SF Mayor Faces Backlash Over Budget Cuts

Mayor Daniel Lurie’s budget fight in San Francisco has moved into a public clash with labor unions and service advocates before the city’s full spending plan is even out. A March 31 joint budget outlook from the mayor’s office, the Board of Supervisors’ budget analyst and Controller Greg Wagner projected a $642.8 million two-year General Fund shortfall for fiscal 2026-27 and 2027-28. (media.api.sf.gov) Lurie’s May 1 budget document said the administration is starting with 13 departments and four enterprise agencies, with a full proposed budget to follow on June 1. Protesters gathered outside the mayor’s office this week, and local news outlets reported warnings from unions and nonprofit providers that the cuts could reach jobs, clinics and senior services. (sf.gov) ### Where does the $643 million figure come from? The March 31 budget outlook update put the city’s projected two-year General Fund shortfall at $642.8 million, down from $936.6 million projected in December 2025. The same report said the shortfall for the coming fiscal year alone was forecast at $168.5 million. It also said long-term structural shortfalls were still expected to grow to more than $1 billion by fiscal 2029-30. Controller Greg Wagner and the other budget officials said federal policy changes remained a major source of uncertainty. Their report said the estimated two-year revenue impact from H.R.1 was $306.3 million, or just under half of the total projected shortfall. (media.api.sf.gov) ### What has Lurie actually proposed so far? Lurie’s May 1 budget document said the first phase covers 13 departments and the city’s enterprise agencies, including the Municipal Transportation Agency, San Francisco International Airport, the Port and the Public Utilities Commission. The document said it was the first step toward a balanced budget for fiscal 2026-27 and 2027-28 and would be followed by the full proposal on June 1. (media.api.sf.gov) CBS San Francisco reported that the mayor ordered departments to identify about $400 million in ongoing spending cuts, with at least $100 million expected from personnel costs. The station reported that could eliminate about 500 city positions. (media.api.sf.gov) KQED reported earlier that Lurie had directed departments to trim around 500 positions in a bid to save about $100 million in personnel spending. ### Why are unions treating this as a jobs fight already? On April 6, local outlets reported that San Francisco had issued layoff notices to 127 workers as part of the administration’s effort to reduce costs. (sf.gov) Local News Matters and ABC7 said the move came alongside a broader plan to cut 500 positions. Bianca Polovina, president of IFPTE Local 21, told Mission Local last month the union was preparing to fight “every one” of the layoffs. SEIU 1021 said in an April statement that city workers believed the cuts would hit already strained departments, and the union said another phase of layoffs could come around the release of the mayor’s full budget. (cbsnews.com) ### Which services are being cited by critics? Hundreds of people gathered outside the mayor’s office this week and delivered more than 1,000 postcards describing how proposed cuts could affect programs they use, CBS San Francisco reported. Jim Aldridge, a speaker at the rally, urged the mayor to restore cuts to community-based organizations serving seniors and people with disabilities. (localnewsmatters.org) Kaleda Walling of Golden Gate Senior Services said those programs help prevent isolation among older adults and disabled residents. KTVU reported last week that workers at three community clinics serving youth and seniors were at risk of closure because of budget cuts. (missionlocal.org) KQED also reported concerns about a homeless funding plan as the city looks for savings, adding another front to the dispute over which services should be protected. ### What are supervisors signaling before the hearings begin? Connie Chan, the Board of Supervisors’ budget chair, said on the city’s fiscal 2026-27 budget page that public budget conversations at the board begin in May. Her posted priorities urged the administration to eliminate vacant management positions before reducing frontline workers, review smaller contracts, cut administrative costs and protect oversight functions. (cbsnews.com) The Board of Supervisors calendar shows budget committees were already meeting this week, with Budget and Finance and Budget and Appropriations sessions on May 13. The calendar says the board met on May 12 and additional committee meetings were scheduled for May 14. (ktvu.com) ### What happens next in the budget process? June 1 is the next major date. Lurie’s May 1 budget document says his full proposed budget will be released then, and that proposal will move to the Board of Supervisors for hearings and amendments. Last year’s budget ordinance was introduced in early June and signed on July 24, according to city legislative records and the mayor’s office. (sf.gov) (sf.gov) (sfgov.legistar.com)