Do you really think that the city budget is self-funded? I don't live in SF but in NYC a huge portion of the budget comes from state and federal grants. That is true even on the local town level. Almost all of the money sent to the federal and state governments is handed back down the chain with strings and stipulations attached.

Otherwise, what would the state be doing? If the state spends a bunch of money on roads, it spends it on roads in towns. You might be driving down the street in your town seeing construction, but that money came from state taxes not town taxes.

The same goes for programs big and samll. Medicaid is money collected on the federal level, but paid out on the state level.