San Francisco Department of Environment unveils 2023 budget focused on climate and equity

The San Francisco City Council meeting on July 4, 2025, focused on the presentation of the Department of Environment's draft budget for the upcoming fiscal year. The meeting highlighted the department's strategic priorities, which include racial equity, climate action, and community resilience.

The presentation began with an overview of the department's strategic plan, emphasizing the integration of racial equity into all goals. The budget allocates resources for implementing the Racial Equity Action Plan, which includes hiring consultants for training and tracking progress. Additionally, the budget supports initiatives aimed at achieving zero waste and enhancing affordable housing.

Chief Financial Officer Joe Salem provided insights into the fiscal aspects of the budget, noting a projected general fund surplus of $108 million for fiscal years 2023 and 2024. However, he indicated that while the department does not currently receive general fund support, it may face challenges as non-general fund departments are expected to absorb increases in operating costs.

Salem also discussed the importance of public engagement in the budget process, highlighting new requirements for departments to hold public hearings. He presented a comparison of the draft budget and the operating budget, revealing a projected deficit of $436,000 for fiscal year 2023, primarily due to rising labor costs.

The meeting concluded with a commitment to explore additional revenue sources and potential partnerships to address the budget shortfall. The council plans to submit a balanced budget to the mayor's office by February 22, with further budget hearings scheduled for May and June. The final budget adoption is set for July 31, 2025.