100,000 meals for nonprofit Project Open Hand at risk under SF budget proposal

Nonprofit Project Open Hand faces major meal cuts under SF budget plan
As San Francisco faces a massive budget shortfall, proposed cuts to nonprofit funding could force Project Open Hand to scale back services, eliminating 100,000 meals a year.
SAN FRANCISCO - Project Open Hand, a nonprofit that has served medically-tailored meals to San Francisco seniors and adults with disabilities for 40 years, says it will have to eliminate weekend service due to proposed city budget cuts, totaling 100,000 meals a year.
CEO Paul Hepfer said the organization was bracing for potential federal cuts, but was surprised to see the deepest reductions come from the city of San Francisco.
"I really understand the challenge of balancing a budget, particularly a deficit that's so great, but our food costs have gone up over 20% in the last year or two," Hepfer said.
Mayor Daniel Lurie's proposed budget, aimed at addressing a nearly $800 million deficit over the next two years, includes $185 million in cuts to nonprofit programs or contractors.
Hepfer sent a letter to Lurie, urging him to reconsider the proposed $3 million cut in Dignity Fund allocations, money earmarked for the Department of Disability and Aging Services, approved by voters in 2016.
Pushback against city’s budget plan
"To withhold the $3 million that's intended for the Department of Disability and Aging Services, just to chip away at that $780 million deficit, I really think is pennywise and pound foolish, when you look at the bigger picture," Hepfer said.
He said the long-term impacts could be far-reaching.
"We can just anticipate higher emergency department usage, more frequent hospitalizations, a decrease in medication adherence, all the things that we know surround nutrition insecurity. That's the next step," Hepfer said.
The organization operates 11 sites in San Francisco, including four sites in the Tenderloin, one of the city's most underserved neighborhoods. Many clients rely on the service seven days a week. Hepfer said eliminating weekend meals would disproportionately affect those already on the margins.
"The money sometimes runs out, so I can get a meal down there. I can have breakfast or lunch, which helps keeps me going," said Robert Hoffman, a volunteer who previously relied on the meals once a week.
District 5 Supervisor Bilal Mahmood, who represents the Tenderloin, said other nonprofits offering food access and after-school programs are also facing major reductions.
"I think one of the really important things to recognize about Project Open Hand is that it's not just about the food they deliver. It's about holistic wraparound services that they provide," he said. "If we're serious about addressing the crisis on the streets and making sure people are not suffering on the streets, continuing programs like Project Open Hand is essential to that objective."
Mahmood said he will advocate for organizations, including Project Open Hand, to keep their funding.
"If we're serious about an economic recovery in our city, you cannot have a thriving San Francisco without a thriving downtown, and you cannot have a thriving downtown without a thriving Tenderloin. And the community has worked for years to invest and rebuild itself back from the pandemic, and it was because of these programs that actually stepped up to the plate," he explained. "Now is not the time to cut these programs, otherwise, we're going to make backwards progress on the investment we've already seen."
Lurie’s office said difficult decisions are necessary to address the deficit and that the city is prioritizing services that support the economy and quality of life, including law enforcement and fire protection.
When he delivered his budget proposal last month, Lurie said:
"The budget I’m introducing today faces the $800 million dollar deficit head-on. A crisis of this magnitude means we cannot avoid painful decisions, and I am prepared to make those decisions.
We are doubling down on the core services that drive our economy, showcase the beauty and diversity of our neighborhoods, and enhance the quality of life for all San Franciscans.
When I say core services I am talking about police, firefighters, emergency personnel, nurses, street cleaners, Muni operators, and more—all the things that keep people safe and support our long-term economic growth."
What's next
The Board of Supervisors' Budget and Appropriations Committee is scheduled to discuss the proposed cuts Wednesday, June 11. A final budget vote will be held June 24.
A detailed analysis from the city’s Budget and Legislative Analyst is expected next week, and could outline alternatives to the proposed cuts.
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