A city’s budget reflects its priorities and values — and choices made over the years. San Francisco’s $15.9 billion budget for 2024–25 is increasingly constrained, with only 18% of funds remaining truly discretionary due to legal mandates, voter-approved set-asides, and other restrictions. Key revenue sources have become more volatile since COVID, and rising costs leave limited flexibility to adapt to changing fiscal conditions. In this article, we take a deep dive into the city’s revenues and expenditures.

The California State Legislature’s “Fast-Track Housing” package addresses the state’s housing crisis on multiple fronts. SPUR sponsored three of the package’s bills and is working on four other bills that would make it easier to build critically needed housing, including in transit-rich areas where increased density could boost transit use and help the state meet its climate goals.

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.