In December, San Francisco Mayor Daniel Lurie signed an ordinance aimed at creating a reparations fund that could potentially allot up to $5 million to each qualified Black resident, despite admitting that the city lacks the necessary funds to support such an initiative.
This measure was passed in mid-December with unanimous approval from the San Francisco Board of Supervisors, establishing the reparations fund for 2023. However, while the ordinance outlines a legal framework for accepting donations, it doesn’t actually allocate funds or specify where the money would come from.
Lurie stated, “As we move through the budget process, we are preparing to eliminate a deficit of nearly $1 billion, which means we can identify key funding priorities and continue to adequately deliver services.” He expressed the city’s financial difficulties, noting they currently can’t allocate any resources to this fund.
The city is predicting a budget deficit nearing $936 million over the next couple of years, with expenditures expected to exceed revenue in a community of about 800,000 residents.
Supervisor Sherman Walton authored the bill, stating that it is a step towards moving from “apology to action.” Walton emphasized that just recognizing issues without providing resources isn’t sufficient, pointing out that the fund would allow various sources to contribute to the funding recommendations from the African American Reparations Advisory Council in San Francisco.
The ordinance is part of a broader reparations framework that includes over 100 suggestions such as income subsidies, debt relief, and tax breaks for eligible beneficiaries—implementation of which could cost the city billions.
Despite the controversy over funding, critics have voiced their concerns, including Elon Musk, who criticized the ordinance as “grossly morally wrong.” He pointed out, “We didn’t even have slaves in California!” questioning the righteousness of making people who escaped oppression pay reparations for an issue unrelated to them.
Some critics have argued that the city is only creating a reparations fund in name rather than substance. Amos Brown, formerly on the city’s reparations advisory committee, commented that leaving the fund empty while working on long-term plans creates further delays and inequities. His thoughts were shared in the San Francisco Chronicle.
Requests for comments from Lurie’s office received no response. Other cities and states have begun adopting reparations resolutions, though many of these efforts have been limited in scope, often focusing on research rather than direct payments. At the state level, California Governor Gavin Newsom signed a bill to create a Bureau of Descendants of American Slaves in October to help in implementing reparations policies, funded studies to help identify potential beneficiaries seeking reparations.
