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Committee packages small-business grants, arts backfill and summer learning into a consolidated supplemental; sends amended package to special meeting
Summary
Supervisors amended a supplemental spending package that would direct surplus funds to small-business grants and loans, arts and cultural backfill for Prop E shortfalls, youth summer learning and other targeted relief. The committee accepted the consolidated amendments and continued Item 3 for final action on March 23; Items 2 and 4 were tabled.
The Budget & Appropriations Committee debated and amended a supplemental package on March 17 that folds several priorities into a single item for the March 23 special meeting: small-business grants and a loan pilot ($20,000,000 proposed); hotel-tax arts and cultural backfill (original supplemental plus amendments raising the total to roughly $24.1M after negotiated changes); and a summer learning appropriation for youth ($15,000,000 with an additional $2.7M for high-school internships and dual-enrollment supports).
Diana Ponce de Leon (Office of Economic & Workforce Development) described the $20,000,000 small-business proposal: $12.4M for grants (two tracks: $5,000 storefront-equity grants targeted to very small or newly opened businesses in opportunity neighborhoods; $10k–$25k community storefront awards for anchors and venues) and $7.33M for a loan pilot tied to the California Rebuilding Fund (up to $100,000 loans, 0% or near-0% buy-downs, 3–5 year terms and a 12-month principal deferral in many cases). OEWD included a $300,000 allocation for application assistance and outreach.
The Mayor's budget director outlined the arts backfill tied to Proposition E (hotel-tax allocations). Because historic hotel-tax collections collapsed this year, the supplemental would backfill previously committed grants and programs (grants for the arts, cultural centers, the arts impact endowment and the cultural equity endowment). Committee members negotiated additions: $1.1M to restore cultural-district carryover funding, a $1M contingency for hotel-tax shortfalls, and a $5M reserve for projected next-year losses.
Director Maria Hsu (Department of Children, Youth & Their Families) presented the 'Summer Together' coalition: a citywide effort to offer free in-person and virtual summer learning, enrichment and mental-health supports for SFUSD students. DCYF estimated approximately 10,000–20,000 slots (staff cited 10,000 in-person academic slots and broader virtual supports) and said registration will begin in April.
Supervisors proposed and the committee accepted multiple amendments adding targeted support: a $2.25M shared-spaces equity fund to help businesses construct outdoor dining/activation areas; $1M for small-business victims of property crime; $3M for music and entertainment venue recovery; $2M to a family relief fund for residents who do not qualify for federal/state aid; and $1.6M for overdose-prevention outreach and fentanyl treatment and street outreach in SROs. The controller's office summarized the consolidated package and noted the committee would leave a modest reserve (about 5% of the projected surplus) for contingencies.
After debate, the committee voted to accept the consolidated amendments to Item 3 (moved by Supervisor Safaie; seconded and approved on roll call) and to continue Item 3 as amended to the special meeting on March 23. Items 2 (hotel-tax arts backfill) and 4 (summer learning) were tabled and will be reconsidered alongside Item 3 on March 23.
Next steps: the special Budget & Appropriations Committee will meet March 23 to take final votes on the amended package. Staff and agencies (OEWD, DCYF, MOHCD, Controller) were directed to supply detailed implementation plans and eligibility rules in advance of the special meeting.
