate process for reallocation of midyear savings. Controller Greg Wagner explained the fiscal control implications: “Overtime is scheduled outside the controller’s fiscal control process…we don’t have a control mechanism to not pay someone for hours they’ve already worked,” he said, highlighting practical limits of the reserve approach.

What comes next: The motions were described publicly at the June 21 hearing and will be introduced formally later this week; the committee and controller’s office will return detailed totals and mechanics for the proposed reserves.