How the SF Budget is Made
Did San Francisco run a deficit this year?
Note: This is part one of a two-part series on the SF budget. This post covers the budget-making process, and the next post covers where the money goes.
San Francisco just adopted a $15.9 billion budget for the year1, with a deficit of zero dollars. Most people are pleased to learn that SF, like most cities, is required to run a balanced budget by state and local law. It’s a good reminder that government is not universally good or bad, and that scrutinizing it requires precision. It helps to know how the budget is made.
Budget Overview
The budget process is directed by the Mayor, in collaboration with city departments. The Mayor proposes the city budget to the Board of Supervisors, where it is reviewed, tweaked, and then passed into law via ordinance.
SF uses a two-year (biennial) budget process, which means the city plans and approves its budget for two years at a time instead of one. In effect, this means we lock in the spending for the current year and forecast spending for the next. Keep this in mind, because The Discourse will often use the two-year totals.
There are many places throughout the process where citizens can provide useful input, but only if you’re paying attention.
Budget Process
The yearly budget cycle starts in December, but you generally don’t hear about it until the summer. This is the timeline:
1. Mayor issues Budget Instructions to departments - December
The process begins in December (December! Who’s paying attention then??) when the Mayor issues Budget Instructions. These instructions provide guidance to help departments align their budgets with the current fiscal situation and the Mayor’s overall priorities.
You can find the full set of instructions here.
2. Departments gather input and submit their proposals - February 21
Departments receive instructions from the Mayor and submit their proposed budgets to the Mayor by February 21. Budgets are most malleable at this stage, which means it’s one of the highest-leverage windows for public input.
Departments will host workshops or public meetings where they solicit feedback. Most departments have oversight commissions, which must approve the budget before the department submits it to the Mayor. These commissions are made up of appointed citizens, not government employees. (This could be you!)
3. Mayor’s Proposal - June 1
After receiving the budget submissions from each department, the Mayor’s Budget Office works to synthesize them into a unified, balanced proposal. The complete budget is submitted to the Board of Supervisors by June 1.
4. Board of Supervisors Approval - July 31
Once the Mayor sends the proposed budget to the Board of Supervisors, it goes to the Budget and Appropriations Committee2, which holds public hearings to review how money is being allocated and whether any changes should be made, including recommendations from the Budget and Legislative Analyst3.
This is another opportunity for the public to provide input. The review and adjustment process culminates in an amusingly hectic “Budget Day” crunch, where the Supervisors often stay up all night to finalize negotiations. The budget then proceeds to the full Board, where it must be passed by July 31.
5. Final Budget Adopted - August
After the Board of Supervisors passes the budget via ordinance, it is sent back to the Mayor for a signature. Once signed, the legislative process is complete - and that’s how you make a budget, baby.
Resources
CA Constitution, Article XVI, Section 18 (a)
CA Government Code, Section 53901
SF Admin Code, Chapter 3: Budget Procedures
Official SF budget docs
SF Standard, budget explainer article
The fiscal year starts in the summer and runs July 1 to June 30. This is being published in FY 2025-2026.
The chair of this committee controls the agenda and flow of these negotiations, so it’s a highly sought-after position.
One hears a lot about "addbacks"-- are these all just part of the Budget Day negotiation process?
How do you get on one of these citizen committees?