San Francisco’s Deficit Could Reach $1 Billion Within 3 Years

According to the “Six-Month Budget Report” released by the San Francisco City Auditor, the city may face an unprecedented $1 billion financial deficit within the next three years. On February 18, 2025, Mayor Daniel Lurie responded to this by emphasizing the immediate need to overhaul the city’s finances, warning that failing to do so could jeopardize city operations.

The report indicates that in the next two years, San Francisco will encounter a staggering $840.2 million deficit, which is projected to rise to $1 billion by the third year.

Mayor Lurie stated, “We cannot continue to overspend year after year; we must immediately rectify our financial situation. If we do not take decisive action this year, our city, street cleanliness and public safety capabilities, public health infrastructure, and economy will face even greater risks.”

He believes that while San Francisco shows signs of recovery and momentum in development, the city government’s budget decisions in recent years have been too short-sighted, neglecting long-term financial sustainability. He added, “Moreover, the uncertainty at the federal level has exacerbated this challenge.”

Lurie emphasized the need to draft a responsible and balanced budget now, focusing on “core city services.”

In his statement, Mayor Lurie also mentioned, “Moving forward, the city government will need to make extremely difficult decisions, but I believe we can rise to the occasion and overcome these challenges.”