Hearing on the City and County of San Francisco's Joint Report and the Five Year Financial Plan Update for Fiscal Years (FY) 2026-2027 through FY2029-2030; and requesting the Controller and the Mayor's Budget Director to report.

This hearing concerns the City and County of San Francisco's Five-Year Financial Plan Update for Fiscal Years (FY) 2026-2027 through FY2029-2030. The joint report from the Controller's Office, Mayor's Office, and Board of Supervisors' Budget Analyst projects a significant budgetary shortfall. Key drivers include increased salaries and benefits, rising health insurance costs, and substantial losses in federal and state funding due to federal legislation (H.R. 1) impacting programs like Medicaid and CalFresh. The report highlights risks such as potential recessions, labor negotiations, and ongoing business tax litigation. The projected cumulative deficit through FY2029-30 is estimated to be $1.17 billion, with a two-year deficit of $936.6 million for FY2026-27 and FY2027-28. The report also details assumptions regarding revenue growth, pension contributions, and reserve levels, while outlining a recession scenario that could worsen the deficit by over $800 million.