Meeting San Francisco’s many challenges, from accelerating housing production to revitalizing downtown and improving transportation operations, hinges on a lasting fix for the city’s structural budget deficit. As city leaders work to address a projected budget shortfall of $817 million for fiscal years 2025–2026 and a nearly $1 billion deficit for fiscal years 2027–2028, they must grapple with voter-approved spending mandates and a budget process that limits their options.

Part of SPUR’s role is to articulate clear principles and goals for urban policymaking. As San Francisco Mayor Daniel Lurie’s administration passes the 100-day mark, SPUR offers a decision-making framework to help the new mayor and his administration set priorities and maintain momentum in the face of complex and evolving challenges.

Mayor Lurie’s recently proposed Family Zoning Plan increases the likelihood that San Francisco will meet its state-set goal to build 82,069 new homes. The plan would remove regulatory obstacles to building dense multifamily housing in most neighborhoods and create new opportunities to build housing near schools, businesses, and transit. Critically, it would remedy historic patterns of segregation by dismantling hallmarks of exclusionary zoning in the city’s northern and western neighborhoods.

On May 1, Oakland’s interim mayor will roll out the city’s proposed 2025–2027 budget, which will look to address a $280 million projected deficit over the next two years. As Oakland navigates this moment of leadership transition, policymakers, administrators, employee unions, and community must work together to find creative ways to reduce spending and grow revenues. Although the structural budget deficit cannot be closed in this budget cycle, the city can pass a balanced budget that commits to sound financial practices, lays the foundation for reforms to Oakland’s governance structure, and builds the city’s capacity to grow economic prosperity for all Oaklanders.