Backlash grows from San Francisco mayor's spending cuts as city faces $643 million budget deficit

San Francisco Mayor Daniel Lurie is facing growing backlash from labor unions as the city works to close a massive budget deficit, with critics warning proposed cuts could impact essential services and cost hundreds of jobs.

Hundreds of people gathered outside the mayor's office this week, delivering more than 1,000 postcards describing how the proposed cuts could affect programs they rely on.

"I'm urging you to restore the proposed cuts to community-based organizations helping seniors and people with disabilities," said John Aldridge, one of the speakers at the rally.

Organizations like Golden Gate Senior Services say they depend heavily on city funding to support low-income residents. At Golden Gate Village in San Francisco's Richmond District, seniors rely on daily programming, including meals and social services.

"Don't cut services to the most vulnerable people, seniors and adults with disabilities," said Kaleda Walling of Golden Gate Senior Services. "We're trying to make sure they're not feeling alone and that they're not isolated."

The protest comes as the city faces a projected $643 million two-year budget deficit, driven largely by slow-recovering tax revenue and rising costs.

The mayor has ordered city departments to identify about $400 million in ongoing spending cuts, with at least $100 million expected to come from personnel costs, a move that could eliminate about 500 city positions.

Lurie has defended the approach, saying the city must focus on maintaining core services despite financial challenges.

"These are difficult times, and I understand their concerns," Lurie said. "I'm concerned about the fiscal health of our city. I'm not worried about my next election. I'm worried about what's next for our city."

Earlier in the day, Lurie highlighted progress on homelessness, noting unsheltered homelessness has dropped to a 15-year low during a news conference outside Hope House, a sober transitional housing center on Sixth Street.

Still, the budget fight is intensifying.

Labor unions have pushed back strongly against the proposed cuts, warning of potential strikes and even discussing the possibility of shutting down city operations. Beginning next year, many public-sector workers will gain expanded legal protections to strike without fear of termination.

Union leaders and advocates also point to recent labor agreements that include 14% pay raises over four years for police and firefighters, questioning why cuts are being proposed elsewhere.

"We know the police department has funding. There's funding out there that has increased, and there's no real need," Walling said.

Many advocates are urging the city to tap into reserve funds instead of cutting services.

"We're going to fight," Walling said. "We're working on budgets now in case we have to, but we're hoping they'll restore the funds."
The mayor's office has already issued layoff notices to 127 city employees, with more positions potentially on the chopping block.

Lurie is expected to release his full budget proposal in June, setting up what could be a major political showdown with labor groups at City Hall.