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Mayor's budget office warns of $876 million two‑year deficit; Lurie orders 15% cuts, hiring freeze
Summary
At the Feb. 5 Budget and Finance Committee meeting, the mayor’s budget office presented a five‑year financial plan showing an $876 million two‑year shortfall and instructed departments to propose permanent 15% general‑fund reductions and to follow a citywide hiring freeze.
SAN FRANCISCO — The mayor’s budget office told the Board of Supervisors’ Budget and Finance Committee on Feb. 5 that the city faces an $876 million shortfall across the next two budget years and ordered departments to propose permanent spending reductions.
Benjamin McCloskey, interim director of the Mayor’s Budget Office, told the committee that projected expenditure growth far outpaces general fund revenue growth, producing an estimated $253 million deficit in fiscal 2025–26 and $623 million in fiscal 2026–27 — a two‑year shortfall of about $876 million.
The mayor’s instructions, McCloskey said, ask departments to propose ongoing, permanent reductions in general fund spending of 15% starting in FY 2025–26. The instructions also include a citywide hiring freeze announced Jan. 9…
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