San Francisco Mayor Daniel Lurie is proposing a significant shift in budgetary priorities, aiming to redirect nearly $88.5 million from housing initiatives to fund shelters under his new ‘Breaking the Cycle’ initiative.
This amount represents approximately 30 percent of the $303 million anticipated from Proposition C for the upcoming fiscal year, a measure that was initially intended to enhance housing solutions.
Lurie’s office asserts that accessing these funds is crucial to tackling the ongoing homelessness crisis in the city.
The plan aims to cover costs associated with 572 additional shelter beds and provide 130 hotel vouchers for families, all part of Lurie’s commitment to address the growing number of people living on the streets.
While campaigning, Lurie pledged to create 1,500 emergency beds and also promised the construction of 2,500 interim housing beds within a two-year timeframe.
However, his current budget proposal prioritizes the immediate need for shelter, signaling a shift away from long-term housing solutions.
During a recent budget meeting, Lurie stated, ‘Fentanyl has changed the game and shifted priorities toward shelter and behavioral-health services.
We need to change with it.’
Despite the urgency presented by the Mayor, there are significant concerns surrounding the redirection of funds from housing to shelter initiatives.
Critics argue that this move could worsen the existing pipeline from shelter to permanent housing, which is already under strain.
A report from the Controller’s office in March highlighted that only 13 percent of individuals leaving the city’s shelters in 2024 managed to transition into permanent housing, a situation exacerbated by the lack of available housing.
Solange Cuba from the Coalition on Homelessness emphasized the importance of safeguarding Proposition C funds, stating, ‘We must protect Proposition C funds because they are already breaking the cycle of homelessness for hundreds of people in this city.’
The proposal was discussed at a recent Homeless Oversight Committee meeting, where various stakeholders expressed their concerns.
Commissioner Christin Evans remarked, ‘The idea that we’re going to take millions of prevention dollars and shift them to shelter is backwards from what our goal should be here.’
She suggested that this shift could lead to an increase in the number of homeless individuals on the streets, particularly among families.
Sherilyn Adams, the executive director of Larkin Street Youth Services, warned of the potential repercussions for young people if funds previously allocated for their housing needs are reallocated, stating that it could lead to a bottleneck in services.
Conversely, some commissioners, like Sharky Laguana, voiced support for the plan, acknowledging the city’s difficult budgetary situation while recognizing the necessity of providing immediate shelter for those in need.
‘First things first: Can we help get people off the streets?’ he asked, highlighting the urgent need for action amid the ongoing crisis.
The ordinance reallocation is part of Lurie’s broader budget proposal, which totals $15.9 billion and aims to use $88,495,000 of Proposition C funds over the next three years.
Proposition C, which was passed in 2018, instituted a gross receipts tax on businesses earning more than $50 million annually to fund homelessness solutions.
Of the funds in question, about $60 million have been allocated but remain unspent, while Lurie hopes to utilize an additional $29 million from accrued interest to meet the shelter needs.
The ‘Our City, Our Home’ fund established by Proposition C allocates its resources across various categories, with the largest portion dedicated to permanent supportive housing.
This new ordinance seeks to waive the specific spending requirements for the $88.5 million, providing Lurie with increased flexibility in fund usage, but sparking fears among advocates that vulnerable populations may suffer as a result.
The remaining Proposition C funds are primarily earmarked for mental health services and homelessness prevention initiatives.
In order for Lurie’s ordinance to advance, it will require a supermajority — eight votes — from the Board of Supervisors.
Former San Francisco Homeless Czar Bevan Dufty, who now serves on the Homelessness Oversight Commission, called for collaborative dialogue among city leaders to ensure that the needs of the community are met adequately.
‘We must take seriously the political effort to alter commitments made by the voters of this city,’ he stressed.
image source from：https://missionlocal.org/2025/06/sf-lurie-housing-shelter-propc-money/
