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Supervisors hear warning on rising pension costs, stalled revenue growth and federal risks to San Francisco's budget
Summary
City budget officials told the Board's Budget & Finance Committee the five-year forecast shows growing structural pressure from salaries, health and pension costs, a smaller-than-expected revenue uptick and significant uncertainty from possible state and federal cuts; the city has filed for a preliminary injunction against a federal executive order targeting sanctuary cities.
City budget officials on the Board of Supervisors' Budget and Finance Committee said San Francisco faces a widening gap between revenues and obligations over the coming five years driven by personnel costs, slower revenue growth and uncertain state and federal aid.
"I do feel a lot more uncertainty and just nervousness about our revenues and what might come from the federal government," Melissa White house, the mayor's budget director, told the committee. She and Controller Ben Rosenfield presented updated projections and described a budget picture that has shifted since the fall.
Why it matters: the mayor's office's fall plan projected roughly $560 million in revenue growth over the five-year period while expenditures would rise by about $1.4 billion if current policies and baselines continued, creating a structural challenge that departments and elected leaders must address ahead of the mayor's June 1 budget submittal.
What officials said:…
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