Mayor Lurie Signs Balanced, Responsible Budget Driving San Francisco's Recovery

SAN FRANCISCO – Mayor Daniel Lurie today signed a $15.9 billion budget for Fiscal Years 2025-2026 and 2026-2027, advancing San Francisco’s recovery by prioritizing core services, investing in clean and safe streets, and closing an $800 million deficit. Passed 10-1 by the Board of Supervisors, Mayor Lurie worked in collaboration with Board President Rafael Mandelman and Budget Chair Connie Chan to align the city’s spending with revenue and prepare San Francisco for long-term growth. 

Mayor Lurie’s first budget builds on his administration’s accomplishments in the first six months in office to make the streets safer and cleaner and advance the city’s economic recovery. Under his leadership, overall crime is down nearly 30%, car break-ins are at a 22-year low, and street encampments are at their lowest number since before the pandemic—down by a quarter since March. 

The close partnership with the Board of Supervisors also marks a new era of collaboration at City Hall, focused on addressing the issues San Franciscans care about most. The broad support for the budget builds on action taken by the mayor earlier in his administration—including his Fentanyl State of Emergency Ordinance that passed with overwhelming Board support to unlock resources to tackle the fentanyl crisis, the mayor’s Rebuilding the Ranks plan which is already showing progress towards fully staffing the San Francisco Police Department and Sheriff’s Office, and his Breaking the Cycle plan to transform the city’s response to the behavioral health and homelessness crisis.

“The budget that I signed today is responsible, balanced, and focused on the priorities that will drive our city’s recovery, including public safety, clean streets, and support for those struggling with homelessness and addiction,” said Mayor Lurie. “We took major steps to ensure we only spend the money we have, realigning our spending with revenue and with our values, and we are setting up our city for long-term success. I’m proud of this budget and what it delivers for San Francisco—not because every decision was easy but because this group of city leaders were willing to make the tough ones.”

“This budget is the result of months of hard work and negotiation between the Mayor's Office and departments, the Board of Supervisors and community stakeholders. It reflects the seriousness of the city’s fiscal challenges and a shared commitment to protecting essential services,” said Board President Rafael Mandelman. “Nobody got everything they wanted but this budget avoids layoffs, protects public safety and other core services, and takes an important step toward addressing our structural deficit. We know even tougher choices lie ahead, but I remain optimistic that we will continue working together to meet them. San Franciscans deserve no less.” 

“The budget is different than anything else we do here at the board, it must meet the diverse needs of all San Franciscans. It requires coming together from the start with the understanding that we will have disagreements, but we must get to a yes to deliver this budget in the best interest of our city. And that is what we did,” said District 1 Supervisor and Budget Committee Chair Connie Chan. “I am grateful for the willingness of Mayor Lurie and his team as well as my colleagues on the Board of Supervisors to meet this moment with us. The work is not done, we will continue to work together to ensure our budget stands for San Francisco and San Francisco values.”

“This was never going to be a budget that anyone would celebrate—but it was a budget that demanded seriousness, discipline, and tough decisions,” said District 6 Supervisor Matt Dorsey. “I’m proud that we produced a balanced plan that protects core public services, secures public safety staffing, and takes meaningful steps toward fixing the long-term structural challenges that have threatened San Francisco’s fiscal stability for too long.”

Mayor Lurie’s budget:

• Prioritizes public safety by avoiding cuts to sworn officers while investing in the police officers, firefighters, sheriff’s deputies, 911 dispatchers, and other first responders who keep San Franciscans safe and play a critical role in the city’s comeback.
• Invests in clean and safe streets by maintaining funding for street cleaners, avoiding cuts to a core city service and adding new street cleaning staff and strengthening neighborhood-based ambassador programs. 
• Unlocks resources to tackle the behavioral health and homelessness crisis by expanding flexibility for tens of millions of dollars generated through Proposition C, allowing the city to redirect unspent funds to address immediate needs and give people on the street a better option with access to treatment and services.
• Protects critical funding for legal defense services for the city’s immigrant and LGBTQ+ communities.
• Sets up the city for long-term growth and closes an $800 million budget deficit by taking major steps to align spending with revenue—eliminating filled and vacant positions, identifying $171 million in ongoing annual savings from grants and contracts, and taking steps to eliminate the use of one-time funds for ongoing expenses. As a result, the city controller found that this budget reversed a decade-long trend of increasing the number of positions in government and will save as much as $300 million every year in future budgets, positioning the city for success with growing outyear gaps.