SF city workers to receive raises despite projected $450M deficit

A large share of San Francisco’s municipal workforce is poised to receive 12% wage increases over the next four years, along with a pledge that no layoffs will occur — even as the city faces a projected $450 million shortfall in fiscal year 2029.

Mayor Daniel Lurie and 10 labor unions representing roughly 25,000 city employees struck the unexpected agreement Tuesday, just weeks before the unions’ current contract is set to expire on June 30. The deal comes three months after Lurie approved comparable raises for police officers and firefighters as part of a historic $17 billion city budget.

“We put forward a contract extension that honors their work, provides stability and recognizes the cost-of-living increases affecting so many San Franciscans,” Lurie said in a statement.

“We have worked closely with labor leaders in recent weeks to put forward this offer, and I am grateful for their partnership in supporting the workers and completing this process promptly so we can stay focused on providing excellent services and driving our city’s comeback.”

When combined with raises already included in existing contracts, the total compensation increase could reach 14.31% by 2031, according to the mayor’s office.

Under the agreement, city workers covered by the deal would be protected from layoffs through June 2029.

The higher payroll costs could complicate San Francisco’s efforts to stabilize its finances as officials continue grappling with a persistent budget crisis.

Lurie’s record-setting budget closed a near-term, two-year deficit of at least $642 million, but the city’s longer-term financial picture remains under pressure, with spending expected to grow faster than revenue in the years ahead.

San Francisco is projecting a budget shortfall of approximately $936 million with a $296 million deficit in fiscal year 2027 and $640 million in fiscal year 2028.

Still, labor leaders in statements claimed the raises are very much needed.

“City workers are stretched thin and the cost of living is shooting up like never before,” said Sarah Perez, vice president of IFPTE Local 21. “Whether you rely on transit, enjoy beautiful parks, or use our libraries, this represents stability for residents and city workers.”

Lurie will have to navigate how to close the city’s deficits in the upcoming years alongside the promised pay package.

It is unclear how the increased salaries will be funded in the coming years, the San Francisco Standard reported, but the mayor’s office said that will be addressed in next year’s budget.

Lurie may have avoided a political headache by avoiding the possibility of a widespread strike.

The labor agreement is not yet finalized. Rank-and-file union members must still ratify the deal.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Teen rescued alive clinging to fishing boat, 2 others found dead in Bering Sea off Alaska

Teen Rescued Alive in Bering Sea, 2 Found Dead Off Alaska

A fishing trip in the Bering Sea ended in tragedy off Alaska…
Portland Women's Sports Bar Ejects Fans over XX-XY Shirts

Portland Women’s Sports Bar Ejects Fans in XX-XY Shirts, Sparks Backlash

A group of patrons was asked to leave The Sports Bra, a…
A generation of kids suffers as Trump destabilizes immigrant families

Trump’s Immigration Crackdown Is Upending Families—and Children Are Paying the Price

From the doorway of a neighbor’s apartment, the little girl looked up…
Losing the most people on 9/11 brought Cantor Fitzgerald closer together

How 9/11’s Deadliest Workplace Loss United Cantor Fitzgerald

It is a heartbreaking distinction, and one no company would ever choose…
Drunk Florida woman Elizabeth Boucher arrested for DUI after Daytona Beach crash

Elizabeth Boucher Arrested for DUI After Daytona Beach Crash

A Florida DUI arrest took an unusually emotional turn. A woman accused…
North Carolina human remains identified as Cindy Marcell Blizzard, 15, missing since 1977

North Carolina Remains ID’d as Cindy Blizzard, Missing Since 1977

Investigators in North Carolina say they have solved a key mystery in…
Speaker Johnson dubs Mamdani, far-left pals most 'dangerous' politicians in US, predicts 'nightmare' for Hakeem Jeffries

Mike Johnson Says Mamdani’s Far-Left Wing Imperils Jeffries

DALLAS — House Speaker Mike Johnson took aim at the Democratic Party’s…
Long Island jeweler, 71, released from brutal Iranian prison after more than a year -- but still banned from leaving the country

Long Island Jeweler, 71, Freed From Notorious Iranian Prison After More Than a Year — But Barred From Leaving Iran

A Long Island jeweler who spent more than a year in custody…
Nicolas Cage’s $10.5m Malibu mansion threatened as crews race to save neighborhood

Nicolas Cage’s $10.5M Malibu Mansion Faces Wildfire Peril

Nicolas Cage’s $10.5 million Malibu mansion has been drawn into a fast-moving…
'Made in Korea' season two returns with more high stakes drama involving Hyun Bin's KCIA character  

Made in Korea Season 2 Raises Stakes for Hyun Bin’s KCIA Agent

“Made in Korea” is returning for Season 2, and the new chapter…
Long Beach homeowners flee as 12-foot waves smash seawall, flood homes and destroy cars

Long Beach Residents Flee as 12-Foot Waves Breach Seawall, Flood Homes and Wreck Cars

Long Beach residents looked on in disbelief as powerful waves blasted through…
Thick, black smoke billows from fiery plane after deadly plane crash in San Diego, California.

Fiery San Diego Plane Crash Leaves 2 Dead, Sparks Investigation

Two people were killed Monday when a small plane crashed in San…