Sample Our Newsletter

Welcome to the month of July. You made it this far. Congratulations. San Francisco's fiscal year began on July 1 and ends on June 30, 2026. This explains our having to include two 6-month property tax assessment stubs from two different years when we file our yearly taxes.

San Francisco is facing a significant budget deficit in the coming year. Mayor Daniel Lurie has proposed a $15.9 billion budget to address an $800 million shortfall over two years. Some reports indicate the deficit could be as high as $782 million, while others suggest it may reach $1 billion when broader financial challenges are taken into account.

To close the shortfall, the mayor's plan includes:

• Eliminating approximately 1,400 city positions, most of which are currently unfilled.
• Cutting $185 million in contracts and nonprofit funding over two years.
• Preserving funding for public safety departments, including police, fire, and emergency services.
• Setting aside $400 million in reserves to prepare for potential reductions in state and federal assistance.

Needless to say, the budget proposal has sparked controversy. City workers and community groups are protesting the cuts, arguing that they will negatively impact essential services. The Board of Supervisors will review and debate the budget before final approval by August 14, 2025.

How's everyone reacting?
Advocacy groups for the homeless have warned that cutting services could worsen the crisis on the streets. The Board of Supervisors is pushing back. Some members are joining legal aid organizations in opposing the mayor's plan, arguing that the cuts hit vulnerable populations the hardest.

The city is trying to balance the budget while maintaining critical services, but long-term financial stability remains a challenge, with projections showing a $1.3 billion shortfall by 2029-30. As economic conditions shift, expect ongoing adjustments to funding strategies.

And what about the Rent Board?
The San Francisco Rent Board, which oversees and en forces the Rent Ordinance and mediates owner-renter disputes, is included in the budget under General Administration and Finance. However, the exact funding for 2025 isn't clearly listed in public records.

What does this mean for small property owners?
While Prop. 13 limits property tax increases to 2% annually, local municipalities in California, including San Francisco, can circumvent this limitation through various mechanisms. These include passing local bonds, issuing special assessments, and imposing parcel taxes, all of which can result in higher property taxes for owners. Property owners, especially small property owners, need to remain on high alert and let City Hall know we can't be the city's ATM in the coming lean fiscal years, as has become the custom in the past.

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