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Supervisors told to prepare 10%–15% cuts as San Francisco faces $1.7 billion COVID shortfall

San Francisco Board of Supervisors Budget and Appropriations Committee · May 20, 2020
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Summary

The mayor—s budget office told the Board of Supervisors— Budget and Appropriations Committee that the city faces a $1.7 billion shortfall and is asking all general fund departments to propose 10% reductions for FY2021 (rising to 15% in FY2022), plus a 5% contingency for the first year.

San Francisco—s mayor—s budget office told the Board of Supervisors— Budget and Appropriations Committee on May 20 that the city is "facing a $1,700,000,000 shortfall" tied to the economic impact of the COVID-19 emergency and must prepare immediate, deep spending reductions.

"All general fund departments must propose 10% reductions and adjusted general fund support in fiscal year 21 that grows to 15% in fiscal year 22," Ashley Grafenberger, deputy budget director in the mayor's budget office, said during the committee meeting. She added that the mayor's office is asking departments to identify an additional 5% contingency for FY2021 that could be used if the fiscal picture worsens.

The administration said the $1.7 billion gap consists of roughly $250 million in the current year and $1.5 billion in the upcoming budget years. Grafenberger…

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