Mayor's Cuts Spark Union Backlash In SF

Mayor Daniel Lurie entered San Francisco’s 2026 budget season after months of warnings that the city would need deep savings to close a large deficit. The mayor’s office and the controller had already projected a multiyear shortfall, and unions had spent weeks organizing against layoffs and service reductions. By early April, labor groups said layoff notices had started going out. By mid-May, the fight had shifted to City Hall, where supervisors were preparing for hearings on the mayor’s plan. ### Why is San Francisco cutting now? San Francisco’s budget process for fiscal 2026-27 opened under a deficit forecast that city officials had been discussing since late 2025 and early 2026. Mission Local reported in March that the administration had previously called for about $400 million in cuts, while a March financial update from the city projected continuing gaps in future years. Daniel Lurie has framed the reductions as part of a push to focus city government on what he calls “core” services. City budget documents posted this month show the mayor’s proposed budget for fiscal years 2026-27 and 2027-28, with a May 1 budget package covering 13 departments and enterprise agencies before a fuller proposal later in the process. (missionlocal.org) ### What are unions objecting to most? SEIU 1021 and IFPTE Local 21 have focused their criticism on layoffs, frozen positions and cuts they say will hit public-facing services. Mission Local reported in April that two of the city’s largest public-sector unions said they would fight “every one” of the layoffs proposed by Lurie. (media.api.sf.gov) SEIU 1021 said the administration issued layoff notices in early April and was committed to eliminating a total of 500 positions citywide. In a separate union post, SEIU said 127 layoffs had been announced and linked the cuts to clinic closures and program reductions. Those figures come from the union, not the mayor’s office, but they have become the clearest public measure of the labor dispute. (missionlocal.org) ### Which services are in the line of fire? The San Francisco Municipal Transportation Agency said in the mayor’s May 1 budget that it would keep Muni and paratransit service levels in place while reducing spending through position eliminations, contract renegotiations and efficiency measures. The same budget materials describe similar pressure across departments to trim payroll and contracts. (seiu1021.org) SEIU 1021 has said the cuts reach beyond staffing lists. The union said the Department of Public Health was planning to close three community clinics serving vulnerable residents, and it has used those proposed closures as a rallying point in protests this spring. ### Where do supervisors stand? Connie Chan, the Board of Supervisors’ budget chair, said this week that she had reached her limit on additional reductions. (media.api.sf.gov) Mission Local reported that Chan told reporters, “It’s enough cuts,” and laid out priorities that included eliminating vacant management positions before cutting frontline roles. (seiu1021.org) The board does not write the initial budget, but it does have the power to reshape it. SF.gov’s budget pages say the mayor submits the proposal and the Board of Supervisors then reviews, amends and votes on it through the Budget and Appropriations Committee process. ### What happens next at City Hall? The Board of Supervisors’ hearing calendar says budget hearings for fiscal 2026-27 and 2027-28 run through May and June, with the Budget and Appropriations Committee meeting on Wednesdays and shifting to 10 a.m. starting June 10. (missionlocal.org) The committee’s agendas and documents are posted on SF.gov. (sf.gov) The next phase is straightforward. Lurie’s budget goes to supervisors, unions keep pressing against layoffs and service cuts, and the final spending plan must be adopted before the new fiscal year begins on July 1 under the city’s regular budget calendar. (sf.gov) (sf.gov)