Lurie’s $15.9B budget just landed. Here’s what to know

Mayor Daniel Lurie released his nearly <a href="https://media.api.sf.gov/documents/70_CSF_Proposed_Budget_Book_June_2024_Final_REV1_0525v2.pdf">$16 billion budget proposal</a> Friday, showcasing his master plan to close San Francisco’s $782 million deficit.



Many services will keep their funding at the current levels: the San Francisco Police Department, the public defender’s office, the district attorney’s office, street cleaning crews, and homelessness services.&nbsp;Other city agencies will likely lose funding. Lurie wants to cut roughly $185 million in contracts and nonprofit spending over two years, though the specifics of those reductions were not immediately available. He has also proposed eliminating approximately 1,400 positions from the city’s job rolls, <a href="https://sfstandard.com/2025/05/28/san-francisco-mayor-daniel-lurie-budget-layoffs/">mostly vacancies and retirements</a>. More than 100 of those cuts could come from layoffs.



Under Lurie&#8217;s proposal, the city&#8217;s total budget amounts to $15.9 billion in fiscal 2026 and $16.3 billion in fiscal 2027. 



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In an address Friday morning, Lurie said the cuts are needed to right-size San Francisco’s habit of spending beyond its means, starting with the tech boom in the 2010s and continuing into the pandemic.



“Here’s the bottom line: We have to stop spending more than we can afford,” Lurie said. &#8220;The era of soaring city budgets and deteriorating street conditions is over.”



Despite Lurie’s talk of fiscal austerity, the majority of city departments would receive a budget bump under his proposal. The Department of Emergency Management, home of the 911 dispatch center, gets a 15% increase, the largest in the city. Budgets for the Juvenile Probation Department, the City Treasurer and Tax Collector and the Board of Supervisors would also shoot up by over 10%.&nbsp;



Discounting so-called enterprise departments, or agencies that are largely self-sufficient with independent budget processes, Human Services is set to pull in the largest overall windfall, with an $81 million increase. The police, fire, and sheriff&#8217;s departments would each get a more than $22 million bump.



But 21 departments do lose out in Lurie’s proposal: the Homelessness and Supportive Housing department is set to lose nearly $104 million; the Economic and Workforce Development Department faces a $57 million cut; and the Department of Public Works could lose $26 million trim.



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Other departments that are set to lose large shares of their budget include the Ethics Commission, <a href="https://sfstandard.com/2025/05/30/sf-status-of-women-human-rights-commission-budget/">Human Rights Commission</a>, and the Arts Commission. Lurie closed the massive two-year deficit in his budget proposal partially through cuts but also by factoring in better-than-expected estimates for revenue in coming years. Despite delivering a balanced budget proposal for the next two years and taking an estimated $300 million chunk out of the long-term deficit, the mayor acknowledged that the structural deficit will persist in the following years. The mayor’s office confirmed that in balancing the budget, it tapped into $40 million in reserve funds to pay for new equipment across city departments. While other departments are facing layoffs, the administrative budget of the mayor&#8217;s office will get a bump due to negotiated wage increases, officials confirmed.



The mayor’s proposal kicks off negotiations with the Board of Supervisors before the final budget deadline of July 31. Public hearings will begin next month, allowing departments to request more funding.&nbsp;



&#8220;As we move through the board’s budget process in the month of June, it is clear that we have no good options,&#8221; said Supervisor Connie Chan. &#8220;As budget chair, I will work with Mayor Lurie and my colleagues on the Board of Supervisors to invest our public dollars in protecting San Franciscans and our values.&#8221;&nbsp;



<h2 class="wp-block-heading" id="h-uncertain-times">Uncertain times </h2>



The financial threats to the city’s coffers are twofold.



San Francisco has struggled more than many U.S. cities in its economic recovery from the Covid pandemic. Downtown office vacancies skyrocketed at the start of the pandemic, throwing a critical component of the city&#8217;s economy into disarray. Those vacancies remain above 30%.&nbsp;



Meanwhile, President Donald Trump has threatened to withhold billions of dollars in federal funding to San Francisco and other sanctuary cities that don’t comply with his hard-line immigration policies. The president’s budget plans include <a href="https://sfstandard.com/2025/05/14/san-francisco-hud-homelessness-housing-trump-budget-cuts/">gutting tens of millions</a> of dollars for low-income housing and homeless-prevention strategies. Republicans in Congress have&nbsp;also proposed cuts to programs for low-income residents, <a href="https://www.nbcnews.com/politics/2026-election/political-fight-medicaid-escalates-house-republicans-trump-big-bill-rcna209194">such as Medicaid</a>, which would similarly impact city revenue.



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The <a href="https://sfstandard.com/2025/04/24/san-francisco-judge-blocks-trump-sanctuary-city-order/">city has responded</a> <a href="https://sfstandard.com/2025/05/02/san-francisco-sues-hud-over-illegal-funding-dem/">with federal lawsuits</a> to block those efforts and protect funding streams for critical services.



Also at risk is hundreds of millions of dollars in Federal Emergency Management Agency funding that the city used for emergency shelters for homeless people during the height of the pandemic. City officials now fear they will not be reimbursed for those funds.&nbsp; Lurie confirmed Friday that the federal agency had notified the city of plans to claw back $140 million in funding it has already provided. 



The city also receives $1 billion in federal funding each year for Medicaid and housing, among other services. But there are increasing worries among city leaders that the money will not come through under Trump’s administration. Lurie is therefore proposing a $400 million reserve fund as a way to &#8220;deal with that uncertainty.&#8221;



When asked what will happen if those safety funds are not sufficient, Lurie told reporters at City Hall that he hopes the city&#8217;s economic recovery,&nbsp;predicated on increased tax revenue, will cover for the missing funds.



<h2 class="wp-block-heading" id="h-critics-decry-budget-cuts">Critics decry budget cuts </h2>



Socking that money away, however, has put more pressure on an already buckled budget.



One of Lurie&#8217;s most controversial proposals is to redirect large portions of the <a href="https://sfstandard.com/2022/11/08/wanting-more-from-tax-dollars-voters-poised-to-add-oversight-to-homelessness-department/">Our City, Our Home fund</a>, which voters approved via a 2018 ballot measure. The money was intended to boost transitional housing for younger residents, along with mental health services&nbsp;and additional shelter beds. Lurie instead wants to broaden the pool of San Franciscans the fund would help, raising concerns that there will be less money for the youth whom the ballot measure was intended to serve.&nbsp;



The proposal, which is likely to meet fierce opposition from supporters of homelessness nonprofits, would require a supermajority of the Board of Supervisors to approve.



Swift condemnation from local unions came as Lurie was in the middle of his budget address. In addition to criticizing proposed layoffs, labor groups decried tech companies such as Airbnb that have sued the city <a href="https://sfstandard.com/2025/03/31/san-francisco-budget-deficit-lawsuits-business-taxes/" target="_blank" rel="noreferrer noopener">to recoup tax</a> <a href="https://sfstandard.com/2025/03/31/san-francisco-budget-deficit-lawsuits-business-taxes/" target="_blank" rel="noreferrer noopener">money</a> they allege was overpaid.



Lurie declined to comment on the Airbnb lawsuit but said he welcomes more businesses to San Francisco.



&#8220;We want businesses here so that we can bring that tax revenue, and we can bring jobs back to San Francisco,&#8221; Lurie said.



&#8220;This is ridiculous. [Lurie] said this is a new era of accountability,&#8221; Anya Worley-Ziegmann of the People&#8217;s Budget Coalition, which advocates for nonprofits, community groups and unions, said Friday at City Hall. &#8220;Where&#8217;s the transparency? Where&#8217;s the budget?&#8221;



Service Employees International Union Local 1021 President Theresa Rutherford, whose union represents many city healthcare workers, said in a statement she was &#8220;deeply disappointed&#8221; in Lurie&#8217;s budget plans.



Rudy Gonzalez of the San Francisco Building &amp; Construction Trades Council said, &#8220;Layoffs are totally unnecessary. We can find the funds to save jobs and uphold San Francisco values.&#8221;



In response to the unions&#8217; criticism, Lurie said, &#8220;I take no joy in this. I was elected to make hard choices.&#8221;



Aside from union leaders,&nbsp;some&nbsp;city officials were dismayed by the proposed budget cuts. Patrick Ford, executive director of the San Francisco Ethics Commission, which monitors campaign finance issues and other matters, said despite <a href="https://content.sfstandard.com/wp-content/uploads/2025/05/press-release_-lurie-takes-on-city-hall-insider-corruption-with-aggressive-ethics-enforcement-proposal-to-restore-trust-integrity-accountability-in-city-government.pdf" target="_blank" rel="noreferrer noopener">Lurie&#8217;s promises on the campaign trail</a>&nbsp;to fully fund the department, up to four positions in the 28-person city agency could be affected by the mayor&#8217;s layoff plans. 



&#8220;Based on what I know so far,&#8221; Ford said, &#8220;the rhetoric and reality are pretty different when it comes to the mayor’s support for ethics.&#8221;

Lurie taps ex-Twitter CFO to take charge of SF’s downtown, housing crises

Ned Segal’s résumé includes five years as chief financial officer of Twitter — he got the ax in 2022, when <a href="https://sfstandard.com/2022/04/25/elon-musk-twitter-san-francisco-hq-takeover/">Elon Musk bought the bird</a> site and renamed it X — and nearly 17 years at Goldman Sachs, where he held the titles of managing director and head of global software investment banking.



It also includes selling hot dogs as a teenage vendor at Candlestick Park. Now he’s about to see how the sausage really gets made in San Francisco.



On Tuesday, <a href="https://sfstandard.com/2024/11/07/daniel-lurie-wins-san-francisco-mayor/">Mayor-elect Daniel Lurie</a> announced that he’s hiring Segal, 50, as the first-ever chief of housing and economic development. The new role, part of Lurie’s plan to reshape the way business is done at City Hall, will report directly to the mayor while working with departments that include Building Inspection, Planning, Economic and Workforce Development, and Housing and Community Development, as well as the Arts Commission, libraries, and San Francisco International Airport.&nbsp;



Considering the size and complexity of these departments, which collectively spend about $3 billion, it’s a daunting task for a person with no government experience. However, Segal said he feels more than ready.



“I feel like I&#8217;ve spent my whole life preparing for a role like this, whether it&#8217;s taking the bus downtown as a kid, selling hot dogs at Candlestick Park, or working downtown for much of my career,” he said. “I feel like I have empathy for the companies and families that are trying to thrive here. I couldn&#8217;t be more excited to bring this to bear for the people and businesses in San Francisco.”



The city is facing <a href="https://sfstandard.com/2024/12/03/san-francisco-budget-deficit-trump-funding-deportations/">a massive budget deficit</a> and an unprecedented housing crisis, as it needs to build 82,000 homes by 2031. Many downtown offices remain empty, and some companies have fled entirely.



Segal said the local economy and housing are “inextricably linked,” which is why the two issues will fall under his portfolio.&nbsp;



“We aren&#8217;t going to shrink our way to prosperity,” he said, “although there are serious budget decisions that the mayor-elect will need to make. Until more people come to visit us, until more people work here, until more families live here, it will be hard for the city to realize its full potential.”



Lurie and Segal have known each other since they were kids at Town School for Boys, a private school in the city. Segal served on the board of Lurie’s anti-poverty nonprofit Tipping Point Community. Asked if their relationship would change after Lurie becomes his boss, Segal sounded unconcerned.



“I&#8217;ve known Daniel for a long time, and he is the right leader for this moment in San Francisco,” Segal said. “I’ve always admired what a good listener he is, how much he cares about people, and how he puts together incredible teams to meet the challenges he&#8217;s facing. And I couldn&#8217;t be more excited to be a part of his team.”



Segal and his former Twitter colleagues made headlines this year when <a href="https://www.npr.org/2024/03/04/1235903181/former-twitter-executives-sue-elon-musk-for-more-than-128-million-in-severance#:~:text=Former%20Twitter%20executives%20sue%20Elon,%24128%20million%20in%20severance%20%3A%20NPR&amp;text=Music%20of%202024-,Former%20Twitter%20executives%20sue%20Elon%20Musk%20for%20more%20than%20%24128,of%20a%20pattern%20for%20Musk.">they sued Musk</a>, claiming he had improperly withheld millions of dollars in severance payments. Segal declined to talk about his time at Twitter in detail, instead diligently sticking to his talking points.



Lurie will be sworn in as mayor Jan. 8. Other <a href="https://sfstandard.com/2024/12/12/daniel-lurie-mayor-san-francisco-city-hall-office/">key staff hires</a> include Staci Slaughter, a former San Francisco Giants executive who will serve as chief of staff; Matthew Goudeau, who will serve as deputy chief of staff after effectively filling the role of political director for Lurie’s campaign; and Han Zou, a longtime community organizer who worked on Lurie’s campaign and will serve as director of public affairs.

The Bono fountain is broken. Is SF too broke to pay for its $3 million fix?

A huge concrete fountain that U2 frontman Bono famously graffitied during a free concert at San Francisco’s Embarcadero Plaza in 1987 has been drained after “a major mechanical failure” forced the city to shut the water off.



The last pump that serviced the Vaillancourt Fountain, also known as “Quebec libre!,” failed about two weeks ago, Tamara Aparton, a Recreation and Parks Department spokesperson, told The Standard. Now, the 53-year-old brutalist sculpture must have its mechanical and electrical systems replaced. The cost? Upward of $3 million.



“The fountain systems were extremely antiquated and past the end of their useful life,” Aparton said in an email. “Due to [the] age of the infrastructure, the fountain systems require a full renovation.”



It’s unclear if or when those repairs could happen. Aparton said there was “no timeline.” For now, the department is working with the Arts Commission to install temporary container plants in the fountain.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="3000" height="2001" src="https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-29.jpg?w=2500" alt="A man with a rolling cart and another person walk by a large, abstract concrete sculpture. In the background, there is a clock tower and palm trees." class="wp-image-285025" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-29.jpg 3000w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-29.jpg?resize=300,200 300w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-29.jpg?resize=768,512 768w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-29.jpg?resize=2500,1668 2500w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-29.jpg?resize=1536,1025 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-29.jpg?resize=2048,1366 2048w" sizes="auto, (max-width: 3000px) 100vw, 3000px" /><figcaption class="wp-element-caption">Designed by Canadian artist Armand Vaillancourt, the sculpture was conceived with the now-demolished Embarcadero Freeway in mind and built so that people could interact with it.</figcaption></figure>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="3000" height="2001" src="https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-45.jpg?w=2500" alt="A discarded can lies on a rusted metal grate, partially submerged in murky green water with muddy debris surrounding it." class="wp-image-285022" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-45.jpg 3000w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-45.jpg?resize=300,200 300w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-45.jpg?resize=768,512 768w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-45.jpg?resize=2500,1668 2500w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-45.jpg?resize=1536,1025 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-45.jpg?resize=2048,1366 2048w" sizes="auto, (max-width: 3000px) 100vw, 3000px" /><figcaption class="wp-element-caption">Puddles of water and gunk remain in the pool of the now-drained Vaillancourt Fountain on Thursday.</figcaption></figure>



Coma Te, communications director for the commission, told The Standard the agency is working closely with Recreation and Parks to repair the fountain and “get it running as soon as possible.”



But with a looming <a href="https://develop.sfstandard.com/2024/05/31/san-francisco-budget-deficit-breed-plan/">$800 million budget deficit</a>, those planters may not be all that temporary.



Mayor London Breed’s office did not immediately respond to The Standard’s questions about whether the city can afford to fix the fountain.



According to <a href="https://develop.sfstandard.com/2024/06/03/san-francisco-budget-2024-breakdown-cuts-chatgpt/">The Standard’s AI bot</a>, which we trained to understand the mayor’s proposed $16 billion budget <a href="https://www.sf.gov/sites/default/files/2024-05/CSF_Proposed_Budget_Book_June_2024_r8.pdf">for fiscal years 2025 and 2026</a>, the 362-page document unsurprisingly makes no mention of the fountain. However, the budget does allocate $15 million for capital improvements and maintenance of public spaces.



The mayor has proposed a budget of $255.9 million for Recreation and Parks for the 2025 fiscal year—a decrease of $7.2 million or 2.7% from the current budget—according to The Standard’s AI bot, which analyzes budget documents. The Arts Commission also has money for the maintenance and conservation of public art installations, the bot notes.



Aparton said she could not provide the cost of operating the fountain, which pumps up to 30,000 gallons of water per minute. In 2004, the department said it <a href="https://www.sfgate.com/bayarea/article/vaillancourt-fountain-makes-a-splash-again-2736404.php">cost $200,000 a year</a> to keep the water running.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="2001" height="3000" src="https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-46.jpg?w=1668" alt="The image shows a large concrete sculpture with rough textures, surrounded by tall buildings. A puddle reflects the sculpture and buildings, with a small green tennis ball in it." class="wp-image-285021" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-46.jpg 2001w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-46.jpg?resize=200,300 200w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-46.jpg?resize=768,1151 768w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-46.jpg?resize=1668,2500 1668w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-46.jpg?resize=1025,1536 1025w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-46.jpg?resize=1366,2048 1366w" sizes="auto, (max-width: 2001px) 100vw, 2001px" /><figcaption class="wp-element-caption">The city is planning to install temporary container plants in the fountain while it is not operational.</figcaption></figure>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="3000" height="2000" src="https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-15.jpg?w=2500" alt="A person in a blue jacket walks past a large, abstract concrete sculpture composed of irregular, weathered geometric shapes, with a palm tree slightly visible in the background." class="wp-image-285023" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-15.jpg 3000w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-15.jpg?resize=300,200 300w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-15.jpg?resize=768,512 768w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-15.jpg?resize=2500,1667 2500w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-15.jpg?resize=1536,1024 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2024/06/20240614bonofountainbroke-me-15.jpg?resize=2048,1365 2048w" sizes="auto, (max-width: 3000px) 100vw, 3000px" /><figcaption class="wp-element-caption">The water supply to the fountain has been shut off previously, most recently in 2014 during California&#8217;s historic drought.</figcaption></figure>



Decried by some and adored by others, the fountain has long been controversial—or perhaps misunderstood. Designed by Canadian artist Armand Vaillancourt in 1971 and installed that same year, the sculpture was conceived with the now-demolished Embarcadero Freeway in mind and built so that people could interact with it.



But when the freeway was demolished in 1991, some called for the fountain to be torn down with it. Supervisor Aaron Peskin <a href="https://www.sfgate.com/default/article/SAN-FRANCISCO-Councilman-wants-to-dismantle-2780809.php">renewed those calls in 2004</a> after the water had been shut off for several years due to the state’s energy crisis.



The fountain went dry again 10 years later because of the drought. It cost the city $500,000 to turn the water back on in 2017, according to the <a href="https://www.sfchronicle.com/bayarea/place/article/Testing-the-waters-for-bringing-the-Vaillancourt-11821748.php">San Francisco Chronicle</a>.



“It’s an iconic piece of public artwork here in the city, so you know everybody has their opinions about it,” Te said. “But it’s part of San Francisco’s Embarcadero waterfront environment. We definitely want to do what we can to ensure that it is repaired as quickly as possible.”



Perhaps Bono, with an estimated net worth in the high hundreds of millions of dollars, could be the fountain’s savior. We emailed his management firm to find out, but we’re still waiting for a reply.

Plan to fix ‘broken’ San Francisco blows up in 2 weeks

In an embarrassing blunder, a moderate political group in San Francisco withdrew <a href="https://develop.sfstandard.com/2023/12/05/san-francisco-could-vote-on-drastic-reforms-to-city-hall-next-year/">a ballot measure intended to cut bureaucracy</a> at City Hall just two weeks after it announced the ordinance in a press conference.



TogetherSF Action confirmed to The Standard on Monday that it was pulling one of two proposed ballot measures to reform the city charter because, contrary to <a href="https://develop.sfstandard.com/2023/08/22/does-san-franciscos-mayor-need-more-power-this-group-says-yes/">the group&#8217;s goal of empowering the mayor</a> to make more decisions, it would actually hand more authority to the Board of Supervisors.&nbsp;



The group decided to scrap the measure before a Tuesday deadline after huddling with officials in the Mayor&#8217;s Office last week. TogetherSF Action plans to revise it and submit a new version to the Department of Elections.



Earlier this month, TogetherSF Action announced it was introducing two ballot measures to reform the city charter—one to give the mayor more power and the other to cut the number of city commissions in half. The group contends that giving the mayor more authority is key to making progress on public safety and the housing, homelessness and drug crises.&nbsp;



But the proposal to eliminate commissions contained a fatal flaw, according to multiple sources in and around City Hall: Eliminating certain commissions would kick oversight responsibilities over to the Board of Supervisors, a group Mayor London Breed has repeatedly criticized as being <a href="https://develop.sfstandard.com/2023/03/07/mayor-breed-pushes-27m-police-overtime-bill-slams-obstructionist-board/">“obstructionist”</a> and <a href="https://develop.sfstandard.com/2023/03/29/mayor-breed-hits-back-at-sf-progressives-touts-conservatorship-in-jon-stewart-interview/">tone-deaf on the issues</a> many San Franciscans are facing.



Multiple sources in and around City Hall suggested the errors in TogetherSF Action’s proposed measure came from a DIY approach and a failure to consult with experts until concerns arose. One source, who is familiar with the issues but was not authorized to speak publicly, called the proposal “sloppy.”



Kanishka Cheng, the head of the nonprofit TogetherSF and its political arm, TogetherSF Action, said in a statement Monday that the ballot measure to eliminate commissions—known as the <a href="https://www.documentcloud.org/documents/24229164-20231204_cutthedysfunctionalbureaucracy_text">“Cut the Dysfunctional Bureaucracy Initiative”</a>—was being updated to change the “status quo” on city operations.



“San Francisco’s governance structure is broken and we are committed to advancing bold reforms at the ballot this November to ensure city government is better positioned to tackle the challenges facing our city,” Cheng said. “We are making updates to our reform measure that will make the initiative stronger and clarify authority and responsibilities between the executive and legislative branches. Voters deserve to know who is responsible for the city government’s decisions and to hold them accountable.”&nbsp;



Michael Moritz, who is chairman of The Standard, has provided funding to the 501c3 nonprofit TogetherSF and its political arm, TogetherSF Action.



The second proposed ballot measure—known as the “We Need SF To Work Initiative”—would give the mayor sole discretion to hire and fire department heads, strengthen the mayor’s ability to control commissions, and allow for the creation of deputy mayor positions.



Under city rules, any voter-led ballot initiative must first be submitted to the Department of Elections. After a 15-day review period by the City Attorney’s Office, the proposal receives a title and summary, and advocates can proceed to collect petition signatures. Sources suggested it would take four to five months to collect the almost 50,000 petition signatures required by July 8 to <a href="https://sfelections.org/tools/cscal_nov24/">qualify for the November 2024 ballot</a>. That 15-day period was to expire Tuesday.



<h2 class="wp-block-heading" id="h-plan-to-cut-commissions-in-san-francisco">Plan to Cut Commissions in San Francisco</h2>



The <a href="https://www.documentcloud.org/documents/24229164-20231204_cutthedysfunctionalbureaucracy_text">“Cut the Dysfunctional Bureaucracy Initiative”</a> proposed creating a task force to review commissions in the city and suggest which ones were redundant and ripe for elimination. As of this summer, San Francisco had <a href="https://develop.sfstandard.com/2023/07/06/only-1-person-at-sf-city-hall-knows-the-answer-to-this-simple-question/">53 departments, 56 boards and commissions and 74 other advisory bodies</a>.



TogetherSF Action’s original plan suggested the number of commissions be capped at 65.&nbsp;



TogetherSF Action said the revised version will seek to keep bodies such as the Board of Appeals, Police Commission, Fire Commission and Planning Commission while allowing the mayor and supervisors the ability to hire and fire commissioners for the Public Utilities Commission, the Fine Arts Commissions, the War Memorial Board and the Airport Commission.



Permitting appeals would go to the Board of Appeals instead of supervisors. For commissions such as the Public Utilities Commission, the Airport Commission and the San Francisco Municipal Transportation Agency, the mayor would be able to appoint a supermajority of commissioners.&nbsp;&nbsp;



Supervisor Aaron Peskin, the president of the Board of Supervisors, said the mistakes should be seen as a “teachable moment.” He suggested the group should have worked with <a href="https://develop.sfstandard.com/2023/10/31/san-francisco-city-hall-ballot-measure-reforms-rafael-mandelman/">Supervisor Rafael Mandelman, who also introduced a charter reform measure</a> that had some overlapping goals with TogetherSF Action’s proposal.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="2999" height="2000" src="https://content-develop.sfstandard.com/wp-content/uploads/2023/11/20231109_detentiondrugdealers-37.jpg?w=2500" alt="A man gesticulates and speaks with 1 hand extended out next to a podium with a gilded facade in the background." class="wp-image-219949" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2023/11/20231109_detentiondrugdealers-37.jpg 2999w, https://content-develop.sfstandard.com/wp-content/uploads/2023/11/20231109_detentiondrugdealers-37.jpg?resize=300,200 300w, https://content-develop.sfstandard.com/wp-content/uploads/2023/11/20231109_detentiondrugdealers-37.jpg?resize=768,512 768w, https://content-develop.sfstandard.com/wp-content/uploads/2023/11/20231109_detentiondrugdealers-37.jpg?resize=2500,1667 2500w, https://content-develop.sfstandard.com/wp-content/uploads/2023/11/20231109_detentiondrugdealers-37.jpg?resize=1536,1024 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2023/11/20231109_detentiondrugdealers-37.jpg?resize=2048,1366 2048w" sizes="auto, (max-width: 2999px) 100vw, 2999px" /><figcaption class="wp-element-caption">Board of Supervisors President Aaron Peskin criticized TogetherSF Action&#8217;s proposed ballot measure as ill-conceived. </figcaption></figure>



“We can have a discussion about what the best public policy is, but if it’s not what they intended, it shows this organization and its members don’t know what they’re doing,” Peskin said. “When you’re tinkering with your constitution, it should be tinkered with in public.”



The Mayor’s Office declined to comment.



The Department of Elections received <a href="https://www.sf.gov/sites/default/files/2023-12/20231218_Withdrawal%20Letter.pdf">a letter from Cheng</a> requesting that the ballot measure be withdrawn Monday afternoon. She added that she plans to submit a revised version “in the coming days.” Once resubmitted, another 15-day review process would start before any signatures could be gathered.&nbsp;



Mandelman said he has not seen TogetherSF Action’s ballot measures, but he and the group have been talking about ways to improve the city through charter reform. He indicated his ballot measure, which also suggests the creation of deputy mayors, would be more incremental with an eye on continuing to reform the city charter in 2026.



“To their credit, they are motivated by a sincere desire to fix problems in San Francisco city governance. In my experience, that’s not easy,” Mandelman said. “It’s hard to fault them for trying to come up with some structural solutions.”

Mayor Breed tries again to nominate a Chinese American to San Francisco’s transit board

The board that governs San Francisco’s public transit agency may soon have a new Chinese American member, nearly a year after the seat was vacated last August.



Mayor London Breed is expected to announce the nomination of Lydia So, a Chinese American immigrant and a licensed architect, to the Board of Directors of the San Francisco Municipal Transportation Agency, which faces a <a href="https://develop.sfstandard.com/uncategorized/san-francisco-lawmakers-rally-for-transit-funds-putting-assemblymember-phil-ting-in-the-hot-seat/">tremendous budget shortfall</a> due to low ridership and <a href="https://develop.sfstandard.com/business/westfield-gives-up-downtown-san-francisco-mall/">an emptying Downtown</a>.&nbsp;



“Public transit connects people to their community,” So told The Standard. “I am honored to have Mayor Breed’s trust to take on this position to improve the public transit system in San Francisco, especially during a time this city is recovering from the pandemic.”



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="2500" height="1667" src="https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-2500x1667.jpg" alt="" class="wp-image-167428" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-2500x1667.jpg 2500w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-300x200.jpg 300w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-768x512.jpg 768w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-1536x1024.jpg 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-2048x1366.jpg 2048w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-650x434.jpg 650w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-370x247.jpg 370w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-800x534.jpg 800w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-450x300.jpg 450w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-20x13.jpg 20w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-185x123.jpg 185w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-740x494.jpg 740w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-400x267.jpg 400w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-1600x1067.jpg 1600w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-225x150.jpg 225w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-900x600.jpg 900w, https://content-develop.sfstandard.com/wp-content/uploads/2023/06/BreedExcellenceScholarship_06052023_005-72x48.jpg 72w" sizes="auto, (max-width: 2500px) 100vw, 2500px" /><figcaption class="wp-element-caption">Mayor&nbsp;London Breed | Isaac Ceja/The Standard</figcaption></figure>



So, a Mission District resident who is fluent in Cantonese, said public safety is among her top priorities, as she often takes public transit with her teenage daughter.



“As an Asian American female, I look forward to being the voice for our community as we see the <a href="https://develop.sfstandard.com/community/one-in-10-anti-asian-incidents-happen-on-public-transit-now-agencies-have-to-track-them/">rising public safety concerns</a> and hate incidents,” she said.&nbsp;



So is not new to city politics: She previously served on the Arts Commission and now serves on the Historic Preservation Commission. She said she worked on <a href="https://www.sfmta.com/projects/better-market-street">Better Market Street</a>, an improvement plan for San Francisco’s main thoroughfare, and will focus on Vision Zero, an ambitious effort to eliminate traffic-related deaths in the city.



“Lydia has an extensive experience in public service,” Mayor London Breed said in a statement. “With her knowledge and commitment to serving our communities, I am confident that she will be able to work closely with the SFMTA on addressing transportation issues and advancing transit priorities that are critical to continue to move our City forward.”



The Board of Supervisors will have the final say on approving So’s nomination.



<h2 class="wp-block-heading" id="h-vacant-for-almost-a-year">Vacant for Almost a Year</h2>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="8192" height="5464" src="https://content-develop.sfstandard.com/wp-content/uploads/2022/07/MTA-Board-Lai_FEATURED.jpg" alt="" class="wp-image-58237" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2022/07/MTA-Board-Lai_FEATURED.jpg 8192w, https://content-develop.sfstandard.com/wp-content/uploads/2022/07/MTA-Board-Lai_FEATURED.jpg?resize=300,200 300w, https://content-develop.sfstandard.com/wp-content/uploads/2022/07/MTA-Board-Lai_FEATURED.jpg?resize=768,512 768w, https://content-develop.sfstandard.com/wp-content/uploads/2022/07/MTA-Board-Lai_FEATURED.jpg?resize=2500,1667 2500w, https://content-develop.sfstandard.com/wp-content/uploads/2022/07/MTA-Board-Lai_FEATURED.jpg?resize=1536,1025 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2022/07/MTA-Board-Lai_FEATURED.jpg?resize=2048,1366 2048w" sizes="auto, (max-width: 8192px) 100vw, 8192px" /><figcaption class="wp-element-caption">Sharon Lai poses for a portrait at the Embarcadero Muni Station in San Francisco on Friday, July 1, 2022. | Juliana Yamada/The Standard</figcaption></figure>



So is expected to assume the new position in the coming weeks, filling a seat that’s been vacant for 10 months on the seven-member panel. But one more seat is currently vacant, too, after a former board member <a href="https://develop.sfstandard.com/politics/san-francisco-transit-commissioner-resigns-after-admitting-to-illegal-lobbying/">resigned in April amid corruption scandals</a>.



It’s a vacancy the mayor attempted to fill once before. Last September, Breed <a href="https://develop.sfstandard.com/politics/city-hall/mayor-appoints-chinese-american-nonprofit-exec-to-transportation-board/">nominated longtime government staffer and nonprofit executive Gloria Li</a>, another bilingual Chinese American female. But the confirmation process was halted for months as <a href="https://windnewspaper.com/article/supervisor-connie-chan-opposes-mayoral-appointee-gloria-li-to-serve-on-san-francisco-s-transportation-board">Supervisor Connie Chan spoke out against Li</a>.



Eventually, the Mayor&#8217;s Office <a href="https://sfgov.legistar.com/View.ashx?M=F&amp;ID=11490521&amp;GUID=DFFA9249-2785-4B9A-89D8-3F95C2253F4B" target="_blank" rel="noreferrer noopener">withdrew Li’s nomination in December</a>, with Li citing personal reasons.



According to <a href="https://www.sfmta.com/sites/default/files/reports-and-documents/2022/03/muni_2021_report_crosstabs_accessible.pdf" target="_blank" rel="noreferrer noopener">the city’s data</a>, Asian Americans comprise about one-third of riders who use Muni more than five times a week. The lack of Asian representation on the board <a href="https://windnewspaper.com/article/asians-share-40-of-the-ridership-with-no-representation-on-the-7-member-sfmta-board-of-directors" target="_blank" rel="noreferrer noopener">has also caught the media&#8217;s attention</a>.



Last August, the seat opened up after <a href="https://develop.sfstandard.com/politics/city-hall/how-a-victim-of-violence-on-sf-muni-became-one-of-the-citys-leading-advocates-of-public-transit-safety/">Sharon Lai</a>, a bilingual Chinese American woman, resigned to pursue a master&#8217;s degree at Harvard University. Lai has since finished the program and returned to the city to take a job at the World Economic Forum, focusing on economic development and sustainability.



“I am very glad to see the mayor’s commitment to appoint an API nominee as reflective representation is critical in supporting the diverse needs of the city,” Lai said of her potential successor.&nbsp;

Mayor Breed’s former nonprofit gets millions from city while flouting state law

The nonprofit that helped launch San Francisco Mayor London Breed’s political career appears to have violated state law by receiving millions of dollars in city funds while being legally barred from doing so.



The African American Art &amp; Culture Complex is currently listed as “<a href="https://content-develop.sfstandard.com/wp-content/uploads/2023/01/Delinquint.pdf">delinquent</a>” on <a href="https://rct.doj.ca.gov/Verification/Web/Search.aspx?facility=Y">the state’s Registry of Charitable Trusts</a>, and records show that the organization has failed for years to renew its registration, pay fees and submit forms documenting revenue and spending with the state Attorney General’s Office.



Since 2018, the nonprofit has either ignored filing requirements or had its registration renewals rejected for incomplete information and underpayment.



The lack of compliance was discovered as The Standard found nearly <a href="https://develop.sfstandard.com/politics/san-francisco-nonprofits-revoked-suspended-delinquent-millions/">140 nonprofits were not in good standing</a> while holding contracts with the city that totaled more than $300 million. Many city departments failed to do their due diligence before giving funds to organizations that were in bad standing.



The African American Art &amp; Culture Complex, which hosts community events and sponsors art exhibitions, has had <a href="https://www.sfchronicle.com/bayarea/article/Divisions-over-direction-of-S-F-African-American-6639402.php">public stumbles and accusations of financial mismanagement</a> since Breed’s departure in 2012. The organization currently has city contracts totaling more than $7.4 million, $1.6 million of which has already been paid out this fiscal year. In 2019, the nonprofit saw its grants and contributions nearly double to $1.9 million as Breed settled into her first year as mayor.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="2500" height="1657" src="https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-2500x1657.jpg" alt="" class="wp-image-118743" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-2500x1657.jpg 2500w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-300x199.jpg 300w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-768x509.jpg 768w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-1536x1018.jpg 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-2048x1357.jpg 2048w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-650x431.jpg 650w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-370x245.jpg 370w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-800x530.jpg 800w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-450x298.jpg 450w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-20x13.jpg 20w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-185x123.jpg 185w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-740x490.jpg 740w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-400x265.jpg 400w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-1600x1060.jpg 1600w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-225x149.jpg 225w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-900x596.jpg 900w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED2_MayorNonprofit012523-72x48.jpg 72w" sizes="auto, (max-width: 2500px) 100vw, 2500px" /><figcaption class="wp-element-caption">London Breed, who was still a county supervisor during this 2018 visit with students in an after-school program at the African American Art &amp; Culture Complex in San Francisco, previously oversaw the nonprofit before launching her political career in 2012. | Carlos Avila Gonzalez/The San Francisco Chronicle via Getty Images</figcaption></figure>



Records that were confirmed by the City Controller’s Office and the state’s Attorney General&#8217;s Office show the African American Art &amp; Culture Complex has been delinquent since August 2019. State law forbids charities not in good standing from receiving or spending government funds. Nonprofits that continue to operate while not in good standing could face fines and civil or criminal complaints.&nbsp;



Joan Harrington, a nonprofits expert and former director at the Markkula Center for Applied Ethics at Santa Clara University, called the organization’s noncompliance a “red flag” despite what may be a record of good work in the community.



“It&#8217;s not as if they didn&#8217;t know that the rule existed, because they tried [to file paperwork] at some point,” Harrington said. “They&#8217;re either disregarding it, or they’re dysfunctional.”



Mayor Breed, who ran the nonprofit for more than a decade and has maintained close ties with the organization since leaving in 2012, has supported funding for the organization in recent years through the city’s <a href="https://sfmayor.org/article/mayor-london-breed-announces-spending-plan-historic-reinvestment-san-franciscos-african">Dream Keeper Initiative</a>. The initiative—launched in early 2021—was designed to redirect $120 million from the public safety budget to organizations that work with the city’s Black community.



“One thing we’ve been wrestling with is how do we manage accountability and how do we build capacity for organizations,” said Sheryl Davis, executive director of the city’s Human Rights Commission and Dream Keeper Initiative. “But I don’t want to separate the two, because we want to make sure folks are good fiscal managers.”



City records show the African American Art &amp; Culture Complex has <a href="https://www.dreamkeepersf.org/funding">contracts worth $3 million from the Dream Keeper Initiative</a>, including grants from the Arts Commission and the Office of Economic and Workforce Development. Both of these agencies declined to make their department heads available for an interview or answer questions related to the contracts.



The directors of the African American Art &amp; Culture Complex, twin sisters Melonie and Melorra Green, did not respond to numerous interview requests made in person at the nonprofit’s offices and by phone, email and text.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="2500" height="1716" src="https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-2500x1716.jpg" alt="" class="wp-image-118737" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-2500x1716.jpg 2500w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-300x206.jpg 300w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-768x527.jpg 768w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-1536x1054.jpg 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-2048x1406.jpg 2048w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-650x446.jpg 650w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-370x254.jpg 370w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-800x549.jpg 800w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-450x309.jpg 450w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-185x127.jpg 185w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-740x508.jpg 740w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-20x14.jpg 20w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-400x275.jpg 400w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-1600x1098.jpg 1600w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-225x154.jpg 225w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-900x618.jpg 900w, https://content-develop.sfstandard.com/wp-content/uploads/2023/01/INLINED3_MayorNonprofit012523-70x48.jpg 70w" sizes="auto, (max-width: 2500px) 100vw, 2500px" /><figcaption class="wp-element-caption">Melorra Green (left) and her twin sister, Melonie Green, are co-executive directors of the African American Art &amp; Culture Complex in San Francisco. The pair took control of the organization in 2017. | Gabrielle Lurie/San Francisco Chronicle via Getty Images</figcaption></figure>



An organization classified as delinquent for more than a year—as is the case with the African American Art &amp; Culture Complex—can have its nonprofit status suspended. Seven organizations in the city were suspended or revoked as of December, while another 17 were delinquent with the state going back to 2019.



The AG’s Office sent a notice saying it intended to suspend the African American Art &amp; Culture Complex in 2017, but the nonprofit sent in renewal forms that briefly brought it back into compliance before falling back into delinquency in 2019.



Supervisor Ahsha Safaí has <a href="https://develop.sfstandard.com/politics/san...

San Francisco set for hard times as huge $728M budget hole could get worse

A looming post-pandemic budget crisis for San Francisco may finally be here.



It’s likely to mean painful cuts to vital city departments and programs, which will have wide-scale impacts on residents.&nbsp;



The new budget forecast features a massive $728 million general fund deficit over the next two fiscal years, which will likely get much worse. That deficit is out of an approximately $6.8 billion general fund budget.



Federal aid that kept the city running has dried up. Now begins a reckoning of how the pandemic really impacted property and business tax revenue, the city’s two largest sources of funding.



The deficit is split up between a $200 million shortfall for the 2023-24 fiscal year and $527.5 million the following year. The longer-term five-year budget projection paints an even grimmer picture, a deficit that balloons from $745.6 million in the 2025-26 fiscal year to $1.22 billion in the 2027-28 fiscal year.&nbsp;



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To put the $728 million figure into context, that’s how much the <a href="https://sfcontroller.org/sites/default/files/Documents/Budget/AAO%20FY2022-23%20%26%20FY2023-24%20-%20FINAL%2020220727.pdf" target="_blank" rel="noreferrer noopener">city’s general fund</a> is currently allocating to the San Francisco Municipal Transportation Agency, the Office of Economic and Workforce Development, and the Department of Public Works combined.



The general fund deficit could see a range of vital city services forced to tighten their belts, including the fire department, child support services, adult probation and the SF Arts Commission.



But even this dire estimate could get even worse. In contrast to a <a href="https://fortune.com/2022/06/13/recession-economists-survey-2023-inflation-interest-rates/">majority of economists</a> the projections don’t assume a recession, one that some experts believe <a href="https://develop.sfstandard.com/business/tech-scaled-too-quickly-and-now-the-bay-area-is-paying-the-price/">may hit the Bay Area</a> harder than most.



<h2 class="wp-block-heading" id="h-city-jobs">City Jobs</h2>



Mayor London Breed’s budget instructions, which help guide city departments in their spending, require a 5% reduction in general fund spending for the 2023 fiscal year and an 8% cut for 2024. Department’s budget submissions are due in February.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="2500" height="1667" src="https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-2500x1667.jpg" alt="" class="wp-image-86055" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-2500x1667.jpg 2500w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-300x200.jpg 300w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-768x512.jpg 768w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-1536x1024.jpg 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-2048x1365.jpg 2048w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-650x433.jpg 650w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-370x247.jpg 370w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-800x533.jpg 800w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-450x300.jpg 450w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-20x13.jpg 20w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-185x123.jpg 185w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-740x493.jpg 740w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-400x267.jpg 400w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-1600x1067.jpg 1600w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-225x150.jpg 225w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-900x600.jpg 900w, https://content-develop.sfstandard.com/wp-content/uploads/2022/10/GettyImages-1321694825-72x48.jpg 72w" sizes="auto, (max-width: 2500px) 100vw, 2500px" /><figcaption>Staffers hired by the Department of Public Works have been watching the toilet on Market Street next to the Peace Plaza in San Francisco. | Liz Hafalia/The San Francisco Chronicle via Getty Images</figcaption></figure>



According to the mayor’s instructions, city departments should keep filling vacancies for core functions and priorities around economic recovery, clean and safe streets, and homelessness and mental health services. Non-central vacancies and underperforming programs should be cut to reduce costs. Further, in an ominous sign of what’s to come, they “should prepare for (the) outlook to worsen.”&nbsp;



“It's really a direction to reexamine what's working and what's not working,” said Breed spokesman Jeff Cretan. “The reality is that this is going to require tradeoffs. There are going to be some things that are not going to be able to move forward.”



Almost exactly one year ago, the city was <a href="https://develop.sfstandard.com/politics/city-hall/budget/san-francisco-budget-surplus/">hailing its first budget surplus</a> since 1998. Although this abundance was later largely erased amid <a href="https://develop.sfstandard.com/business/budget-update-rising-labor-costs-nearly-erase-citys-expected-surplus/">higher labor costs</a> for city workers, the announcement provided a sunny picture of San Francisco’s finances.&nbsp;&nbsp;



In less rosy times, before a major injection of federal aid (and record returns from a then-booming stock market), the city was previously facing a two-year budget deficit as high as $653 million.



Wade Rose, the president of business advocacy group Advance SF, compared what the city faces today to the Great Recession. The losses during that downturn led to <a href="https://www.cepr.net/documents/publications/layoffs-2009-09.pdf" target="_blank" rel="noreferrer noopener">thousands of public sector jobs cut</a> across the Bay Area.&nbsp;



Whereas the Obama administration left local governments largely alone to deal with the impacts of the recession, Rose said the Biden administration provided aid to help stem the pandemic downturn and jumpstart a recovery.



“But that’s come along with its own cost, which is basically at some point, you've got to pay the piper,” Rose said. “That's happening now, and it's really going to come into force next year.”&nbsp;



Reporting <a href="https://develop.sfstandard.com/business/san-francisco-braces-for-epic-commercial-real-estate-crash/">from The Standard</a> and <a href="https://develop.sfstandard.com/business/blowing-a-hole-in-our-budget-sf-grapples-with-massive-fiscal-hit-of-remote-work/">a growing of array of analysis</a> have highlighted the connection between empty offices in the city’s downtown, lower building valuations and lower tax revenue to fund city services.&nbsp;



At a November Board of Supervisors <a href="https://develop.sfstandard.com/business/blowing-a-hole-in-our-budget-sf-grapples-with-massive-fiscal-hit-of-remote-work/">committee meeting</a>, commercial property tax revenue losses were projected at nearly $1 billion over the next six years. The impact was described by Supervisor Asha Safaí as “blowing a hole in our budget.” The losses have largely been blamed on private companies’ remote work policies.



But the pain doesn’t end there. As noted by city economist Ted Egan at the committee meeting, office space industries contribute about 72% of San Francisco's GDP meaning “if anything happens to the office sector, it ripples throughout virtually every aspect of the city's economy.”



That means revenue losses from commercial property tax revenue is one domino that includes declines in residential property tax revenue, transfer taxes from the sale of major buildings and business tax losses that have already started to make a dent <a href="https://develop.sfstandard.com/business/revenue-from-homelessness-tax-plummeted/">on funding for programs to combat homelessness</a>.&nbsp;



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Data from the city’s Budget Office show $70 million less in property taxes, $178 million less in transfer taxes and $78 million less in business taxes for the 2023 fiscal year than previous estimates. A small bright spot is sales and hotel tax, which is expected to raise $53.3 million more than prev...

SF’s symbolic stand with Iranian protests means more than you think

Resolutions accomplish little in the way of policy.



But San Francisco’s symbolic show of solidarity with the Iranian uprising adds to a growing chorus of support for protesters halfway around the world to soldier on.



It came in a vote Tuesday by the Board of Supervisors, which unanimously backed a <a href="https://sfgov.legistar.com/LegislationDetail.aspx?ID=5941809&amp;GUID=9823D90F-EFC1-4FF1-B764-2C259D5DC590" target="_blank" rel="noreferrer noopener">resolution commending the people of Iran</a> for protests going on since September and condemning their government for responding with repression and human rights abuses.



Conservative estimates by the <a href="https://www.ohchr.org/en/news/2022/11/high-commissioner-human-rights-councils-special-session-iran-must-stop-violence" target="_blank" rel="noreferrer noopener">United Nations</a> tally at least 14,000 arrests from the protests and 300 deaths, including 40 children.&nbsp;



SF Supervisor Ahsha Safaí, who was born in Iran, introduced the resolution.



“We’ve heard over and over again that the protesters are looking for beacons of light […] that they’re not dying in vain, they’re not protesting in vain,” Safaí told The Standard. “It’s our attempt to show some solidarity and encouragement in any way we can that this is happening, and the world is watching.”



Since the September death of Jina “Mahsa” Amini—a 22-year-old Kurdish Iranian woman—the country has convulsed with people taking to the streets, including <a href="https://www.nytimes.com/2022/10/13/world/middleeast/iran-protests-killed-teens.html" target="_blank" rel="noreferrer noopener">teen girls</a> in classrooms. <a href="https://develop.sfstandard.com/community/we-cant-let-this-die-why-san-franciscans-keep-protesting-for-iranian-freedom/">Corresponding rallies have cropped up in the Bay Area</a> just about every week since then.



San Franciscans have shown solidarity in other ways, like a <a href="https://develop.sfstandard.com/community/san-francisco-cyclist-goes-viral-for-rides-supporting-protests-in-iran/">cyclist who mapped pro-protest slogans</a> in Persian. Meanwhile, someone painted a <a href="https://www.youtube.com/watch?v=LwnikKV7KeM" target="_blank" rel="noreferrer noopener">house in the Marina red and green</a> with the movement’s rallying cry “Women, Life, Freedom,” which comes from a <a href="https://medyanews.net/jin-jiyan-azadi-in-the-words-of-their-creators-ocalan-and-kurdish-women/" target="_blank" rel="noreferrer noopener">Kurdish independence slogan</a>.&nbsp;&nbsp;



Berkeley and Oakland <a href="https://www.berkeleyside.org/2022/10/07/berkeley-iranian-diaspora-protests-mahsa-amini-iran" target="_blank" rel="noreferrer noopener">passed similar resolutions in October</a> honoring protesters and political prisoners. Though symbolic, supporters say the resolutions are important reminders that people a world away are still paying attention to what’s happening in Iran.&nbsp;



High-profile attention on political prisoners, like <a href="https://www.washingtonpost.com/opinions/2022/11/01/iran-female-journalists-jailed-hamedi-mohammadi/" target="_blank" rel="noreferrer noopener">journalists Niloofar Hamedi and Elaheh Mohammadi</a>, who brought Amini’s story to light, has the potential to lead to their freedom or to prevent their execution.



San Francisco’s resolution “doesn’t have a political impact, necessarily, but it has a social impact,” said Mahsa Hakimi, an Iranian-born lawyer who sits on the San Francisco Arts Commission. “As long as these issues stay relevant, the pressure is on the international institutions and politicians who can actually have an impact.”



International pressure culminated last week when the United Nations Human Rights Council overwhelmingly <a href="https://www.theguardian.com/world/2022/nov/24/iran-protests-un-council-votes-to-investigate-human-rights-abuses" target="_blank" rel="noreferrer noopener">voted to investigate human rights abuses</a> in response to the protests. San Francisco’s resolution also called for a trusted international body to thoroughly investigate Amini’s death.



As protests in Iran evolve into many forms, including <a href="https://www.bloomberg.com/news/articles/2022-11-15/iran-protesters-mark-bloody-2019-uprising-with-three-day-strike" target="_blank" rel="noreferrer noopener">strikes</a> and couples kissing in public as a rebuke to the <a href="https://twitter.com/ajplus/status/1597380746112475137" target="_blank" rel="noreferrer noopener">many banned freedoms</a>, supportive rallies march on&nbsp;in San Francisco.&nbsp;



On Wednesday, Bay Area residents protested in front of UNICEF’s San Francisco office at 101 Montgomery St. to demand action over the growing number of children killed in the uprising. University of California Berkeley and University of California Davis students also joined in Wednesday as part of college protests worldwide.



There will be another protest on Saturday at Snow Park near Lake Merritt in Oakland starting at 2 p.m., said Yasaman Afshar, an Iranian-born organizer with <a href="https://www.instagram.com/bay_area4iran/">BayArea4Iran</a>.



“The momentum is still very high, which is amazing,” said Afshar. “It’s overwhelming how much support we’ve been getting. There’s no stopping us now.”

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