A street safety ambassador program that patrols some of San Francisco’s most troubled corridors could see a major round of layoffs early next year as city officials mull over how to deal with a fast-approaching budget deficit.
In a letter sent to the mayor’s office Tuesday, Urban Alchemy’s general counsel, Sharon Hang, said the organization is at risk of losing 311 workers starting Jan. 17. The letter was sent as part of a required layoff notice, per state law.
The number represents about half the organization’s boots-on-the-ground employees, according to the mayor’s office, many of whom stand on street corners in the Tenderloin, mid-Market, and SoMa neighborhoods in their characteristic black-and-green vests with the Urban Alchemy logo on the back.
The organization, which hires ex-convicts, has been credited with helping provide a calming and secure presence along streets with visible mental health crises, open-air drug markets, and tent encampments. Its workers have also faced accusations of drug dealing and sexual encounters.
In a statement, the mayor’s office said Urban Alchemy workers “are the exact kind of people we are trying to help in this city — offering jobs to those seeking a second chance in life. They’ve done incredible work and they are on the streets every day changing the conditions of the Tenderloin.”
The mayor’s office said funding for Urban Alchemy is secured until June 2025. However, the Mid-Market Business Association & Foundation, which administers the Urban Alchemy contract in question, needs its spending authority approved by the budget and finance committee, chaired by Supervisor Connie Chan.
“Killing this funding is a catastrophe for the neighborhood and it’s awful for the hard-working Urban Alchemy employees,” the mayor’s office wrote in a statement. “This must be fixed now.”
The Mid-Market Business Association & Foundation did not return a request for comment. On Tuesday afternoon, roughly 250 Urban Alchemy workers descended on City Hall, though they dispersed quickly after they were told they showed up too late to give public comment at the weekly public Board of Supervisors meeting.
In an interview, Chan said she is trying to ensure that tax dollars are spent wisely in the face of what are expected to be tough economic conditions in the coming years. This year, Mayor London Breed was able to patch an $800 million deficit, but cuts are expected as the city prepares for the next budget cycle.
Chan said other ambassador programs, including the city’s Street Crisis Response Team and retired police ambassadors, have “proven to deliver results.” But Urban Alchemy hasn’t furnished performance reviews for its efforts in the Tenderloin, she claims.
Chan said the contract with Urban Alchemy is worth $16 million, and the funding gap amounts to $7.7 million.
“Is this still a way for us to continue to spend this money?” Chan asked. “Or should we actually hold back and say, ‘Let’s put this money somewhere else that we know are actually delivering results?'”
Bilal Mahmood, the incoming supervisor for District 5, which includes the Tenderloin, said he has spoken with Chan about the possibility of an extension for the contract through January to fend off layoffs.
“I recognize some of her concerns about having a holistic approach of making sure we’re consistent about which community master programs we’re using and that they’re being held financially accountable,” said Mahmood.
Chan said the city is facing potential cuts to numerous programs. In September, the People’s Budget Coalition, an alliance of more than 150 city nonprofits and labor bodies, protested City Hall freezing funds that could lead to layoffs at organizations citywide. Those nonprofits provide workforce development, eviction support for families, and youth programming.
Chan said that amid a budget crisis that will affect the entire city, she has to consider those organizations, too.
Jamie Flanagan, owner of the Tenderloin’s Phoenix Hotel and head of the Tenderloin Business Coalition, said Urban Alchemy has benefitted his business.
“Until the police have control of the problems, Urban Alchemy helps hold the space,” said Flanagan.