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Mayor’s budget office outlines uncertain but material sequestration risks to San Francisco
Summary
Kate Howard of the Mayor’s Budget Office told supervisors the federal sequestration could impact roughly $16M in city programs and about $20M in non‑city agencies this year, with notable pressure on public health, housing authority programs, and possible economic effects from canceled federal demonstrations such as the Blue Angels and Fleet Week.
Kate Howard, the Mayor’s Budget Director, briefed the committee on the known and potential effects of federal sequestration, stressing that many impacts remain uncertain until federal and state agencies publish formal guidance.
Her office’s best estimates at the time showed roughly $16 million of potential impacts to city programs in the current year and an additional $20 million to non‑city agencies. Major exposed areas include DPH grant funding (including Ryan White and CDC prevention grants), community development and homelessness prevention funding, and elements of public safety grants; Howard highlighted that the Housing Authority could face a combined near‑term reduction of about $12–13 million (public housing and Section 8), with some reserves available in the current year but greater strain expected in FY13‑14.
Howard also noted the potential operational impacts: reduced National Park Service funding for facilities maintenance and summer operations (~$1.4M), possible reductions to cleanup funds for Hunters Point and Treasure Island, and cuts to FAA/TSA that could mean longer airport waits. She drew attention to potential cancellation of military demonstration flights and other Fleet Week events, which could remove an estimated $64 million in economic activity from the city if federal funding for those demonstrations is eliminated.
Howard emphasized the ‘telephone’ effect when federal funds pass through the state before reaching the city — the city may not get immediate or clear signals about final reductions. She said the mayor’s office will continue to track red/yellow/orange risk indicators and urged fiscal caution in the upcoming budget.
