Sam Mondros

A new ordinance authored by two San Francisco lawmakers could restrict funding for new subsidized housing for homeless adults until at least a quarter of all units are drug-free.

core/paragraph

A new ordinance authored by two San Francisco lawmakers could restrict funding for new subsidized housing for homeless adults until at least a quarter of all units are drug-free.

The legislation, which was co-authored by Supervisors Matt Dorsey and Rafael Mandelman, aims to create more options for homeless adults who want a sober living space on the heels of the city’s <a href="https://sfstandard.com/2023/12/14/san-francisco-overdose-drug-death-worst-year/">deadliest year in overdoses</a>.&nbsp;

San Francisco suffers worst drug overdose death year on record

The legislation, which was co-authored by Supervisors Matt Dorsey and Rafael Mandelman, aims to create more options for homeless adults who want a sober living space on the heels of the city’s <a href="https://sfstandard.com/2023/12/14/san-francisco-overdose-drug-death-worst-year/">deadliest year in overdoses</a>.&nbsp;

San Francisco’s subsidized housing sites have received criticism for a lax attitude when it comes to drug use, with an average of <a href="https://sfstandard.com/2023/10/17/san-francisco-homeless-housing-drug-overdose-deaths/">three people dying per week</a> due to overdoses in city-funded housing.&nbsp;

3 people die of drug overdoses every week in San Francisco supportive housing

San Francisco’s subsidized housing sites have received criticism for a lax attitude when it comes to drug use, with an average of <a href="https://sfstandard.com/2023/10/17/san-francisco-homeless-housing-drug-overdose-deaths/">three people dying per week</a> due to overdoses in city-funded housing.&nbsp;

Dorsey, who is a <a href="https://sfstandard.com/2022/10/20/matt-dorsey-drug-crisis-addiction-police-san-francisco-supervisor/">recovering addict himself</a>, said his legislation paves the way for more safely connecting San Francisco’s growing homeless population to housing by prioritizing sober facilities.

Recovering addict Matt Dorsey sells SF on how to solve its drug crisis

Dorsey, who is a <a href="https://sfstandard.com/2022/10/20/matt-dorsey-drug-crisis-addiction-police-san-francisco-supervisor/">recovering addict himself</a>, said his legislation paves the way for more safely connecting San Francisco’s growing homeless population to housing by prioritizing sober facilities.

The ordinance would restrict funding for new “drug-permissive” housing for adults exiting homelessness, except in select projects. Instead, in order to receive unrestricted subsidies, housing would be required to be drug-free until at least 25% of the city’s supportive housing is recovery-focused.&nbsp;&nbsp;

The ordinance would restrict funding for new “drug-permissive” housing for adults exiting homelessness, except in select projects. Instead, in order to receive unrestricted subsidies, housing would be required to be drug-free until at least 25% of the city’s supportive housing is recovery-focused.&nbsp;&nbsp;

“I’m grateful to my fellow recovery community members and the advocates and experts with whom we’ve worked—on this and other needed policy priorities—since I first joined the Board of Supervisors,” he said.&nbsp;

“I’m grateful to my fellow recovery community members and the advocates and experts with whom we’ve worked—on this and other needed policy priorities—since I first joined the Board of Supervisors,” he said.&nbsp;

Matt Dorsey, District 6 Supervisor and former addict, asks a crowd of those in support of Recover-Housing to raise a hand if they have lost a friend to an overdose at an event outside City Hall in San Francisco on Monday, June 17, 2024.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/recovery-housing.jpg?w=2500" alt="A large group of people are gathered outside, holding blue signs that read &quot;GIVE RECOVERY A CHANCE&quot; and &quot;RECOVERY HOUSING FIRST!&quot; while raising their hands." class="wp-image-284146"/><figcaption class="wp-element-caption">Matt Dorsey, District 6 Supervisor and former addict, asks a crowd of those in support of recovery-based housing to raise a hand if they have lost a friend to an overdose.</figcaption></figure>

core/image

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/recovery-housing.jpg?w=2500" alt="A large group of people are gathered outside, holding blue signs that read &quot;GIVE RECOVERY A CHANCE&quot; and &quot;RECOVERY HOUSING FIRST!&quot; while raising their hands." class="wp-image-284146"/><figcaption class="wp-element-caption">Matt Dorsey, District 6 Supervisor and former addict, asks a crowd of those in support of recovery-based housing to raise a hand if they have lost a friend to an overdose.</figcaption></figure>

Surrounded by dozens of people in recovery, Dorsey asked the crowd to raise a hand if they had lost someone they knew to an overdose.&nbsp;

Surrounded by dozens of people in recovery, Dorsey asked the crowd to raise a hand if they had lost someone they knew to an overdose.&nbsp;

Nearly everyone raised their hand.&nbsp;

“I feel empowered by this legislation,” said Vincent Jones, 62, who has been sober for seven months after a 45-year addiction to crack cocaine. Mr. Jones, who has been living at Joseph Mcfee Center, a recovery-focused housing site, said he plans to return to his family in Sacramento in seven months after he’s clean.&nbsp;

“I feel empowered by this legislation,” said Vincent Jones, 62, who has been sober for seven months after a 45-year addiction to crack cocaine. Mr. Jones, who has been living at Joseph Mcfee Center, a recovery-focused housing site, said he plans to return to his family in Sacramento in seven months after he’s clean.&nbsp;

“I was lost at one point and lacked the ability to help myself,” Jones added. “They send you to these places that are full of drugs. When I first got into my addiction, I could have really used a program like this.”

“I was lost at one point and lacked the ability to help myself,” Jones added. “They send you to these places that are full of drugs. When I first got into my addiction, I could have really used a program like this.”

Per the ordinance, the Department of Homelessness and Supportive Housing would coordinate with the Department of Public Health to establish local rules and regulations based on federal policies on relapses and when a resident may be discharged. The legislation also includes a low-barrier option for recovery housing that permits voluntary residents without an official diagnosis of substance abuse disorder.

Per the ordinance, the Department of Homelessness and Supportive Housing would coordinate with the Department of Public Health to establish local rules and regulations based on federal policies on relapses and when a resident may be discharged. The legislation also includes a low-barrier option for recovery housing that permits voluntary residents without an official diagnosis of substance abuse disorder.

As it stands, California law requires that 100% of permanent supportive housing providers accept residents regardless of “sobriety” or “behaviors that indicate a lack of ‘housing readiness.’” This effectively stonewalls recovery-focused housing from receiving funding—something those who have recovered from drug abuse say is antithetical to proper rehabilitation.

As it stands, California law requires that 100% of permanent supportive housing providers accept residents regardless of “sobriety” or “behaviors that indicate a lack of ‘housing readiness.’” This effectively stonewalls recovery-focused housing from receiving funding—something those who have recovered from drug abuse say is antithetical to proper rehabilitation.

San Francisco Mayor London Breed, center, passes a man in a wheelchair during the Department of Homelessness and Supportive Housing’s biennial Point-in-Time Count of homeless and unhoused people on the street on Tuesday, Jan 30, 2024 from 8PM to midnight. According to Department of Homelessness and Supportive Housing, the count covered all 47 square miles of San Francisco and used administrative data for people staying in City shelters, emergency shelters and transitional housing. The final report will include more detailed information about people experiencing homelessness including demographics, veteran status, and chronic homelessness.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/02/20240126_homelesscountwewent_1311.jpg?w=1827" alt="A person in a wheelchair, head in hands, sits by a wall as pedestrians walk by, seemingly unnoticed." class="wp-image-245090"/><figcaption class="wp-element-caption">Mayor London Breed supports new legislation that aims to create more options for homeless adults who want a sober living space. </figcaption></figure>

“You cannot recover in a raggedy-ass SRO in the Tenderloin,” said <a href="https://sfstandard.com/2023/08/10/san-francisco-doom-loop-tour-competing-walk-to-show-tenderloins-best/">Del Seymour</a>, a one-time addict and the founder of Code Tenderloin, a nonprofit that provides support for those recovering from addiction.&nbsp;

Tenderloin leader organizes walk to counter San Francisco &#8216;squalor&#8217; tour

“You cannot recover in a raggedy-ass SRO in the Tenderloin,” said <a href="https://sfstandard.com/2023/08/10/san-francisco-doom-loop-tour-competing-walk-to-show-tenderloins-best/">Del Seymour</a>, a one-time addict and the founder of Code Tenderloin, a nonprofit that provides support for those recovering from addiction.&nbsp;

The proposed ordinance comes as lawmakers are eyeing changes to state rules around supportive housing. Last month, Assemblymember Matt Haney introduced Assembly Bill 2479, aimed at solving the issue of recovery-based housing state-wide by amending existing state law to permit up to a quarter of state funding for housing to be allocated to recovery housing. The legislation received support from Mayor London Breed, passed the Assembly last month with a unanimous 72-0 vote and is currently being reviewed by the state Senate.&nbsp;

The proposed ordinance comes as lawmakers are eyeing changes to state rules around supportive housing. Last month, Assemblymember Matt Haney introduced Assembly Bill 2479, aimed at solving the issue of recovery-based housing state-wide by amending existing state law to permit up to a quarter of state funding for housing to be allocated to recovery housing. The legislation received support from Mayor London Breed, passed the Assembly last month with a unanimous 72-0 vote and is currently being reviewed by the state Senate.&nbsp;

If both laws are enacted, Dorsey said they will work together with the state providing substantial funding support while ensuring San Francisco meets its goals around recovery housing..

If both laws are enacted, Dorsey said they will work together with the state providing substantial funding support while ensuring San Francisco meets its goals around recovery housing..

In San Francisco, last year was the deadliest on record for overdose deaths. Of 810 fatal overdoses, 17% occurred in the Tenderloin—the highest rate of any neighborhood in the city, according to preliminary data published by the city in April.

In San Francisco, last year was the deadliest on record for overdose deaths. Of 810 fatal overdoses, 17% occurred in the Tenderloin—the highest rate of any neighborhood in the city, according to preliminary data published by the city in April.

Between 2020 and 2021, 14% of all overdoses occurred in housing subsidized by the city, even though the units only accounted for 1% of the population, according to <a href="https://www.sfchronicle.com/projects/2022/san-francisco-sros/">The San Francisco Chronicle</a>.&nbsp;

Between 2020 and 2021, 14% of all overdoses occurred in housing subsidized by the city, even though the units only accounted for 1% of the population, according to <a href="https://www.sfchronicle.com/projects/2022/san-francisco-sros/">The San Francisco Chronicle</a>.&nbsp;

“I, like so many others, have been placed in a housing unit with many of the most unwell and drug addicted individuals with zero supervision and rehabilitation programs,” said Daniel McClennon, an addict and current resident in a harm reduction facility in San Francisco. “This is an obvious recipe for disaster. They’re often havens for all manner of criminal activity.”

“I, like so many others, have been placed in a housing unit with many of the most unwell and drug addicted individuals with zero supervision and rehabilitation programs,” said Daniel McClennon, an addict and current resident in a harm reduction facility in San Francisco. “This is an obvious recipe for disaster. They’re often havens for all manner of criminal activity.”

According to Randy Shaw, executive director of the Tenderloin Housing Clinic, 71% of the roughly 450 tenants who responded to a recent survey said they would prefer drug-free housing.&nbsp;

According to Randy Shaw, executive director of the Tenderloin Housing Clinic, 71% of the roughly 450 tenants who responded to a recent survey said they would prefer drug-free housing.&nbsp;

Drug-free housing for San Francisco homeless could be required by 2025

Cedric Akbar

Steve Adami

Like many San Franciscans, we know what it’s like to experience, witness, care for and lose loved ones struggling with drug abuse. As people who are in recovery, we also know what it takes to confront and recover from the endless cycle of addiction.

Like many San Franciscans, we know what it’s like to experience, witness, care for and lose loved ones struggling with drug abuse. As people who are in recovery, we also know what it takes to confront and recover from the endless cycle of addiction.

Voters made it clear when they passed Mayor London Breed’s <a href="https://sfstandard.com/2024/03/05/san-francisco-election-results-prop-f-drug-welfare/">Proposition F</a> in March that they wanted to see a change in our city’s approach to addressing the addiction crisis on our streets. A recent <a href="https://sfstandard.com/opinion/2024/06/02/london-breed-proposition-f-drug-testing-benefits-addiction-homelessness/">opinion in The San Francisco Standard</a> lacks the perspective of people who have struggled with addiction and recovered.&nbsp;

Prop. F, requiring drug screening for welfare aid, approved by voters

Mayor&#8217;s supposed &#8216;tough-love&#8217; policy is not the cure for our addiction epidemic

Voters made it clear when they passed Mayor London Breed’s <a href="https://sfstandard.com/2024/03/05/san-francisco-election-results-prop-f-drug-welfare/">Proposition F</a> in March that they wanted to see a change in our city’s approach to addressing the addiction crisis on our streets. A recent <a href="https://sfstandard.com/opinion/2024/06/02/london-breed-proposition-f-drug-testing-benefits-addiction-homelessness/">opinion in The San Francisco Standard</a> lacks the perspective of people who have struggled with addiction and recovered.&nbsp;

When it is implemented in January 2025, Proposition F will provide better care and services to people suffering from addiction. Throughout her time in office, Breed has consistently worked with, listened to and learned from those of us in the recovery community to deliver <a href="https://www.sf.gov/news/mayor-breed-announces-budget-investments-behavioral-health-efforts">real solutions</a> to some of San Francisco’s most pressing challenges. She’s more than a mayor to many of us—she’s a friend and ally. She understands better than most elected officials that the city’s <a href="https://sfstandard.com/2024/02/26/mayor-takes-aim-at-harm-reduction-says-strategy-has-furthered-fentanyl-crisis/">longstanding harm reduction approach</a> will not solve our city’s addiction crisis alone.&nbsp;

Breed blames harm reduction strategy for surging drug overdose deaths

When it is implemented in January 2025, Proposition F will provide better care and services to people suffering from addiction. Throughout her time in office, Breed has consistently worked with, listened to and learned from those of us in the recovery community to deliver <a href="https://www.sf.gov/news/mayor-breed-announces-budget-investments-behavioral-health-efforts">real solutions</a> to some of San Francisco’s most pressing challenges. She’s more than a mayor to many of us—she’s a friend and ally. She understands better than most elected officials that the city’s <a href="https://sfstandard.com/2024/02/26/mayor-takes-aim-at-harm-reduction-says-strategy-has-furthered-fentanyl-crisis/">longstanding harm reduction approach</a> will not solve our city’s addiction crisis alone.&nbsp;

San Francisco’s approach of <a href="https://www.nytimes.com/2024/01/31/briefing/san-francisco-addiction.html?u2g=c&amp;unlocked_article_code=1.xk0.B1VK.hWnltt7gyyJl&amp;smid=url-share">tolerating drug use</a> and giving people the freedom to do what they want on our streets was not helping people address their addiction.&nbsp;In some cases, it was enabling it.&nbsp;

San Francisco’s approach of <a href="https://www.nytimes.com/2024/01/31/briefing/san-francisco-addiction.html?u2g=c&amp;unlocked_article_code=1.xk0.B1VK.hWnltt7gyyJl&amp;smid=url-share">tolerating drug use</a> and giving people the freedom to do what they want on our streets was not helping people address their addiction.&nbsp;In some cases, it was enabling it.&nbsp;

Breed’s approach, by comparison, is a compassionate one. Proposition F does not mandate drug testing, force people into specific treatment programs, or punish those who are not physically or mentally capable of immediately entering a strictly abstinence-based plan. Instead, it will establish accountability measures for those struggling with addiction who receive city-funded care and support.

Breed’s approach, by comparison, is a compassionate one. Proposition F does not mandate drug testing, force people into specific treatment programs, or punish those who are not physically or mentally capable of immediately entering a strictly abstinence-based plan. Instead, it will establish accountability measures for those struggling with addiction who receive city-funded care and support.

<h2 class="wp-block-heading" id="h-support-for-reintegration">Support for reintegration</h2>

core/heading

<h2 class="wp-block-heading" id="h-support-for-reintegration">Support for reintegration</h2>

This holistic approach meets people where they are to ensure they have access to the support systems that will allow them to safely reintegrate into our communities once they have recovered. Treatment plans could include taking medication, regularly attending therapy or participating in residential treatment. Health care professionals who meet individually with people will advise which treatment plans best meet their needs.

This holistic approach meets people where they are to ensure they have access to the support systems that will allow them to safely reintegrate into our communities once they have recovered. Treatment plans could include taking medication, regularly attending therapy or participating in residential treatment. Health care professionals who meet individually with people will advise which treatment plans best meet their needs.

Rather than requiring drug testing through blood draws or urinalysis, the legislation simply requires individuals to participate in a drug screening in which they talk with a professional who can create an individual treatment plan and connect them to services. People do not have to be perfect in the program, but they have to make an effort. The assumption that Proposition F will kick people off services if they fail a drug test is not just wrong, but a dangerous narrative that will get in the way of real results.&nbsp;

Rather than requiring drug testing through blood draws or urinalysis, the legislation simply requires individuals to participate in a drug screening in which they talk with a professional who can create an individual treatment plan and connect them to services. People do not have to be perfect in the program, but they have to make an effort. The assumption that Proposition F will kick people off services if they fail a drug test is not just wrong, but a dangerous narrative that will get in the way of real results.&nbsp;

Yes, for those who undergo a drug screening and are unwilling to enter any kind of city-funded recovery program, their cash benefits will be withheld.&nbsp;But the city will be ready to reinstate their benefits as soon as they participate in their own recovery, tailored to meet their individual needs and goals. Allowing people who are suffering to avoid care has not only put them at risk but has affected the health and safety of all San Francisco residents, families and businesses.&nbsp;

Yes, for those who undergo a drug screening and are unwilling to enter any kind of city-funded recovery program, their cash benefits will be withheld.&nbsp;But the city will be ready to reinstate their benefits as soon as they participate in their own recovery, tailored to meet their individual needs and goals. Allowing people who are suffering to avoid care has not only put them at risk but has affected the health and safety of all San Francisco residents, families and businesses.&nbsp;

San Francisco is a compassionate city that prides itself on giving people like us a second chance. But it is not compassionate to let individuals struggle and sadly, too often die, when we have programs that provide comprehensive support and wrap-around services.&nbsp;

San Francisco is a compassionate city that prides itself on giving people like us a second chance. But it is not compassionate to let individuals struggle and sadly, too often die, when we have programs that provide comprehensive support and wrap-around services.&nbsp;

The city has <a href="https://www.findtreatment-sf.org/">treatment beds</a> available now, in addition to services available from other providers. The mayor supports San Francisco’s continued investment in expanding programs and solutions, including dedicating more than $600 million to <a href="https://sfstandard.com/2023/05/25/breed-to-fund-wellness-hubs-for-overdose-prevention-in-upcoming-budget/">behavioral health programs</a> and more than $20 million in new investments in abstinence-based programs.

San Francisco mayor to fund &#8216;wellness hubs&#8217; for overdose prevention in upcoming budget

The city has <a href="https://www.findtreatment-sf.org/">treatment beds</a> available now, in addition to services available from other providers. The mayor supports San Francisco’s continued investment in expanding programs and solutions, including dedicating more than $600 million to <a href="https://sfstandard.com/2023/05/25/breed-to-fund-wellness-hubs-for-overdose-prevention-in-upcoming-budget/">behavioral health programs</a> and more than $20 million in new investments in abstinence-based programs.

As a community, we should demand that members of the Board of Supervisors and the Department of Public Health follow Breed’s leadership and advocate for people who need care to have access to it. But we also need to put pressure on policymakers to adopt common-sense solutions that aggressively meet the demands of the <a href="https://sfstandard.com/2023/12/14/san-francisco-overdose-drug-death-worst-year/">current crisis on our streets</a>.

As a community, we should demand that members of the Board of Supervisors and the Department of Public Health follow Breed’s leadership and advocate for people who need care to have access to it. But we also need to put pressure on policymakers to adopt common-sense solutions that aggressively meet the demands of the <a href="https://sfstandard.com/2023/12/14/san-francisco-overdose-drug-death-worst-year/">current crisis on our streets</a>.

We cannot continue to allow individuals with substance-use dependency to receive city funding without any accountability. Lives are on the line and we must step up to save them.

We cannot continue to allow individuals with substance-use dependency to receive city funding without any accountability. Lives are on the line and we must step up to save them.

Cedric Akbar is the executive director of <a href="https://www.positivedirectionsequalschange.org/">Positive Directions Equals Change</a> and Steve Adami is the executive director of <a href="https://westernusa.salvationarmy.org/san_francisco/the-way-out/">The Salvation Army’s ‘The Way Out’</a> initiative.

Cedric Akbar is the executive director of <a href="https://www.positivedirectionsequalschange.org/">Positive Directions Equals Change</a> and Steve Adami is the executive director of <a href="https://westernusa.salvationarmy.org/san_francisco/the-way-out/">The Salvation Army’s ‘The Way Out’</a> initiative.

San Francisco has enabled drug users for too long. It’s time for compassion—with accountability

Opinion: San Francisco has enabled drug users for too long. It’s time for compassion—with accountability

Joe Fitzgerald Rodriguez

San Francisco’s budget free fall would have more cushion if it weren’t for mounting legal challenges to the city’s business taxes, according to a report released Monday.

San Francisco’s budget free fall would have more cushion if it weren’t for mounting legal challenges to the city’s business taxes, according to a report released Monday.

Litigation from businesses seeking tax relief is costing San Francisco $415 million — more than half the projected budget deficit in 2025-26 — according to the joint report from the city controller and the mayor’s office.&nbsp;

Litigation from businesses seeking tax relief is costing San Francisco $415 million — more than half the projected budget deficit in 2025-26 — according to the joint report from the city controller and the mayor’s office.&nbsp;

Two unions that represent city workers, IFPTE Local 21 and SEIU Local 1021, placed blame in part on Airbnb, which sued last year to recover $120 million in back taxes it says were overpaid.&nbsp;

Two unions that represent city workers, IFPTE Local 21 and SEIU Local 1021, placed blame in part on Airbnb, which sued last year to recover $120 million in back taxes it says were overpaid.&nbsp;

The unions say the city’s deficit could be eased if Airbnb and other companies pay up without putting the city through a legal battle. They rallied Thursday outside Airbnb headquarters.

The unions say the city’s deficit could be eased if Airbnb and other companies pay up without putting the city through a legal battle. They rallied Thursday outside Airbnb headquarters.

“We&#8217;re going to do what we can to call attention to bad actors who really benefit from San Francisco&#8217;s workforce but don&#8217;t think they have to pay their fair share in taxes,” SEIU spokesperson Jennie Smith-Camejo said by phone.

“We're going to do what we can to call attention to bad actors who really benefit from San Francisco's workforce but don't think they have to pay their fair share in taxes,” SEIU spokesperson Jennie Smith-Camejo said by phone.

“We&#8217;re going to do what we can to call attention to bad actors who really benefit from San Francisco&#8217;s workforce but don&#8217;t think they have to pay their fair share in taxes,” SEIU spokesperson Jennie Smith-Camejo said by phone.

SEIU 1021 and IFPTE workers rally outside Airbnb headquarters Thursday, March 27. 

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2025/03/cl5a2881.jpeg?w=2048" alt="People are marching on a city street holding signs that read, &quot;AIRBNB PROFITS, SAN FRANCISCO PAYS THE PRICE!&quot; and &quot;PAY YOUR TAXES, AIRBNB.&quot;" class="wp-image-383240"/><figcaption class="wp-element-caption">SEIU 1021 and IFPTE workers rally outside Airbnb headquarters Thursday. </figcaption></figure>

An Airbnb spokesperson said in a statement that they could not comment on active litigation but that the company &#8220;complies with its tax obligations.&#8221;

An Airbnb spokesperson said in a statement that they could not comment on active litigation but that the company "complies with its tax obligations."

An Airbnb spokesperson said in a statement that they could not comment on active litigation but that the company &#8220;complies with its tax obligations.&#8221;

Lawsuits aren’t the only challenge to the city’s budget. Monday’s report assumes the city will receive a smaller than expected reimbursement from the Federal Emergency Management Agency, at least in the short term, as the federal government and San Francisco haggle over repayments for COVID-era help to the homeless.&nbsp;

Lawsuits aren’t the only challenge to the city’s budget. Monday’s report assumes the city will receive a smaller than expected reimbursement from the Federal Emergency Management Agency, at least in the short term, as the federal government and San Francisco haggle over repayments for COVID-era help to the homeless.&nbsp;

“Today’s joint report underscores the sobering reality that San Francisco is confronting one of the most daunting structural budget deficits in its history,” Mayor Daniel Lurie said in a statement.

“Today’s joint report underscores the sobering reality that San Francisco is confronting one of the most daunting structural budget deficits in its history,” Mayor Daniel Lurie said in a statement.

The city has said layoffs are on the table for the <a href="https://sfstandard.com/2025/02/06/san-francisco-layoffs-daniel-lurie-budget-deficit/">first time in more than a decade</a>.

Facing fiscal crisis, SF City Hall eyes layoffs for the first time in years

The city has said layoffs are on the table for the <a href="https://sfstandard.com/2025/02/06/san-francisco-layoffs-daniel-lurie-budget-deficit/">first time in more than a decade</a>.

City departments are blowing off Lurie’s budget-cut mandate

sf-standard/related-post

SF’s budget deficit could grow to $1B if Trump withholds federal funds, report finds

sf-standard/related-posts-container

The joint report shows a slight dip in the budget shortfall, which decreased from $840 million to $817 million after property taxes and some business taxes were higher than previously projected.

The joint report shows a slight dip in the budget shortfall, which decreased from $840 million to $817 million after property taxes and some business taxes were higher than previously projected.

But those gains were tanked by litigation challenging how San Francisco calculates gross receipts taxes. These are levied on businesses’ gross receipts for all taxable activities attributable to San Francisco.

But those gains were tanked by litigation challenging how San Francisco calculates gross receipts taxes. These are levied on businesses’ gross receipts for all taxable activities attributable to San Francisco.

The joint report shows that the city&#8217;s gross receipts tax liability is expected to grow by $150 million in the current fiscal year, to $415 million. The forecast accounts for the possibility of that liability to grow by as much as $50 million annually in 2025-26 and 2026-27.

The joint report shows that the city's gross receipts tax liability is expected to grow by $150 million in the current fiscal year, to $415 million. The forecast accounts for the possibility of that liability to grow by as much as $50 million annually in 2025-26 and 2026-27.

The joint report shows that the city&#8217;s gross receipts tax liability is expected to grow by $150 million in the current fiscal year, to $415 million. The forecast accounts for the possibility of that liability to grow by as much as $50 million annually in 2025-26 and 2026-27.

Companies have been challenging the tax rates they pay in San Francisco.

Companies have been challenging the tax rates they pay in San Francisco.

Airbnb’s lawsuit contends that the gross receipts tax and Proposition C, <a href="https://www.spur.org/voter-guide/2018-11/sf-prop-c-business-tax-homeless-services#:~:text=C%20ranges%20from%200.16%20percent,0.175%20percent%20to%200.69%20percent.">the homelessness services tax</a>, were misapplied to the company from 2019 to 2022.

Airbnb’s lawsuit contends that the gross receipts tax and Proposition C, <a href="https://www.spur.org/voter-guide/2018-11/sf-prop-c-business-tax-homeless-services#:~:text=C%20ranges%20from%200.16%20percent,0.175%20percent%20to%200.69%20percent.">the homelessness services tax</a>, were misapplied to the company from 2019 to 2022.

More challenges are coming after voters in November approved Proposition M, aimed at reforming San Francisco’s business taxes. Crafted by an alliance of large and small companies, the ballot measure, which Airbnb supported, reshaped tax rates to be more favorable to those businesses while putting more pain on midsize ones.

More challenges are coming after voters in November approved Proposition M, aimed at reforming San Francisco’s business taxes. Crafted by an alliance of large and small companies, the ballot measure, which Airbnb supported, reshaped tax rates to be more favorable to those businesses while putting more pain on midsize ones.

Instead of just suing the city, OpenAI and others are <a href="https://sfstandard.com/2024/11/19/openai-sam-altman-daniel-lurie-san-francisco/">employing lobbyists</a> to change how Prop. M is implemented. However the measure is applied will decide the tax burdens of companies across the city — and the fate of the budget.

OpenAI’s Altman is lobbying City Hall — and advising its new boss

Instead of just suing the city, OpenAI and others are <a href="https://sfstandard.com/2024/11/19/openai-sam-altman-daniel-lurie-san-francisco/">employing lobbyists</a> to change how Prop. M is implemented. However the measure is applied will decide the tax burdens of companies across the city — and the fate of the budget.

Lawsuits are blowing a hole in San Francisco’s fiscal recovery

Carolyn Jones

After years of cash windfalls, California schools are bracing for a stretch of austerity that could jeopardize students’ already-precarious recovery from the pandemic.

After years of cash windfalls, California schools are bracing for a stretch of austerity that could jeopardize students’ already-precarious recovery from the pandemic.

An end to billions of dollars in federal Covid relief funds, declining enrollment, staff raises, hiring binges and stagnant state funding should combine over the next few months to create steep budget shortfalls, with low-income districts affected the most.&nbsp;

An end to billions of dollars in federal Covid relief funds, declining enrollment, staff raises, hiring binges and stagnant state funding should combine over the next few months to create steep budget shortfalls, with low-income districts affected the most.&nbsp;

“The fiscal cliff is going to vary,” said Marguerite Roza, director of the Edunomics Lab at Georgetown University. “The districts that got the most Covid relief dollars, those that have the most low-income students, are going to face the biggest losses.”&nbsp;

“The fiscal cliff is going to vary,” said Marguerite Roza, director of the Edunomics Lab at Georgetown University. “The districts that got the most Covid relief dollars, those that have the most low-income students, are going to face the biggest losses.”&nbsp;

In his&nbsp;<a href="https://ebudget.ca.gov/2024-25/pdf/BudgetSummary/K-12Education.pdf">budget proposal released in January</a>, Gov. Gavin Newsom largely spared schools, keeping intact popular initiatives like transitional kindergarten, universal school meals, community schools and after-school programs. He proposed dipping into reserves and delaying some expenses to make up a projected&nbsp;multibillion-dollar&nbsp;shortfall.

In his&nbsp;<a href="https://ebudget.ca.gov/2024-25/pdf/BudgetSummary/K-12Education.pdf">budget proposal released in January</a>, Gov. Gavin Newsom largely spared schools, keeping intact popular initiatives like transitional kindergarten, universal school meals, community schools and after-school programs. He proposed dipping into reserves and delaying some expenses to make up a projected&nbsp;multibillion-dollar&nbsp;shortfall.

But the exact numbers are shifting. The Legislative Analyst’s Office predicted that the&nbsp;shortfall may be much higher&nbsp;than Newsom calculated and cuts will be unavoidable. Newsom will release a revised budget in May, and the Legislature has until June 15 to pass a final budget.

But the exact numbers are shifting. The Legislative Analyst’s Office predicted that the&nbsp;shortfall may be much higher&nbsp;than Newsom calculated and cuts will be unavoidable. Newsom will release a revised budget in May, and the Legislature has until June 15 to pass a final budget.

Meanwhile, federal Covid relief funding for schools will end in September. In a series of grants known as Elementary and Secondary School Emergency Relief, the federal government gave California schools $23.4 billion to pay for everything from air purifiers to after-school tutoring.&nbsp;

Meanwhile, federal Covid relief funding for schools will end in September. In a series of grants known as Elementary and Secondary School Emergency Relief, the federal government gave California schools $23.4 billion to pay for everything from air purifiers to after-school tutoring.&nbsp;

That funding was distributed based on the number of low-income students districts have. Districts with lots of low-income students got more money, which means they’ll lose the most when the funding ends.&nbsp;

That funding was distributed based on the number of low-income students districts have. Districts with lots of low-income students got more money, which means they’ll lose the most when the funding ends.&nbsp;

In the beginning of the pandemic, schools tended to spend the money on one-time expenses, like tablets and Wi-Fi hotspots for students attending school remotely. But as schools reopened, they started spending money on ongoing programs intended to help students catch up academically and recover from the mental health hardships of remote learning. That could include tutors, longer school days or summer and after-school programs.

In the beginning of the pandemic, schools tended to spend the money on one-time expenses, like tablets and Wi-Fi hotspots for students attending school remotely. But as schools reopened, they started spending money on ongoing programs intended to help students catch up academically and recover from the mental health hardships of remote learning. That could include tutors, longer school days or summer and after-school programs.

San Bernardino City Unified used $8 million of its $230 million in Covid relief funds to beef up its after-school program. Thanks to the extra funding, the district has been able to offer free after-school activities, tutoring, transportation and mental health support at every school.&nbsp;

San Bernardino City Unified used $8 million of its $230 million in Covid relief funds to beef up its after-school program. Thanks to the extra funding, the district has been able to offer free after-school activities, tutoring, transportation and mental health support at every school.&nbsp;

Mia Cooper near her home in Highland on Feb. 26, 2024.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/03/screenshot-2024-03-05-at-9-11-13-am.png?w=757" alt="Woman poses in park" class="wp-image-255669"/><figcaption class="wp-element-caption">Mia Cooper is a parent with three children in San Bernardino City Unified schools.</figcaption></figure>

Keeping the ‘sparkle in kids’ eyes’

<h2 class="wp-block-heading" id="h-keeping-the-sparkle-in-kids-eyes">Keeping the ‘sparkle in kids’ eyes’</h2>

Mia Cooper, a parent with three children in San Bernardino City Unified, said her children&#8217;s after-school program has been a lifesaver. In fact, it’s the main reason they want to go to school, she said.

Mia Cooper, a parent with three children in San Bernardino City Unified, said her children's after-school program has been a lifesaver. In fact, it’s the main reason they want to go to school, she said.

Mia Cooper, a parent with three children in San Bernardino City Unified, said her children&#8217;s after-school program has been a lifesaver. In fact, it’s the main reason they want to go to school, she said.

They not only benefit from tutoring, but they also get to enjoy ballet and acting lessons, field trips to science museums and Disneyland, robotics classes, performances by folklórico dance troupes and other fun activities.&nbsp;

They not only benefit from tutoring, but they also get to enjoy ballet and acting lessons, field trips to science museums and Disneyland, robotics classes, performances by folklórico dance troupes and other fun activities.&nbsp;

During the pandemic, one of Cooper’s daughters was withdrawn and depressed, but the after-school program helped her reconnect with friends and fall in love with school again. Keeping the program intact should be a priority, Cooper said.

During the pandemic, one of Cooper’s daughters was withdrawn and depressed, but the after-school program helped her reconnect with friends and fall in love with school again. Keeping the program intact should be a priority, Cooper said.

“The kids were exposed to so many different activities and cultural things,”&nbsp;she said. “If a program is working for kids and we’re seeing good outcomes, I think it’s something we need to keep. … We shouldn’t lose that sparkle in kids’ eyes.”

“The kids were exposed to so many different activities and cultural things,”&nbsp;she said. “If a program is working for kids and we’re seeing good outcomes, I think it’s something we need to keep. … We shouldn’t lose that sparkle in kids’ eyes.”

<h2 class="wp-block-heading" id="h-a-budget-reckoning-for-some-districts">A budget reckoning for some districts</h2>

But some district’s use of Covid relief funds could worsen their budget prospects, Roza said. Districts that invested one-time funds in ongoing expenses, such as new staff, raises and bonuses, might be headed for a reckoning. Nationwide, school staff has increased by 2% since the pandemic, while enrollment has decreased by 2%, according to Georgetown’s Edunomics Lab.

But some district’s use of Covid relief funds could worsen their budget prospects, Roza said. Districts that invested one-time funds in ongoing expenses, such as new staff, raises and bonuses, might be headed for a reckoning. Nationwide, school staff has increased by 2% since the pandemic, while enrollment has decreased by 2%, according to Georgetown’s Edunomics Lab.

Salaries for existing teachers have risen, too. Districts in&nbsp;<a href="https://www.sfusd.edu/about-sfusd/sfusd-news/press-releases/2023-12-08-sfusd-commits-fulfilling-historic-raises-educators#:~:text=In%20October%202023%2C%20SFUSD%20and,full%20effect%20by%20January%202025.">San Francisco</a>,&nbsp;<a href="https://drive.google.com/file/d/1ZeEW5EjyR33Y0JgUC_LBq9MPIIzm901K/view">Oakland</a>,&nbsp;<a href="https://www.sandiegounified.org/about/newscenter/all_news/tentative_agreements_reached_with_sdea_and_para">San Diego</a>&nbsp;and&nbsp;<a href="https://www.lausd.org/site/Default.aspx?PageType=3&amp;DomainID=4&amp;PageID=1&amp;ViewID=6446ee88-d30c-497e-9316-3f8874b3e108&amp;FlexDataID=132163">Los Angeles</a>—all of which have declining enrollment—agreed to hefty teacher raises and bonuses in the past year.&nbsp;

Salaries for existing teachers have risen, too. Districts in&nbsp;<a href="https://www.sfusd.edu/about-sfusd/sfusd-news/press-releases/2023-12-08-sfusd-commits-fulfilling-historic-raises-educators#:~:text=In%20October%202023%2C%20SFUSD%20and,full%20effect%20by%20January%202025.">San Francisco</a>,&nbsp;<a href="https://drive.google.com/file/d/1ZeEW5EjyR33Y0JgUC_LBq9MPIIzm901K/view">Oakland</a>,&nbsp;<a href="https://www.sandiegounified.org/about/newscenter/all_news/tentative_agreements_reached_with_sdea_and_para">San Diego</a>&nbsp;and&nbsp;<a href="https://www.lausd.org/site/Default.aspx?PageType=3&amp;DomainID=4&amp;PageID=1&amp;ViewID=6446ee88-d30c-497e-9316-3f8874b3e108&amp;FlexDataID=132163">Los Angeles</a>—all of which have declining enrollment—agreed to hefty teacher raises and bonuses in the past year.&nbsp;

Still, the fiscal outlook is not as dire as it was during the 2008 recession, said Julien Lafortune, a research fellow at the Public Policy Institute of California.&nbsp;<a href="https://www.ppic.org/publication/financing-californias-public-schools/">School funding generally in California</a>&nbsp;has risen dramatically since then, lifting California from the bottom half of states in school funding to&nbsp;<a href="https://www.ppic.org/publication/financing-californias-public-schools/">above the national average</a>. In addition, the state’s shift to&nbsp;the Local Control Funding Formula&nbsp;a decade ago has provided more money for students with higher needs, although inequities persist.&nbsp;&nbsp;

Still, the fiscal outlook is not as dire as it was during the 2008 recession, said Julien Lafortune, a research fellow at the Public Policy Institute of California.&nbsp;<a href="https://www.ppic.org/publication/financing-californias-public-schools/">School funding generally in California</a>&nbsp;has risen dramatically since then, lifting California from the bottom half of states in school funding to&nbsp;<a href="https://www.ppic.org/publication/financing-californias-public-schools/">above the national average</a>. In addition, the state’s shift to&nbsp;the Local Control Funding Formula&nbsp;a decade ago has provided more money for students with higher needs, although inequities persist.&nbsp;&nbsp;

But that doesn’t mean these cuts won’t hurt, Lafortune said, especially for students who were most affected by the pandemic. Low-income, Black and Latino students disproportionately bore the brunt of school closures,&nbsp;<a href="https://edpolicyinca.org/newsroom/california-test-scores-show-devastating-impact-pandemic-student-learning">research has shown</a>, because they were more likely to suffer economically from the pandemic, less likely to have adequate technology at home, and less likely to have a parent available to help them with distance learning.

But that doesn’t mean these cuts won’t hurt, Lafortune said, especially for students who were most affected by the pandemic. Low-income, Black and Latino students disproportionately bore the brunt of school closures,&nbsp;<a href="https://edpolicyinca.org/newsroom/california-test-scores-show-devastating-impact-pandemic-student-learning">research has shown</a>, because they were more likely to suffer economically from the pandemic, less likely to have adequate technology at home, and less likely to have a parent available to help them with distance learning.

“It’s not like the Great Recession, but I think the challenges are greater now,” Lafortune said. “A lot of the academic progress we made was erased by the pandemic.”&nbsp;

“It’s not like the Great Recession, but I think the challenges are greater now,” Lafortune said. “A lot of the academic progress we made was erased by the pandemic.”&nbsp;

Roza worries that arguments over potential cuts in the next year will eclipse concern over learning loss. Potential school closures and teacher layoffs will inevitably elicit loud protests, but school boards should stay focused on services that directly help students, such as math tutoring and literacy, she said.

Roza worries that arguments over potential cuts in the next year will eclipse concern over learning loss. Potential school closures and teacher layoffs will inevitably elicit loud protests, but school boards should stay focused on services that directly help students, such as math tutoring and literacy, she said.

“Some districts will be focusing on staff retention instead of kids’ needs,” Roza said.&nbsp;

“Some districts will be focusing on staff retention instead of kids’ needs,” Roza said.&nbsp;

These decisions may be so divisive that Roza predicts a high rate of turnover among school administrators and board members unwilling to make unpopular decisions. She also expects to see some districts refuse to make sufficient cuts and risk insolvency or state takeover.

These decisions may be so divisive that Roza predicts a high rate of turnover among school administrators and board members unwilling to make unpopular decisions. She also expects to see some districts refuse to make sufficient cuts and risk insolvency or state takeover.

<h2 class="wp-block-heading" id="h-planning-pays-off-in-fresno">Planning pays off in Fresno</h2>

Fresno Unified is among the districts facing a double whammy of declining enrollment and a large loss of relief funds. The 70,000-student district received more than $787 million in state and federal relief money, one of the largest allotments in California.

Fresno Unified is among the districts facing a double whammy of declining enrollment and a large loss of relief funds. The 70,000-student district received more than $787 million in state and federal relief money, one of the largest allotments in California.

But the district was careful to build reserves, rely on state grants when possible and not overly invest in ongoing staff salaries. Instead, it used most of its money to train teachers in math and literacy, extend the school day and provide a high-quality summer program. It also brought in social workers, restorative justice counselors, attendance specialists and other staff to boost students’ mental health.

But the district was careful to build reserves, rely on state grants when possible and not overly invest in ongoing staff salaries. Instead, it used most of its money to train teachers in math and literacy, extend the school day and provide a high-quality summer program. It also brought in social workers, restorative justice counselors, attendance specialists and other staff to boost students’ mental health.

The investments have apparently paid off. The number of students meeting California’s math benchmark rose almost 3 percentage points last year, even as the state average remained unchanged. And chronic absenteeism fell significantly, from 51% in 2022 to 35% last year.

The investments have apparently paid off. The number of students meeting California’s math benchmark rose almost 3 percentage points last year, even as the state average remained unchanged. And chronic absenteeism fell significantly, from 51% in 2022 to 35% last year.

Siblings Alec, Samantha and Honey Cooper near their home in Highland on Feb. 26, 2024.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/03/screenshot-2024-03-05-at-9-11-57-am.png?w=754" alt="Kids sit outside their home" class="wp-image-255670"/><figcaption class="wp-element-caption">Siblings Alec, Samantha and Honey Cooper enjoy the outdoors near their home in Highland.</figcaption></figure>

Drug-free housing for San Francisco homeless could be required by 2025

Opinion: San Francisco has enabled drug users for too long. It’s time for compassion—with accountability

Lawsuits are blowing a hole in San Francisco’s fiscal recovery

California schools gained billions during pandemic. The money is running out

San Francisco Embarcadero shooting suspect won huge payout after he was shot by cops in 2021

Search Results for: recovery

Drug-free housing for San Francisco homeless could be required by 2025

Opinion: San Francisco has enabled drug users for too long. It’s time for compassion—with accountability

Lawsuits are blowing a hole in San Francisco’s fiscal recovery

California schools gained billions during pandemic. The money is running out

San Francisco Embarcadero shooting suspect won huge payout after he was shot by cops in 2021