Overview

• The council adopted a $5.5 billion operating budget for fiscal year 2025-26 to address a $35.6 million shortfall that is projected to rise to $52.9 million in 2026-27 and to fund preparations for the 2026 Super Bowl and World Cup.
• Members voted 8-3 to reallocate $39.2 million of voter-approved Measure E funds from permanent affordable housing to temporary shelter projects through fiscal year 2026-27.
• A 9-2 vote established a new police unit under the “Responsibility to Shelter” policy, allowing officers to arrest homeless individuals after repeated refusals of shelter offers.
• Councilmembers defeated Mayor Matt Mahan’s Pay for Performance plan by a 7-4 margin, rejecting salary withholds of up to 5% tied to meeting citywide goals.
• The budget restores about $9 million in proposed cuts for vulnerable populations, preserving funding for nonprofits serving older adults and boosting support for undocumented immigrant and domestic-violence services.