San Francisco’s mayor unveiled a nearly $17 billion budget that prioritizes substantial pay raises for police and firefighters while steering clear of mass layoffs within city departments. The two-year financial plan aims to address persistent budget deficits by supporting core public safety services and sustaining the city’s economic recovery.
The proposed budget includes a negotiated 14 percent salary increase for police and fire personnel phased over four years, reflecting recent agreements with unions. At the same time, a hiring freeze enacted last year helped the city save $130 million, enabling the fiscal plan to absorb these costs without cutting large swaths of city workers.
Despite these measures, the budget indirectly affects other parts of the workforce. About 127 city employees who rely directly on municipal funding received layoff notices, primarily tied to the scaling back of contracts with nonprofit organizations. These nonprofit contracts, which have reached over $1.6 billion in recent years, face significant reductions that could lead to up to 1,000 job losses, impacting services delivered through community groups rather than city agencies.
The mayor acknowledged the difficult trade-offs involved, warning that failure to act could enlarge the city’s structural deficit to $1 billion, which would force harsher fiscal measures later. He emphasized the city’s positive economic signs, including rising job numbers, reopening businesses, and increased public transit usage, framing the budget as a step toward sustaining this momentum.
Adding complexity to the city’s shape-shifting financial landscape, San Francisco voters will soon vote on Proposition D, a contentious ballot measure proposing an extra gross receipts tax targeting companies with wide pay gaps between executives and local employees. Supporters, including major unions, argue it would generate $250 million annually for city programs, but opponents claim it risks driving businesses away and jeopardizing the economic comeback the mayor highlights. The mayor has stated that if Prop D passes, he would not revise his current budget proposal.