The $642 Million Budget Deficit — Painful Cuts Ahead
active• sanfrancisco
San Francisco's fiscal crisis looms over every other issue in the city. The city's projected two-year General Fund shortfall for FY 2026–27 and FY 2027–28 stands at $642.8 million — an improvement from a prior projection of $817.5 million, thanks to stronger hotel, sales, transfer, and business tax collections — but still requiring painful cuts and possible layoffs before the June 1 budget deadline. Mayor Daniel Lurie, who took office in January 2026 after defeating incumbent London Breed, has warned of "painful cuts" and proposed eliminating more than 1,400 mostly vacant positions. City programs dealing with immigration, LGBTQ+ rights, clean energy, and services for diverse populations have been hit hardest — and the city attorney's office has filed 14 lawsuits against the federal government in an attempt to protect these funds. The structural gap is projected to exceed $1 billion later this decade even if the current shortfall is closed.
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Related cause: Budget priorities
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