SF Supervisors Approve $8.5M Zoo Bailout

The San Francisco Board of Supervisors approved an $8.5 million loan on May 19 to keep the San Francisco Zoo operating as city officials press the nonprofit that runs it to fix management and oversight problems. The vote came after weeks of scrutiny over the zoo’s finances and a city audit released May 1. The San Francisco Zoological Society, which manages the zoo, has said it faces a projected $12 million deficit over the next two years. City officials said the loan is meant to prevent a shutdown while the zoo carries out required changes. ### Why did the zoo need city money now? The San Francisco Zoological Society told city officials it was facing a projected $12 million shortfall over two years, according to local reports citing the funding request and city discussions. KQED reported that the nonprofit said it needed the money to keep the nearly century-old institution open while it makes improvements. NBC Bay Area reported the loan was approved to help keep the zoo operating. (kqed.org) An April 7 report listed by the Board of Supervisors’ Budget and Legislative Analyst was titled “Projected Fiscal Impact from Cessation of San Francisco Zoological Society Operations,” showing city officials had been evaluating the consequences of a possible collapse before the vote. The Board of Supervisors’ reports page lists that analysis among its 2026 publications. (kqed.org) ### What did the city’s audit find? A May 1 performance and management audit by San Francisco’s Budget and Legislative Analyst said the zoo and the Zoological Society undertook projects without required city approvals and identified broader management and financial-control problems. Search results summarizing the audit said the zoo spent about $12 million on projects without required approval between 2019 and 2025. (sfbos.org) The audit was ordered after earlier scrutiny of animal care, worker safety and infrastructure conditions at the zoo. NBC Bay Area reported in October 2024 that a report from the San Francisco Animal Control and Welfare Commission described enclosures as outdated and cited mismanagement. (media.api.sf.gov) ### How is the $8.5 million supposed to be released? The Board’s action authorized a loan of up to $8.5 million, but the full amount is not scheduled to go out immediately. SFist, citing NBC Bay Area’s reporting on the city plan, said the Zoological Society would receive $2.5 million up front and the remaining $6 million only after meeting a list of milestones tied to facility improvements and structural changes. (nbcbayarea.com) Supervisor Myrna Melgar, whose district includes the zoo and who requested the audit, said at a committee meeting that “there is a long list of milestones that the Department and the zoo must meet,” according to SFist’s account of the proceedings. SFist also reported that the zoo’s director, Cassandra Costello, appointed in February, would be responsible for helping carry out several of the required steps. (sfist.com) ### Who runs the zoo, and what is the city trying to protect? The San Francisco Zoological Society is the nonprofit that oversees the zoo, while the city owns the land and remains responsible for the public asset and the animals’ care if the operator fails, according to statements reported from city officials. Melgar said, “The city and county owns the land and we own the animals,” according to SFist. She added that if the organization did not survive, “it is our responsibility that those animals are taken care of and fed three times a day.” (sfist.com) Those statements framed the city’s intervention as an operational backstop rather than an unrestricted subsidy. KQED reported the money was presented as a way to keep the zoo open while audit recommendations were implemented. ### What comes next for the zoo? Cassandra Costello and the San Francisco Zoological Society now have to meet the city’s conditions before the remaining loan money can be released. (sfist.com) The audit itself included 49 recommendations, and the Zoological Society agreed with the recommendations directed to it, according to summaries of the May 1 report. (kqed.org) The next public markers are the zoo’s compliance steps under the audit and any future Board of Supervisors or committee reviews tied to the loan. The Board’s reports page already lists the April 7 fiscal-impact analysis and the May 1 audit, which city officials have used as the basis for the rescue package and its conditions. (sfbos.org) (prismnews.com)