San Francisco mayor under fire for budget cuts as deadline approaches.

San Francisco Residents and Officials Protest Budget Cuts, Demand Prioritization of Social Services

San Francisco residents and officials are up in arms over proposed spending cuts to housing, child care, and other crucial areas in Mayor London Breed’s city and county budget. The budget, totaling a record-high $14.6 billion for the next two fiscal years, has sparked outrage among city operating officials and vulnerable residents who fear the impact of these cuts.

Reduced Funding for Rent Arbitration Board and Department of Early Childhood

One area facing significant budget reductions is the Rent Arbitration Board, which is projected to receive less than $15 million in the upcoming fiscal year. This decrease comes after years of increasing funding. Additionally, the Department of Early Childhood is expected to lose around $50 million, an 8% decrease from its current operating costs.

These cuts have drawn criticism from the Budget Justice Coalition, a group of advocates for residents, who rallied at city hall to demand that Breed prioritize social services and invest in affordable housing.

Controversial Decision to Reduce Commercial Rent Tax

One of the key proposals in the budget is a reduction in the commercial rent tax, a decision that was approved by San Francisco voters in 2018 to fund child care and early education. The aim is to incentivize businesses to occupy office spaces. Breed defended this decision, stating that it is meant to revitalize downtown and ultimately benefit San Francisco’s youngest children and early educators.

Defending the Cuts and Explaining Surplus Funds

Breed has faced backlash for these cuts but has defended them by highlighting that early education and child care programming are still expanding. She also pointed out that there will be no reductions due to a large surplus of funds from commercial rent tax in previous years. According to Breed, this surplus was accumulated from a lawsuit related to the commercial rent tax in 2018, which prevented the city from spending the collected taxes. She emphasized that the surplus has allowed the city to build up a significant reserve of hundreds of millions of dollars over time.

Impact on Ethics Commission and Divisions

The budget also includes cuts to the Ethics Commission, resulting in a 5% decrease and a 40% reduction in staff over two years. Ethics Commission Chairwoman Yvonne Lee expressed concern over the severity of these cuts and their potential drastic impact on the agency and its operations.

Despite the cuts, the budget plan includes substantial increases for other divisions, such as a 9% increase for the police department and an 8% increase for the Department of Public Health.

Public Dissatisfaction and Mayoral Election

A recent poll revealed that 66% of voters disapprove of Mayor Breed’s job performance. If a mayoral election were held today, her opponent, San Francisco Supervisor Ahsha Safai, is favored to win by 3 points in a head-to-head matchup.

Curbing the Deficit and Timeline

Breed’s budget proposal aims to address the projected $780 million two-year deficit. The plan was due on June 1 and must be signed by the Board of Supervisors by August 1, with the new fiscal year beginning on July 1.

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