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Budget office details COVID‑19 spending, hotel shelter estimates and FEMA reimbursement outlook
Summary
The mayor’s budget director and the controller told the committee that departments estimate $50M–$100M in core COVID response spending so far; the city has about 3,977 hotel units under contract with a preliminary 90‑day cost of $35M and a working FEMA reimbursement estimate of roughly $20M, leaving local gaps to be addressed in an April rebalancing plan.
The mayor’s budget director, Kelly Kirkpatrick, and Controller Ben Rosenfield briefed the Budget and Finance Committee April 8 on COVID‑related city spending and the administration’s approach to balancing current and upcoming budget shortfalls.
Rosenfield said departments have earmarked an estimated $50 million to $100 million for core COVID response operations this year, with roughly $15 million already distributed. The city currently has about 3,977 hotel units under contract or expected to be contracted, and Rosenfield’s preliminary estimate for a 90‑day period for those units is about $35,000,000. “Our preliminary estimate of those of the cost for the units, for a 90 day period, comes to about $35,000,000,” the controller told the committee.
The administration is tracking potential reimbursement sources. Rosenfield said FEMA guidance was evolving but that the city expects that some hotel costs may qualify for FEMA reimbursement depending on who is housed (COVID‑positive individuals or those eligible under FEMA guidance). Kirkpatrick said the city’s working estimate was that roughly $20,000,000 of the $35,000,000 could be FEMA‑reimbursable, acknowledging the number is an estimate and that final eligibility will depend on how units are used.
The controller also presented a larger planning scenario: using a broader universe of units (several thousand more), the three‑month cost could total about $105,000,000 with approximately $55,000,000 potentially FEMA‑reimbursable, leaving an estimated local gap of about $50,000,000. Kirkpatrick said the administration is pursuing multiple federal and state streams — including FEMA, CARES Act allocations, HUD programs, Cal OES, and potential state hotel assistance — and is developing a current‑year rebalancing plan to address shortfalls.
Supervisors asked for more granular reporting. Supervisor Ronan requested a breakdown of the hotel per‑night costs (room, security, cleaning, food, staffing) and asked staff to compare alternate contracting models some supervisors used to secure lower rates; Kirkpatrick and Rosenfeld agreed to provide further detail in follow‑up reports and in the April financial updates.
Next steps: the controller and mayor’s budget office will refine estimates and present a rebalancing plan to the Board in the coming weeks; staff will provide requested cost breakdowns and follow up on potential repurposing of HUD and other funds.
