Committee backs supplemental appropriation using unexpected transfer tax receipts to shore up services

Chair John Avalos brought a supplemental appropriation before the Budget and Finance Committee intended to bring the budget forwarded on July 1 into balance. Staff described primary revenue sources as better‑than‑expected real estate transfer tax receipts (approximately $6.3 million of unaffiliated fund balance), a $320,000 increase tied to property tax set‑asides, a $40,000 administrative processing fee, and $103,500 of federal Medi‑Cal Title 19 revenue expected to be drawn down for an aging program.

Committee members discussed whether the funds should be used now or held for the budget stabilization reserve required by board policy. Budget staff explained the reserve policy applies year‑round and that in years with “abnormally high” transfer tax the policy generally directs a combination of deposit to a stabilization reserve and allowable draws when eligible; they cautioned that some reserves cannot be reduced below policy minimums. Supervisors discussed procedural options for amending the supplemental if they wanted to add items such as psych‑unit beds at San Francisco General; staff advised that amendments could trigger continuance to a subsequent hearing or be introduced as separate supplemental appropriation items.

Multiple public commenters urged release of funds to restore services, and one commenter praised the committee for restoring weekend meal services. The committee voted to send the supplemental appropriation to the full board with the committee’s recommendation.

According to the transcript, the supplemental appropriation will be considered by the full Board of Supervisors at its next meeting where final amendments and adoption may occur.