John Avalos

Restoring the sanctuary

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sarah@sfbg.com

The week started off in celebratory mood for members of the local immigrant rights community who attended an Aug. 18 rally outside City Hall to support legislation by Sup. David Campos that would extend due process rights to immigrant youth. And it ended, as this issue has a way of triggering, in controversy and division.

"Si se puede," chanted the crowd, hoping that "yes, we can" reform city policies on deporting undocumented young people accused of crimes before their trials. Dozens of immigrant and civil rights leaders representing 70 community groups made powerful speeches, buoyed by the knowledge that seven other supervisors — John Avalos, Chris Daly, Bevan Dufty, Eric Mar, Sophie Maxwell, Ross Mirkarimi, and Board President David Chiu — support the proposal, giving Campos the eight votes needed to override a mayoral veto of his proposed legislation.

Campos, an attorney who came to the United States as an undocumented teenager from Guatemala, told the crowd that he hopes to ensure that undocumented juveniles can only be referred to federal authorities for deportation after a court finds that they have committed a felony.

The Campos proposal, which was introduced during a week-long effort to revive immigration reform efforts at the federal level, seeks to amend a policy shift that the Mayor’s Office rammed through last summer after somebody leaked confidential juvenile criminal records to the San Francisco Chronicle.

Those leaks revealed that city officials had been harboring adolescent crack dealers instead of referring them to Immigration and Customs Enforcement (ICE) for deportation. Within days, Mayor Gavin Newsom — who had just announced his gubernatorial bid — ordered a change in policy.

In the year since that shift took place, city officials have reported an estimated 180 to 190 youths to ICE. But immigrant rights advocates say Newsom has refused to meet with more than 70 local community organizations to hear their concerns about how the change in policy violates due process rights.

"I hope Newsom will look at this proposal and see it for what it is: a balanced and measured process grounded in the values of San Francisco," Campos told his supporters, noting that his proposal does not seek to revert to the city’s original policy, under which no youths were referred to ICE, even when there was misconduct.

Instead, Campos’ proposal seeks to reform the policy that Newsom ordered and the city’s Juvenile Probation Department implemented last July without public debate. As Avalos observed at the Aug. 18 rally, "The policy that was introduced last year only produced a semblance of public safety. It caved in to the politics of intolerance. It was not in line with the city of St. Francis. A veto-proof majority has made sure this legislation passes. Young people deserve better."

But the next day, the mood in the immigrant community soured as they learned that the Mayor’s Office had leaked to the Chronicle a confidential memo from the City Attorney’s Office about the legal vulnerabilities of Campos’ proposed legislation. The paper ran a long, high-profile story on the memo along with critical quotes from Newsom, Police Chief George Gascón, and U.S. Attorney Joseph Russoniello.

As of press time, the Guardian had not been furnished a copy of the leaked memo. But it reportedly warns that passage of Campos’ legislation could jeopardize the city’s defense against the Bologna family, who claim that the city’s policy allegedly allowed Edwin Ramos, now 22, to kill Tony Bologna and his two sons last year. It also reportedly cautions that the Campos proposal could affect city officials who are being probed by a federal grand jury on whether the city’s previous policy violated federal law.

Missing from the Chronicle‘s coverage was any mention that the Ramos case is stalled, with Ramos claiming that he drove the car but did not fire the fatal rounds in the Bolognas triple slaying, and that the shooter has gone underground and is believed to have fled the country.

Nor did the Chronicle note that a committee vetting potential nominees for U.S. Attorney for Northern California has forwarded three names for Sen. Barbara Boxer to consider — Melinda Haag, Matthew Jacobs, and Kathryn Ruemmler. Russoniello, who launched this grand jury investigation and has been openly hostile to San Francisco’s sanctuary city policies, could soon be replaced.

And the Chronicle only dedicated one sentence to another legal memo — a 20-page brief prepared by the American Civil Liberties Union, the Asian Law Center, the Immigrant Legal Resource Center, the Lawyer’s Committee for Civil Rights, Legal Services for Children, and the San Francisco Immigrant Rights Defense Committee. Their memo was prepared to support Campos’ contention that Newsom’s new policy exposes the city to lawsuits, undermines confidence in the police, subverts core progressive values, ignores differences between adults and minors, and violates the city charter.

"In its haste to respond to media stories, the Mayor’s Office and JPD acted precipitously, usurping the role of the Juvenile Probation Commission under the City Charter and failed to abide by the measured approach embodied in the City of Refuge Ordinance," contends the civil rights memo.

The authors of this civil rights memo note that they repeatedly shared their concerns with the Mayor’ Office, JPD, and the City Attorney’s Office about the new policy — which, they observe, "was crafted behind closed doors and hastily adopted in 2008 without a public hearing."

"Yet the Mayor’s Office and JPD have rejected our invitation to work collaboratively with community partners to ensure that the youth are not referred for deportation based on a mere accusation or an unfounded suspicion, and to protect the city from exposure to liability for erroneously referring a youth who is actually documented for deportation," the civil rights memo states.

The civil rights memo recommends that youths not be referred to ICE until five conditions are met: the youth has been charged with a felony; the youth’s felony delinquency petition has been sustained; the youth has undergone immigration legal screening by an immigration attorney; JPD has comprehensive policies to minimize the risk that the youth will be erroneously referred to ICE because of language barriers; and the probation officer makes a recommendation to the court and the court agrees that ICE should be notified.

Reached shortly after the Mayor’s Office leaked the City Attorney’s confidential memo, Campos expressed shock at the manner in which it was released. "It’s an elected official’s obligation to protect the city, and elected officials also have a fiduciary duty," Campos said.

Confident that his legislation is legal, Campos observed that "legal challenges are a reality any time you try to do anything about immigration.

"But it’s interesting that we are talking about fear of being sued, when San Francisco has a long and proud history of facing legal challenges when we believe that we are correct," he added, pointing to the city’s willingness to fight for same-sex marriage, domestic partner benefits, and universal health care.

"The very same people who say that they are afraid of being sued here had no problem defending those issues," Campos said. "Perhaps it is not so popular to defend the right of an undocumented child as those other issues. But that does not negate the fact that we are right on this issue. We should stand up for what is right and we should not be afraid of litigation."

Avalos was equally appalled by this seemingly unethical leak by the Mayor’s Office. "I thought we just had something to celebrate, having a rally to support David Campos’ legislation and now we have memos being leaked," Avalos said. "It’s unfeeling at best. By leaking a confidential memo that contains privileged attorney-client information, you are undermining the city’s legal position on an issue. And obviously you are putting your personal career interests over the city. If the mayor’s political position is more important than the welfare of the city, that’s pretty worrying to the Board of Supervisors."

The City Attorney’s Office responded to the leak by issuing another memo, this time outlining the legal and fiscal perils of leaking attorney-client privileged materials. "Confidential legal advice is not intended to be fodder in political disputes," City Attorney Dennis Herrera stated, noting that he was "not aware of a city official or employee who has acknowledged responsibility for the disclosure."

And, initially, no one in the Mayor’s Office took responsibility for the leak.

"It is my understanding that the Chronicle got it from a confidential source," Newsom Press Secretary Nathan Ballard told the Guardian, claiming that "the Campos bill paints a target on us and puts our entire sanctuary city policy at risk."

But by week’s end, pressure was building on Newsom to reveal whodunit.

"While I welcome the issuance of the City Attorney’s legal guidance reminding the Mayor’s Office and the Board of Supervisors of their obligation to keep attorney-client privileged information confidential, a thorough investigation is needed to hold those responsible accountable," Avalos stated, asking the City Attorney’s Office and the Ethics Commission to get involved.

Shortly after Avalos asked for an investigation, I covered the swearing-in ceremony for Gascón at City Hall, during which Gascón told the assembled that "safety without social justice is not safety."

Struck by the chief’s words, I asked the mayor if he was concerned about the apparent breach of security that occurred in his office when the memo was leaked. Newsom responded angrily, noting that clients, in an attorney-client privilege arrangement, can release memos if they so choose.

"So, you did leak the memo to the Chronicle?" I asked.

"I handed it," Newsom answered, pausing to look at Ballard, "to some of my people." Chronicle reporter Heather Knight was also there and wrote in a story published the next day that Newsom "authorized the leak."

When I asked if leaking the memo was a preemptive strike against the Campos legislation, the mayor went into a rant about how Campos’ proposal could open the city to the threat of lawsuits and the loss of the entire sanctuary ordinance.

But concerns about lawsuits didn’t stop Newsom from pushing for same-sex marriage in 2004. When I asked Newsom to explain this disparity, he dismissed my question and Ballard announced it was time to move along.

Angela Chan, staff attorney with the Asian Law Caucus, challenged Newsom’s claim that Campos’ legislation puts the city’s entire sanctuary ordinance at risk, telling the Guardian, "It’s a false ultimatum."

Newsom’s leak

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EDITORIAL At the heart of the conflict over Sup. David Campos’ recent sanctuary legislation is a basic issue of civil rights: Should a young San Francisco immigrant arrested by the local police be treated as innocent until proven guilty — or should that person face deportation, even if the arrest is bogus and no formal charges are ever filed?

All Campos wants to do is establish that an arrest is not a conviction — and, as anyone who works with youth or immigrants in the city knows, thousands of innocent people are picked up by the police every year, sometimes because of simple mistakes, more often because the local cops have a propensity to arrest young people of color in disproportionate numbers.

And under current city policy, anyone arrested on felony charges who lacks proper documentation can be turned over to federal immigration authorities. And even if the suspect turns out to be innocent, he or she can be deported. That’s not fair, not consistent with the city’s sanctuary policy — and, according to the ACLU, not legally defensible.

But Mayor Gavin Newsom, not content with arguing the merits of the legislation (a battle he would clearly lose), has taken the remarkable step of leaking to the San Francisco Chronicle a confidential opinion from City Attorney Dennis Herrera that warned of the potential legal downside of the Campos measure. The Chron quickly turned the memo into a front-page story, proclaiming that the legislation "would violate federal law and could doom [the city’s] entire sanctuary city policy." Newsom was quick to chime in: "The supervisors are putting at risk the entire Sanctuary City Ordinance, which we’ve worked hard to protect," the Chron quoted the mayor as saying.

For starters, that’s blowing the situation way, way out of proportion. Herrera’s office writes these memos all the time. Any piece of legislation that might have legal ramifications gets this sort of review — and in many, many cases, the supervisors and the mayor simply go ahead anyway. Two of Newsom’s biggest initiatives — same-sex marriage and the city’s health care law — involved serious legal issues, and it’s almost certain that Herrera formally warned the supervisors and the mayor that going ahead could lead to lawsuits. Newsom, properly, proceeded with the legally risky moves.

And while we haven’t seen Herrera’s memo, people familiar with it agree that it never said that the existing sanctuary law is at any real risk. Yes, some anti-immigrant group could sue the city over Campos’s bill. And yes, some court could conceivable invalidate not only this law but a lot of other city immigration policies. But nobody has ever successfully sued to overturn the current law, which has been in effect for almost 20 years.

Of course, there are, and will be, legal issues with the Campos bill. But now that the mayor has leaked the confidential memo laying out those concerns, any right-wing nut who does want to sue will have the ammunition prepared. And Newsom’s action makes the prospect of a suit — one that will cost the city a lot of money — far more likely.

In other words, the mayor has put his own city’s treasury at risk, possibly vioutf8g city law in the process, in order to undermine a piece of legislation that he doesn’t support. This has all the hallmarks of the mayor’s new gubernatorial campaign team, led by consultant Garry South, who is known for his vicious, scorched-earth battles. South, we suspect, advised Newsom that appearing soft on illegal immigrants would play poorly in the more conservative parts of the state — and that a tactic that puts his own city at risk was an appropriate way to respond.

And Newsom, to his immense discredit, went along.

This is a big deal, a sign that the mayor is putting his higher ambitions far ahead of his duty to San Francisco. "In my eight years in office, I saw hundreds of these memos," former Board President Aaron Peskin told us. "I saw plenty of material that I could have leaked that would have been useful to me politically. But all of us on the board, across the political spectrum, understood that you just don’t do that. Because if you do, it tears the government apart."

We’re journalists here, and we never support government secrecy. We have consistently defended reporters who publish leaked documents (and would do so here, too, despite our criticism of the way the Chron played this story). And there are times, many times, when it’s best for city attorneys and the officials who get their advice to let the public know what those memos say. We support whistleblowers and principled city employees and officials who defy the rules of secrecy and tell the public what’s really going on.

But Newsom was serving no grand public interest purpose here. He was simply using confidential legal advice to attempt to thwart a political opponent, for the purpose of promoting his own ambitions. That’s alarming. If Newsom wants to be taken seriously as a candidate for governor, he needs to demonstrate that he can stand up to his political advisors — and so far, he’s failing, miserably.

P.S.: Sup. John Avalos has asked the Ethics Commission and the city attorney to investigate the leak, which is fine — but this shouldn’t become an attack on the right of the press to publish confidential documents. None of the investigators should try to question the Chron reporters to seek the source of the leak — particularly since Newsom has as much as admitted, to the Guardian‘s Sarah Phelan, that he was the one who authorized his staff to hand out the memo. *

Did you get the (leaked Campos) memo?

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Text and photos by Sarah Phelan

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After today’s swearing-in ceremony for SFPD Chief George Gascón , (which former chief Heather Fong attended in pants and a pink cardigan,) I asked Mayor Gavin Newsom if he was concerned that someone in his office had leaked a confidential memo about Sup. David Campos’ proposal to extend due process to immigrant youth.

(The City Attorney’s office prepared the attorney-client privileged memo at Newsom’s request. Newsom’s office then leaked the memo to the Chronicle, which cited the memo in an article that was critical of Campos’s legislation.)

The Mayor responded tersely to my question, noting that clients, in an attorney-client privileged arrangement, can release memos, if they so choose.

“So, you did leak the memo to the Chronicle?” I said.

“I handed it,” Newsom said, pausing to look directly at his spokesperson Nathan Ballard,” to some of my people.”

Newsom’s revelation confirmed what everyone already suspected, but it also appeared to be a defensive move.

Yesterday, the City Attorney noted that it was”not aware of a City official or employee who has acknowledged responsibility for the disclosure.,” and stated that this disclosure therefore “may have been unauthorized.

“The integrity of the attorney-client relationship is essential to my ability to do my job effectively, and, by extension, to the ability of all City officials to be fully apprised of legal issues that may accompany their proposals,” City Attorney Dennis Herrera wrote. “Confidential legal advice is not intended to be fodder in political disputes.”

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And just minutes before Gascón was sworn in, Sup. John Avalos called on Herrera and the Ethics Commission to conduct a formal investigation of the leaked confidential attorney-client privileged memo

Moving backward

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rebeccab@sfbg.com

San Francisco’s city budget was signed into law Aug. 4, but a group of city workers is pushing the Board of Supervisors to reverse a cut that they say reflects a giant step backward for progressive San Francisco values.

Service Employees International Union Local 1021, about 18,000 strong in San Francisco, has launched a campaign to restore pay cuts to certified nursing assistants (CNAs) and unit clerks who staff the city’s medical facilities, arguing that the demotions reverse a decades-old commitment pay equity between men and women.

Proposition H, approved by voters in November 1986, enshrined the principle of comparable worth in San Francisco. It required the city to ensure that municipal jobs dominated primarily by women provided wages on par with male-dominated jobs that have similar qualifications.

Jobs held by mostly female employees also tend be staffed by people of color, so the move to create equity in pay was meant to address systemic sexism and racial discrimination. Unit clerks and CNAs seem to fit the bill, and their salaries were gradually increased after 1986.

As part of the midyear budget cuts, 88 CNAs who work at SF General Hospital were laid off and simultaneously rehired as patient care assistants, a job with similar responsibilities but only 79 percent of the salary (from an average annual salary of $56,589 down to $45,032). Another group of CNAs is scheduled for similar demotions in November. Cuts to clerical workers’ wages are also pending and most will be reclassified with 15 percent less pay (from $52,845 to $45,266).

"It wipes out the advantage that they had," says Local 1021 health care industry chair Ed Kinchley. "Group by group, they’re wiping out the pay differential."

"This is the first wave of an overall effort to undermine comparable worth," union organizer Robert Haaland charged in a letter to the Board of Supervisors. "We ask you to join with progressives to defend the principle of equal pay for women and minorities."

SEIU held an Aug. 7 forum to discuss the cuts at SF General, with Sups. John Avalos, David Campos, Eric Mar, and Ross Mirkarimi in attendance. CNAs and unit clerks packed the audience — a crowd that was indeed made up of many women of color.

One was Theresa Rutherford, a CNA at Laguna Honda Hospital and Rehabilitation Center. "We’re the first ones to note when a patient is not doing well," Rutherford explained to the supervisors. "It’s a job that requires a lot of commitment." She described the long hours and the bonds that develop with patients, saying CNAs are counted on by "the person who has no family members left — so you become the family member."

"Best-quality care costs," Rutherford added. "It’s not cheap."

Avalos, who chairs the Budget and Finance Committee, said he was infuriated by the pay cuts. He spoke about a possible supplemental appropriation to address the issue. "We have to find the revenue for that to happen," he said. "Push as hard as you can on City Hall, and I’ll fight as well."

Tom Jackson, there representing Sup. Chris Daly, also urged the workers to apply pressure. "As far as labor practices go, this is a test," he said. "You’ve been fighting for decades [for pay equity] … and they’re ready to wipe it away because we have a bad economy."

Department of Public Health Chief Financial Officer Gregg Sass responded to SEIU’s charges by telling the Guardian: "We disagree with the SEIU comparable worth argument. Further, SEIU was not able to get member approval of a tentative agreement that might have prevented layoffs and position conversions during last fiscal year."

Supervisors added $500,000 back into the final budget to stave off some conversions. SEIU members contend that the add-back was supposed to retroactively restore cuts to the 88 CNAs, but Sass told us, "I am not aware of any action at the [Board of Supervisors] to that effect."

A memo that DPH Director Mitch Katz sent to Board President David Chiu noted that "difficult decisions had to be made to reach the financial target," and said the CNA conversions were made "following discussions with the city’s Department of Human Resources and SEIU."

At the forum, Halaand pointed to a report from the Controller’s Office revealing a 20 percent growth in management positions under Mayor Gavin Newsom’s administration. "There’s a lot of padding of their wallets at the top. At the bottom, they’re devaluing," he told the workers. "There seems to be money out there, but it’s just not for us."

Campos told us he plans to request a hearing to examine managerial promotions as well as the ethnic and gender makeup of the city’s highest-ranking positions. As for whether some of these cuts might be restored, he told us, "I think that’s a real possibility. I am hopeful it will happen."

A study released this year by San Francisco’s Department on the Status of Women compares women’s median salaries to average men’s earnings. According to the report, the median annual wage for Latina women is 52 percent of men’s earnings; African American women earn 58 percent; Asian women 63 percent; and white women 88 percent.

Another round of pink slips go out Sept. 16, so SEIU is planning a rally at City Hall that day to demand that the city uphold comparable worth.

‘Can I buy your park?’

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sarah@sfbg.com

Saul Bloom, executive director of Arc Ecology, recently donned his best suit and a sandwich-board saying "Can I buy your park?" then headed to some of the city’s most popular open spaces: Dolores Park, Golden Gate Park, Crissy Field, and Ocean Beach.

Bloom’s quest? Pose as a developer and videotape reactions to a fictitious proposal to sell 25 percent of the parks for housing, a ruse designed to illuminate how the city and its master developer, Lennar Corp., have never been nearly that honest about their plan to get the state to sell 25 percent of Candlestick Point State Recreation Area so Lennar can build luxury condos on prime waterfront parklands.

Predictably, responses to Bloom’s poll were mainly negative, occasionally violent. "A couple of people tried to clock me over the head," Bloom recalled. "They got aggressive. They said ‘You’re an asshole, man.’ But the predominant reaction was ‘I love my park.’ People asked, ‘Why do you want to sell them?’ They feel there’s not enough open space."

Perhaps the most chilling response came when Bloom told folks about the city’s actual plan to build condos at Candlestick Point SRA in the Bayview District. "Their response was, ‘Oh, it’s in the Bayview? Who cares?’" said Bloom, who fears that apparent indifference to the plight of the Bayview may explain why the city and Lennar see Candlestick Point SRA as a development opportunity.

Arc isn’t the only group accusing Lennar and the city of not properly informing the public that a vote for Proposition G, which was billed as the "clean-up the shipyard initiative" during the June 2008 election, was also a vote to push Senate Bill 792, state tidelands legislation that authorizes the Candlestick Point sell-off.

Introduced by State Sen. Mark Leno in February, SB 792 has since been amended and approved by the full Senate and is currently scheduled for a hearing by the Assembly Appropriations Committee Aug. 19. Passage by the committee is virtually certain, given that it only delays legislation based on fiscal impacts.

But even some Prop. G supporters, including Bloom, are now raising questions about the deal.

San Francisco’s Park, Recreation, and Open Space Advisory Committee (PROSAC) unanimously approved a resolution recommending that the city’s Recreation and Park Commission and the sponsor of SB 792 require both the city and Lennar to "provide detailed accounting of the park and open space acreage in the Candlestick Project." The committee asks that no net open space in the region be lost in the transfer.

PROSAC claims it was in the dark about the deal and asked those who pushed Prop. G to "provide documentation of when PROSAC and any other relevant advisory committees were informed of the intention to purchase state parkland for the Candlestick Project." So far Lennar and the city have pointed to conceptual maps and a couple of notices of public meetings as evidence that the public was adequately informed before voting.

But according to Bloom, who studies the maps and attends the meetings, "There really is not anything other than two graphics, neither of which call out the alteration to the park boundary. You’d really have to know what you were looking for. And why would the city’s own advisory committee be asking Lennar and the city for information if they were in fact told of this plan?"

Adding fuel to the fire is a July 21 resolution by Sups. Chris Daly and John Avalos, which argues that it should be official policy of San Francisco to oppose SB 792 in its current form and remind city lobbyist Lynn Suter "to accurately represent the City and County of San Francisco policy in Sacramento."

The resolution has been assigned to the board’s Land Use Committee and likely won’t be heard until September. It contends that SB 792 is "premature and preempts the process for public input and environmental assessment since the environmental impact reports for the proposed development on Candlestick Point and the Hunters Point Shipyard will not be released until the fall of 2009."

Noting that the state "purchased this beautiful waterfront parkland for $10 million in 1977," Daly and Avalos assert that "this land represents a valuable and irreplaceable asset to the state of California that should not be disposed of for private development."

The resolution notes that many people oppose the transfer "because of the impact of environmental racism caused by selling a clean park to a private developer for condominium construction denying Bayview Hunters Point residents equal access to healthy open space as is enjoyed by other neighborhoods in San Francisco."

As Daly told the Guardian, "Everyone wants the shipyard site cleaned up, development that works for the community, and real open space opportunities on the shoreline. And Prop. G was billed as doing this, which led to a division of people who believed Lennar and those who didn’t."

As a result, Daly said, people like Saul Bloom, who supported Prop. G, are coming out against SB 792. "So now, it seems, the skeptics are right," Daly said. "A lot of promises have been made. But unless you get them in writing, and have an insurance policy, Lennar is not delivering."

But Lennar Communities of California, the developer’s major political action committee, seems to be delivering when it comes to advocating for the park sell-off. In the second quarter of this year, Lennar more than doubled its spending on lobbying, including on SB 792. And Aug. 3, it alerted its Prop. G supporters that help is needed "passing SB 792 through the California State Legislature."

The e-mail blast claims that SB 792 is "straightforward and necessary legislation that reconfigures the state park boundaries at Candlestick Point and exchanges under-utilized land (most of it dirt, rubble, and a parking lot) for tens of millions of dollars of needed new improvements to the state park and a steady stream of dedicated funding to operate and maintain the improved park and open space."

But recently, there has been talk of an SB 792 compromise. According to insiders, the city and Lennar are willing to concede 20 acres of the contested 42-acres of park, although the developer insists it needs to build hundreds of condos (of which only 15 percent will be below market rate) on the 22 remaining acres of state park land if its entire 700-acre development is to pencil out.

Privately, environmental advocates say they may be unable to stop the land grab. And they worry that seven of the 20 acres Lennar is prepared to concede could be inundated by rising seas caused by global warming, as shown in a 2007 study by engineering firm Moffat & Nichol. It would be an ironic fate given Mayor Gavin Newsom’s July 30 announcement of a proposed United Nations center focused on climate change and green technology as part of Lennar’s project.

The Sierra Club opposes selling state parklands, building a bridge over Yosemite Slough, and capping a radiologically-affected dump on the shipyard’s Parcel E2. But the club does not oppose Lennar’s entire redevelopment plan. Arthur Feinstein, the group’s local representative, said, "We’re interested in saving as much land as possible. We are pushing to save the park’s grasslands. It’s existing habitat."

Noting that some amendments to SB 792 have been made, including removing proposed exchanges of parklands for shipyard land, Feinstein said that "there’s now a map that defines the project and no longer carries shipyard land."

Michael Cohen, Newsom’s chief economic adviser, said, "At Leno’s request, we’ve made amendments to address concerns, including taking steps to ensure there is no adverse impact on wildlife habitat."

Cohen called Newsom’s United Nations Climate Center "the perfect institution" for the entire redevelopment project, since it provides the shipyard with a green technology anchor. Cohen said he was unaware of the study showing the area could be flooded by global warming.

"But no one disagrees," Cohen continued, "that the state park will benefit from infrastructure and much needed capital for operations and maintenance."

Leno told the Guardian that his goal is to arrive at the best possible bill. "At the request of the opposition, we did amend the bill so that land at Hunters Point Shipyard won’t be part of any exchange," Leno said. "But it is conceivable that once the cleanup is completed, there could be a gift from the city to the State Parks Commission."

Leno said he hadn’t seen the flood map and joked, "If someone thinks they know exactly where the water is going to stop, they can place some bets now."

Assuming a more serious tone, Leno added that "the entire park system is under threat." He recalled how Gov. Arnold Schwarzenegger proposed to eliminate all General Fund money for parks and said, "We fought back and were able to restore most of the money."

But with the state’s ongoing fiscal woes and political stalemate, "Anyone who believes CPRSA is going to be open and funded indefinitely is not thinking clearly … so this deal has the potential for being an opportunity for our taking responsibility for the future of our state park system."

As currently drafted, SB 792 provides millions for improvements and $700,000 annually for operations and maintenance, Leno explained. "So I’m trying to make a bad situation better in a way that brings along this bill’s opponents so that they see that they are being taken seriously."

Editor’s Notes

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tredmond@sfbg.com

Nobody really thinks the state budget deal is going to hold, and nobody really thinks San Francisco’s budget deficit is actually closed. So while the Legislature is in recess and the supervisors are moving on to other things, it’s worth thinking about what the next few months will bring. It won’t be pretty.

Paul Hogarth, writing for the online publication BeyondChron, pointed out Aug. 6 that San Francisco will lose more money due to state budget cuts than the city will gain from federal stimulus spending. The numbers are complicated and fluid (San Francisco will lose $100 million that the state will "borrow," but the city can immediately go to the bond market and borrow against the state debt — with any luck at the same interest rate the state will pay the city, so that should be a wash. Should — unless the lenders don’t want to gamble on the state’s debt.) But no matter how you slice it, San Francisco will be out something on the order of $18 million in state cuts alone.

There’s also the fact that nobody knows what the economy will do over the next six months. If employment doesn’t pick up, and consumer sales don’t pick up, and enough businesses get away with demanding property tax reductions, the revenue numbers projected by the Newsom administration will be wrong and things will be even worse. Sup. Ross Mirkarimi, who’s on the Budget Committee, told me he’s expecting at least $100 million in red ink for next year’s budget, and some of that will start to show up this fall.

I can’t even imagine what the 2010-11 budget will look like. By the time budget hearings begin next June, Gavin Newsom will either have won the Democratic primary for governor, and will have entirely checked out of City Hall, or he will have lost and will be angry, bitter, and vengeful.

We were mildly critical of Budget Committee Chair John Avalos this summer; he cut a deal with Newsom that requires the supervisors to believe that the mayor will work with them on any midyear cuts. The problem is that Newsom can’t be trusted. He’s already broken parts of this budget deal. So when, as is almost certain, he breaks his promise to work with the board on midyear cuts, the supervisors will have to take a much more aggressive stance than they did this summer.

Newsom will be in the middle of a heated race for governor — he won’t want to cut cops or firefighters, and he won’t even talk about taxes. (Although a recent Gallup Poll shows that only 46 percent of Americans think their taxes are too high, the lowest number to hold that view since 1961.)

It’s going to be war, and the progressives on the board need to be ready for it — or they’re going to get rolled, again. *

City Hall’s collaborators

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rebeccab@sfbg.com

As the Board of Supervisors prepared to give final approval to the city budget July 21, Sup. John Avalos, who chairs the board’s Budget and Finance Committee, told his colleagues the budget deal that he and President David Chiu negotiated with Mayor Gavin Newsom is "ushering in a new spirit of cooperation and collaboration at City Hall."

But at the end of the day, frantic last-minute revisions and indignant criticism from Avalos’s progressive colleagues felt more like a family feud than the culmination of a team effort. Avalos and Chiu were able to restore $44 million of Newsom’s proposed cuts and got the mayor to promise to fund progressive priorities, such as public health and social services. Progressive supervisors, however, voiced deep skepticism about whether Newsom can be trusted.

To make matters more complicated, the messy conclusion of San Francisco’s budget process coincided with the news that Sacramento officials had finally struck a state budget deal that proposes borrowing more than $4 billion from local government coffers. So the city’s spending plan, balanced with no small amount of pain, may already be thrown out of balance.

Compounding that problem, it’s looking increasingly unlikely that San Francisco voters will have an opportunity to weigh in on new tax measures that could help soften the blow of rapidly declining city revenues this fall, a situation that could quickly test this "new spirit of cooperation."

The tension at the July 21 meeting stemmed from Newsom’s decision last year to close a massive cash shortage by making midyear cuts aimed at the heart of the progressive agenda — even after giving his word that he would not do so.

In some cases, the money was never allocated to begin with. According to a report prepared by the city’s budget analyst, "The Board of Supervisors approved $37,534,393 in monies that were restored in the FY 2008-2009 budget, which include $30,657,078 in General Fund monies and $6,877,315 in non-<\d>General Fund monies. Yet $15,627,397 in restored monies were either cut to meet mid-year reductions or never expended."

The mistrust generated by this episode and others prompted Sups. Chris Daly, Ross Mirkarimi, and David Campos to push for a series of last-minute changes that were designed to shield critical services from future cuts and give the board some power in its dealings with the Mayor’s Office.

"We need a hedge. We need a contingency. If we put a number of items on reserve … it gives us leverage," Mirkarimi noted. A Campos motion to place $45 million on reserve from the city’s seven largest departments was approved by the progressives on a 6-5 vote. Mirkarimi also succeeded in winning approval for a motion to move $900,000 from the trial courts to restore cuts to the Public Defender’s and District Attorney’s offices.

Other proposals failed to win over Avalos and Chiu, such as Mirkarimi’s pitch to target reserve funding for mayoral projects, including the Community Justice Center, 311 call center, and Newsom’s bloated communications staff. Daly’s suggestion to put $300 million on reserve also went nowhere.

"We are on the border of tearing apart a lot of goodwill," Avalos warned. "A $300 million reserve gets to toxic levels. I would be remiss in not saying that the mayor did give us his word. I believe that there was a new Board of Supervisors elected and … a new spirit of negotiation and collaboration in City Hall."

But Daly, making scathing references to "Gavin Christopher Newsom" as he fumed about budget cuts, clearly wasn’t buying it. Also on the afternoon’s agenda was his proposal to place a charter amendment on the ballot that would force the mayor to fund board-approved programs in the budget.

"Without it, we only have blunt instruments at our disposal," Daly said. "A blunt instrument is to take a significant fund, put it on reserve and have a hostage to make sure the administration doesn’t use this most significant loophole. This is crafted to allow a majority of the Board of Supervisors to place a special marker on an appropriation that the board feels strongly about."

But Daly’s idea went down in flames after Chiu and Avalos voted no along with Sups. Michela Alioto-Pier, Bevan Dufty, Sophie Maxwell, Sean Elsbernd and Carmen Chu. Afterward, Daly left the chambers and later returned to circulate a letter addressed to Chiu reading, "I am no longer interested in serving as Chair of the Rules Committee or Vice Chair of the City Operations and Neighborhood Services Committee."

Daly wasn’t the only one not feeling this new spirit of collaboration. All the last-minute changes clearly exasperated Elsbernd, who paced his corner of the room for much of the meeting, rubbing his forehead, and looking irritated. Eventually, Elsbernd and Chu were the only two votes against the final budget.

The prospect of new revenue measures also dimmed at the meeting. A proposal to place a measure on the November ballot calling for a 0.5 percent sales tax hike fell short of the eight votes it needed (Alioto-Pier, Chu, Dufty, and Elsbernd voted no). And it’s still too early to say whether a move to place a vehicle tax on the ballot can move forward because it’s contingent on state legislation.

The state’s funding raid could also hit the city hard. Leo Levenson, budget and analysis director with the San Francisco Office of the Controller, told the Guardian the city stands to lose $71 million in General Fund dollars and $32 million in other funds, although those numbers were still in flux at press time.

"The state must repay these funds within three years with interest," Levenson explained. "It is likely that San Francisco could be able to borrow money to mitigate the short-term financial impacts of this proposal, since the state is legally obligated to repay the funds within three years."

If the state goes after the gas tax, it could impact the city’s General Fund by an additional $18 million, Levenson noted, "so the city would need to backfill this reduction to sustain basic street cleaning operations."

So budget season isn’t over yet.

Gabrielle Poccia contributed to this report.

Avalos on the budget process

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Editors note: Sup. John Avalos sent this letter in response to criticism (including criticism from the Guardian) of the city budget process.

By John Avalos

Responding to Tim Redmond’s editor’s notes posted on July 22: Robocop is one of my favorite movies too, especially for its anti-privatization message. Over the last 5 years that I worked in City Hall, I have actively opposed efforts to privatize City services like the security at the Asian Art museum and custodial work at City Hall. This year, when Jail Health Services were threatened to be contracted out to a for-profit corporation, I led the effort to push back, visiting both jails and meeting directly with those most impacted by the move.

As of June 29th, the night of the last Budget and Finance Committee hearing on the mayor’s budget, the Budget Committee had freed up only $20 million in cuts to prevent the massive cuts imposed by the Mayor. This was nowhere near enough to stop all the Prop J’s, the Mayor’s effort to contract out services, and restore cuts to essential services. Stopping the Prop J’s alone cost over $20 million.

Late that night, I met with a broad array of budget constituent representatives: seniors, youth, SRO tenants, city workers, homeless advocates, to get their input on priorities and strategies before President Chiu and I went headlong into negotiations with the Mayor’s office.

By the night of July 1st, we had $43 million to stop ALL the Prop J’s and restore over 23 million in other priorities.
We kept shelters open 24 hours, restored substance abuse and mental health services such as the single standard of care for mental health, continued immigrant rights and tenant services, protected seniors from losing meal programs and having to pay social workers to help them with their finances, prevented cuts to family support and violence prevention services, restored rec director jobs, rejected charging families for their child’s detention at YGC, reoriented the Mayor’s administration towards community development, promoted transit first parking policies, and set aside millions of dollars for job programs at the airport, port and PUC.

But I would not credit two newbie supervisors’ negotiating skills for restoring an unprecented $43 million in restorations in the worst year possible.

Editor’s Notes

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Tredmond@sfbg.com

All the great sci-fi and comic book movies have some sort of larger social metaphor. Robocop, one of my all-time favorites, was really about the privatization of public resources. Our hero gets mangled in a firefight because Detroit turned its police department over to Omni Consumer Products Corp., which cut staffing to boost the bottom line and there’s no backup available.

So when I was editing this week’s cover package on the battle over health insurance, I couldn’t help thinking about The Incredibles. See, Mr. Incredible is this great superhero, but liability lawsuits force him to retire and he winds up as a claims clerk in an insurance company, where he sits around all day stamping "denied" on health insurance claims. Then he gets in trouble for quietly telling customers how they can appeal.

I’ve always imagined that real health insurance offices look exactly like that. People sit around all day and get paid to make sure that other people don’t get health care. And if they deny enough claims, they get a nice bonus. If they approve too many claims or help the poor customers appeal, they get fired.

The thing is, the bonus part is true. Many insurance companies pay their staff based on how much they have done to keep costs down — that is, to make sure expensive medical treatments are denied. I’ve been through this. The medical insurance won’t pay for the anesthesia my son needs for complicated oral surgery because the procedure happens in a dental office. The dental insurance won’t pay because the drugs are administered by an anesthesiologist, who is a doctor, not a dentist. Someone is smiling in both the medical and dental insurance offices; they just saved $1,000. Bonus on the way.

Sound familiar? I bet you’ve been through it too.

This is why the only way health insurance is going to get better is if the profit is taken out of it. And why it’s absolutely nuts that the insurance industry is still considered part of the solution.

The city budget didn’t come out well. The cops, the mayor’s press office, the mayor’s 311 call center, the places where there is still a lot of bloat, saw no real cuts. Public health and human services, which have already been cut to the bone, got hacked even more. And there is no concrete plan to even try to raise new revenue this fall.

There are some lessons here, and let me start with an obvious one. The final deal went down with two people — Sups. John Avalos and David Chiu, both new to the board — in the room with the mayor’s staff. Same thing in Sacramento — five people cut the deal. There’s got to be a better way. *

The SF budget battle continues

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By Tim Redmond

The full Board of Supervisors votes on the San Francisco budget tomorrow (Tuesday), and there are still some serious issues on the table. Among other things, the budget doesn’t include adequate money for public financing of the upcoming supervisorial and mayoral elections, and that’s big deal: Public financing is a crown jewel in San Francisco’s political reform efforts. The Public Defender’s Office is way underfunded (which is silly since criminal defendants are guaranteed legal representation, and hiring outside counsel is more expensive than funding the PD). Key social services are still taking a huge hit. There are still plans for 1,500 layoffs of city employees this fall — and that means a lot of what people depend on San Francisco for won’t get done. (Among the most painful: The loss of recreation directors, who are mentors for hundreds of kids.)

Sup. Ross Mirkarimi wants to find another $4 million to $6 million to fund public financing and some other services — and he’s looking to take that from a few areas that haven’t exactly been sharing the pain. For example, thanks to a push from Budget Committee Chair John Avalos, the Fire Department actually took some cuts. But the Police Department didn’t. While the Service Employees International Union Local 1021 gave back $40 million and is facing 1,500 layoffs, the Police Officers Association gave back nothing.

The problem with that, of course — besides the fact that it isn’t fair — is that the next time the city faces a budget crisis, which is probably going to be next year, the firefighters won’t want to give up a penny. Hey, they took the hit last time, and there was no parity from other public-safety areas. And if you think Local 1021 is going to be coming to the table with more cuts, you’re crazy.

So Mirkarimi told me he thinks that between the police, the Hotel Tax funding for the Convention and Visitors Bureau and the big arts organizations (the opera and symphony, whose patrons by and large can afford to buy tickets without as much city subsidy) there’s enough to fill some critical gaps in the budget.

It’s going to be tricky — Avalos and Board President David Chiu negotiated the budget deal with the mayor, and it will be hard for them to push at this late date for more changes. But Avalos told me he’s “open to” Mirkarimi’s proposals and will give them all due consideration. So, by the way, did Sup. Bevan Dufty: “I’m open to it,” he told me. “I have some concerns about the budget and will listen to any ideas.”

So the budget battle still isn’t over — and tomorrow’s meeting will be fascinating.

The Ethics Commission fiasco

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EDITORIAL The San Francisco Ethics Commission is a serious mess, and if Director John St. Croix can’t turn things around — quickly — he needs to resign and make room for someone who can.

Ethics has badly damaged its reputation in recent years by hounding small-time violators from grassroots campaigns and ignoring the major players who cheat and game the system as a matter of practice. A couple of festering examples:

In 2004, then-Ethics Director Ginny Vida and Deputy Director Mabel Ng ordered the staff to destroy public records that pointed to malfeasance on the part of the Newsom for Mayor campaign. The records — which the Newsom campaign sent to the commission by mistake — suggested that the newly-elected mayor was illegally diverting money from his inaugural committee to pay off his campaign debt.

St. Croix admits that the agency knew back in 2005 that public money was being laundered and improperly used in a City College bond campaign — but did absolutely nothing. Now, four years later, District Attorney Kamala Harris has indicted three college officials in that case.

In fact, Oliver Luby, an investigator with Ethics, says he brought the problem to St. Croix’s attention back when that bond campaign was still underway — and was told, in essence, to shut up. "He instructed me not to speak of my report," Luby wrote in a Nov. 4, 2008 San Francisco Chronicle opinion piece.

But the well-paid operatives working for City College and Newsom never felt the sting of an Ethics investigation. Instead, the commission spent thousands of dollars hounding Carolyn Knee, the treasurer of a public-power campaign, threatening the volunteer who lives on a modest fixed income with more that $20,000 in fines. (The case wound up being resolved with a fine of $267.)

And now Luby — who was honored for his courage as a whistleblower by the Society of Professional Journalists — has been demoted, received a formal reprimand from Ng (for doing something other staffers have done routinely) and is under investigation on the basis of an anonymous complaint.

Luby’s technical violation: writing a letter from his Ethics e-mail account during work hours commenting on new regulations proposed by the state’s Fair Political Practices Commission. Ng, writing as Luby’s supervisor, claims in a reprimand letter that no employee has the right to speak for the agency, and that someone in Sacramento might have misjudged his personal comments as official Ethics Commission policy. (Nobody has suggested that his comments were anything but useful or that anything he said would damage the city’s reputation. And others in the agency comment on this sort of thing all the time, with no punitive repercussions.)

Now there’s an anonymous complaint against him raising the same issue, suggesting that he was using city resources for his own personal political causes. (Never mind that his job is working on the exact same issues as the FPPC rules cover and that he has absolutely no political or personal stake in the outcome.)

This city desperately needs aggressive enforcement of the political reform laws — and people like Oliver Luby ought to be getting praise and support from management and ought to be put in charge of ferreting out corruption. Instead, St. Croix and Ng are trying to hound him from his job.

The commission members need to tell St. Croix and Eng to drop the complaints against Luby, change the agency’s priorities and start going after the real scofflaws. The Board of Supervisors also needs to convene hearings on the problems at Ethics, something that Sups. David Campos and John Avalos have indicated a willingness to do.

P.S. : Since Ethics has refused to follow-up on the City College mess, the D.A.’s Office needs to pursue the case as broadly as possible, looking not just at the chancellor and his two aides but at anyone else who might have knowledge of the alleged criminal activity. And the Community College Board needs to move immediately to launch a fully public internal investigation and start complying with the city’s Sunshine Ordinance. *

What’s wrong with San Francisco?

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EDITORIAL In the end, Mayor Gavin Newsom got his way. The San Francisco supervisors made some significant changes to the budget and saved some $40 million worth of programs that the mayor wanted to cut or privatize, but the Newsom for governor ads will still be able to proclaim that the mayor solved his city’s budget problem without raising taxes or cutting police and firefighters.

Instead, this fall some 1,500 city employees are slated to be laid off, 400 of them in the Department of Public Health. Many recreation directors will get pink slips. Human services will lose at least 100 people. Nonprofit service providers will see much of their city funding disappear. The money to pay for public financing of the upcoming supervisorial and mayoral races is gone. Newsom’s pet (and expensive) 311 service will still be open 24 hours a day (with a lot of the money coming from Muni).

Not one of the city’s hugely redundant fire stations will close, even for a few days at a time. The bloated police budget will see no significant cuts, and the cops and firefighters will still get raises. The mayor will continue to employ five people in his press office.

And the only new revenue in the budget comes from fee increases on Muni, public parks, after-school programs, street fairs, restaurants, and the like.

Sup. John Avalos, chair of the Budget and Finance Committee, told us this was the best deal the supervisors could get, and it’s true that the board forced Newsom to add back a lot of money he wanted to cut. But the committee stopped far short of doing what it should have done — fundamentally changing the priorities of the Newsom budget.

Campos told us that he had "mixed feelings" about the deal and expressed concern about the board’s ability to shape midyear cuts and the lack of commitment from Newsom to support support placing revenue measures on the November ballot. Mirkarimi said he was happy with the dollar amounts of the add-backs but proposed holding in reserve some funding for the mayor’s pet projects — a tool for ensuring that Newsom consults with supervisors on the midyear cuts as promised — but Avalos opposed the idea.

Avalos said he’s relying on Newsom’s commitment to him: "The mayor has given me the assurance that he will not make unilateral decisions." But Newsom has a history of breaking such promises.

And the supervisors have not included any new tax revenue in the budget projections. Which puts San Francisco far behind Oakland.

The Oakland City Council has plenty of problems, and the mayor of Oakland, Ron Dellums, has been missing in action on a lot of the city’s problems lately. But when the mayor and the council had to address the budget problems, they came up with a solution that includes at least $6 million in new taxes. While that sounds like a small number, it’s almost 10 percent of Oakland’s budget shortfall. And the new taxes, which will need voter approval in a special July 21 election, are included as part of the budget plan for fiscal 2009-10.

Two of the new taxes — a levy on pot clubs (which the clubs themselves strongly support) and a loophole-closing measure that forces big businesses to pay their fair share of real estate transfer taxes — require only a simple majority vote to take effect. The reason: the council voted unanimously to declare a fiscal emergency and put the measures on the ballot. That allowed the city to avoid the state law that requires a two-thirds vote on most new taxes.

Measures C, D, F, and H make up a generally progressive package that has the support of Council Members Rebecca Kaplan and Jean Quan and Rep. Barbara Lee. We’re happy to endorse all four.

Measure C is a 3 percent increase in the city’s hotel tax, which would rise from 11 percent to 14 percent. Half the new money would go to the Oakland Convention and Visitors Bureau while the other half would be split between the Oakland Zoo, the Chabot Space and Science Center, and cultural arts programs and festivals in the city. We could argue with the distribution (arts festivals should probably get more money and the Visitors Bureau less) but overall, it raises the hotel tax to the level of most other cities in the area and would raise money for the sorts of programs hotel taxes typically fund.

Measure D is a technical amendment to the Oakland Kids First law that mandates spending on programs for children and youth. It changes the spending requirement from 1.5 percent of total city revenues to 3 percent of the general fund. That’s slightly less money than the program currently gets, but a lot more than it has had over the past decade. The coalition that put Kids First on the ballot in 1996 (and modified it in 2008) supports this modest change.

Measure F is a creative new tax. It would impose a 1.8 percent gross receipts tax ($18 per $1,000 in sales) on medical marijuana businesses. Most efforts to hike business taxes face bitter opposition from business owners, but in this case, the pot clubs are happy to pay. In fact, the four dispensaries in Oakland are among the measure’s strongest supporters. Paying taxes tends to legitimize the clubs — and while it’s going to be tricky to track sales in what is still largely a cash business where records have in the past been kept vague to avoid the threat of federal prosecution, this is a strong step in the right direction.

Measure H would prevent big corporations from cheating Oakland out of real estate transfer taxes. Under current law, a business that owns property in Oakland and is bought by another business (or becomes part of a merger) doesn’t have to pay transfer taxes on the property it owns. Closing that loophole could bring in as much as $4.4 million a year.

There’s a lesson here for the much larger city across the Bay.

San Francisco desperately needs new revenue. And while the mayor has talked, in vague terms, about maybe supporting some sort of tax measures in November, he hasn’t committed to anything. There are several proposals floating around the board, the latest of which is a Labor Council-supported tax on alcohol consumption, but no coherent package. The progressives on the board — both those who support the compromise Newsom budget and those who don’t — need to set aside those differences, now, and get to work on finding ways to bring in enough new money to deal with the impacts of further state cuts and stave off some of the layoffs slated for the fall.

The main obstacles are Sups. Sean Elsbernd and Michela Alioto-Pier. Everyone who cares about saving services in this city needs to pressure them to back away from their GOP-style no-new-taxes stands. If those two would at least agree to let the voters decide on new revenue measures, the city would likely get a unanimous board — and the ability to raise taxes with a simple majority vote.

Oakland’s pot club tax and real estate transfer tax are great ideas that can be directly imported to San Francisco. The city’s business tax could be made more progressive (and bring in new revenue) with a simple change in the tax rates (higher on the big outfits, lower on the small ones). We’re dubious about a sales tax increase — even a half-percent hike would bring the local tax rate to 10 percent. And, even though the alcohol tax isn’t exactly progressive, those ideas could be acceptable as part of a package.

The main thing is that the city will need, at minimum, another $100 million this fall, and probably ought to be looking at raising twice that much. Oakland — a city with far fewer resources, a much smaller business base, and radically less wealth — is managing to fight its deficit with progressive taxes. What’s wrong with San Francisco?

P.S.: Sup. Chris Daly was outspoken in his criticism of the budget deal, blasting Newsom and even taking on his former aide and longtime ally, Avalos. But for all his bluster about the mayor, Daly couldn’t bring himself to oppose Anson Moran, Newsom’s nominee for the Public Utilities Commission. Moran was a staunch ally of Pacific Gas and Electric Co. when he was the PUC’s general manager, and the full board should reject him. *

Assessing the city budget deal

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By Steven T. Jones

Progressives aren’t feeling much joy over the city budget deal that was cut yesterday between Mayor Gavin Newsom and Sups. David Chiu and John Avalos (respectively the board president and chair of the Budget Committee), and that’s not just because it gave the gubernatorial candidate the chance to shamelessly crow, “The contrast is stark, isn’t it? In Sacramento, it’s a state of emergency. In San Francisco, a budget deal.”

It’s true that the deal to restore $43.7 million in Newsom-proposed cuts – more so-called “add-backs” than a Board of Supervisors has ever made to a mayor’s budget — was a real compromise, not coincidentally about half of what the board’s progressive majority was looking for, and it averted bloody budget standoff that neither side wanted.

But the cuts to progressive priorities are still deep and Newsom’s wasteful pet projects and taxpayer-funded political operation remain intact (Paul Hogarth has a good analysis of the numbers here). And the whole episode just feels a little like it was scripted by Team Newsom, starting on June 1 when the mayor unveiled his budget and said, “I count on you to add back a lot of the things I don’t want to see cut.”

Of course, that was followed by an aggressive butting of heads: the police and fire unions slammed the rookie supervisorial leaders hard, even running a sound truck through Avalos’ neighborhood calling for his recall, which progressive activists and union leaders responded to with increasingly confrontational tactics, even blocking Newsom’s Pride Parade vehicle with a “die-in.”

Ultimately, the clashes led to a compromise that Avalos described to us as: “It’s as good as we could possibly get.”

No surrender, no retreat

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rebeccab@sfbg.com

The dueling budget rallies that preceded the June 16 Board of Supervisors hearing on the city’s spending priorities officially ended the conciliatory approach offered by Mayor Gavin Newsom — a rhetorical political gambit that the Mayor’s Office never really put into practice.

The emotionally charged police and fire workers’ rally — where Police Officers Association President Gary Delagnes riled up the crowd by ridiculing supervisors as "idiots" and "carpetbaggers" — featured Newsom as the guest of honor at an event overseen by Eric Jaye, the political consultant running both the firefighters’ union budget offensive and Newsom’s gubernatorial campaign.

On a stage lined with American flags and burly public safety workers, Newsom condemned the progressive supervisor’s proposal to amend his budget over a blaring sound system. "They’re asking us to retreat," Newsom said, in full battle cry mode, "and we’re not going to do that."

Across the street, city employees from the Department of Public Health held a competing rally, flying a banner that read "No Cuts to Vital Services!" It was painfully obvious that in a squabble between city employees, the mayor was positioning himself on the side of well-paid, powerful union members who got raises instead of layoffs, rather than the public health workers and advocates for the poor whom Newsom’s budget cut the deepest.

But before progressive supervisors challenged Newsom’s proposed budget — which ignored the supervisors’ stated priorities, despite Newsom’s December pledge to work closely with the board on it — the rhetoric was quite different. "We work through our differences and ultimately try to look at the budget as apolitically as possible," Newsom said during a June 1 event unveiling his budget. "It’ll only happen by working together."

Six months earlier, when the mayor made a rare appearance at a Board of Supervisors meeting to announce the unprecedented budget shortfall of more than $500 million, he adopted a similar tone. "We have the capacity, the ingenuity and the spirit to solve this," Newsom told the board in December. "It’s going to take all of us working together. It’s in that spirit that I am here."

The mayor’s proposed budget has spurred outrage from poor people and progressive supervisors, who charge that his decision to cut critical services while simultaneously bolstering funding to the police and fire departments is morally repugnant.

Sups. John Avalos, David Campos, and David Chiu responded by passing an amendment in committee to slash $82 million from the public-safety budget in order to restore some of the cuts to public health and social services. After that move, the spirit of "working together" quickly eroded, and seemed to be replaced by the bare knuckles politics of fear and division.

After the rallies, which even spilled indoors and devolved into shouting matches between the two camps, supervisors finally got to work on the budget. And they didn’t ask Newsom to retreat, they just asked him to listen and work with them.

The $82 million dent in the public-safety budget was described as a symbolic gesture to get the mayor to take progressive concerns seriously. "For many of us, it was the only way we felt we could have a seat at the table — a seat that was real, where the discussion was going to be meaningful," Campos said.

"I do not think that this budget is bilateral. It is a unilateral budget," Chiu noted at a Budget and Finance Committee meeting.

This year’s budget battle is especially intense because of the unprecedented size of the deficit, as well as the dire economic conditions facing many San Franciscans. California’s unemployment rate climbed to 11.5 percent in May, and stood at an only slightly less miserable 9.1 percent in San Francisco, according to the state’s Employment Development Department.

Meanwhile, anecdotal evidence suggests that the number of San Franciscans in need of emergency food assistance, homeless services, and help with other basic necessities has spiked. Everyone seems to be feeling the pinch, but for the least fortunate, falling on hard times can mean relying on city-funded services for survival.

Against this dismal backdrop, big questions are emerging about the role of government. "The city’s budget," City Attorney Dennis Herrera noted at a recent hearing, "is correctly called the city’s most meaningful policy document. More than any other piece of legislation, it sets out the priorities that tangibly express the values of the City and County of San Francisco."

Sup. Ross Mirkarimi took this idea even farther at the budget hearing. "Aside from the politicking and any of the hyperbole, we [have to] do the best we possibly can for all the people of San Francisco," he said. "But in particular, the vulnerable classes, because what is also at stake is … the key question: Who’s this city for? And who gets to live here over the next 10 to 20 years, considering how cost-prohibitive it is to be in San Francisco?"

The budget battle is shaping up around some fundamental questions: is this budget going to protect the politically powerful while ignoring the thousands who are in danger of slipping through the cracks? Or will everyone be asked to make sacrifices to preserve the city’s safety net? And as these difficult decisions are hashed out, is the mayor going to sit down with the board to seek common ground?

A board hearing on the cuts to health services — which state law requires cities to hold when those cuts are deep — illustrated the divide with hours of testimony from the city’s most disadvantaged residents: those with mental health problems, seniors, SRO tenants, AIDS patients, and others.

"If we make the wrong decisions, it will mean that our homeless folks will be in ever-increasing numbers on the street. It means that folks with HIV will not receive the care they need. It will mean that kids will not have the after-school programs they need during their critical years. It will mean that our tenants will continue to live in substandard housing," Chiu summarized the testimony.

Avalos, the Budget Committee chair who has led the fight to alter Newsom’s budget priorities, has said repeatedly that cutting critical services does not work in San Francisco. And even as he proposed the amendment, he expressed a desire to reach a solution that everyone, not just progressives, would find palatable.

"We want to talk directly to the mayor, to have him meet us half-way, about how we can share the pain in this budget to ensure that we have a balance in equity on how we run the city government," Avalos noted as his committee began its detailed, tedious work on the budget. "We can do that across the hall here at City Hall, and we can do it across every district in San Francisco."

The Board approved the interim budget that more evenly shared the budget pain on a 7-3 vote, with Sups. Bevan Dufty, Carmen Chu, and Michela Alioto-Pier dissenting (Sup. Sean Elsbernd was absent because his wife was giving birth to their first child, but was also likely to dissent).

If Newsom chooses to veto the interim budget or the permanent one next month — which the board would need eight votes to override — San Francisco could be in for a protracted budget standoff, the least "apolitical" of all options. But for now, the political theater is yielding to the detailed, difficult work of the Budget and Finance Committee.

Progressive members of the committee have already signaled their intention to scrutinize city jobs with salaries of $100,000 or positions in each department that deal with public relations.

Among those highlighted in a budget analysts’ report is Newsom’s public relations team, a fleet of five helmed by a Director of Communications Nate Ballard, who pulls down $141,700 a year. Yet when the Guardian and others seek information from the office — for this story and many others — we are often stonewalled, ignored, or insulted.

During the budget hearings, the disproportionately high number of positions with six-figure salaries in the city’s police and fire departments also came under scrutiny. "What has worked in a lot of other agencies is you have employees who care deeply enough about the City and County of San Francisco that they are willing to give back in terms of salaries," Campos commented to Fire Chief Joanne Hayes-White during a budget hearing, referring to firefighters’ refusal to forgo raises.

Another looming question is whether new revenue measures will be included as part of the solution. While progressive supervisors continue to call for tax measures as a way to stave off the worst cuts to critical services, Newsom proudly proclaimed his budget’s lack of new taxes.

A press release posted on Newsom’s gubernatorial campaign Web site suggests that since raising revenues doesn’t fit with his bid for governor, it’s not likely to be entertained as a possibility. "Mayor Newsom crafted a balanced budget on time," a press release notes, "without any new general tax increases, without reducing public safety services."

It’s a stand that’s certain to yield more political clashes down the line.

"I don’t see how we can get out of this budget without bringing additional revenue into the system," Campos noted at the committee hearing. "Once people learn about the situation we are facing, they will understand the need for the city and county as a whole to contribute."

Dueling rallies pit “public safety” against “safety net”

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By Rebecca Bowe

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Mayor Gavin Newsom joined the city’s police, fire and sheriff departments yesterday afternoon in protesting the Board of Supervisors’ move to slash funding to those departments in order to restore cuts to critical services that the mayor had included in his interim budget.

In essence, the mayor was sending a very divisive message, pitting one set of city employees against another. Because just a few yards away from Newsom’s rally, health and human service employees were holding an event of their own.

Standing upon a stage equipped with a very loud sound system and decorated with American flags, Newsom praised police and firefighters for being willing to step up and be part of the solution to the budget crisis. He was greeted warmly by cheering and drumming, and before they introduced him they blasted a song with the lyrics “A family affair.”

Across the street, public-health workers were joined by Sup. John Avalos in their own rally against the deep cuts to the department of public health. “All we’re asking is to give a little so that we can share the pain of this deficit,” Avalos said.

This one’s ugly

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news@sfbg.com

The most painful and divisive city budget season in many years was just getting under way as this issue went to press, with dueling City Hall rallies preceding the June 16 Board of Supervisors vote on an interim budget and the board’s Budget and Finance Committee slated to finally delve into the 2009-10 general fund budgets on June 17.

Both sides have adopted the rhetoric of a life-or-death struggle, with firefighters warning at a rally and in an advertising campaign that any cuts to their budget is akin to playing Russian Roulette, while city service providers say the deep public health cuts proposed by Mayor Gavin Newsom will also cost lives and carry dire long-term costs and consequences.

Despite Newsom’s pledges in January and again on June 1 to work closely with the Board of Supervisors on budget issues, that hasn’t happened. Instead, Newsom’s proposed budget would decimate the social services supported by board progressives, who responded by proposing an interim budget that would share that pain with police, fire, and sheriff’s budgets — which Newsom proposed to increase.

Rather than simply adopting the mayor’s proposed budget as the interim spending plan for the month of July, as the board traditionally has done, progressive supporters proposed an interim budget that would make up to $82 million in cuts to the three public safety agencies and use that money to prevent the more draconian cuts to social services.

“It’s the start of a discussion to figure out what that number should be. I don’t know where we’re going to end up,” Sup. David Campos, who sits on the budget committee, told us.

Board President David Chiu said Newsom did finally meet with him and Budget Committee chair John Avalos on June 15 to try to resolve the impasse. But he said, “We didn’t hear anything from the mayor that would change where we were last week.” They planned to meet again on June 19.

“What we proposed represents the magnitude of the challenge we face this year,” Chiu said of the interim budget proposal, seeming to indicate that supervisors are open to negotiation.

The real work begins the morning of June 17 when the Budget and Finance Committee dissects the budgets of 15 city departments, including the Mayor’s Office, of which Avalos told us, “I don’t think the mayor has made the same concessions as he’s had other departments make.”

The next day, another 13 city departments go under the committee’s microscope, including the public safety departments that were spared the mayor’s budget ax and even given small increases, and the budget of the Public Defenders Office, where Newsom proposes cutting 16 positions.

“This creates a severe imbalance in the criminal justice system,” Public Defender Jeff Adachi told us. “Why is he cutting public defender services while fully funding police, fully funding the sheriff’s department, and essentially creating a situation where poor people are going to get second-rate representation?”

That theme of rich vs. poor has pervaded the budget season debate, both overtly and in budget priorities that each side is supporting.

 

BUDGET JUSTICE

Hundreds of people whose lives would be affected by cuts marched on City Hall under the banner Budget Justice on June 10. Some of San Francisco’s most vulnerable citizens, including homeless people, immigrants, seniors, and public housing residents, turned out for the march, chanting and waving signs asking the mayor to “invest in us.”

Sups. John Avalos and Chris Daly delivered resounding speeches mirroring the anger in the crowd, and promised to fix the budget by reallocating money to protect the city’s safety net. Daly charged that even as services to the city’s vulnerable populations are being slashed, “the politically connected and the powerful get huge increases.”

Avalos took the podium just before heading into City Hall to lead the Budget and Finance Committee meeting and implored the hundreds of people gathered out front to make their voices heard. “Mayor Newsom, he told us, he said, ‘We have a near-perfect budget.’ Do we have a near-perfect budget?” Avalos asked, and then paused while the crowd cried out, “Nooo!!!!!”

During an interview discussing Newsom’s budget priorities, Avalos twice made references to The Shock Doctrine, using the Naomi Klein book about how crises are used as opportunities to unilaterally implement corporatist policies. “We have a budget deficit that is real, but it’s being used to do other things,” Avalos said. “I look at it as a way to remake San Francisco. It’s a Shock Doctrine effect.”

He referred to the privatization of government services (an aspect of every Newsom budget), promoting condo conversions and gentrification, defunding nonprofits that provides social services (groups that often side with progressives), and helping corporations raid the public treasury (Newsom proposed beefing up the Mayor’s Office of Economic and Workforce Development by a whopping 32 percent).

“It’s things that the most conservative parts of San Francisco have wanted for years, and now they have the conditions to make it happen,” Avalos said.

Much of that agenda involves slashing services to the homeless and other low-income San Francisco and de-funding the nonprofit network that provides services and jobs. “There’s an effort to say nonprofit jobs aren’t real jobs, but they are an important economic engine of the city,” Avalos told us. Those cuts were decried during the June 10 budget rally.

“What people don’t realize,” Office & Professional Employees International Union Local 3 representative Natalie Naylor said, “is that everything that’s being proposed to be cut from the city is creating no place for homeless people to go during the daytime. I don’t think Newsom’s constituents realize that we’re going to see more homeless people on the street than ever before.”

Pablo Rodriguez of the Coalition on Homelessness told the crowd that he was furious that the mayor would make such deep cuts to social services. “Stop riding on the back of the homeless, and the seniors and the children and all the community-based organizations,” Rodriguez said. “Why make the poor people pay for the rich people’s mistakes? The poor people didn’t make the mistakes.”

 

WHOM TO CUT?

The public safety unions were equally caustic in their arguments. An announcement for the Save Our Firehouses rally — which was heavily promoted by members of the Mayor’s Office and Newsom’s gubernatorial campaign team — claimed that “the Board of Supervisors voted to endanger the progress that we’ve made in public safety by laying off hundreds of police officers, closing up to 12 out of 42 fire stations and closing part of our jail.”

Actually, all sides have said the interim budget probably won’t lead to layoffs, station closures, or prisoner releases, but those could be a part of next year’s budget.

Tensions temporarily cooled a bit in the days that have followed, but the two sides still seemed far apart on their priorities, mayoral spin aside. Asked about the impasse, Newsom spokesperson Nate Ballard told the Guardian, “The mayor has already included over 90 percent of the supervisors’ priorities in the budget. But he’s against the supervisors’ efforts to gut public safety. He’s willing to work with people who have reasonable ideas to balance the budget. Balancing the budget with draconian cuts to police and fire is unreasonable.”

Campos disputed Ballard’s figure and logic. “I don’t know where that number comes from,” Campos said. “A lot of the things we wanted to protect, the mayor cut anyway.”

Campos said Newsom’s slick budget presentation glossed over painful cuts to essential services, cuts that activists and Budget Analyst Harvey Rose have been discovering over the last two weeks. “I felt the mayor has done a real good job of presenting things to make it look like it’s not as bad as it really is,” Campos said.

 

COMMITTEE WORK

Avalos expressed confidence that his committee will produce a document to the full board in July that reflects progressive priorities.

“We’re going to pass to the full board a budget that we have control over,” Avalos said, noting that a committee majority that also includes Sups. Campos and Ross Mirkarimi strongly favors progressive budget priorities.

He also praised the committee’s more conservative members, Sups. Bevan Dufty and Carmen Chu, as engaged participants in improving the mayor’s budget. “I think the tension on the committee is healthy.”

Ultimately, Avalos says, he knows the board members can alter Newsom’s budget priorities. But his goal is to go even further and develop a consensus budget that creatively spreads the pain.

“Ideally, I want a unanimous vote on the Board of Supervisors,” Avalos said.

In the current polarized budget climate, that’s an ambitious goal that may be out of reach. But there are some real benefits to attaining a unanimous board vote, including the ability to place revenue measures on the November ballot that can be passed by a simply majority vote (state law generally requires a two-third vote to increase taxes, but it makes provisions for fiscal emergencies, when a unanimous Board of Supervisors vote can waive the two-thirds rule).

Avalos has proposed placing sales tax and parcel tax measures on the fall ballot. Other proposals that have been discussed by a stakeholder committee assembled by Chiu include a measure to replace the payroll tax with a new gross receipts tax and general obligation bond measures to pay for things like park and road maintenance, which would allow those budget expenses to be applied elsewhere.

But Avalos said Newsom will need to step up and show some leadership if the measures are going to have any hope of being approved. “To get the two-thirds vote we need to win a revenue measure in this bad economy is going to be really hard,” Avalos said.

“The mayor is open to new revenue measures as long as they include significant reforms and are conceived and supported by a wide swath of the community including labor and business,” Ballard said.

Sup. Sean Elsbernd — one of the most conservative supervisors — has repeatedly said he won’t support new revenue measures unless they are accompanied by substantial budget reforms that will rein in ballooning expenditures in areas like city employee pensions.

“Pension reform. Health care reform. Spending reform. One of the above. A combination of the above,” Elsbernd told the Guardian when asked what he wants to see in a budget revenue deal.

Avalos says he’s mindful that not every progressive priority can be fully funded as the city wrestles with a budget deficit of almost $500 million, fully half the city’s discretionary budget. “It’s a crappy situation, and we can make it just a crummy situation.”

Let’s get ready to ruuuuuuuuummmmmble!!!

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By Steven T. Jones

The budget battle of the decade will erupt at City Hall over the next few hours, with firefighters, cops, and representatives of Mayor Gavin Newsom rallying out front at 1 p.m. and the providers and users of other city services – those slashed by Newsom, from public health to parks to social services – rallying with progressive supervisors in the same spot at 12:30 p.m.
Newsom spokesperson Nate Ballard denied accusations of improper coordination between Newsom and firefighters, who are represented by Eric Jaye, who is also running Newsom gubernatorial campaign. “There is an ethical wall between the Mayor and Eric Jaye on these issues, ” Ballard said. “[Newsom] agrees with the firefighters, but he is not involved with planning the rally. Maybe he’ll stop by.”
Expect fireworks and angry accusations being traded before both sides file into Board Chambers at 2 p.m. as supervisors consider an interim budget that shifts $82 million in Newsom cuts over to the public safety departments that actually got small budget increases despite the $438 million deficit.
Newsom did finally follow through on his seven-month-old pledge to work with supervisors yesterday, meeting with Board President David Chiu and Budget Committee Chair John Avalos, but they failed to resolve the impasse. As Chiu told us, “We didn’t hear anything from the mayor that would change where we were last week.”
In other words: Game on!

Where’s Gavin?

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By Tim Redmond

So here’s a good one. After Newsom attacked the supervisors in this morning’s Chron, Board President David Chiu and Budget Committee Chair John Avalos decided to pay the mayor a visit. “We wanted to show that we’re open about talking, negotiating on the budget,” Chiu told us. “So we walked into his office to see if he would meet with us.”

Uh, small problem there: “We were told the mayor was out of town.”

The Chron misquotes Campos

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By Tim Redmond

Sup. David Campos, who has been not only a solid progressive vote but a strong leader on city budget issues, is getting slammed today for his comments about white men — comments that were misquoted and taken out of context by the Chronicle.

Campos and Sups. Chris Daly and John Avalos have been pushing back — hard — against the bad priorities and brutal cuts in Mayor Gavin Newsom’s budget.

In fact, in a stunning political move that sets the tone for what will be a contentious budget debate, the supervisors Budget Committee yesterday sought to shift some $80 million from law-enforcement to social services. The move came during debate on what’s usually a routine issue — approving an interim budget to keep the city going for a few weeks, between the time the supervisors start discussing the budget and the time they finally approve it.

On a 3-2 vote, the committee declined to sign off on the mayor’s interim plan and instead set very different priorities. That won’t have any immediate impact (Newsom won’t have to cut police and fire spending in July) but it sent a message that this board isn’t going to simply tinker with the budget. There’s going to be a complete overhaul.

In the process, Campos blasted Newsom’s claim that the budget was nearly “pefect,” saying that “It’s a perfect budget only if you’re a wealthy, straight white man from Pacific Heights.” That’s possibly a bit of hyperbole, but it’s generally accurate — the budget is fine if you don’t want to pay more taxes and you don’t need the sort of city services that working-class and poor people rely on.

But the Chron got the quote completely wrong. In the edition that hit the streets this morning, Marisa Lagos quoted Campos as saying the budget was perfect “if you’re a straight, white male.” That, obviously, made the comment far more inflammatory — there are, as Campos well knows, plenty of poor people who are straight, white and male. “I’ve been getting hate emails, nasty calls, people calling me a racist,” Campos told us.

BeyondChron busted the Chron this morning for getting the quote wrong, and it’s corrected now in the online version. Campos isn’t backing down: “I stand by what I said. We are devastating services for poor people and people of color,” he said.

So the budget battle begins, with a bang. Good for Campos, Avalos and David Chiu, who voted to shift the budget priorities; they realize, as does anyone who goes beyond political soundbites and stops to think about it, that cutting health and human services leads to more crime, and that paying more for cops isn’t the only — or even the best — way to keep the public safe.

‘Budget Justice’ rally rocks City Hall

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By Rebecca Bowe

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Hundreds marched from Hallidie Plaza to San Francisco City Hall yesterday afternoon to protest Mayor Gavin Newsom’s proposed city budget, which contains deep cuts to address a looming $438 million general fund deficit.

Organized by a coalition called Budget Justice, which includes Coleman Advocates, the Coalition on Homelessness, SEIU and others, the rally and march brought out a wide cross-section of people whose lives would be directly affected by cuts to the city’s health and human services programs. Homeless people, veterans, the elderly, AIDS patients, organizations that aid victims of violence and sexual abuse, people in need of mental-health therapy or programs for recovery from substance abuse, and single room occupancy residents were all represented.

Sups. John Avalos and Chris Daly delivered rousing speeches and hurled scathing criticism at Newsom’s proposed budget. They called for sharing the pain more equitably, and a number of speakers advocated for progressive revenue measures that could help stave off the worst of the bloodshed.

Dismantling the Newsom budget

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EDITORIAL Mayor Gavin Newsom was upbeat when he delivered his budget proposal last week. It won’t be that bad, he told everyone — "At the end of the day, it’s a math problem."

Well, actually, it’s not. At the end of the day, it’s job losses, major cuts to city services, and hidden taxes — most of them, despite the mayor’s rhetoric, falling on the backs of the poor.

You can’t cut $70 million from the Department of Public Health — which is already operating at bare-bones levels after years of previous cuts — without significant impacts on health care for San Franciscans. You can’t cut $19 million out of the Human Services Agency without badly hurting homeless and needy people. You can’t raise Muni fares to $2 without taking cash out of the pockets of working-class people. The mayor’s cheery line may sound good when he’s out of town running for governor, but it’s not going to play so well on the streets of San Francisco.

Just for the record, here are a few of the proposed cuts:

A 21-bed acute psychiatric unit would be shut and replaced with an 18-bed unit for milder cases. Where would the seriously mentally ill go?

The number of home-healthcare workers, the folks who take care of the very sick who need skilled clinical services in the home, would be cut by 30 percent. Those clients would either suffer, go to (expensive) hospitals, or die.

Ongoing outpatient mental health services would be limited to the most severe cases. People who are, for now, only moderately mentally ill would lose access to care (until, without care, they become severely mentally ill).

The emergency food-bag program for seniors will lose $50,000, so hungry senior citizens won’t get to eat.

Almost $3 million will be cut from community-based organizations that provide direct, frontline services to the homeless.

Almost half of the city’s recreation directors — people who provide direct services and mentoring to at-risk youth — will be laid off.

The Tenderloin Housing Clinic Eviction Defense Center, the only place that offers free legal defense for Ellis Act evictions, will lose funding, leaving hundreds of tenants at risk of losing their homes.

Drop-in centers will close. Programs for homeless youth will shut down. More homeless people with increasingly more serious mental illness will be wandering the streets with nowhere to go for help.

Mayor Newsom brags in his campaign ads about creating private-sector jobs — but the budget will mean layoffs not just for city employees but for perhaps 1,000 nonprofit workers. That dwarfs the job creation he’s claiming — and defies the Obama administration’s call for government and private business to try to preserve and create jobs.

This isn’t a math problem. It’s a political problem, and the supervisors need to make it very clear that the mayor’s budget isn’t going to fly.

The supervisors need to take the budget apart, piece by piece, and reset its priorities. Newsom increases funding for police investigators by $7 million, while cutting the Public Defender’s Office by $2 million. He’s preserving his own bloated political operation (a big press office, highly paid special assistants and programs like 311 that are part of his gubernatorial campaign) while eliminating big parts of the social safety net. He’s raising bus fares, but not taxes on downtown.

"The mayor has presented his vision," Sup. John Avalos, who chairs the Budget Committee, explained. "Now our priorities have to be presented."

This can’t be a modest, typical budget negotiation with the supervisors tweaking a few items here and there. This is a battle for San Francisco, for its future and its soul, and the supervisors need to start talking, today, about how they’re going to fight back. *

Round one

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sarah@sfbg.com

The Board of Supervisors’ narrowly thwarted attempt to reject the Municipal Transportation Agency’s 2009-10 budget was the first in a wave of anticipated showdowns between Mayor Gavin Newsom and the progressives this summer as budget season gets underway.

The mayor appeared to win this particular showdown when the board voted 6-5 not to reject the MTA deal May 27, although the skirmish helped progressives voice their concerns over Newsom’s budget priorities. It also gave board President David Chiu the opportunity to conduct a masterful interrogation of MTA executive director Nat Ford that set the stage for Sup. John Avalos to try to place a charter amendment on the November ballot that would make MTA more accountable and accessible.

That said, the final MTA deal — which closes a $129 million deficit on the backs of Muni riders (through service cuts and fare hikes) rather than motorists (MTA governs all parking revenue) by a ratio of about 4-1 — seems to be inconsistent with San Francisco’s official "transit-first" policy.

Chiu was the first to suggest rejecting the deal when it became clear that the Mayor’s Office has been using the MTA as a backdoor ATM, authorizing $66 million in work orders for things like salaries for Newsom’s environmental aides and compensating the police department for vaguely defined security services.

The practice made a mockery of Prop. A., which voters approved in 2007 to increase funding to Muni by $26 million annually. But since then, work orders from unrelated city departments, including the police and Newsom’s 311 call center, had increased by $32 million.

"If people have to pay more for less, they will stop taking Muni," Chiu said at the May 6 Budget Committee hearing on the MTA budget.

Sup. David Campos also took issue with the work orders and service cuts. "Whatever money riders of Muni pay into the system should be used for public transportation," Campos said.

In the end, Chiu got the agency to trim $10 million from its budget, restore $8.6 million in proposed Muni service cuts, and delay the increases that seniors, youth, and the disabled will pay for fast passes. In exchange the board voted 6-5 May 12 to drop its MTA’s budget challenge, allowing fares to increase to $2 and for services to be reduced. Sups. Campos, Avalos, Ross Mirkarimi, Chris Daly, and Eric Mar dissented.

"We needed to work this out so we can move forward on the myriad issues before us," Chiu said.

But led by Avalos, who chairs the board’s powerful Budget and Finance Committee, the progressives revived the issue the next day. "Given our grave economic crisis, we owe it to seniors, youth, and other low-income Muni riders to come up with a better budget, one that ensures Muni accessibility and accountability," Avalos said.

Instead of increasing fares and cutting services, Avalos suggested that the MTA extend meter hours to evenings and Sundays. For a moment, it looked as if the progressives would be able to muster the seven votes needed to reject the deal. Ultimately Chiu, Sophie Maxwell, and the other MTA budget opponents stuck to the deal, which was reapproved May 27.

But the episode underscores why Avalos wants to reform the composition of the MTA board. Currently the mayor appoints all seven members. The only thing the supervisors can do is confirm or reject his nominations.

The mayor also appoints MTA’s executive director. Under Newsom, Ford was hired to the post for $316,000 annually, making him the city’s highest paid employee and someone who feels accountable to the mayor. "In all the cities, the mayor takes the heat for the transit system," Ford told the Guardian when challenged on his agency’s seeming lack of independence.

But under Avalos’ amendment, the mayor and the Board of Supervisors would each nominate three board commissioners while voters would elect the seventh. "The new MTA board composition will create greater checks and balances and also ensure that the MTA director is not solely accountable to one person, but to a board that is more representative of the city and county of San Francisco," Avalos said.

MTA now faces an additional $10 to $16 million deficit, thanks to union negotiations and fears that the state will raid city property tax and gas tax coffers. But as part of his budget deal with Chiu, Ford promised that the agency would study extending parking meter enforcement hours to close the gap.

Confirming that the agency dropped a $9 million a year proposal to extend meter hours citywide after receiving input from merchants, Ford said that "we’ll clearly have to revisit parking. We’ll be looking at how to administer extended meter hours, and how that impacts churches if we do it Sundays. But we are sitting here with a structural deficit that’s been going on for decades. We need to figure out the revenue streams we need to enhance the system."

Campos thought that a progressive Board of Supervisors should have gotten a better MTA budget. "As Sup. John Avalos and I pointed out, there’s almost nothing different between this budget and what was presented last week," Campos said. "I think it’s an illustration of how it is not enough to have power. You have to be willing to use it."

But Chiu defended his deal as a necessary way out of the board conflict with Newsom’s office. "Nat Ford has committed publicly and privately that he will propose meter hour change. And MTA Board President Tom Nolan has committed that he will ensure that car owners pick up more of the burden, and that if the budget gets worse, the additional problems won’t be balanced on the backs of Muni riders, which was not something we heard last week," Chiu said.

Avalos was less sanguine: "It was a clear moment for the Board of Supervisors to support transit-first and the city’s most vulnerable residents."

But he felt that concerns about the deal, and the realization that Newsom is an increasingly absent mayor, will help voters see the need for MTA reform.

"There wasn’t a single MTA commissioner or director accessible or accountable to the greater part of San Francisco. But they were responsive to Room 200, the Mayor’s Office," Avalos said. "Clearly, we need greater checks and balances."

Mirkarimi observed how, when faced with a crisis, people make practical decisions. "What gets lost when we are in crisis mode is our larger objective," he said. "We are a transit-first city that has strong climate change legislation, and Mayor Gavin Newsom is constantly campaigning on green issues. So it’s counterintuitive for us to broker an MTA budget on the backs of Muni riders and not understand that this deal could diminish that ridership."

But MTA spokesperson Judson True believes that what got lost in the discussion is that, as a result of Proposition A, the agency adopted a two-year budget that slapped drivers with increased rates and fees in 2008 while Muni riders and services were mostly spared.

Things changed, True said, when the economy tanked in 2008 and the MTA was left facing an unprecedented deficit. "At that point we reopened the budget and put everything on the table," True said.

Either way, Chiu has been urging supervisors to move on and focus on the next big thing: the mayor’s budget. "There’s a half-billion dollar hole in this budget," Chiu said last week. "It’ll make this debate look like child’s play."

Steven T. Jones contributed to this report.

Shrinking government

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steve@sfbg.com

Mayor Gavin Newsom released his proposed 2009-10 city budget June 1, proclaiming it far better than doomsayers predicted and emphasizing how he minimized cuts to health and human services that he once said could be as deep as 25 percent in order to bridge a $438 million budget deficit.

"It doesn’t come close to balancing on the backs of our health and human services agencies, as some had feared," Newsom told the department heads, elected supervisors, and journalists who were tightly packed into his office for the announcement event.

But there’s still plenty of pain in a city budget where the General Fund — the portion of the budget local officials can control — would be reduced by more than 11 percent, its only reduction in recent memory. And at a time when every reasonable Democrat in Sacramento has been nearly begging for tax hikes to prevent budget blood, San Francisco’s Democratic mayor proudly proclaimed that there are no new taxes in the budget.

"We didn’t raise taxes, and we didn’t borrow," he said. You can almost hear that line being repeated in the ads he’ll be running as he campaigns for governor.

Newsom proposes slashing the city’s public health budget by $128.4 million, or 8 percent (a total of 400 employees), while the human services budget would take a $15.9 million hit, or 2 percent. "That’s a lot, but by no means is it devastating," Newsom said, noting that he restored some of the deepest cuts that were the subject of alarming public hearings. "I listened to the public comments at the Board of Supervisors… Things got a lot better than the headlines and the hearings."

The proposed budget includes 1,603 full-time-equivalent layoffs, or a 5.8 reduction in the city’s workforce, trimming more than $75.5 million from the general fund budget. In addition, the Department of Health and Human Services is cutting back its workweek to 37.5 hours to further trim costs.

"The smoke hasn’t cleared yet and there’s a lot of devastation in this budget that isn’t being talked about," Sup. John Avalos, who chairs the Board of Supervisors Budget Committee, said at the event. Newsom’s budget will be analyzed and then face its first committee hearing June 17, with approval by the full board required by July 31.

"The mayor told us a lot about what’s in the budget, but not a lot about what’s not in the budget, so we’ll spend a few days figuring that out," board President David Chiu told the Guardian.

The budget was aided greatly by more than $80 million in federal stimulus funds and other one-time revenue sources (such as $10 million from the sale of city-owned energy turbines) that were used to plug this year’s gap and offset cuts by the state and depressed tax revenue.

Although Newsom doesn’t want to raise taxes, licenses and fees would go up 41 percent, increasing revenue by $64 million to $220 million. Some of those proposed fee hikes range from the cost of parking in city-owned garages to admission fees for city-owned facilities such as the Strybing Arboretum. Muni riders will also see fares hiked to $2.

There will also be deep cuts to some key city functions. The Department of Emergency Management would take a 24 percent cut under the mayor’s plan, while the Department of Building Inspection faces a 20 percent cut to expenditures and a 29 percent reduction in staff.

The Planning Department would also take a hit of about 7 percent, with most of that focused on the department’s long-range planning functions, which were slashed by 19 percent to $4.7 million.

But it’s not an entirely austere budget. The police and fire departments have status quo budgets with no layoffs. Travel expenses would increase 13.5 percent to $2.9 million and the cost of food purchased by the city would rise 127 percent to $7 million.

The Mayor’s Office of Economic and Workforce Development — which often uses public funds to subsidize private sector projects — would get a 32 percent increase, to $24.7 million.

It’s unclear how much the Mayor’s Office has shared the budget pain. During the presentation, Newsom said his office’s budget has been cut by 28 percent, but he later clarified that was spread over the five years he has been mayor. Yet even that is tough to account for given that some functions have been shuffled to other departments.

The document shows a proposed 60 percent increase in the Mayor’s Office budget, although the lion’s share of that comes from the Mayor’s Office of Housing’s one-time financial support for some long-awaited projects, including rebuilding the Hunters View housing and support services project for low-income people connected to the Central YMCA, and an apartment project on 29th Avenue for people with disabilities.

Avalos has said he will look to find money by cutting some of the highly paid policy czars and communications specialists added to the Mayor’s Office in recent years, as well as Newsom’s cherished 311 call center and the Community Justice Court he created. Supervisors are also expected to resist Newsom’s penchant for privatization. Newsom proposed to privatize seven city functions, from jail health services and security guards and city-owned facilities, and to consolidate another 14 functions between various city departments.

Newsom pledged to work with supervisors who want to change the budget, continuing the rhetoric of cooperation that he opened the budget season with in January, which supervisors say hasn’t been matched by his actions or the secretive nature of this budget. "This budget is by no means done," Newsom said. "It’s an ongoing process."

In fact, Newsom warned that the budget news could be even worse than his budget outlines. Gov. Arnold Schwarzenegger is talking about new cuts that could total $175 million or more for San Francisco only, although Newsom only included $25 million of that in his budget because it went to the printer on May 22 and the total hit is still unclear. "So," Newsom said, "we’re by no means out of the woods."