City Government

Mayor London Breed Signs Balanced Budget to Support Economic Recovery, Meet City’s Top Challenges

Two-year budget funds City priorities in supporting a sustained and equitable economic recovery and addressing critical issues that include homelessness, public safety, behavioral health, and youth and family support

Published

4 years ago

August 6, 2021

Isabelle Price

A closeup of a US hundred dollar bill (Benjamin Franklin side). photo courtesy Adam Nir via Unsplash

San Francisco Mayor London N. Breed signed into law the City and County of San Francisco’s balanced budget for Fiscal Years (FY) 2021-2022 and 2022-2023. The budget advances new investments to support San Francisco’s economic recovery; continue the COVID-19 response; ensure public safety; provide behavioral health care; prevent homelessness and transition people into services and housing; create more housing; promote nonprofit sustainability and equity initiatives; and support children, youth and their families.

Announced on July 29, the annual $13.1 billion for FY 2021-22 and $12.8 billion for FY 2022-23 budget will respond to the City’s most urgent needs as it moves forward on the road to recovery from the COVID-19 pandemic, while preserving long-term financial sustainability.

The final adopted budget follows months of collaborative work with elected officials, City departments, non-profit organizations, neighborhood groups, merchants, residents, and other stakeholders.

Breed and her staff conducted a comprehensive public outreach process, consisting of a public meeting to obtain input on budget priorities, two town halls, and online feedback to hear from residents on their priorities and reflect them in the budget.

“I’m excited to be signing this two-year budget today after months of hard work from everyone involved. It is something that we should all be proud of,” said Breed. “With these investments, we are addressing our most pressing issues by prioritizing the residents and businesses that have been hit hardest by the COVID-19 pandemic. This budget will lay the groundwork for our City’s economy and set San Francisco on a path to emerge from this pandemic stronger than ever.”

“This is a recovery budget that will provide critical support for our residents and small businesses who are still struggling due to the impacts of this pandemic. It will launch new innovative approaches and provide historic investments to confront the health, mental health, economic, housing, and safety challenges facing our city,” said Supervisors Matt Haney, who serves as the Board of Supervisors Budget Chair. “We are all committed to moving forward to deliver on the commitments and investments made in this budget to improve the quality of life and opportunities for everyone in our city.”

Driving a Sustained and Equitable Economic Recovery and Continuing City’s COVID-19 Response

The final adopted budget invests nearly $525 million over the two years for various initiatives to drive and accelerate the City’s economic recovery, while also supporting the City’s COVID-19 response.

Major recovery initiatives include Community Ambassadors and events and activities to enliven San Francisco’s downtown, backfilling the loss of hotel tax revenue for the arts, addressing student learning loss, the Women and Families First Initiative, incentivizing the return of conventions at the Moscone Center, a new Trans Basic Income pilot program, a Free Muni for Youth pilot program, and continuing the JobsNow workforce program and Working Families Credit.

The budget also includes $12 million to support the First Year Free program, which will waive various fees associated with starting a new business in San Francisco, and a $32 million investment to augment the over $90 million in rental relief funds received from the state and federal.

Additionally, the budget includes a $6.4 million annual investment to support the maintenance and expansion of the City’s pitstop program.

Of this total, about $378 million will be spent to continue the City’s COVID-19 shelter response, food security programs, vaccination efforts, testing operations, and the COVID-19 Command Center. Funding will also support community-based COVID-19 recovery programming, specifically targeting resources to populations disproportionately impacted by the pandemic.

This funding includes targeted small business support, economic relief, workforce development funds, and various arts, cultural, and recreational programming.

Making Historic Investments in Homelessness and Housing

The final adopted budget includes significant investments to address homelessness in San Francisco and expand the work started through the Homelessness Recovery Plan to create 6,000 placements for people experiencing homelessness.

In total, the budget leverages over $1 billion over the next two years in local, state, and federal resources to add up to 4,000 new housing placements, prevent homelessness and eviction for over 7,000 households, support additional safe parking sites, and fund the continuation of a new 40-bed emergency shelter for families.

All of these investments are in addition to prior commitments. This funding will enable the City to cap all Permanent Supportive Housing (PSH) rents in the City’s PSH portfolio at 30% of a tenant’s income.

Supporting Long-Term Economic Justice Strategies

The final adopted budget maintains the City’s $60 million annual investment in the Dream Keeper Initiative, which Breed launched last summer to reinvest City funds in services and programs that support San Francisco’s Black and African American community. The proposed budget also includes funding to waive additional fees and fines paid to the City by San Francisco residents.

Additionally, the budget supports the City’s efforts to promote diversity, equity and inclusion and ensure citywide coordination of equity work. The budget also makes a significant investment in the sustainability of the City’s nonprofit partners with $76.4 million for an ongoing cost of doing business increase.

Expanding Mental Health and Substance Use Support

Continuing on a commitment to help people with behavioral health and substance use issues, the final adopted budget contains approximately $300 million in new investments for behavioral health services. Included in the budget is funding to prevent overdoses through medication assisted treatment, a drug sobering site, and expanded naloxone distribution. The budget also includes funding to support new and existing Street Response Teams, including the Street Crisis Response Team, Street Wellness Response Team, and Street Overdose Response Team.

This investment will fund the City’s plan to add over 340 new treatment beds, provide case management and care coordination for people receiving services, and expand services at the City’s Behavioral Health Access Center. This investment will also provide targeted services for transgender and Transitional Age Youth clients and increase services for clients in shelters and Permanent Supportive Housing.

Investing in Public Safety, Victims’ Services, and Justice Innovations

The final adopted budget makes investments to prevent violence, support victims, and continues the City’s investments in alternative responses to non-criminal activity. The budget includes over $11 million to expand violence prevention programming and funding for victims’ rights, including targeted investments to support community-based violence prevention and intervention work, and to San Francisco’s Asian and Pacific Islander community.

The final budget includes funding to support police staffing levels, funding two 40-person police academies in FY 2021-22 and one 50-person academy in FY 2022-23. The final budget also includes $3.8 million over the two years to support the addition of 10 paramedics to the Fire Department’s ambulance unit.

To strengthen the City’s non-law enforcement response to non-criminal activity, the final budget includes new funding for a Street Wellness Response Team and resources to support call diversion, including a $3 million investment to support other alternative response models.

Supporting Children, Youth, and Their Families

The final budget includes over $134 million over the two years to lay the groundwork for early learning and universal preschool in San Francisco. This includes funding for childcare subsidies, workforce compensation for childcare providers, and child health and wellbeing. The budget also maintains the City’s existing investments in children and youth, invests significant new funding to address learning loss, funds mental health for SFUSD students, and supports the Mayor’s Opportunities for All initiative.

Investing in Capital Projects and Affordable Housing

The final adopted budget includes significant investments in capital and one-time projects, which will create jobs and spur economic recovery. The budget provides $50.6 million to support affordable housing developments in San Francisco. The budget also includes $208 million for projects from the City’s Capital Plan, including street and parks infrastructure improvements, an expansion of fiber to affordable housing, and community facility improvements. The budget also includes funding to replace aging equipment in the Fire and Police departments, as well as funding to purchase a site for an LGBT Cultural Museum.

Ensuring Financial Resilience

The budget makes the above significant investments in a way that is financially responsible. By utilizing funding from the American Rescue Plan and other one-time sources, the City is able to maintain its reserves. This budget preserves the City’s Rainy Day Reserve for future uncertainty and risk. To hedge against future risk and uncertainty, the budget re-allocates unappropriated funds to create two new reserves that will help to manage unforeseen costs due to potential FEMA reimbursement disallowances and to manage future budget shortfalls.

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Activism

Oakland School Board Grapples with Potential $100 Million Shortfall Next Year

The school board approved Superintendent Denise Saddler’s plan for major cuts to schools and the district office, but they are still trying to avoid outside pressure to close flatland schools.

Published

2 days ago

December 14, 2025

Oakland Post

OUSD Supt. Denise Saddler. File photo.

By Post Staff

The Oakland Board of Education is continuing to grapple with a massive $100 million shortfall next year, which represents about 20% of the district’s general fund budget.

The school board approved Superintendent Denise Saddler’s plan for major cuts to schools and the district office, but they are still trying to avoid outside pressure to close flatland schools.

Without cuts, OUSD is under threat of being taken over by the state. The district only emerged from state receivership in July after 22 years.

“We want to make sure the cuts are away from the kids,” said Kampala Taiz-Rancifer, president of the Oakland Education Association, the teachers’ union. “There are too many things that are important and critical to instruction, to protecting our most vulnerable kids, to safety.”

The school district has been considering different scenarios for budget cuts proposed by the superintendent, including athletics, libraries, clubs, teacher programs, and school security.

The plan approved at Wednesday’s board meeting, which is not yet finalized, is estimated to save around $103 million.

Staff is now looking at decreasing central office staff and cutting extra-curricular budgets, such as for sports and library services. It will also review contracts for outside consultants, limiting classroom supplies and examine the possibility of school closures, which is a popular proposal among state and county officials and privatizers though after decades of Oakland school closures, has been shown to save little if any money.

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Mayor Lee, City Leaders Announce $334 Million Bond Sale for Affordable Housing, Roads, Park Renovations, Libraries and Senior Centers

Saying “Oakland is on the move,” Mayor Barbara Lee announces results of Measure U bond sale, Dec. 9, at Oakland City Hall with city councilmembers and city staff among those present. Photo courtesy of the City of Oakland.

Published

2 days ago

December 14, 2025

Oakland Post

Saying “Oakland is on the move,” Mayor Barbara Lee announces results of Measure U bond sale, Dec. 9, at Oakland City Hall with city councilmembers and city staff among those present. Photo courtesy of the City of Oakland.

By Post Staff

The City of Oakland announced this week that it is successfully moving forward on the sale of $334 million of General Obligation bonds, a milestone that will provide the city with capital funding for city departments to deliver paved roads, restored public facilities, and investments in affordable housing.

“Oakland is on the move and building momentum with this bond sale,” said Oakland Mayor Barbara Lee. “We are reviving access to funding for paving our streets, restoring public facilities we all use and depend upon, and investing in affordable housing for our community, all while maintaining transparency and fiscal discipline.”

“These bonds represent our city’s continued commitment to sound financial management and responsible investment in Oakland’s future,” said Lee.

“Together, we are strengthening our foundation for generations to come,” she said. “I’m grateful to our partners in the City Council for their leadership and support, and to City Administrator Jestin Johnson for driving this process and ensuring we brought it home.”

According to the city, $285 million of the bonds will support new projects and $49 million of the bonds will refund existing bonds for debt service savings.

Oakland issued the Measure U bonds on Dec. 4 after two years of delays over concerns about the city’s financial outlook. They all sold in less than a week.

The new money bonds will pay for affordable housing, roadway safety and infrastructure improvements, and renovations to parks, libraries, senior centers, and other public facilities under the city’s Measure U Authorization.

Citywide paving and streetscape projects will create safer streets for Oaklanders. Additionally, critical facilities like the East Oakland Senior Center and San Antonio Park will receive much-needed renovations, according to the city.

Some of the projects:

$50.5 million – Citywide Street Resurfacing
$13 million – Complete Streets Capital Program
$9.5 million – Curb Ramps Program
$30 million – Acquisition & Preservation of Existing Affordable Housing
$33 million – District 3: Mandela Transit-Oriented Development
$28 million – District 6: Liberation Park Development
$3 million – District 5: Brookdale Recreation Center Capital Project
$1.5 million – District 1: Oakland Tool Lending Library (Temescal Branch Library)
$10 million – District 3: Oakland Ice Center

“I recognize that many naysayers said we couldn’t do it,” said Johnson. “Well, you know what? We’re here now. And we’re going to be here next year and the year after. The fact is we’re getting our fiscal house in order. We said we were going to do it — and we’re doing it.”

Investors placed $638 million in orders for the $334 million of bonds offered by the City. There was broad investor demand with 26 separate investment firms placing orders. The oversubscription ultimately allowed the city to lower the final interest rates offered to investors and reduce the city’s borrowing cost.

“The oversubscription ultimately allowed the City to lower the final interest rates offered to investors and reduce the City’s borrowing cost,” said Sean Maher, the city’s communications director.

“The Oakland City Council worked closely with the administration to both advance the bond issuance process and ensure that the community had a clear understanding of the City’s timeline and approach,” said Councilmember at-Large Rowena Brown.

“In September, the City Council took unanimous action to authorize the Administration to move forward with the bond sale because these funds are essential to delivering the very improvements our communities have long asked for – safer streets, restored public facilities, and expanded affordable housing,” she said.

Continuing, Brown said, “I want to extend my sincere thanks to City Administrator Jestin Johnson, Finance Director Bradley Johnson, and Mayor Barbara Lee for their leadership, diligence, and steady guidance throughout the City’s bond sale efforts.

“Navigating complex market conditions while keeping Oakland’s long-term infrastructure needs front and center is no small task, and this moment reflects tremendous professionalism and persistence,” she said.

Moody’s gave the city an AA2 rating on the bonds, its third-highest rating, which it gives to high-quality investment-grade securities.

There was both a tax-exempt portion and a taxable portion for the bond offering, reflecting the various uses of the bond proceeds, according to a statement released by the city.

The $143.5 million of tax-exempt bonds have a 30-year final maturity and received an all-in borrowing cost of 3.99%. The $191 million of taxable bonds have a 24-year final maturity and received an all-in borrowing cost of 5.55%.

The $49 million in tax-exempt bonds that refinance existing obligations of the City resulted in $5.6 million of debt service savings for taxpayers through 2039, or $4.7 million on a present value basis.

Mayor Lee said that, based on her experience serving on the House Financial Services Committee of the U.S. Congress for more than 10 years, city staff has done an exemplary job.

“I have witnessed many cities go to the bond market throughout the years,” she said. “I can tell you with certainty that Oakland’s team is remarkable, and our residents should be proud of their reputation, their competence, and their deep knowledge of this very sophisticated market.”

Looking ahead to the final sale of the bonds, according to the city press statement, pricing marks the point at which the City and investors locked in the final dollar amounts, interest rates, and other key terms of the bond sale. This stage is commonly referred to as the sale date. At pricing, no funds are exchanged. The actual delivery of bonds and receipt of monies occurs at closing, which is scheduled within the next two weeks.

Capital projects receiving this funding will proceed on individual timelines based on their individual conditions and needs. At the time of closing, funding will be immediately available to those projects.

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Bay Area

Post Salon to Discuss Proposal to Bring Costco to Oakland Community meeting to be held at City Hall, Thursday, Dec. 18

The proposed resolution would give authority to the City Administrator to negotiate terms for an exclusive negotiating agreement (ENA) with Deca Companies and Costco Wholesale Corporation to pursue a potential Costco development at 2008 Wake Ave. in the North Gateway Development Area of the former Oakland Army Base, adjacent to the Port of Oakland.

Published

2 days ago

December 14, 2025

Oakland Post

Costco. Courtesy image.

By Post Staff

The Oakland Post Salon will host a community meeting with District 3 City Councilmember Carroll Fife and city staff to discuss a proposal for building a Costco in Oakland.

The public meeting will be held Thursday, Dec. 18, from 6 p.m.-7:30 p.m. in City Council Chambers, Oakland City Hall, 3^rd Floor at 1 Frank H. Ogawa Plaza in Oakland.

At the meeting, residents will have the opportunity to:

Hear about a proposed resolution from Fife for Costco in Oakland
Find out details from the City Administrator and Oakland’s Real Estate Division
Ask questions, share ideas about benefits residents are looking for
Make sure decision-makers know what residents need.

“As the D3 Council representative, my primary objective is to improve the lives of my constituents, who have endured generations of disinvestment and neglect,” said Fife. “For too long, our West Oakland community has lacked access to essential services, often forcing residents to leave Oakland to find quality options – including groceries. Our families deserve access to affordable groceries, and we want to keep those dollars and tax revenues within our city. This proposed ENA is an important step toward bringing a world-class retailer to Oakland and creating hundreds of good-paying jobs right here in District 3.”

Deca Companies, a San Francisco-based real estate investment and development firm, is leading the development project. Deca has extensive experience with major projects across California, including the redevelopment of the Phillips 66 Refinery in Southern California, large mixed-use California projects in Perris, Bakersfield, and Mead Valley; along with electric vehicle charging lots and industrial projects across the Bay Area and Southern California.

“We’re thrilled to be working with Councilmember Fife to bring a major grocery retailer to West Oakland,” said Travis Duncan, vice president of Deca Companies. “This project sends a clear message: Oakland is open for business. We’re proud to be part of the team working to help alleviate the food desert and bring affordable, high-quality groceries that can serve folks in Oakland and people from across the East Bay.”

Tony Beatty, longtime broker for Costco in the Bay Area noted, “While I cannot comment on the specifics of potential opportunities that are currently being evaluated, existing Costco locations in the Bay Area perform very well, and we have been looking at potential expansion opportunities where they can best serve their members.”

If approved by the full City Council, the City Administrator would be authorized to negotiate terms for an exclusive negotiating agreement with Deca Companies and Costco Wholesale Corporation, a critical first step. If negotiations are fruitful, the resulting ENA would come before the City Council for approval.

In the interim, community outreach and engagement will continue to ensure residents are included in the decision-making process in a meaningful way, according to a statement from Fife’s office.