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Supervisors Hear Calls for Permanent Fix to Nonprofit Funding; Controller Says City Spent About $675 Million Through Nonprofits in 2013–14
Summary
At an April 22 Budget & Finance Committee hearing, advocates, labor leaders and nonprofit executives urged a permanent, predictable 'cost-of-doing-business' increase for city-contracted nonprofits, many asking for 5% in each of the next two years; Controller Ben Rosenfield said the city spent roughly $675 million through nonprofit providers in FY2013–14 and outlined tradeoffs for budget vs. contracting adjustments.
The San Francisco Board of Supervisors Budget & Finance Committee heard detailed testimony on April 22 about creating a permanent, annualized cost-of-doing-business increase for nonprofit service providers. Chair Mark Farrell called the item after Supervisor Eric Marr framed the problem: years of flat funding had left many frontline nonprofit organizations struggling to keep staff and services in the city.
“We passed a resolution to prioritize approval of a supplemental appropriation up to $3,400,000 during fiscal year 2014–15,” Supervisor Marr said, framing the hearing as the start of a broader process to find a stable funding approach for the city’s nonprofit safety net. Marr also urged a stakeholder effort that includes city departments, labor and providers to develop a structural solution.
City Controller Ben Rosenfield presented the committee with the city’s fiscal picture for nonprofit contracts in FY2013–14, saying, “The total spend…
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