San Francisco Mayor Demands Immediate Cuts to Avoid ‘Doom Loop’

S.F. Mayor London Breed said, "We simply cannot wait until net year's budget process." (Midjourney)

In a significant shift, Mayor London Breed has called upon various city departments to propose sweeping budget reductions totaling $206 million by next week.

The move is part of an urgent initiative to address San Francisco’s deteriorating economic condition, described by economists as a “doom loop.”

This cycle of decline is characterized by a decrease in tax revenues as businesses and residents exit the city, leading to further reductions in services and a spiraling downturn that becomes challenging to halt.

Detailed analysis reveals that the police department is looking at potential cuts of $27.6 million. The public health department might have to cope with about $25.9 million in reductions. Simultaneously, the fire department and the Municipal Transport Agency are being asked to consider savings of $10.5 million and $15.5 million, respectively.

This directive comes on the heels of Mayor Breed’s previous record-setting $14.6 billion budget allocation, a move she had approved just a quarter ago. Departments are expected to submit their proposed reductions by October 26.

Emphasizing the gravity of the situation, Mayor Breed stated in her letter, “We simply cannot wait until next year’s budget process. We project a potential deficit of at least $500 million by Fiscal Year 2025-26.”

As part of her cost-cutting measures, Breed has also mandated a hiring freeze for specific vacancies, stricter controls on city worker expenses, and the deactivation of unused cell phone services.

San Francisco’s current predicament has been intensified by the departure of major businesses from its downtown area, resulting in a projected annual loss of $200 million. The city has further been plagued by increasing homelessness and drug issues, leading to a surge in overdose fatalities.

In response to the mayor’s announcement, Dr. Grant Colfax, Director of the Department of Public Health, committed to “avoiding service reductions and maximizing revenues.”

Similarly, Tracy McCray, President of the San Francisco Police Officers Association, emphasized to the importance of supporting essential city services, stating, “We should be working to turn the tide away from the criminals.”


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