Committee backs Ronan ordinance to build inflation and multi‑year planning into nonprofit contracts

Supervisor Hillary Ronan, the ordinance sponsor, asked the Budget and Finance Committee on Oct. 4 to support a change to the city administrative code that would require the Controller to prepare an initial base budget reflecting expected cost increases and direct departments to use multi‑year grants when services are expected to continue beyond one year. "Our nonprofit contractors are the backbone of many city services," Ronan said, arguing the measure would reduce uncertainty that complicates budgeting for homelessness, addiction and mental‑health services.

Laura Marshall of the Controller’s Office told the panel the change would move the city away from an annualized cost‑of‑doing‑business allocation and instead incorporate planned increases into departments’ base budgets so departments, the mayor’s office and the board can make informed tradeoffs earlier. "We recommend including planned increases in budgets for multi‑year contracts," Marshall said, describing the controller’s role in issuing budget instructions and accounting for known cost changes such as MOUs and inflation.

Nonprofit leaders who testified said the change could improve service continuity and staff retention. "This is the most important piece of legislation for the city nonprofit partnership in many, many years," said Debbie Lerman of the San Francisco Human Services Network. Carl Kramer of the San Francisco Living Wage Coalition cited a records review showing some departments do not track whether funds budgeted for wage increases reach nonprofit contractors.

Chair Connie Chan moved to forward the ordinance to the full board with a positive recommendation. The committee recorded a roll call with Supervisor Rafael Mandelmann, Supervisor Asha Safai and Chair Chan voting Aye; the motion passed (3–0). The ordinance now goes to the full Board of Supervisors for consideration.