Supervisors forward resolution backing Assembly Democrats' budget alternative to full board after amendment

The San Francisco Board of Supervisors' Budget & Finance Committee voted to forward a resolution recommending support for the Assembly Democrats' alternative to the governor's proposed state budget, while adding language to clarify how the plan would securitize fee revenues within the contours of Proposition 58.

President Chiu introduced the resolution as urgent, saying the governor's proposal would create a substantial gap in the city's finances and could cost San Francisco "up to $100,000,000," and that the Assembly Democrats' plan would protect critical safety-net and education funding without broad-based tax increases. "This is an urgent matter because the state is supposed to pass a balanced budget by July," Chiu said, arguing local jurisdictions could be catastrophically affected by whatever Sacramento adopts.

Supervisor Sean Ellsburn pushed back, saying the Assembly plan relies heavily on securitization and issuing billions in debt and that an advisory opinion from the state attorney general raised potential legal obstacles. "If the attorney general says it is likely illegal, the treasurer can't sell the bonds on Wall Street," Ellsburn said, arguing the Board should not prematurely endorse an approach that may be impractical.

In response, Chiu and other supporters said there is ongoing legal analysis and negotiation, and offered an amendment that would explicitly state that any securitization of beverage-container recycling fees must comply with Proposition 58 and be structured to avoid legal pitfalls. The amendment also adds a whereas clause encouraging Assembly and Senate Democrats to work toward a budget that protects the values described in the "California jobs budget." Chiu described the amendment as a way to weigh in on negotiations and protect local interests while acknowledging change is still possible.

After public comment and discussion of timing and language, the committee agreed to forward the resolution to the full Board for consideration at the next meeting, with an amendment clarifying the securitization approach and urging continued negotiation between the houses in Sacramento. The item was forwarded to the Board, with a request that the amendment be refined before the full vote.

What happens next: The resolution will appear on the Board of Supervisors' agenda for a future meeting (the committee scheduled forwarding to the full Board). Any final endorsement will rest with the full Board and may be amended further to reflect evolving negotiations in Sacramento.