SFHSS director warns mayoral budget cuts will force service reductions and staff trims

Executive Director Ray Guillen warned the San Francisco Health Service System board that the mayors forthcoming budget instructions will require departments to identify core services and make cuts to meet a near-$1 billion city deficit.

Guillen said the mayors budget instructions for fiscal years 26—27 and 27—28 would be released Dec. 12 and are expected to direct departments to prioritize essential services. "It's expected that most departments will be instructed to cut their budget by identifying and prioritizing essential services in order to help the city deal with almost a $1,000,000,000 deficit," he said.

He said the mayors office had already instructed HSS to delete a senior health program planner position that will become vacant and use the resulting salary savings to meet FY26—27 targets. Guillen warned that the departments sustainability fund is not sustainable long-term after prior transfers and that any further general-fund reductions will likely require cuts to services as well as positions. "Any further cuts to staff must be accompanied with cuts to service, unfortunately," he said.

Guillen said staff will bring a proposed budget plan, including where the department aims to find the equivalent of 2,080 staff hours, to the finance and budget committee in January for board review.

Board members asked clarifying questions about whether cuts would be to staff only or accompanied by service reductions; Guillen answered that the mayor expects cuts to core services as well as positions.