Arts Commission approves proposed FY 2024-25 and 2025-26 budget as city faces large shortfall

The San Francisco Arts Commission on Feb. 5 unanimously approved the commission's proposed budget for fiscal year 2024-25 and fiscal year 2025-26 after a detailed presentation by Deputy Director of Administration and Finance Sarah Hollenbeck.

Hollenbeck told commissioners the city's budget outlook remains challenging. "The budget deficit for the next 2 fiscal years is currently being estimated at $799,000,000," she said, noting a mix of factors that include reduced federal and FEMA reimbursements related to COVID and moderated growth in hotel-tax revenue.

The nut of the presentation was that the Arts Commission must balance competing demands amid constrained resources. Hollenbeck explained the budget timeline (department operating submissions due Feb. 21, the mayor's proposed budget due by June 1 and the Board's hearings in June) and said departments were already instructed to identify a 10% general-fund reduction for fiscal 2025 and 2026 plus an additional 5% contingency. She outlined proposed operating and capital requests, noting that some large capital needs (including work at cultural centers and the civic art collection) are being requested for fiscal 2026 while grant timing (the Mellon grant) influences year-to-year shifts.

Commissioners pressed for context and transparency. Several asked for historical budget comparisons to understand trends in general-fund support versus hotel-tax revenue, and Commissioner Hakimi asked whether the commission is tracking which communities receive community-investment dollars. Hollenbeck and staff directed commissioners to existing reports and to the upcoming CSAP (Cultural Services Allocation Plan) evaluation and related outreach, and staff committed to making grant-tracking and equity reports available to commissioners.

President Collins called the motion to approve the proposed budget; Commissioner Beltran moved and Vice President Chioda seconded. After no public comment, the commission voted in favor and the chair stated the motion "passes unanimously."

Citywide context remains important to next steps: Hollenbeck emphasized that the mayor's proposed budget will be released no later than June 1, followed by Board of Supervisors hearings in June and final adoption later in July or early August. The commission's approval sends the Arts Commission's request into that citywide process for consideration.

The commission also discussed priorities should reduced funding materialize, including continuing work on equity-focused grantmaking, strategic planning and support for cultural centers. Hollenbeck said staff are continuing to refine capital requests and to advocate for what the commission deems essential.