San Francisco Expects $876 Million Budget Gap, Warns of Cuts (1)

San Francisco is projecting a $876 million budget shortfall over the next two fiscal years, prompting Mayor London Breed to instruct city departments to plan for 15% across-the-board spending cuts.

The deficit, which will define much of Mayor-elect Daniel Lurie’s tenure, comes as San Francisco is contending with a sluggish recovery of its hotel and business tax base, with rising expenses that outpace revenue.

The incoming administration of President Donald Trump and a Republican-controlled Congress have also cast a cloud over the city, which is waiting on $244 million in outstanding federal disaster-relief funds that could be withheld, according ...