San Francisco’s Budget Announcement
San Francisco Mayor Daniel Lurie has introduced a budget of approximately $17 billion, aimed at providing substantial salary increases for police and firefighters while also averting widespread layoffs. The city is grappling with a looming deficit that runs into the hundreds of millions.
Lurie expressed that while hundreds of city-funded jobs could be at risk, the proposed budget, which totals $16.9 billion over the next two years, is intended to help revitalize the city. He has frequently emphasized the importance of this initiative, citing the need to address persistent budgetary issues.
“We understand these choices have significant consequences. But if we don’t take action now, our structural deficit could swell to $1 billion, leading to even more difficult decisions in the future,” Lurie stated during his remarks on Monday.
He also mentioned a sense of optimism as employment levels rise and businesses begin to reopen, citing recent high passenger numbers in Munich, reflecting a potential rebound from the pandemic.
The city’s labor union is preparing for potential layoffs, following Lurie’s decision to issue 127 pink slips to city employees. Meanwhile, nonprofit workers are bracing for an estimated 1,000 job losses due to reductions in large nonprofit contracts, which have previously surpassed $1.6 billion in spending.
“We are relieved to see that there are no additional layoffs included in next year’s budget,” noted Kristen Hardy, the vice president of SEIU 1021. “San Francisco is at a critical juncture in its recovery, and it’s vital we continue to push forward.”
Under Lurie’s budget proposal, police and firefighters will receive significant raises of 14% over four years as part of a recent collective bargaining agreement. Lurie mentioned that a hiring freeze enacted last year saved the city $130 million.
This budget proposal arrives just ahead of an important election on June 2, which could significantly affect the city’s economy.
Voters will be deciding on a contentious measure known as Ballot Measure D, or the “Overpaid Executives Tax.” This proposed tax would impose an extra gross receipts tax on companies that demonstrate a large pay gap between their executives and local workers. Lurie, along with business proponents, strongly opposes this measure, arguing it could drive businesses away and hinder economic recovery.
A similar initiative was passed in 2020 but was later scaled back as city leaders sought to attract businesses back to the downtown area.
Supporters of Measure D, including major labor unions, argue that this tax could bring in $250 million annually.
Lurie indicated that he would not reconsider the budget if Measure D is approved, emphasizing the need for the city to adopt a more conservative fiscal approach.
