Press Release

03/01/10 – “I commend the Controller for introducing legislation to create a general fund reserve and budget stabilization reserve for the City and County of San Francisco.  These policies will ensure that during periods of boom or bust, San Francisco’s budget remains stable.  We have already laid the groundwork for better fiscal management by implementing 2 year budgets and a rainy day reserve.  Now, adopting these common-sense reforms that the Controller has put forth will ensure that the City has the necessary tools to withstand future periods of recession.

In 2008, Mayor Newsom asked the City Controller to undertake a review of structural barriers to the achievement of long-term, sustainable balance of the City’s budget.  In response, the Controller convened working groups of elected officials, department representatives, and key budget stakeholders, and developed recommendations for improving the City’s budget and financial practices.  These efforts resulted in Proposition A on the November 2009 ballot, which Mayor Newsom supported and which was passed by a 70% majority of San Francisco voters.  This proposition established a two-year budget cycle and required the Controller to develop a five-year financial plan and long-range financial policies to ensure that the City maintains adequate reserves and uses volatile revenue sources appropriately.