City Commission reviews budget priorities amid $722M deficit for 2024 and 2025

The City of San Francisco held a crucial budget meeting on July 4, 2025, to discuss fiscal priorities for the upcoming years, FY 2024 and FY 2025. The meeting was initiated by Chair Lee, who highlighted the sobering nature of the budget proposal, indicating potential staff cuts of approximately 31% to 32% over the next two years if the Mayor's request for automatic budget cuts is followed.

Director Thadenville provided an overview of the budget process, explaining that city departments must submit their budget proposals to the Mayor's office by February 21 each year. This meeting served as the first public hearing to gather input on budget priorities before finalizing proposals. The budget cycle includes a review by the Mayor's office, which will compile a proposal for the Board of Supervisors by June 1, with final approval expected by August 1.

The city is facing a significant budget deficit of around $722 million over the next two fiscal years. To address this, the Mayor has instructed departments to propose cuts of 5% for FY 2024 and an additional 3% for FY 2025, totaling an 8% reduction. Departments are encouraged to focus on core functions and utilize vacancies to meet these targets. The Mayor's identified priorities include economic recovery, public safety improvements, homelessness reduction, mental health service transformation, and ensuring accountability and equity in city services.

The Commission's ongoing priorities were also discussed, emphasizing the need for strong laws, public engagement, and continuous improvement in service delivery. A funding snapshot revealed a decrease in budget allocations, with the current operating budget at $7.1 million, projected to drop to $6.9 million in FY 2024 and $5.4 million in FY 2025 due to expiring positions.

Additionally, the meeting addressed the election campaign fund, which currently has a balance of $3.5 million, with a planned allocation of $446,000 for the upcoming fiscal years. The fund is intended to provide partial public financing for candidates running for mayor and the Board of Supervisors.

In conclusion, the meeting underscored the challenges ahead for the City of San Francisco as it navigates significant budget cuts while striving to maintain essential services and address pressing community needs. The next steps will involve further public input and refinement of budget proposals before submission to the Mayor's office.