Mayor Daniel Lurie's $15.9 billion budget approved amid criticism

San Francisco Chronicle​

23-07-2025

After months of difficult negotiations at City Hall, the San Francisco Board of Supervisors on Tuesday gave final approval to Mayor Daniel Lurie's $15.9 billion budget, which closes an $800 million budget deficit by slashing spending.
The board, which has a moderate majority since the last election, voted 10 to 1 to approve the budget, with Supervisor Jackie Fielder dissenting. Now the bill goes to Lurie's desk, and per law, he must sign it by Aug. 1.
The journey to creating a two-year budget that addresses the city's structural deficit was turbulent, as Lurie faced opposition from unions and community groups that tried to block funding cuts. Ultimately, Lurie, who had campaigned on cutting wasteful spending, reduced funds to nonprofits and departments, made about 40 layoffs and eliminated over a thousand vacant positions.
Supervisor Connie Chan, who is the board's budget chair, said she wouldn't celebrate the mayor's budget and warned that the future remains grim as San Francisco continues to deal with threats from the Trump administration of withholding federal funds.
Lurie and the board agreed to start a $400 million reserve fund to deal with any potential loss of federal dollars, but even that could be insufficient as San Francisco gets billions from the federal government every year, including in the form of Medicaid reimbursements and FEMA disaster funds.
Still, Chan acknowledged that the board 'came together despite our differences to meet this moment,' which she said was key to getting the budget deal done.
Lurie's team declined to comment on Tuesday. Last week after the board passed the budget on first reading, the mayor called it the latest in 'a series of major legislative wins.'
'They voted unanimously to cut red tape for small businesses through our PermitSF legislation, and approved a real plan to support families living in RVs,' Lurie said. 'Thank you to the Board, and I look forward to building on what we've accomplished so far.'
But not everyone is happy about the budget.
Fielder took a page from former Supervisor Dean Preston and voted no on the budget because it included cuts to programs that serve the city's most vulnerable people. Preston, a fellow democratic socialist, voted no on every budget while he was supervisor because they included more money for the San Francisco police department.
'I cannot in good conscience vote in support of this budget,' Fielder said. 'I will be voting no with disappointment, with frustration but also with clarity about the kind of city we are fighting to become. We owe our residents more than austerity.'
Throughout the budget negotiations, Fielder criticized the mayor's spending plan, including a last-minute compromise between Lurie and the board that stripped some of its ability to allocate specific funds to fight homelessness.
As part of the budget deal, Lurie sought and received more power in determining how to spend revenue from Proposition C, a 2018 tax increase to fund homelessness initiatives. The board agreed to give up its power to oppose mayoral spending under $19 million with a supermajority vote.
On the final day of voting, angry homelessness advocates, many from the Coalition on Homelessness, staged a silent protest. They wore black veils and paraded around City Hall with a casket labeled 'democracy.' The group also opposed a recent change to city policy that they say will put RV dwellers at risk of homelessness.