SF mayor's $15.9 billion budget proposal includes layoffs, service cuts to address deficit
SF Mayor's $15.9B budget plan cuts services and 1,400 positions to close projected $817M 2-year deficit
Mayor Daniel Lurie said his budget includes painful cuts to tackle San Francisco's ongoing problem of using one-time funds to close the gap between declining revenues and increased costs, adding to structural deficits that he says need to be addressed immediately.
SAN FRANCISCO - San Francisco Mayor Daniel Lurie announced his $15.9 billion budget proposal Friday for the 2025-2026 fiscal year, acknowledging that it includes difficult cuts to jobs and services which he says are necessary to address San Francisco's $817 million projected deficit for the next two years.
"This is a painful budget, but I am hopeful and I am optimistic about our economic future in San Francisco," Lurie siad.
Mayor Lurie says there are structural problems with the city's finances, that have led to the city using one-time funding as a stop-gap measure to pay for services, as businesses have left and tax revenues have fallen.
"Any job loss is difficult. I take no joy in this, and yet, I was elected to make hard choices," Lurie said.
The budget proposal
Lurie's 150-page budget proposal calls for cutting 1,400 jobs from 17 departments. Most of those positions have been vacant for more than two years, but 100 of them are filled and would require layoff notices.
The proposal has no cuts to sworn officers in the San Francisco Police Department or Sheriff's office. It also maintains funding for the Fire Department, District Attorney's office, probation services, and the Public Defender's office.
It would cut $100 million to nonprofit providers and contractors.
Funding would be maintained for a ‘First year Free’ program that gives incentives and support for small businesses, by waiving their fees for one year.
Lurie's plan also calls for setting aside $400 million in reserve to offset potential drops in state and federal funding.
"Close to $2 billion comes through from the Feds to San Francisco through Medicaid and housing and other forms. So it's a big risk," Lurie said. "I'm going to focus on what we can control and that is prioritizing clean and safe streets, making sure we are bringing business back, conventions back, tourism back."
Other threats to city revenue
Lurie said he couldn't comment on the city's costly legal battle with AirBnB, which claimed in a lawsuit that it should receive a refund from the city for over payment of taxes.
Lurie also acknowledged that the city was in a dispute with the Federal Emergency Management Agency over reimbursements and future funding.
"We're going to fight for every dollar our city is owed. Whether it's at the state or whether it's at the federal level," Lurie said. "There was a report and an ask by FEMA. We're going through a process where we appeal that, and so that will take a number of months to find out."
Reaction to Lurie's proposal
What they're saying:
Labor unions issued a statement Friday saying the city should be more aggressive in raising corporate tax revenues instead of cuts to staffing and services.
"Essential service jobs should never be on the line. Jobs should absolutely not be cut. I think the Mayor needs to hold these large corporations accountable," Sarah Perez, the San Francisco Vice-President of IFPTE Local 21 which represents some 6,000 city employees.
"At the moment we prioritize investments in permanent housing. he wants to shift that into temporary housing, more shelters. Shelters are more expensive," Anya Worley-Ziegmann, Coordinator of the People's Budget Coalition said.
The SFPD Police Officers Association president Tracy McCray said she was glad Mayor Lurie appears to be upholding his campaign promises of prioritizing public safety and increasing the police ranks.
The Sheriff's Office also said it was pleased with Mayor Lurie's budget plan showing no cuts to sworn police officers or Sheriff's deputies.
"We were asked to make concessions to help support the City’s financial stability, including the elimination of several professional staff positions. Some positions in our Records and Personnel Units are currently filled with deputies, who will now remain in those role," Tara Moriarty, a spokesperson to the Sheriff Paul Miyamoto, said.
Is the board of supervisors on board?
What's next:
The San Francisco Board of Supervisors Budget Committee plans to address Mayor Lurie's proposal at their June 11 meeting.
"We will prioritize clean and safe streets while keeping people housed, fed, and cared for, including individuals living on our streets. We can do this while cutting wasteful spending, reducing our structural deficit, maintaining city services, prioritizing critical city services, and preserving essential workers," Budget Committee chair and Supervisor Connie Chan said in a statement. "We will fight and protect our community against attacks from the Trump administration."
"We need to fix the structural deficit. That's a real thing and the mayor is trying to do that. And this budget doesn't get us there either. Deficits continue to grow in the 3rd,4th, 5th year going out," Rafael Mandelman, SF Board of Supervisors President said.