Mayor Defends $100M in Cuts as Federal Threats Push Deficit Toward $1 Billion

The San Francisco Board of Supervisors got a sobering fiscal preview from Mayor Daniel Lurie on April 14, who warned that federal and state funding losses could balloon the city's structural deficit to $1 billion — even as Supervisor Chyanne Chen pressed him on why painful mid-year layoffs are still on the table. Elsewhere, the Board unanimously passed its Climate Action Plan into law, greenlit more than $200 million in contracts and energy investments, and designated 14 historic landmarks in one of the largest single preservation actions in recent memory.

• Mayor Lurie warns $1B deficit as HR1 threatens $300M in annual healthcare and safety-net funding — defends $100M in mid-year worker cuts despite pushback from Supervisor Chen

• Climate Action Plan ordinance finally passes unanimously, codifying emissions-reduction goals into city law

• $75.9M clean energy storage deal approved for CleanPowerSF's 20-year Willow Rock investment

• 14 landmark designations advance, protecting LGBTQ, AIDS Foundation, indigenous and cultural heritage sites

• Supervisor Chen introduces charter amendment for a San Francisco public bank, citing 67% voter support

• Airport surveillance ordinance delayed one week (9-1) after Lyft raises objections — Walton dissents

• Fire Code advisory council created (9-1) over Walton's conflict-of-interest concerns about supervisor membership

The $1 Billion Question: Budget Cuts vs. Federal Threats

In a special 2 p.m. appearance before the Board, Mayor Daniel Lurie laid out a fiscal picture that has darkened significantly since last year's budget cycle. While last year's process reduced the long-term structural deficit by roughly $300 million, Lurie said federal and state cuts have erased that progress entirely.

Why it matters: The impacts land squarely on San Francisco's most vulnerable residents. Lurie warned that The One Big Beautiful Bill Act (HR1) alone — the sweeping federal legislation working through Congress — could strip more than $300 million per year from the city by cutting Medi-Cal and SNAP, potentially forcing tens of thousands of San Franciscans off healthcare and food assistance. Separately, proposed federal elimination of continuum of care homelessness funding would affect more than 2,200 households currently receiving services.

"The impacts of HR1 alone may exceed $300 million annually and could force tens of thousands of San Franciscans off of Medi-Cal, SNAP," said Mayor Lurie. He told the Board the five-year deficit projection is now heading toward $1 billion.

The other side: Supervisor Chyanne Chen, District 11, challenged Lurie directly: "Given this improved physical outlook and the potential for up to $300 million in new revenue from Prop D, why are you still pursuing $100 million in cuts to city workers?" She pointed to the $120 million Airbnb settlement and a 30% deficit reduction already achieved.

Lurie pushed back, saying the Airbnb settlement would be spread over three years to prevent a fiscal cliff. "No one-time funding released through that settlement will help avoid deeper cuts. And we plan to spread that money out over three years so we don't create a fiscal cliff by spending it all at once," he said. He added: "Take action now or be forced to do twice as much in the coming years."

Chen pressed on whether mid-year cuts were premature given the Board's upcoming budget review, but Lurie maintained the urgency of closing the structural gap before one-time revenues run dry.

What's next: The exchange sets the stage for what promises to be one of the most contentious budget cycles in years. The mayor's proposed budget package is expected before the Board in the coming weeks, where supervisors will weigh the scale and timing of reductions against the uncertain federal funding landscape.

Climate Action Plan Becomes Law

The Board unanimously passed an ordinance amending the Environment Code to update San Francisco's climate action goals, planning process, and department responsibilities. The vote was 10-0 on second and final reading.

Why it matters: The ordinance codifies emissions-reduction targets and assigns clear roles to city departments — moving climate policy from aspirational plans to legally binding obligations. Supervisor Myrna Melgar, District 7, requested to be added as co-sponsor.

Decisions: Passed 10-0 (For: Mandelman, Sauter, Sherrill, Walton, Wong, Chan, Chen, Dorsey, Mahmood, Melgar; Absent: Fielder).

In a related action, the Board approved a resolution authorizing CleanPowerSF to participate in California Community Power's procurement of the Willow Rock long-duration energy storage project — a commitment of up to $75.9 million over a 20-year term estimated from July 2030 through June 2050.

Together, these two actions represent the Board's most significant climate and clean energy commitments of the year, pairing enforceable law with a major long-term infrastructure investment.

14 Landmarks Designated in Historic Preservation Sweep

The Board passed 14 Planning Code landmark designation ordinances on first reading without objection, protecting a diverse array of culturally and historically significant properties.

Why it matters: The batch represents one of the largest single landmark actions in recent Board memory, spanning sites central to San Francisco's LGBTQ, public health, indigenous, and neighborhood identity. Among the properties: Sha'ar Zahav (the LGBTQ-affirming synagogue), Castro Baths, Maud's (a pioneering lesbian bar), the San Francisco AIDS Foundation building, and the American Indian Historical Society/Chautauqua House. Other designations include the Bob Ross House, Bank of Italy Branch Building, Engine Company No. 13, Hose Company #30, Full Moon Coffeehouse, Geilfuss on Guerrero, Mission Folk Victorian Home, St. Matthew's Church, and St. Nicholas Cathedral.

What's next: These ordinances passed on first reading and will return for a second and final vote.

Airport Surveillance Policy Paused After Lyft Objects

An ordinance governing the use of transportation network company virtual queue surveillance technology at SFO ( meaning the system SFO uses to manage rideshare staging/queueing at the airport) was continued one week on its second reading after Lyft sent a letter requesting a four-week delay.

Where things stand: Board President Rafael Mandelman disclosed the Lyft letter and said the airport director considered a one-week continuance reasonable to allow discussions. "I am proposing a one-week continuance to allow the airport to communicate with one of its stakeholders that appears to have a concern about this policy," President Mandelman said.

The other side: Supervisor Shamann Walton, District 10, objected sharply: "So we are honoring a request by one single company that has an issue." Walton questioned whether Lyft's concern was limited to its own drivers rather than the general public and voted no.

Decisions: Passed 9-1 (Walton dissenting; Fielder absent).

Fire Code Advisory Council Created Over Walton's Objections

An ordinance establishing a Fire Code Technical Advisory Council to evaluate high-rise residential sprinkler compliance waivers passed 9-1 on first reading.

Why it matters: The council will advise the Fire Commissioner on whether certain high-rise buildings can receive waivers from sprinkler compliance requirements — a body with real influence over building safety standards.

The other side: Supervisor Walton delivered an extended objection: "I think it's totally inappropriate for a supervisor to serve on an auxiliary committee that is set up for community. I think it sets a bad precedent and has the undertones of possible coercion due to the fact that this committee gives recommendations to the Fire Commissioner." He argued that supervisors already hold an oversight role and that dual service creates a conflict of interest. Supervisor Melgar asked if Walton had proposed amendments; he said he had not because colleagues on the Rules Committee supported the legislation as written.

Decisions: Passed 9-1 (Walton dissenting; Fielder absent). Returns for a second reading.

Looking Ahead: New Legislation Introduced

Entertainment Zones for District 3

Supervisor Danny Sauter, District 3, introduced a package establishing four new entertainment zones — North Beach, Ferry Building, Embarcadero Plaza, and Belden Place. "This represents the work of conversations with stakeholders across many of our business districts over the past year," Supervisor Sauter said.

Public Bank Charter Amendment

Supervisor Chen introduced a drafting request for a charter amendment to create a San Francisco Municipal Financial Corporation and Public Bank, modeled on the Bank of North Dakota. She cited a citywide poll showing 67% of likely San Francisco voters support the concept. The Board previously accepted a governance plan for the effort in 2023.

Homelessness Cuts Hearing

Supervisor Chen also requested a hearing on proposed budget cuts to homelessness and supportive housing, noting: "Last week, Mission Local reported that we are going to lose more than 450 shelter beds. I have also heard that there are plans to decommission permanent supportive housing units."

Sexual Assault Awareness

Supervisor Stephen Sherrill, District 2, and Supervisor Melgar introduced a resolution recognizing April 2026 as National Sexual Assault Awareness and Prevention Month. Supervisor Melgar delivered emotional remarks: "Within our city, within our progressive movements, within our labor movements, within our political circles, sexual violence is prevalent. It's often hidden. It protects those who are in power."

Additional Introductions

Supervisor Bilal Mahmood, District 5, introduced a resolution supporting AB 1836 to expand the California State Nonprofit Security Grant Program to cover cultural events outside permanent facilities. Supervisor Alan Wong, District 4, introduced a resolution honoring Vicha Ratanapakti on the fifth anniversary of his death, reaffirming commitment to elder safety.

Commendations

The Board recognized three commendation honorees:

Supervisor Chen honored SFPD Commander Amy Hurwitz of the Golden Gate Division for her career and advocacy for women in the department. Multiple supervisors praised Herrick as a queer Jewish woman in law enforcement leadership.

Supervisor Sauter honored North Beach Citizens and Executive Director Kristie Fairchild on 25 years of service. "Over 630 individuals received services last year. Over 90% of the housed clients remain stably housed today," Supervisor Sauter said, noting the organization was founded with support from Francis Ford Coppola.

President Mandelman honored DEM Dispatcher of the Year Karen Colindres and Tony Hardley Award recipient Zoila Lechuga, both of whom gave emotional speeches about the trauma and dedication of 911 dispatchers.

Minor Items

• Six lawsuit settlements totaling $1.45M approved on consent, 10-0.

• $33.9M contract amendment with Sapient Corporation for the Assessor-Recorder's property assessment system replacement approved.

• $94.6M Oracle products contract with Mythics LLC for citywide software and cloud services through November 2028 approved.

• $20.3M airport security contract modification with Covenant Aviation Security approved.

• $7.96M Proposition 47 Cohort 5 grant for community-based reentry and diversion programs approved.

• $850,000 Freedom Project grant for expanded public defense resentencing services approved.

• $600,000 state workers' rights enforcement grant approved through July 2026.

• $15.9M Homekey+ grant application authorized for 629 Post Street, a veterans housing project with Swords to Plowshares.

• Board adopted resolution supporting HR 2410, the Revitalizing Downtowns and Main Streets Act, which would create federal tax credits for office-to-housing conversions. A clerical amendment corrected a representative's name from Casey to Carey.

• National Crime Victims' Rights Week resolution adopted after Supervisor Matt Dorsey, District 6, pulled it from consent to highlight the city's history of victim services innovation, referencing former DA Arlo Smith's creation of California's first victim services unit.

• 300 block of Eddy Street designated as Officer Lewin-Tankel Way.

• Remaining batch of ceremonial and intergovernmental resolutions adopted 10-0, including SB 1091 support, Child Abuse Prevention Month, Pacific Islander affirmation, Black Maternal Health Week, sidewalk assessment hearings, and United Airlines anniversary.

• Meeting adjourned in memory of Dr. Helene Wenzel, a pioneering LGBTQ attorney.