Unions and community groups blast Mayor Lurie over proposed $643M budget cuts

San Francisco Mayor Daniel Lurie is facing a widening fight over his budget plan as unions, nonprofit providers and some supervisors push back against proposed cuts tied to a projected $643 million two-year deficit. Protesters delivered more than 1,500 letters to City Hall on May 13, while labor groups warned that layoffs and service reductions would hit public health, senior services and immigrant communities. Lurie has said the city must protect its fiscal health and maintain core services as revenue remains weak and costs rise. (media.api.sf.gov) The clash is unfolding before his full proposed budget is due on June 1. (sf.gov) ### Why are the cuts happening now? A $643 million two-year deficit is at the center of the dispute. A San Francisco Department of Public Health memo dated April 17 said the city faces that shortfall, with $306 million tied to federal and state Medi-Cal and Medicaid cuts. The Mayor’s Office has directed departments to produce $400 million in ongoing General Fund reductions, according to that same memo. CBS San Francisco reported that at least $100 million of those reductions are expected to come from personnel costs, a move critics say could eliminate about 500 city positions. (media.api.sf.gov) May 1 was the first formal step in the process. Lurie’s May 1 budget letter said that document covers 13 departments and enterprise agencies, and that his full proposed budget will follow on June 1. (media.api.sf.gov) ### Which workers and services are drawing the loudest warnings? Public health officials have described the pressure in unusually direct terms. The April 17 memo said the Department of Public Health alone was told to detail $40 million in ongoing expenditure reductions, split between $20 million in personnel cuts and $20 million in contracted services, plus a $5 million contract reduction contingency. (media.api.sf.gov) Community groups say the fallout would extend beyond city payrolls. El Tecolote reported that advocates have identified planned cuts affecting public health, housing, community development, harm reduction, homeless prevention and outreach programs, based on public announcements, contract terminations, records requests and discussions with supervisors. (sf.gov) Golden Gate Senior Services was among the groups highlighted by protesters this week. CBS San Francisco reported that speakers at the rally urged Lurie to restore proposed cuts affecting organizations that serve seniors and adults with disabilities. (media.api.sf.gov) ### What are unions and community groups doing to fight back? More than 1,500 letters were delivered to Lurie’s office on May 13 by representatives of nonprofits, unions and advocacy groups, El Tecolote reported. Mission Local separately reported that the People’s Budget Coalition organized a postcard campaign calling on the mayor to stop cutting funds for services. (eltecolote.org) Union leaders have also raised the prospect of a harder fight. CBS San Francisco reported that labor groups warned of possible strikes and discussions about shutting down city operations if layoffs move forward. (cbsnews.com) The political opposition is spreading inside City Hall as well. Budget Chair Connie Chan said on the Board of Supervisors’ budget page that she had already begun discussions with the mayor’s office and laid out priorities including eliminating vacant management positions before reducing frontline workers. (eltecolote.org) ### What is Lurie saying in response? Daniel Lurie has defended the reductions as necessary to stabilize city finances. CBS San Francisco quoted him saying, “These are difficult times, and I understand their concerns,” and, “I’m concerned about the fiscal health of our city.” (cbsnews.com) The mayor has also framed the budget around core services. His May 1 budget letter said the proposal is the first step toward a balanced budget for fiscal years 2026-27 and 2027-28 and covers departments including transit, the airport, the port, the public utilities commission and the public library. (sf.gov) ### What happens next in the budget process? June 1 is the next major deadline. Lurie’s May 1 letter says his full proposed budget will be released that day. June 10 is when the Board of Supervisors’ Budget and Appropriations Committee shifts to its main hearing schedule, according to the city’s budget hearing calendar. (cbsnews.com) The committee meets Wednesdays, and the budget then moves through recommendations and votes before the full Board acts. July is the final stage in the annual process. (sf.gov) El Tecolote reported the budget is not expected to be approved until July, giving unions, nonprofit providers, Lurie and supervisors several more weeks to fight over layoffs, contracts and service levels. (eltecolote.org) (sf.gov)