The ordinance places various departments’ budget appropriations specified in the Mayor’s FY 2023-24 mid-year budget reduction plan on the Board of Supervisors Budget and Finance Committee Reserve for FY 2023-2024.

Supervisor Connie Chan has proposed to place $48,403,840 across 30 departments’ budgets on Budget and Finance Committee reserve.

If the ordinance is approved, Budget and Finance Committee approval will be required to spend any of the reserved funds. If the funds are not spent by the end of FY 2023-24, the Controller may de-appropriate the expenditures and return funds to the General Fund balance.

The initiative to place funds on reserve comes in response to projected deficits due to expenditure growth outpacing General Fund revenues. The deficits are estimated at approximately $245 million in FY 2023-24 and $554 million in FY 2025-26. This has led the Mayor's Office to suggest expenditure reductions and other adjustments to the budget to reconcile these deficits.

Expenditures placed on reserve are subject to release at a later date with Board of Supervisors approval, as mandated by City Administrative Code Section 3.3(j).

The Budget and Finance Committee of the Board of Supervisors has jurisdiction over the City’s budget and can approve or disapprove the release of funds reserved for expenditure reductions.