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Controller reports revenue gains in six‑month update; committee files report, continues budget items
Summary
The controller—s six‑month report showed stronger-than-expected transfer tax and a roughly $36 million net departmental surplus driven by higher Medi‑Cal reimbursements at DPH; the committee filed the six‑month report and continued other budget items to a later date without objection.
The Budget and Finance Committee on March 13 received the controller—s six‑month status report showing stronger revenue receipts so far in the fiscal year and approved procedural actions to file the report and continue other budget items.
Michelle from the Controller—s Office told the committee the six‑month update reduced the January two‑year shortfall projection by about $70 million, largely driven by stronger property transfer tax receipts and higher Medi‑Cal reimbursement rates at the Department of Public Health. "Most recent news is really all in real property transfer tax, better by a little over $100,000,000," the controller's presentation said, and staff reported a departmental net surplus of about $36,000,000, primarily at DPH.
The controller—s office cautioned that transfer tax receipts are volatile month to month and that some revenue gains flow through voter‑approved baselines which limit general fund flexibility. The presentation also flagged possible timing risks tied to PG&E payments and noted the city still expects to reconcile audited financial statements for fiscal year 2017–18.
Committee members asked about the mechanics of applying one‑time revenues and whether ERAF monies would be treated within or separate from the mayor—s proposed budget. Chair Sandra Lee Feuer and staff agreed the committee would seek separate deliberation for any supplemental ERAF funds rather than assuming they would be programmed directly into the mayor—s proposal.
On motions, Chair Feuer moved to continue item 3 to the call of the chair; the motion was seconded by Supervisor Rafael Mandelman and taken without objection. Later the chair moved to file the six‑month report (item 4) and to continue items 1 and 2; the motion was seconded and also taken without objection.
The controller noted the city anticipated introducing supplemental appropriations shortly to reappropriate existing funding to cover overtime in several departments (Fire, Sheriff, Emergency Management, and PUC), and reminded the committee that the next formal budget milestones are the March update, the governor—s May revise (May 15) and labor agreements submission the same day.
Next steps: staff will publish the March update to the five‑year plan in the coming week, the controller will issue the nine‑month report in May, and the committee will continue deliberations on items 1 and 2 at a future meeting set by the chair.
