Controller: six‑month report shows $21.37M year‑end fund balance and continuing multiyear shortfall

Controller Monique Zamuda presented the annual six‑month status report and estimated a year‑end general fund balance of approximately $21,370,000, roughly $4 million less than the preliminary projection three months earlier.

Zamuda flagged major department variances: an estimated public health deficit of about $17,000,000 largely tied to San Francisco General Hospital census and uncompensated care; a sheriff's department shortfall driven by both revenue and overtime; and additional pressure on courts and elections. She said the reported fund balance excludes potential state actions and the ongoing multiyear shortfall staff previously estimated at about $229,000,000.

Budget Office and mayor's staff briefed supervisors that some revenue categories (property tax, hotel room and certain sales taxes) are exceeding expectations, while others (federal grants, business taxes) lag. The controller recommended continuing careful monitoring, directed certain departments to return with supplementals where appropriate, and said any additional discretionary revenues will be deposited to the rainy day reserve per charter rules.

Supervisors asked follow‑up questions about revenue assumptions (including Proposition A parking meter revenues and transfer taxes) and supplemental requests that may be required for departments unable to balance this fiscal year. The controller and mayor's budget director said they will update projections with the May revise and provide more precise multiyear forecasts.