SF Finally Sinking Under Its Own Largesse

San Francisco is rolling in green. But it is also bleeding red.

Monday is Mayor Gavin Newsom’s deadline to submit a budget that erases a $338 million deficit, and he has warned that the city’s fiscal forecast is so bleak that hundreds of city workers could be laid off and services slashed. But it’s not because the money isn’t coming in, even despite poor economic times nationwide….

…Last year, city officials approved a series of new labor deals with unions, giving workers like nurses, police and firefighters hefty pay boosts. Next year, those labor contracts are expected to cost the city $118 million more than they currently do.

Voters over the years have generously approved ballot measures that require the city to spend a fixed dollar amount on everything from public schools to public safety. This year, the so-called set-asides added up to $883 million, a figure that is expected to jump by $57 million more next year.

Add to that the millions in state cuts and the fact that the city can’t tap its rainy day fund unless revenues are dropping, and what’s left is a huge budget shortfall.

Now don’t say we didn’t predict this [emhasis added]:

Over the years, voters have mandated that the city spend a certain amount annually on Muni, children’s services, library preservation, public education, parks, police, firehouses, city services auditing, homeless services and the Symphony.

“We put everything on the ballot here, and then we get stuck in that we’re forced to allocate those funds accordingly,” Zmuda said. “Therefore, there’s less discretion in the money the mayor and Board of Supervisors have to provide funds for other services.”

Zmuda, who calls it “budgeting by ballot,” said other municipalities don’t do nearly as much of it as San Francisco. And none of the set-asides can be revoked without voter approval.

But but - it’s the thought that counts! And it’s for the CHILDREN!!

N’Tanya Lee, executive director of Coleman Advocates for Children and Youth, which lobbies City Hall on budget and housing issues, said forcing the municipal government to spend money on issues that are important to voters makes sense in such an expensive city.

“Set-asides reflect the best of San Francisco,” she said. “The voters have said we support public health, we support public safety, we support kids. We want to make sure there’s a basic safety net in the city, and we should be proud of that.”

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