Proposition B

Establishing a Municipal Finance Corporation and a Public Bank

Proposition B will authorize the establishment of a Municipal Finance Corporation and Public Bank as nonprofit corporations, and to set forth the mission, principles, and governance structure of those corporations.

This measure requires approval by a majority of voters voting on the measure to pass.

Fiscal Impact: Proposition B would not directly impact the cost of government as it does not require the City to create a Municipal Finance Corporation (MFC) that could transition into a Public Bank. However, if the City moves forward with establishing a MFC and subsequently a Public Bank, the costs would range from approximately $310 million to $460 million over an eight-year period, which could be significantly higher or lower depending on interest rates and changing economic conditions.

See Endorsements for Proposition B

Pro:

Supporters argue that Prop 3 will ensure that a San Francisco Public Bank is fiscally responsible, independent from political influence, and serves San Francisco's priorities. They say that a Public Bank puts the people of San Francisco over private profits to finance the things we need. The shareholders would be the people of San Francisco, so we benefit not only from our bank's profits but also the San Francisco projects it supports. Prop B is a crucial step in creating a Public Bank.

A YES vote on this measure means: you want to authorize the establishment of a Municipal Finance Corporation (MFC) and a Public Bank as non-profit corporations. A YES vote does not automatically initiate the establishment of a MFC or Public Bank, but allows the city to begin the process of establishing them.

Con:

Opponents argue that Proposition B asks San Francisco voters to create a City Hall-controlled public bank and municipal finance corporation - without any dedicated funding, without proven demand, and at a time when the City already faces massive budget shortfalls. They say that supporters claim this will unlock affordable housing and small business lending. In reality, it creates a new politically appointed entity with the power to take significant financial risks using public resources. The City's own working group previously estimated hundreds of millions of dollars would be needed to capitalize such an Institution. Proposition B provides none of that capital. It simply builds the structure and leaves taxpayers holding the bag later.

A NO vote on this measure means: you do not want to authorize the city to establish a Municipal Finance Corporation (MFC) and a Public Bank.

Background

In 2019, the California Legislature approved AB 857, the California Public Banking Act, which authorizes the creation of local public banks. In 2021, the San Francisco Board of Supervisors passed an ordinance establishing the Reinvestment Working Group ("RWG"). In 2023, the RWG prepared a Final Governance Plan, Business Plan, and Viability Study for a San Francisco Municipal Financial Corporation and a San Francisco Public Bank, which was accepted by the Board of Supervisors. In 2025, the Board of Supervisors passed a resolution urging the Treasurer-Tax Collector to establish the MFC. Existing law does not provide for the establishment of a municipal finance corporation or a public bank.

Proposal

If approved, Proposition B would authorize the establishment of a Municipal Finance Corporation (MFC) and a Public Bank as non-profit corporations, subject to the availability of adequate funding and resources. It would also set forth the mission, principles and governance structures of those organizations, including authorizing the creation of an MFC Oversight Commission, Bank Oversight Commission, MFC Board of Directors and Bank Board of Directors.

Source: Proposition B: Legislative Digest

City and County of San Francisco Office of Elections

Pro:

Con:

Background

Proposal

2026 Propositions

2026 Local Ballot Measures

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