State budget deals The City a hefty blow

The state’s budget has dealt a $26.5 million hit to city’s budget, according to a City Controller memo.

But services funded by The City’s operating budget will fare better than thought in August, when it was estimated the state’s budget would deal a $36.7 million blow.

The City was prepared for some of the bad news. It had set aside $18 million in its budget for the fiscal year that began July 1 to offset the expected financial hit from the state’s budget.

But San Francisco would need to come up with the difference “if The City chose to reinstate all services impacted by the state budget reductions,” City Controller Ben Rosenfield said a memo Monday to Mayor Gavin Newsom and the members of the Board of Supervisors. The state cuts impact funding for such services as AIDS programs, health reimbursements for drug and alcohol programs under Medi-Cal, welfare to work, shelter funds and child welfare services.

Newsom must now submit his plan for dealing with the shortfall by Oct. 5, under an agreement he struck with the Board of Supervisors during The City’s recent budget negotiations.

Newsom’s proposal could not go into effect until Nov. 19 to allow for a 45-day review by the Board of Supervisors, which could make changes.

The City closed a $576 million budget deficit heading into the fiscal year. It is possible that as a result of the poor economy The City will experience revenue shortfalls that will prompt the mayor to make mid-year cuts.

 
 

Bay Area NewsGovernment & PoliticsPoliticsUnder the Dome

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

A sign about proposed development of the bluff at Thornton State Beach in Daly City on Friday, Feb. 26, 2021. (Kevin N. Hume/S.F. Examiner)
Retreat center proposed at popular state beach

Daly City residents oppose construction on ocean bluffs

Rev. Roland Gordon shows “The Great Cloud of Witnesses” collage mural at the Ingleside Presbyterian Church, which he began building in 1980.<ins> (</ins>
Rev. Roland Gordon preaches love in action

Pastor promotes peace, hope through art and prayer

San Francisco’s Buster Posey was back at the plate after sitting out last season due to the risk of COVID-19. (David Maialetti/Tribune News Service)
Giants struggle against Angels in first game of Spring Training

By Nick Zeller-Singh Nearly 1,000 fans gathered into a breezy Scottsdale Stadium… Continue reading

Basketball (Shutterstock)
SI alum Begovich gets his moment, but Stanford falls on Senior Day

MAPLES PAVILION — Generally speaking, Stanford’s home finale on Saturday afternoon, a… Continue reading

U.S. Attorney David Anderson announces federal firearms charges against two men for their roles in a March 2019 shooting outside the Fillmore Heritage Center in a news conference alongside SFPD staff at the Phillip Burton Federal Building on Thursday, Jan. 9, 2020. (Kevin N. Hume/S.F. Examiner)
Departing U.S. attorney predicts corruption probe will continue

David Anderson shook up City Hall as top federal prosecutor

Most Read