
A proposed two-year budget will be released before June 1 and aims to address a projected $607 million deficit. Closing that gap is expected to involve painful cuts, though it is smaller than the city’s overall spending in a typical budget cycle. The city’s 2025-26 fiscal year budget totals about $16 billion, up slightly from the prior year. Some departments underspent, including Homelessness and Supportive Housing, while other institutions projected deficits or moved toward exhausting their budgets early, including Zuckerberg San Francisco General Hospital and the sheriff’s department. Budget balancing is complicated by potential reductions in federal funding, which totals about $3.7 billion annually and has affected programs tied to immigration, LGBTQ+ rights, clean energy, and diverse populations.
"Mayor Daniel Lurie's proposed budget for the next two years will drop sometime before June 1, and with it the mayor's vision for how San Francisco will close a projected $607 million deficit. Cutting $607 million over the next two years isn't going to be easy - Lurie has warned of "painful cuts" ahead - but it's still a fraction of what the city spends in a given budget cycle."
"Not all of that money got spent. The Department of Homelessness and Supportive Housing underspent its $280 million allowance by $34 million, for example. But other city-funded institutions did the opposite. Zuckerberg San Francisco General Hospital, which in the past largely paid for itself through charges for service, is projecting a $94 million deficit. The sheriff's department is on track to exhaust its budget by early June, partly due to deputy overtime."
"Balancing San Francisco's budget is particularly tough because, during the Trump administration, federal funding has become a wild card. The city receives roughly $3.7 billion annually from the federal administration, which the White House has attempted to cut into. City programs that deal with immigration, LGBTQ+ rights, clean energy and diverse populations have been hit the"
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