Committee explores San Francisco's management of $1.8B in special revenue funds

San Francisco County officials are taking a closer look at the management of city funds following a recent government meeting that highlighted significant increases in both general and special revenue fund balances. The discussions, led by Supervisor Haney and Budget and Legislative Analyst Sevin Campbell, focused on ensuring that these funds are utilized effectively and for their intended purposes.

The meeting revealed that the city's general fund balance surged by 21% from $2.2 billion in June 2018 to $2.7 billion in June 2020. A substantial portion of this increase is attributed to the rainy day reserve, which is restricted and requires voter approval for any changes in usage. The unrestricted fund balance, which offers more flexibility, stood at $510 million as of June 2020, raising questions about its planned use and potential reallocation for immediate needs.

Campbell's report also examined 22 categories of special revenue funds, which are designated for specific expenditures. These funds saw a 26% increase, growing from $1.4 billion in 2018 to $1.8 billion in June 2020. Despite their growth, concerns were raised about whether these funds are being optimally utilized, as underspending was noted in several departments due to factors such as staffing delays and legislative hurdles.

The committee emphasized the need for a thorough review of these funds during the upcoming budget process. Specific recommendations were made to investigate areas of surplus and underspending, particularly in departments like public protection, where significant new appropriations are planned for the 2021 budget.

In addition, the meeting addressed the creation of new funds over the past five years, with a focus on ensuring that all funds have appropriate reporting requirements. The committee is set to follow up on these recommendations as they prepare for the budget review in 2021, aiming to enhance the efficiency and effectiveness of city fund management.

As San Francisco County moves forward, the outcomes of these discussions will play a crucial role in shaping the fiscal landscape and ensuring that taxpayer dollars are used wisely for the community's benefit.