San Francisco Mayor Presents Balanced Budget Plan
SAN FRANCISCO (KCBS) – San Francisco Mayor Ed Lee has presented his $6.83 billion budget to the board of supervisors, maintaining his theme of keeping San Francisco "safe, solvent and successful."
The budget turned out to be $266 million larger than last year, mainly due to a growth in employee pension and benefit costs, major infrastructure projects and federal and state-funded mandates.
KCBS' Barbara Taylor Reports:
But Mayor Lee said he was still able to eliminate the $380 million deficit he inherited in January without cuts to vital services or major layoffs.
The Board of Supervisors will have to give final approval to the budget by the end of July and can also propose changes to it.
Lee said his proposed budget "reflects a very solid collaboration" between city officials and residents and will "create a foundation for years to come."
His budget includes more than $106 million in reductions to city departments, including $31.7 million from the Department of Public Health and $25.8 million from the Police Department.
"We had hoped that this would signal a new way of doing things. A more enlightened way to work at the front end to resolve problems and not at the back end," Lee said.
As part of his plan, Lee proposed a ballot measure to increase the sales tax in the event that a 1 percent state sales tax is not extended on July 1.
"This is a smart way of doing it because we cannot sit idly by and watch what Sacramento is unable or fails to do," said Lee.
The mayor said his goal is to preserve funding for health, police and fire, develop a long-term financial plan and create an enjoyable, exciting and unique environment for all San Franciscans.
A large part of the budget deficit was also bridged by higher tax revenue than expected, partly due to a drop in unemployment in the city from 10 percent in January to 8.5 percent this month.
"The city is on the rebound already," Lee said.
The mayor's proposal came after 10 budget town hall meetings around the city and many meetings with city officials, as well as labor, business and neighborhood leaders that resulted in about $28 million in changes to the plan before it was submitted to the board.
Supervisor Carmen Chu, who worked closely with Lee on the proposal, said the collaborative budget process this year was a change from previous years with former Mayor Gavin Newsom, who was elected last November as the state's lieutenant governor, and should lead to less acrimony when the board debates the proposal.
The budget also includes a spending plan for the first phase of preparation for the America's Cup Race in 2013.
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