SEIU

Inside the mayor’s office with SEIU Local 1021

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By Rebecca Bowe

Yesterday, around 4 p.m., 22 union members rushed into the mayor’s office (the plush reception area on the other side of those stately double doors) and demanded to meet with Mayor Gavin Newsom. Immediately blocked by security from continuing all the way to the mayor, they vowed to wait — and remained there for about two hours. The protesters were there as representatives or supporters of SEIU Local 1021, which has launched a months-long fight against Newsom in the wake of layoffs and deep salary cuts in the Department of Public Health inflicted by city budget cuts.

In the City Hall corridor just outside the mayor’s office, scores of other SEIU members gathered in support of those inside the reception area. Chants, cheers, and the refrain from Bob Marley’s “Get Up, Stand Up” could be heard from outside. The SEIU members inside, meanwhile, circled up and prepared to be arrested. Meanwhile, the clerks working in the reception area continued diligently working away at their desks. (Each of the mayoral staffers declined to comment. At one point, mayoral spokesman Nathan Ballard walked through the room, and the union members hollered at him to please ask the mayor to show some leadership. “Will do,” he said with a smile, and disappeared behind a door.)

The mayor never showed. Nor did any clash take place between the union members and the plainclothes security officers who were coolly guarding the doors leading out to the corridor and back to the mayor’s actual office. The union members stayed until approximately 6:15 p.m., chanting, singing, delivering impromptu speeches, and resolving that they would keep up the fight. Here’s what it was like in there.

They finally negotiated an exit with the security officers, and joined the others outside the doors.

Then, they flooded into the street outside City Hall with the other workers and proceeded to circle around the intersection of Polk and McAllister. Sup. Chris Daly joined them and thanked them for their work, vowing to do what he could to restore the cuts.

At Tuesday’s Board of Supervisors meeting, supervisors voted seven to four to dip into the General Fund reserve to restore the jobs of certified nursing assistants and unit clerks in the city’s Department of Public Health.

But after it was announced that the ordinance had passed on first reading, and the SEIU workers who’d packed the Board Chambers let out a celebratory whoop, some one pointed out that eight votes were needed for approval. The measure had actually failed — and the disappointment in the room was palpable.

Which union got hit hardest?

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By Melanie Ruiz

It’s not fair!…Or not equal, anyway.

A chart we’ve created — you can see it here (PDF) — shows how the city’s unions fared during the layoffs and forced givebacks of the last budget cycle. The cuts shown are for Fiscal Year 2009-2010. The layoff figures cover the past three fiscal years.

The figures show that Service Employee International Union (SEIU) Local 1021, representing many front-line workers, took by far the largest hit. For example, Local 1021’s city employees and per diem nurses gave back 3.22% of their total pay and benefits base, whereas the Municipal Executives’ Association (MEA), which represents higher-paid managers, only gave back 1.5%.

The chart, compiled from data provided by the Controller’s Office, seems to support the argument that Local 1021 members have been making for months: Mayor Gavin Newsom has balanced the budget by cutting front-line, lower-paid workers instead of skimming the fat from upper management corridors.

Ed Kinchley, a member of Local 1021’s health care division bargaining team, says he “doesn’t understand why the mayor doesn’t get it — that the people at our level, who are often providing services directly to the general public, need to be properly compensated and treated with some respect.” The numbers show that Local 1021 has been hit hardest by layoffs. Kinchley says it’s “blatantly unfair” that over the past three fiscal years, 82% of the city’s layoffs have been from SEIU bargaining units.

There are more managers than in the past, yet fewer line workers to manage. Kinchley doesn’t see any sensible explanation for these figures, “except for observing the mayor to be out to get us and our union.” For laborers on the front-lines, there is something important that the numbers don’t convey – the consequences of real people loosing their their livelihoods and San Franciscans losing crucial public services.

Nathan Ballard, Newsom’s press spokesperson, hasn’t yet responded to our request for comment.

The Board of Supervisors Budget Committee will hold a hearing tomorrow on legislation by Sup. John Avalos that would trim management positions to save health-care workers; Sup. Chris Daly has another bill to restore funding for front-line health workers. “We will be there,” says Kinchley. “We are looking with a lot of interest in supporting what Supervisors Avalos and Daly are doing at the board.”

Chop from the top

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Chop from the top

rebeccab@sfbg.com

At the Oct. 23 groundbreaking ceremony for the rebuild of San Francisco General Hospital, Mayor Gavin Newsom sang the praises of the public hospital’s staff.

"To all the men and women who work in this remarkable place that changes people’s lives each and every day … every time I come here, I realize you’re not just saving patients, you’re taking care of families," the mayor said. "It’s so difficult to see someone in pain. But to see the smile and the pride their loved ones have because of the job you guys have done is something magical."

Yet some health care workers, marked by their signature purple and yellow T-shirts, clearly weren’t feeling the magic. As Newsom waxed poetic onstage, they stood clustered in the audience displaying a banner proclaiming, "Keep Public Health Healthy." It was meant as a reminder that SEIU Local 1021, the union that represents certified nursing assistants (CNAs) and clerical workers facing significant slashes in pay in the wake of a city budget cuts, is still pushing to have their salaries restored.

On Sept. 15, 500 CNAs and clerical workers received notice that they would be laid off, although some would be reclassified at lower-paying positions, effective Nov. 15. For the CNAs being demoted, the reductions amount to an average of $15,000 annual reduction in pay. For the clerical workers facing downgrades, the cuts reflect an average loss of $5,000.

It wasn’t the first time SEIU workers turned out at one of Newsom’s public appearances. Beginning in August, union members began vocally characterizing the layoffs and demotions as a civil ights issue because they disproportionately affect women and people of color. According to a Department of Public Health assessment, 96 percent of the affected employees are people of color and 79 percent are women.

Mayoral Chief of Staff Steve Kawa insisted this wasn’t an attack on the city’s comparable-worth policy, which guarantees equal pay for work done primarily by women. "We would not do anything against comparable worth, " Kawa told the Guardian. "Even with the change in status in the wage, these workers will be making 18 percent above market."

But Sup. John Avalos framed it differently. "These people are some of the lowest paid frontline workers in the city," he pointed out a recent Board of Supervisors meeting. "I have spoken to many of them in my district. They’re often single women who are raising children, who don’t know how they’re going to survive."

After angry SEIU members made a series of boisterous appearances at Newsom’s gubernatorial campaign events, the mayor finally agreed to meet with them in talks that were mediated by San Francisco Labor Council head Tim Paulson.

"[Newsom] complained at some length during the first meeting about us attacking him," noted SEIU member Ed Kinchley. "We responded that we’re really not attacking him. What we were criticizing was a policy that goes after classifications filled predominantly by women and people of color."

The ongoing flap took a new twist at the Oct. 22 Board of Supervisors meeting, when Sups. Avalos and Chris Daly each announced plans to find funding to restore the public health workers’ salaries. Avalos proposed skimming some excess from management positions, which have swelled in recent years.

"Before cutting vital city services … we should first look to those who have the most, not to those who have the least," Avalos noted. He said he plans to ask the city controller to draft an annual salary ordinance that would reclassify top management positions in order to free enough funding to stop the demotions and wage reductions for the CNAs and clerical workers.

According to a report issued by the city controller, citywide management positions have grown from 739 in budget year 1998-99 to 1,075 in 2008-09, a 68 percent increase. Some individuals were promoted with salary increases ranging from $20,000 to $40,000 annually.

"I don’t know how one does that," Kawa said when asked about Avalos’ proposal. "It doesn’t make any sense to me."

Daly, meanwhile, noted that Department of Public Health Chief Financial Officer Gregg Sass had highlighted a preliminary projection for an $8 million DPH budget surplus in a Sept. 15 memo. Daly announced that he plans to request the money be flagged to go back into the department to stave off deskilling of frontline workers.

When asked if this money was available to fund the CNAs and clerical workers, Sass responded, "I don’t think it is." Emphasizing that it’s a preliminary figure, he added that "any additional funding, should it exist, is a component of the city’s overall ability to stay on budget this year and offset any shortfalls in city revenue … and address the large projected deficit for next year. I don’t see how it could be seen as ‘available’ until the city has better projections of [other tax revenue]."

The union had planned for a lengthy session with mayoral staff to continue negotiations on the same day of the supervisors’ meeting. But when Kawa learned about Avalos’ proposed legislation, he got angry and walked out, according to one SEIU member.

Asked if proposed legislation detracted from the negotiations, Kawa told us that "it made the last one difficult because it was somewhat of a surprise. And usually when you’re in good-faith negotiations, you share with the other folks the activities you’re up to so that you know that they’re actually there to negotiate in good faith."

Back at SF General after the groundbreaking ceremony, Newsom posed for photos with top public health officials, scooping shovels full of loose dirt with golden spades. The giddy atmosphere dissipated when the mayor turned around to find himself ringed by a group of reporters vying for a chance to pepper him with questions. He responded to most of their queries in typical loquacious fashion. But when the Guardian asked him to comment on Avalos’ proposed legislation, his face darkened slightly. "I don’t have any comment," he responded gruffly. Then he was whisked away for more photographs.

Editor’s Notes

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Editor’s Notes

Tredmond@sfbg.com

The folks at SEIU Local 1021 have been getting the mayor’s panties in a bunch lately — and it’s caused Newsom to make something of an ass of himself.

The union, which represents city employees, is still seething about the mayor’s failure to follow through on a deal he cut during the summer budget crunch. The way it was supposed to work, the union members gave $38 million in concessions, and Newsom agreed to hold off on major layoffs until this November — when he was going to support a measure to raise new revenue for San Francisco.

That never happened, and the layoff notices — more than 600 of them — have gone out, mostly to women of color who work on the front lines in the Department of Public Health. At the same time, the city’s forcing some skilled workers into lower-paid job classifications, in essence slicing their pay by more than 20 percent.

So the union put out a flyer demanding that Newsom stop the layoffs — and when a Local 1021 member handed it to the mayor at an event Sept. 28, Newsom went ballistic. According to union member (and certified nursing assistant assistant) Evalyn Morales, the mayor "said, ‘this is a lie,’" referring to the flyer. He then went on to say: "I don’t want to do anything to deal with the union. I hate Robert [SEIU organizer Robert Haaland]. What you’re doing now is hurting me … I hate Robert. I don’t want to do anything for the union."

Which is all too typical of how Newsom responds to criticism — particularly when the critics are going around to his gubernatorial campaign events and reminding people that this is the mayor who, like (Republican) Gov. Arnold Schwarzenegger, produced an all cuts, no-new-taxes budget. He gets pissy. He loses his shit. He looks like … well, like someone who isn’t quite ready to be the governor of the nation’s most populous and probably most complex and contentious state.

Newsom agrees to meet with Local 1021

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By Tim Redmond

The members of SEIU Local 1021 have agreed to stand down for a day, suspend their unfair labor practices claim and hold off on sending protesters to Mayor Gavin Newsom’s campaign events — and he’s agreed to meet with the union tomorrow (Tuesday) morning to discuss their grievances.

Larry Bevan, a Local 1021 shop steward who works as a site tech at Laguna Honda Hospital, told me that Labor Council director Tim Paulson has agreed to mediate the discussion.

“I am told that the mayor will be there personally,” Bevan said. “Going through intermediaries doesn’t seem to be working.”

The union wants to challenge the mayor to live up to his promise during budget season — that he’d work to find a way to raise new revenue this fall so that 600 union members, most of them women of color, most of them front-line service workers in the Department of Public Health, wouldn’t face layoffs.

It’s too late for a ballot measure to raise new revenue. That plan fell apart when it became clear that the supervisors would not unanimously declare a state of fiscal emergency — a move that would have allowed a revenue measure to pass with a simple majority of the vote. WIthout all 11 supervisors, any attempt to raise taxes would require an insurmountable two-thirds majority.

The Oakland City Council agreed unanimously to seek new revenue, but in San Francisco, Supervisors Sean Elsbernd, Michela Alioto and Carmen Chu refused. All three were originally Newsom appointees.

Elsbernd told me that the mayor’s office tried to get him on board, but he refused to bend. The reforms that the mayor was proposing weren’t strong enough to get the relatively conservative supervisor to drop his opposition to new taxes. “Oh, they tried, all right,” Elsbernd said. “But the reform was bogus. I said no.”

But I have to wonder how serious Newsom was: He never picked up the phone and called Elsbernd personally. His chief of staff, Steve Kava, did that job.

Sorry, Mr. Mayor — when there are millions of dollars and hundreds of jobs on the line, if you actually want to get a reluctant supervisor who owes his career to you on your side, you talk to him personally. It still might not have worked — but sending an aide over with the message was clearly doomed to fail. It almost seems as if Newsom was fine with that.

At any rate, the unions will try to get Newsom’s support for a new fee on alcoholic beverages, money that could go directly to DPH. Maybe he’ll go along; maybe he’ll drag his feet. Still, Local 1021 got him to the table, which these days, with this mayor, is quite an accomplishment.

Newsom goes ballistic at SEIU

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By Tim Redmond

The mayor is getting a wee bit sensitive about a flier from SEIU local 1021 that accuses him of breaking his word during contract talks. And he’s clearly getting more and more angry at the 1021 activists who are following him to fundraising events and making noise about his labor record. (The union plans to appear in Los Angeles Oct. 5 when Newsom holds a gala with Bill Clinton)

In fact, on Sept 28th, around 6:45 p.m., union member (and certified nurses assistant) Evalyn Morales approached the mayor at a Filipino Americans for Progress event and handed him a copy of the flier (PDF). It charges that the mayor had cut a deal with the union that he hasn’t kept:

“The deal was that city workers would make $38 million in concessions to help with the city’s half-billion budget deficit if the city would let the workers keep their jobs long enough (5 more months) for government, business and city workers to put a revenue measure on the Nov. 2009 ballot. …. Suddenly, the deal’s off … Newsom and his board allies prevented a revenue measure from reaching the ballot.”

And it notes that 600 union workers have received layoff notices — and virtually all of them are women of color.

(They’re also mostly lower-level jobs — the Management Employees Association hasn’t faced any real layoffs, and the mayor’s staffers — including five people in the press office — continue to be well compensated.)

Newsom, according to Morales, was furious to see the flier. And apparently he lost his shit. Here’s her account of the interaction, taken from a sworn statement she filed with the union:

“He said ‘this is a lie,’ referring to the flier. “I don’t want to do anything to deal with the union. I hate Robert [SEIU organizer Robert Haaland]. What you’re doing now is hurting me …. I hate Robert. I don’t want to do anything for the union.”

Harsh.

In fact, Local 1021 is planning to file a complaint with California’s Public Employee Relations Board citing the mayor’s statements as intimidation and harassment.

Now: I can’t speak to the legality of what the mayor did under labor law, but I can say that it fits in with something we’ve seen all too much over the years: Newsom loses his temper over little stuff. He can’t take a punch; the minute you go after him he gets all pissy and says stupid stuff (like “I hate Robert.” How statesmanlike and gubernatorial.)

Nathan Ballard, his press secretary, isn’t exactly conciliatory, either. Here’s what he sent me when I asked him about the incident:

MisterMayor? Is anybody home?

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By Rebecca Bowe


Video by Sarah Phelan

SEIU Local 1021 paid a visit to Mayor Gavin Newsom at his City Hall office yesterday, but his doors remained closed and locked. It won’t be the last time Newsom will hear from them, however. The union is launching an aggressive campaign to “dog the mayor,” organizer Robert Halaand told the Guardian, to pressure him to uphold the city’s commitment to comparable worth.

In 1986, San Franciscans approved Proposition H to enshrine the principal of comparable worth — ensuring pay equity for jobs that are held predominantly by women and people of color in an effort to combat institutional sexism and racial discrimination. Since certified nursing assistants (CNAs) and unit clerks employed in San Francisco’s public hospitals fit that description, their pay was gradually increased in the years following the passage of Prop. H.

However, budget cuts made in recent months resulted in those hospital employees getting cut and simultaneously reclassified into lower-paying positions. From SEIU’s perspective, the downgrades signify a form of discrimination and the reversal of a hard-won gain for women and people of color in San Francisco.

Embattled Ethics Commission heroes

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By Steven T. Jones

Two of the best, most public-spirited individuals ever to serve the San Francisco Ethics Commission – former staffer and commissioner Joe Lynn and current staffer Oliver Luby – are each fighting serious battles.

Luby — a Lynn protégé who has fought persistent corruption and dysfunction within the department — has been hounded by Director John St. Croix and his lieutenant, Mabel Ng, and now faces a ridiculous investigation for daring to comment from his work computer on flaws in new state ethics rules.

His many progressive supporters and his union, SEIU Local 1021, have each formally protested what they see as illegal retaliation against a whistle-blower and the matter has been shopped out to Oakland’s Ethics chief Dan Purnell (who also did the 2004 investigation of Ng improperly ordering Luby to destroy a document showing a money laundering scheme by the Gavin Newsom for Mayor campaign, the very thing that Ethics is supposed to regulate).

Meanwhile, Lynn faces a far more consequential battle: he’s fighting for his life against leukemia and about to undergo another round of chemotherapy. Friends and supporters of Lynn – a true Ethics pioneer – plan to gather tomorrow at 1 p.m. at Tacqueria Reina at 1550 Howard to show their love and support. All are welcome.

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.

Fireworks at the DCCC

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By C. Nellie Nelson

The San Francisco Democratic County Central Committee heard a resolution urging city agencies to not privatize city services last night. It’s the sort of measure that would normally pass without much debate — the local Democratic Party has always taken the side of the unions on contracting-out disputes.

But in the midst of the budget mess, the head of the firefighters’ union, John Hanley, showed up to berate the committee members, some of whom are also supervisors, over the latest budget moves.

As Hanley raged about putting firefighters’ lives on the line, committee chair Aaron Peskin and other members tried to make the point of order that this resolution was about privatizing city services, not changes to the budget. Hanley raised his voice louder yet, and, with his face a deep shade of red, he waved a pointed finger around as he yelled about $80 million in cuts.

At that point DCCC member and supervisor Chris Daly rose from his chair and pointing his finger at Hanley demanded, “Don’t point at me!” Hanley became even further agitated, and some committee members demanded that both Daly and Hanley leave. Both then ultimately quieted down, and neither was forced to leave.

In spite of the jarring display and repeated attempts to bring the focus back to the privatization of city services, commenters continued to speak on budget concerns. Former DCCC member and Deputy Sheriff David Wong said the Democratic Party should be for working people, and asked to not have the sheriff’s budget cut. Committee member Robert Haaland asked him if he supported or opposed contracting out sheriff services, but Wong didn’t answer.

Several SEIU members and Department of Public Health workers followed, speaking of seniors missing meals, nursing-to-staff ratios at SF General that result in less skilled workers doing responsibilities above their level of training, and even clients who had just been killed while on a wait list for city services.

When public comment closed, committee members addressed the hotly contended budget decision in a general way. Peskin began, “I want to refute the politics of fear and demagoguery,” referring to Hanley’s intimidating style of speaking. “There’s no question the pie has shrunk,” he continued, reiterating that in a fundamental notion of fairness, all departments must share the pain.

Haaland noted that 1,500 people would be laid off in the Department of Public Health, and that just wouldn’t be true of all departments. He said that cutting the DPH by $100 million would gut the Healthy San Francisco program, and result in $4 million cut from HIV services.

Peskin followed, declaring flatly, “I don’t want my house to burn down either.” He urged everyone to be part of the solution.

The members moved to take out language referring to specific professions that might be privatized, and with those changes, overwhelmingly passed the resolution against privatizing city services.

More train wrecks at BART

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By Tim Redmond

61709train.jpg

Lots of trouble brewing at BART.

In a conference call yesterday, the unions representing BART workers talked about management’s insistence on a new contract — one that includes major concessions — by the end of June. That’s too soon, the union folks say; the BART proposal is too complicated and the system’s finances too confusing to sort out in just a couple of weeks.

In fact, when I asked the three union reps (Jean Hamilton of AFSCME, Jesse Hunt of ATU and Lisa Isler of SEIU 1021) whether they thought BART, even in these tough times, had enough money to meet the workers’ demands without further fare hikes, they insisted the money was there.

They also said that they won’t accept management’s plan to impose a new contract unilaterally July 1 — which means there could conceivably be a BART strike this summer. That would utterly screw up Bay Area transportation. I don’t think it’s going to happen, and neither, I gathered, did the union reps, but the threat is out there.

Meanwhile, the BART police oversight situation continues to deteriorate.

‘Budget Justice’ rally rocks City Hall

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By Rebecca Bowe

therapy RESIZED.JPG

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.

Newsom’s no-tax budget

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By Tim Redmond

Steve Jones will be reporting in tomorrow’s paper about the details of Newsom’s budget proposal, and it’s going to take a few days to figure out exactly what’s in and what’s out of the budget, but the mayor has already made one point, and it’s infuriating:

He proudly announced that the budget is balanced with no borrowing and no new taxes.

Sounds like something that George W. Bush would have said.

And here’s the problem: When Newsom was negotiating the latest round of givebacks with the unions, he promised to work toward a revenue measure in November. And if he were serious about that, he could have included that projected revenue in this budget — avoiding some of the most painful cuts.

So what’s up? Is Newsom going back on the deal with SEIU — or is he just assuming that any revenue measure he puts on the ballot will fail?

Here’s what the mayor’s press secretary, Nathan Ballard, has to say:

After SEIU rejected the sensible deal that had been reached with the Mayor,
the revenue-measure talks unraveled, and so the Mayor could not in good
faith include projected revenue from a hypothetical measure in his proposed
budget.

All along we’ve said that a revenue measure would have to include support
from a broad coalition of San Franciscans, and nobody from the business
community — an essential part of any such coalition — is going to support
a revenue measure unless SEIU has already agreed to shoulder its fair share
of the city’s budget burden.

However, once SEIU votes to approve the new deal with the Mayor’s office,
it’s a whole new ball game. At that point we can convene a new series of
talks and attempt to come up with revenue measures that a broad coalition
can support. Once that happens, the budget could be adjusted accordingly.

Okay, sure — blame it on the SEIU members. But that’s not the point. First of all, it’s pretty likely the union membership will approve the latest contract offer, and Newsom knows that. More important, this isn’t about SEIU v. Newsom. It’s about the city, and the health of San Francisco and its residents. And a mayor who was serious about preserving essential services wouldn’t be waiting until the last minute, and planning to “adjust the budget” after front-line workers are laid off, programs are cut, nonprofits shut down etc. before he started talking seriously about new revenue sources.

Newsom’s tax proposals

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EDITORIAL Mayor Gavin Newsom and a negotiating team from the Service Employees International Union Local 1021 have hammered out yet another deal, this one slightly better for the workers than the proposal that the 11,000 union members voted down last week. As part of the deal, SEIU members will take 10 legal holidays without pay over the next 14 months, and gain five floating paid holidays. It’s way better, for both the city and the union, than the prospect of 1,000 more layoffs — and the deep service cuts that so many job cuts would entail.

As a part of the negotiation, Newsom agreed to suspend any further layoffs — and, more important, promised to work with labor and the business community on possible revenue measures for November. That’s an encouraging sign, but Newsom needs to do much more. He needs to be out front, now, meeting openly with the various interest groups and constituencies and working with the supervisors to craft progressive new tax proposals that will work as more than a one-year stopgap.

Rahm Emmanuel, President Obama’s chief of staff, is famous for saying that no politician should let a crisis go to waste, and San Francisco’s current fiscal crisis ought to be a chance to fix the unfair and broken business tax system that both hampers job creation and allows the biggest players to get off far too easy.

And to make the point that he’s serious about raising new revenue, Newsom should include in the budget that he presents to the board a projection that the city will have another $100 million or so to spend in the next fiscal year because of revenue plans that he expects will pass, with his help and strong support, in November.

That would do two things: it would demonstrate to the supervisors that the mayor is serious about looking for ways to bring in more money, and it would stave off the most debilitating, immediate cuts for the beginning of Fiscal 2010.

Newsom is still a popular mayor and has a sophisticated political operation behind him. Right now he’s using his good will, fundraising ability, and seasoned political advisors to help him get elected governor. If he is willing to bring that level of effort back home — and use it to pass some significant tax reforms in his own city — it would do a lot more to show his leadership ability than all the campaign trips in the world. *

Editorial: Where are Newsom’s new tax proposals?

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Newsom is running for governor with a sophisticated political operation behind him. If he would use it back home for major tax reforms, he would show more leadership ability than all the campaign trips in the world.

EDITORIAL Mayor Gavin Newsom and a negotiating team from the Service Employees International Union Local 1021 have hammered out yet another deal, this one slightly better for the workers than the proposal that the 11,000 union members voted down last week. As part of the deal, SEIU members will take 10 legal holidays without pay over the next 14 months, and gain five floating paid holidays. It’s way better, for both the city and the union, than the prospect of 1,000 more layoffs — and the deep service cuts that so many job cuts would entail.

Uncivil unions

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steve@sfbg.com

Who really cares about an appointment to the Golden Gate Bridge, Highway and Transportation District Board of Directors? There isn’t a delicate balance of power on the board or any major initiative at stake in this fairly obscure district. San Francisco certainly has more pressing issues and concerns.

Yet the Board of Supervisors’ April 14 vote to reject Larry Mazzola Jr. and select Dave Snyder for that board says more about San Francisco’s political dynamics, the state of the American labor movement, the psychological impact of the recession, how the city will grow, and the possibilities and pitfalls facing the board’s new progressive majority than any in recent memory.

It was a vote that meant nothing and everything at the same time, a complex and telling story of brinksmanship in which both sides of the progressive movement arguably lost. And it was a vote that came at a time when they need each other more than ever.

"It was a win for the Newsom-oriented elements of labor," Sup. Chris Daly, who helped spark the conflict, told the Guardian.

The bloc of six progressive supervisors who shot down Mazzola — who helps run the powerful plumbers union and was the San Francisco Labor Council’s unwavering choice for an appointment that has traditionally been labor’s seat on the bridge board — is the same bloc the unions helped elected last year. It is also the same bloc that has been fighting the hardest to minimize budget-related layoffs.

The vote says a tremendous amount about the crucial alliance between progressives and labor, how that delicate partnership formed, and what the future holds.

PLUMBERS VS. PROGRESSIVES


The Mazzola name carries a lot of weight in San Francisco labor circles. The Web site for the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry Local 38 (UA 38) features a photo of U.S. Secretary of Labor Hilda Solis standing between Larry Mazzola Sr. and Larry Mazzola Jr., the father and son team that runs the union.

But the Mazzolas and their union are also controversial. As the Guardian has reported ("Plumbers gone wild," 2/1/06), the union owns a large share of the Konocti Harbor Resort (which a lawsuit by the Department of Labor said was a misuse of the union’s pension funds) and owns the Civic Center Hotel, which tenants and city officials say has been willfully neglected by a union suspected of wanting to bulldoze and develop the site. The plumbers and other members of the building trades have also fought with progressives over development issues and generally back moderate-to-conservative candidates.

Sup. Chris Daly and several progressive groups locked horns with the union over the hotel a few years ago, and Mazzola Sr. responded by opposing Daly’s 2006 reelection campaign, targeting him with nasty mailers and donating office space to Daly’s opponent, Rob Black. Yet more progressive unions like Service Employees International Union Local 1021, which represents city employees, convinced the Labor Council to back Daly and union support helped Daly win.

So when Mazzola Jr. came before Daly’s Rules Committee last month, the supervisor unloaded on him, and Mazzola gave as good as he got, telling Daly he didn’t want his support and defiantly telling the committee he didn’t know much about the bridge district, or its issues, but he expected the job anyway. Those on all sides of the issue agree it was a disaster.

"He was just patently unqualified for the position," Daly told the Guardian. Mazzola tells us his experience with labor contracts would be an asset for the position, but he admits the committee meeting didn’t go well. "I was caught off-guard and put in a defensive mode that altered my planned presentation," Mazzola told us.

Whatever the case, Sup. David Campos joined Daly in keeping the Mazzola nomination stuck in committee while the progressive supervisors privately asked labor leaders to offer another choice. "We said, ‘Give us anyone else as long as they can intelligently talk about transportation issues and the bridge district," Daly said.

But labor dug in. "It seemed as though the board was trying to dictate to labor what labor should do," Michael Theriault, who heads the San Francisco Building and Construction Trade Council. And the other unions decided to back the trades, for a number of complicated reasons.

"The reason we supported Larry Mazzola is because this was important to the plumbers union," said Mike Casey, president of the Labor Council and head of Unite Here (which includes the Union of Needletrades, Industrial and Textile Employees and the Hotel Employees and Restaurant Employees International Union). "To the extent we can support the trades, we want to."

So when the four most conservative members of the Board of Supervisors used a parliamentary trick to call the Mazzola nomination up to the full board on April 14, the stage was set for the standoff.

THE STATE OF LABOR


Labor is truly a house divided, despite its universal interest in minimizing recession-related layoffs and taking advantage of a new Congress and White House that is generally supportive of labor’s holy grail: the Employee Free Choice Act, which would make it far easier to form unions.

The April 25 founding convention of National Union of Healthcare Workers (NUHW) in San Francisco caps a years-long battle between Sal Rosselli’s United Healthcare Workers (UHW) and their SEIU masters (see "Union showdown," 1/28/09). Rosselli and many others say SEIU under Andy Stern has become undemocratic and has climbed in bed with corporate America, while SEIU says getting bigger has made the union better able to advocate for workers. Both accuse the other of being power-hungry and not fighting fair.

"Inside SEIU, we’ve been struggling for four years basically on a difference of ideology and vision of what the labor movement is," Rosselli told us. David Regan, who SEIU named as a UHW trustee after ousting Rosselli, told us the union divisions have been overstated by the media. "Everyone is together in pushing the Employee Free Choice Act," he said, glossing over the fact that the legislation is in trouble and recently lost the support of U.S. Sen. Dianne Feinstein.

Nationally, SEIU has been at war with all of the most progressive unions. The union recently made peace with the California Nurses Association after a particularly nasty struggle that involves many of the same dynamics as SEIU vs. NUHW, including accusations by CNA that SEIU was a barrier to achieving single-payer healthcare and was illegally meddling in its internal affairs.

SEIU is also accused of breaking up Unite Here, which fought the most high-profile labor battle here since Newsom became mayor in its contract fight with the big hotel chains. Last month, a large faction from the old Unite affiliated with SEIU, whose officials say they were just helping out after the end of what all knew was a bad marriage. "This is an example of a merger that didn’t take," SEIU spokesperson Michelle Ringuette told us. But the building trades have backed Unite Here in its fight against Sterns’ SEIU. As Casey told us, "We’re in a major fight over our right to exist. There’s no other way to characterize it."

Yet in San Francisco, SEIU plays a different role. Local 1021 is the advocate for the little guy, representing front-line city workers who deliver social and public health services. It is the union facing the deepest layoffs in the coming city budget fight and is still negotiating contract givebacks with the Mayor’s Office. The union’s biggest allies in City Hall are the exact same six supervisors who voted against Mazzola.

So why this standoff? SEIU, Unite Here, and other progressive unions share the Labor Council with the building trades, which are traditionally more conservative and friendly with downtown and, these days, starting to really get desperate for work. "We have thousands of guys on the verge of losing their homes and families," Theriault said. "We are desperate."

That was one reason the San Francisco Labor Council last year cut a deal with Lennar Corporation to back Proposition G, which lets Lennar develop more than 10,000 homes in the southeast sector of the city. Daly, who wanted firmer guarantees of more affordable housing, was livid over the deal and has been at odds with the council ever since. But Daly said labor’s undercutting of progressives goes back even further and includes the early reelection endorsement Rosselli’s UHW gave Newsom in 2007, which helped keep big-name local progressives out of the race.

Tenants groups, affordable housing advocates, and alternative transportation supporters form the backbone of progressive politics, but on development projects, they often clash with the trade unionists who just want work. And labor expects support from the progressive supervisors. As Mazzola pointed out, "It was labor that got most of those guys elected."

But labor has its own fights on the horizon. SEIU fears deep city job cuts if the Mayor’s Office can’t be persuaded to start supporting new revenue measures. NUHW is getting challenged by SEIU for every member the try to sign up. And Unite Here’s hotel contracts start expiring in six months, reopening its battle with downtown hotel managers.

"We’re going to be in a real war with some of those employers," Casey said. Yet he said its actually good time for the otherwise distracting fights with SEIU over how nice to play with big corporations. "I embrace this fight because I think this is exactly the struggle we need to have in the labor movement."

But the Mazzola fight was one that neither side relished.

TO THE BRINK


The Board of Supervisors chambers was filled with union members flying their colors on April 14, but the progressive supervisors were just as unified, voting 6-5 to reject Mazzola. All that was left was the political posturing, the decision of what to do next, and the fallout.

"I am disappointed and surprised by the board’s action," Sup. Sean Elsbernd (who voted for Mazzola and publicly called it "a sin" to deny him) told us, refusing to confirm the private joy over the outcome that many sources say he has expressed. "What shocked me is a majority of the board turned their back on labor."

Daly admits that the standoff hurt progressives. "I’m not sure who came up with it, but it’s certainly true that the Sean Elsbernds of the world were able to take full advantage of the situation to drive a wedge between unions and progressives," Daly said.

Yet Daly noted how ridiculous is was for Sups. Elsbernd and Michela Alioto-Pier to be publicly professing such fealty to labor while opposing revenue measures that would minimize layoffs. "At the same time the plumbers were attacking me, I was sponsoring paid sick days," Daly said. "It’s the six members of the board that are the most pro-labor who voted against Larry Mazzola."

Politically, Elsbernd says the progressives misplaced their hand. "I think the easy middle ground for them was to reject Mazzola and send it back to committee," Elsbernd said. Others echoed that point. Instead, supervisors appointed Synder, a widely acclaimed transportation expert who created the modern San Francisco Bicycle Coalition then started Transportation for a Livable City (now Livable City) before becoming the first transportation policy director for the San Francisco Planning and Urban Research Association (SPUR).

"I don’t like how that went down, and I’m not happy with the inability of the board and labor to come to an agreement," Snyder told us. "I was stuck in the middle. I wish they had sent someone the board could have agreed to."

After the vote, Snyder went back to the SPUR office and resigned. SPUR director Gabriel Metcalf admits that labor leaders lobbied him to pressure Snyder to withdraw his name, and that he asked Snyder to do so. But Metcalf said he didn’t want to lose Snyder, whose vast knowledge of transportation issues as been a real asset to SPUR. "It was his choice and not my preference."

"This issue is not why I left SPUR, but it was the precipitating event," said Snyder, whose progressive values have occasionally differed from SPUR’s stands. "My sense of social justice has more to do with class issues than I was able to pursue at SPUR."

In fact, the clashes between progressives and developers (who are often backed by the trade unions) often revolve around how much affordable housing and community benefits will be required with each project approval. Snyder said the defining question is, "How do we accommodate development in San Francisco and maintain progressive values in a capitalist economy?"

He didn’t answer that question, but it is one the building trades also understand. Theriault said he supports holding developers to high standards, even when progressives have block certain projects to get them. "I’m okay with that as long as I see the endgame," Theriault said.

He expects the progressive board to listen to labor more than Daly or Democratic Party chair Aaron Peskin, who Theriault said helped shore up the progressive opposition to Mazzola (which Peskin denies). "With the exception of Daly, the relationships are reparable. But they have to show some independence from Daly and Peskin," Theriault said. "The real fear for me is what comes next."

Theriault was referring to things like new historic preservation standards that supervisors will soon consider, as well as the string of big development projects coming forward this year. And for progressives, they hope their efforts to save city jobs will be followed by labor support for progressive candidates for the Board of Supervisors (such as Debra Walker and Rafael Mandelman) in next year’s election.

"The one thing I know about labor is, we’ve been screwed by politicians on the left and the right," Casey said. "Are we angry about this and disappointed? Yes. But does that mean the alliance between labor and progressives is dead? No. We’re going to work through this stuff, talk, take deep breaths, and move forward."

NUHW’s founding convention takes place April 25 from 10 a.m. to 5 p.m. at Everett Middle School, 450 Church St., San Francisco.

The budget mysteries

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sarah@sfbg.com

San Francisco’s top budget advisors are predicting that dollars from President Obama’s stimulus package will help reinvigorate the economy over the next three years. But they also warn that the recovery will be slow, and that deficits will be part of political life for some time to come.

The findings are contained in a three-year budget projection report jointly compiled by the Mayor’s Office, the Controller’s Office, and the Budget Analyst’s Office and released to the news media at a hastily announced March 31 roundtable.

During the roundtable, Mayor Gavin Newsom announced that the city faces a "staggering" $438 million budget shortfall in fiscal year 2009-10 — a deficit, financial experts warn, that could balloon to $750 million by fiscal year 2011-12 if cuts and wage concessions aren’t made and structural reform and revenue creating measures aren’t undertaken.

Those future numbers are scary — and a bit apocryphal. Nobody seriously thinks the city will simply ignore this year’s problems and put them off until next year, which means future deficits should be smaller.

But the decisions that will have to be made to keep the red ink under control have been the subject of intense speculation since December, when Newsom announced that the city was facing a deficit equal to cutting every other dollar in the city’s discretionary general fund.

REFORMS? WHAT REFORMS?


In January newly elected Board of Supervisors President David Chiu sought to address the anxiety crashing over the city’s business and labor leaders by inviting stakeholders, including Newsom, to budget meetings at City Hall. But Newsom only agreed to get involved once the youthful board president’s other bright idea — a special election that combined cuts, revenue generating measures, and structural reforms to save as many jobs, programs, and services — was off the table.

And with only two months to go until he submits his 2009-10 budget proposal, Newsom still has not clarified what budgetary reforms he will support this fall, even as the labor unions are being asked to give back $90 million in promised benefits, and the Board of Supervisors gets ready to prepare an annual appropriations ordinance by the end of July.

Newsom did announce last week that he will be is asking some, but not all, departments for 25 percent cuts in the coming fiscal year. Human Services Director Micki Callahan confirmed that 730 pink slips have been sent out since July 2008.

Yet the actual cuts remain a mystery. "I will not be accepting 25 percent cuts from some departments, but from others, I will," Newsom said. "I don’t believe in across-the-board cuts."

Asked which departments he would accept 25 percent cuts from, Newsom told reporters: "You’ll find out when you read my budget."

Within days of Newsom’s statement came news of a deal between the Mayor’s Office and Service Employees International Union Local 1021, the largest city-workers union.

"The goal of this tentative agreement is to protect vital services for San Franciscans, minimize layoffs to employees, preserve the integrity of the collective bargaining agreement, and assist the city with its economic recovery," read a joint public statement.

As of press time, SEIU’s 1021’s Robert Haaland told the Guardian that the two sides are still in negotiations, but confirmed that the union is discussing giving up about $40 million over 16 months, including furloughs and other benefits.

"At the end of the day, our members recognize that they need to share the pain," Haaland said. "The idea is to save jobs and programs."

These givebacks from SEIU are part of the $90 million in concessions the city hopes to get from unions, including those that represent police, firefighters and nurses.

THE PERILS OF TWO-YEAR BUDGETING


As it becomes clear that givebacks and cuts won’t be enough to solve the city’s fiscal crisis, there is talk that the mayor wants to switch to a two-year budget process. Critics say that could represent a massive transfer of power to the Mayor’s Office, unless the Board of Supervisors also gets the power to approve the mayor’s midyear cuts.

"As it is right now, we have power through the Board of Supervisors for one month of the year," said one community organizer, who asked to remain anonymous. "The rest of the time Newsom moves his own agenda through his midyear cuts."

A summary of a March 16 Controller’s Office "budget improvement project" recommends that "the board’s add-back process should require that program restorations and enhancements be reviewed and analyzed by department staff and the board’s budget analyst;" that the "mayor and board should outreach to the general public regarding budget priorities;" and that the "city should adopt a two year budget process consistent with the city’s financial plan."

Sup. Chris Daly said he thinks this year’s grim three-year budget projections make a strong argument against a two-year budget process. "Projections are never right," said Daly, who used to chair the powerful budget committee. "Two years ago we weren’t projecting how bad it was going to be. We can’t do budgets for years out past the current fiscal year. It just doesn’t work."

Sup. David Campos, who sits on the current budget committee, said he wants to see the increased Federal Medical Assistance Percentage (FMAP) funding being provided to the city’s public health and human services departments used to restore proposed cuts, jobs, and services.

Much of the federal money will be earmarked for non-General Fund infrastructre projects at the Municipal Transporation Agency, Housing Authority, airport, and San Francisco Public Utilities Commission.

"We’re saying that if FMAP is coming in so that revenue cuts are not made in the public health area, then why not use these monies to fill gaps, replace cuts, restore funds, preserve programs?" Campos asked.

Campos also wants the mayor and the board to sit down and talk about the November ballot. "I don’t think the budget hole is going to be closed on backs of labor alone," Campos told us. "We’re focused on cuts, elimination of programs, layoffs … But why aren’t we talking about what revenue measures we are putting on the November ballot?

Chiu said he thinks Newsom is committed to some form of tax-based revenue measure. "Just as we can’t solve our budget deficit by taxing our way out of it, so we can’t solve it by cutting our way out of it either," Chiu said. "None of our tax or revenue-generating options would come close to filling 25 percent of that gap."

Noting that business is "more open to taxes that share the burden of who pays," Chiu observed that "it’s important to balance the cuts so it’s not just social services and the health department taking the burden."

Finally, Labor starts to come together

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workers.jpg
By Steven T. Jones

The labor movement, which in recent months has been destroying itself with bitter infighting among various unions, today announced an important accord that could help achieve health care reform and passage of the landmark Employee Free Choice Act.

Service Employees International Union and the California Nurses Association (which recently joined forces with the National Nurses Organizing Committee) jointly announced a “dramatic agreement” to cease recent hostilities, organize and divide up potential new members in health care, support allowing states to create single-payer systems, and work together on political objectives such as the EFCA, which would make it far easier for employees to unionize.

“ We are lining up to make sweeping changes to this country’s broken healthcare system, and as we wait for the starting gun it is imperative that we put the past behind us and move forward by putting all healthcare workers in the strongest possible position to define reform, move legislation and make the new healthcare system operational,” SEIU president Andy Stern said in the statement.

“This agreement provides a huge spark for the emergence of a more powerful, unified national movement that is needed to more effectively challenge healthcare industry layoffs and attacks on [Registered Nurses’] economic and professional standards and patient care conditions,” said CNA/NNOC Executive Director Rose Ann DeMoro.

Meanwhile, the National Union of Healthcare Workers – formed by local labor leader Sal Rosselli and others following divisive battles with Stern’s SEIU – finally has its first 350 official members after organizing four Northern California nursing homes and it hopes to soon add tens of thousands more (most of those current SEIU members) as it prepares for its founding convention in San Francisco on April 25.

The LA Times nails APRI

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Fascinating story in the LA Times today about the A. Philip Randolph Institute.

It focuses on James Bryant, the APRI president who earns $117,000 a year from the nonprofit while also working full-time for the city as a Muni station agent (at $68,000 a year), who hired his son as a $62,000 acting executive director and who charged APRI $5,000 in rent for the use of his half-million-dollar house.

“There is just a conflict of interest all over this thing,” said Ken Berger, president of Charity Navigator, an online review service. “It looks like something that should be reported to a government entity.”

Daniel Borochoff, president of the American Institute of Philanthropy, said Joseph Bryant’s job — the son says his salary last year was $62,000 — is similarly troubling.

“In effect, it’s like putting himself on the payroll,” Borochoff said of James Bryant.

The story also notes that Bryant is on the executive board for SEIU Local 1021 and that there’s an internal union complaint against him.

But it mentions only in passing that APRI has received $290,000 from Pacific Gas and Electric Company since 2005, and tens of thousands more from Lennar Corp;, and in many ways, that’s the real scandal here.

Because APRI, named after the legendary African American trade unionist, has become little more than a shill for PG&E and Lennar. APRI worked against the public power campaign, worked against city efforts to install peaker plants (and thus compete with PG&E for energy generation), and worked in favor of giving Lennar control of the entire Bayview Hunters Point revedelopment project.

It’s a bogus astroturf front group for corrupt big businesses. That’s the real issue with Bryant and his sleazy organization.

Why is this guy chairing the political committee for Local 1021, a progressive union that has always supported public power? Now that the whole world knows that he’s PG&E’s guy, he should resign from that job.

No service area

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› Rebeccab@sfbg.com

A little less than an hour before the Tenderloin Health Resource Community Center is scheduled to open for the afternoon, a line forms outside and stretches down Leavenworth Street. If they arrive early enough at this drop-in center for the chronically homeless, people can get health services or be put on a list for a bed in a homeless shelter. For many, the drop-in center is simply a place to use the bathroom, have a snack, or take refuge from the street.

Once the doors have been unlocked, every seat inside the center is filled. Most clients are African American men. A few are in wheelchairs. One has a hacking cough. The atmosphere feels like a rundown waiting room at a doctor’s office, filled with dispirited patients. Standing quietly near the entrance is a security guard, dressed all in black with a pink mask covering her nose and mouth.

Tenderloin Health is contracted to provide services for 6,000 individual clients per year, according to Colm Hegarty, the organization’s director of resource development. In reality, it serves twice as many.

But it appears that the center’s days are numbered. Its initial city funding of $1 million a year was halved in 2008, Hegarty explained. In the latest round of deep budget cuts — dealt to address next year’s gaping budget deficit — the rest of its funded was eliminated.

While the decision hasn’t been finalized, Hegarty says, the center will likely have to close its doors for good June 30. It’s just one of many San Francisco health and human services programs that will be affected by looming budget cuts, which were mandated by Mayor Gavin Newsom to balance an unprecedented shortfall, projected at more than $500 million for the coming fiscal year, that was triggered by the economic downturn. Newsom, meanwhile, has twice vetoed legislation passed by the Board of Supervisors calling for a special election to ask voters to raise taxes to save programs such as this one.

For the clients of Tenderloin Health, just a stone’s throw from City Hall, the deep cuts have real-life consequences. "The question is going to become where will these people go?" Hegarty wonders.

Brendan Bailey, an occasional client at the drop-in center who says he’s currently staying in a shelter, echoed Hegarty’s concern. "I’d think that they would rather have them here than wandering the street," he said, gesturing toward the center’s crowded waiting room.

Jennifer Friedenbach, executive director of the Coalition on Homelessness, sounded a similar note at a recent Human Services Agency budget hearing, where it was announced that homeless shelters might also be shut during the day in an effort to save money.

"We were basically putting forth this idea that if they’re both going to close the Tenderloin Health and close the shelters during the day, it really ends up being a recipe for disaster in terms of people’s ability to get off the streets," Friedenbach said. "It just would be incredibly problematic … They need to be somewhere."

Another blow to homeless services are cuts to the Mission Neighborhood Resource Center, which operates a program that caters to homeless women. All told, Newsom wants 25 percent slashed from the Department of Human Services budget for the 2009-10 fiscal year. According to a list of proposed reductions presented to the San Francisco Human Services Commission Feb. 12, at least 62 staff positions will be eliminated. That figure doesn’t include layoffs that are taking effect in the next couple months as a response to the current year’s midyear budget adjustments.

Another eliminated component of human services is the agency’s Civil Rights Office, which consisted of two full-time staffers who were responsible for investigating complaints from clients who felt they had experienced some form of discrimination. When the Guardian contacted one of those staff members, she declined to comment but did acknowledge that her position had been written out of the budget.

Steve Bingham, an attorney with Bay Area Legal Aid, notes that state law actually requires the city to have a civil-rights mechanism in place. "The law doesn’t require that there be specific full-time people to do it. The law requires that somebody be designated and that certain work be done," he explained, adding that he’d been told the civil-rights responsibilities would now be shared among several staffers.

"I’m very disturbed that they’re basically going to divvy up responsibilities," he said. "We are constantly bringing to the attention of management in the department deficiencies that are essentially civil rights deficiencies. For example, somebody who just can’t process written information misses a meeting with a worker that he was informed about with a notice. Accommodation means that you figure out that that person needs a telephone call. If you miss a meeting with a worker, you get a notice that you’ve been terminated from benefits."

Human Services Agency executive director Trent Rohrer did not return repeated calls requesting comment about budget cuts.

Meanwhile, in the Department of Public Health, the consequences of deep budget cuts are already taking a heavy toll. Over Valentine’s Day weekend, 93 certified nursing assistants employed at Laguna Honda and SF General hospitals received pink slips, a blow that represents just one of several rounds of layoffs being administered in the wake of midyear budget cuts. (An earlier round, which included 19 CNAs, took effect Feb. 20.) The fallout from budget reductions for the 2009-10 fiscal year won’t take effect until May 1, according to Deputy Controller Monique Zmuda. Everyone the Guardian spoke with expects that round to be worse because there’s a much larger projected deficit.

Ed Kinchley, healthcare industry chair and executive board member of SEIU Local 1021, is employed as a social worker in SF General’s emergency room. He says the cuts have diminished the quality of service the hospital can provide. "Part of my job is trying to hook up the patients who are coming into the emergency room with services, and almost every week when I come into work, there’s some service we have had in the past that isn’t there anymore," he says.

"The biggest thing they’re doing is what we call ‘de-skilling,’" Kinchley continues. "For example, in the first round, they took 45 unit clerks — the clerical people who sit at the centralized desk and make sure the right labs get done and sent to the right place — and replaced them with clerks who don’t have any medical knowledge. That’s at the clinic where all the people go who are supposed to be getting quality care under Healthy San Francisco."

Reassignments are another issue, he says. When an African American nurse was reassigned, she was made to leave her post at a program that offered therapy for youth and adolescents that had suffered sexual abuse. Since many of those clients are African American, Kinchley points out, her removal diminishes the culturally competent service that was previously in place for these youth. Sometimes the new assignments shake up people’s lives: staffers in the process of completing nursing programs who were recently reassigned to completely different work hours, for instance, have had to abandon their studies because of the scheduling conflict.

The end result, in his opinion, is a decline in both the quantity and quality of service at SF General, even in the wake of voters approving a bond measure in the November election to borrow some $887 million to rebuild the facility.

"I have worked there since 1984," Kinchley says. "Right now, morale is lower than I’ve ever seen it."

As the cuts create ripple effects in the lives of health and human services staffers and the clients they serve, a City Hall fight over raising city revenue continues between the Board of Supervisors and the mayor. In the face of opposition from Newsom and the business community, the special election proposed for June 2 has been pushed back to late summer at the earliest.

"I firmly believe that moving forward precipitously with a special election not only puts the success of needed revenue measures at risk, but bypasses our responsibility for finding long-term and enduring budget solutions," Newsom wrote in a Feb. 13 veto letter to the Board of Supervisors.

Labor, meanwhile, continues to advocate for raising city revenues, saying it’s the only way to stave off cuts to the most critical services. A group called the Coalition to Save Public Health, comprised in part of SEIU members, will host a forum called State of the City: Budget Crisis Town Hall to discuss across-the-board cuts (See Alerts for details).

"If the voters of San Francisco are willing to vote for a tax increase — or even if they’re not — if they’re given the opportunity to vote for it, then they’re not going to hold that against [Newsom]," Kinchley says. "The initiative is coming from the Board of Supervisors anyway. All he needs to do is get out of the way."

Notes from the Politics blog

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If you’ve been reading the Guardian‘s Politics blog, you know that battles between and within some major California labor unions — including Service Employees International Union, SEIU’s United Healthcare Workers, the newly formed National Union of Healthcare Workers, and the California Nurses Association — are dividing the movement at a crucial time for progressive politics.

From important federal legislation such as the landmark Employee Free Choice Act to state legislation like the single-payer healthcare bill that Sen. Mark Leno plans to reintroduce in the coming months, philosophical and turf battles between unions have hurt labor’s ability to successfully counter corporate power.

"The fight inside SEIU [involving all four unions mentioned above] is one that is going to hurt our ability to pursue and pass legislation important not just to health care workers but workers in general," labor writer David Bacon told the Guardian. "There’s lots of energy going into jurisdictional battles and I think employers will use this fight against us … Sometimes it feels like we’re going backward."

But the battles continue. On Feb. 18, NUHW plans to picket outside UHW’s Oakland offices, protesting SEIU’s efforts to hinder NUHW organizing efforts (which we discuss more online). Philosophical differences between SEIU (which has close relationships with national corporate and political leaders) and unions like NUHW and CNA (which take more adversarial roles with employers and push for fundamental reforms such as single-payer health care) animate the debate.

Meanwhile, even more radicalized unions such as the International Longshore Workers Union have increasingly taken strong stances on immigrant rights and social justice issues like the BART police shooting of passenger Oscar Grant, which they discussed at a Feb. 14 rally that featured UC Santa Cruz professor and activist Angela Davis.

For more on the unfolding labor movement battles and what it means for progressive politics, keep reading the Guardian‘s Politics blog.

The wheels come off

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› sarah@sfbg.com

Criticism of Mayor Gavin Newsom’s handling of the city’s budget crisis has intensified since the mayor refused to attend consensus-building sessions at City Hall, instead choosing to promote his gubernatorial bid and push a flawed "local economic stimulus package" that will only make the deficit larger.

The wheels began to come off Newsom’s public relations machine when news hit that Newsom refused to attend roundtables that board president David Chiu convened to discuss the city’s financial emergency. These meetings marked the first time business and labor leaders were brought together since the mayor announced the city’s $575 million deficit two months ago.

"I’ve asked the mayor to convene these meetings, but obviously that hasn’t happened," Chiu told the Guardian last week. "He has said he plans to convene them soon."

Insiders say Chiu was told that the mayor, his chief of staff, and his budget analyst will not attend the roundtables until a June special election is off the table, but that Newsom is open to considering revenue measures for a November election. As a compromise, Chiu proposed moving the election to late summer.

Mayoral spokesperson Nathan Ballard told the Guardian that the mayor has been holding a series of meetings with labor, business, elected officials, and community leaders on the budget, but Ballard hasn’t yet fulfilled the Guardian‘s Sunshine Ordinance request for details and documents connected to those meetings.

"Some of those meetings have included Supervisor Chiu and other supervisors," Ballard said. "However, the mayor is not scheduled to attend meetings about a summer special election to raise taxes, which he opposes."

That position places Newsom squarely with the business community, which continues to maintain that it is too early to develop revenue measures and that structural budget reforms should be considered first.

On Jan. 29, Steve Falk, executive director of the San Francisco Chamber of Commerce, wrote to Chiu that "Any action to call a special election without the specifics of proposed tax measures and Charter amendments would be premature and doomed to failure. City government can take steps that either help to stimulate a quick recovery or, through the wrong actions, extend the downturn by placing greater burdens on local employers."

But labor groups believe that revenue boosts are necessary if San Francisco is to weather the economic tsunami, and that it’s unreasonable to demand that their members give back millions in negotiated pay raises while forgoing revenue options. These concerns, attendees report, are publicly aired at Chiu’s roundtables, and Newsom’s refusal to participate has left city workers feeling alienated.

"He wants Labor to come to the table, but the problem is, his whole approach is all stick and no carrot, all doom and gloom and no hope that there is revenue on the horizon," SEIU Local 1021’s Robert Haaland told the Guardian.

Noting that labor anticipates 2,500 layoffs in the coming year, on top of the 400 city workers who were laid off this month, Haaland said, "Our people provide frontline services. This is about the wheels of government coming off."

Sup. Bevan Dufty, who participated in Chiu’s roundtables with Sups. John Avalos and Sean Elsbernd, praised Chiu for bringing together stakeholders, even as he extended hope that Newsom will assume the leadership role. "It always helps to have people face-to-face," Dufty said. "David primed the pump, got people to start talking. I’m looking forward to the mayor taking it to the next level."

Dufty said Newsom was "disappointed with the board’s override of his veto [of the June special election], doesn’t see a June election working, and doesn’t understand why the board is reluctant to let it go…. But from our point of view, it’s hard to ask employees to give back $90 million in negotiated benefits if they are going to be laid off in three months anyway."

Falk, who represents almost 2,000 local businesses, wrote that "The business community recognizes that a $500 million budget shortfall can only be bridged through a combination of reductions in the size of city government, program consolidations, work-rule reforms, and new fees and revenues. However, any solution must be the product of discussions with all affected parties at the table. To date, these meetings have not happened."

Chiu replied to that letter by inviting key business and labor groups to his Feb. 8 City Hall roundtable. Attendees report that a productive dialogue ensued, and two days later, when the board overturned Newsom’s veto of its special election legislation, the impacts of that first roundtable were palpable.

"I respect the mayor’s perspective, but I believe that by getting on with the election, less damage will be done," Chiu explained as the supervisors pushed ahead with their plans to hold a special election this summer.

Elsbernd opposed the election but expressed frustration with the current situation: "The city is facing a multi-year problem. People are missing the big picture here. I don’t want to be part of brokering a deal that is simply going to be a Band-Aid. Let’s fix the problems now. "

"You could tell the impact of Sean having sat in on the discussions," Dufty observed. "Instead of ‘Get over it, this is the way it’s going to be,’ he understands that we have to work together."

Falk told the Guardian that he found Chiu’s roundtable "very productive."

"Everyone is feeling the pain of this recession," Falk continued. "People are losing jobs, businesses are losing sales, which results in layoffs, which results in a bigger strain on the city’s services. It’s all connected."

But he also noted that a special election on taxes requires a two-thirds vote. "That is a very difficult hurdle," Falk noted, "which is why we have to consider all the pieces, and as we do, the more we realize that June is out of the question."

Chiu continues to reach out to his critics, countering arguments that a special election will cost $3.5 million — and will be impossible to do by summer — with the observation that, done right, it could result in $50 million to $100 million in additional revenues and thereby spare some vital jobs and programs.

"We’re facing a $565 million budget deficit, so if we can raise $100 million, we’ll still have to cut $465 million. But it would save us from making the most painful cuts," Chiu said, noting he would support pushing the election to no later than Aug. 31 "if there were more firm agreement on elements of a plan that must include structural reforms, layoffs and wage concessions, and new revenues."

But Ballard said, "The mayor doesn’t support more revenue without real reform," while promising that Newsom would shortly announce "new cost-saving reforms."

Unveiled the next morning, Feb. 11, during a mayor’s breakfast with business leaders, Newsom’s so-called local economic stimulus package included more spending on tourism marketing, targeted reduction in the payroll and property taxes, a $23 million interest-free revolving loan program for local businesses, and tax relief for Healthy San Francisco participants. The package, which must be approved by the board, would actually increase the city’s budget deficit.

Chiu says he is open to discussing most ideas in Newsom’s economic stimulus package, but that he’s concerned about widening the deficit, telling us, "That is why this needs to be done in the context of an overall revenue package and not in a vacuum."

Money talks

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› news@sfbg.com

The economy’s a mess, and the housing crisis, financial meltdown, and skyrocketing unemployment rates have left a lot of San Franciscans short of cash. But the flow of big downtown money into political campaigns hasn’t slowed a bit.

In fact, a tally of all 2008 monetary and in-kind political contributions logged in the SF Ethics Commission Campaign Finance Database shows that even in the face of the worst financial crisis since the Great Depression, money spent on local political campaigns in the city swelled to a whopping $20.6 million. That grand total, which does not include loans or so-called "soft money" like independent expenditures, is higher than that of any previous year recorded in the Ethics database, which tracks campaign spending back to 1998.

A review of the entire database paints of picture of how influence money flows in San Francisco: Six of the top 10 donors over the past 10 years are big businesses and downtown organizations that promote the same conservative political agenda. The campaign cash often wound up in the same few political pots — a handful of supervisorial campaigns and some coordinated political action committees.

And despite spending ungodly sums of money, downtown lost more races than it won.

More than half the total money spent in 2008 came from one source: Pacific Gas and Electric Co., which plunked down $10.2 million last fall for the No on Proposition H campaign against the San Francisco Clean Energy Act. That November ballot measure, which lost under PG&E’s barrage, would have paved the way for public power, initiating a process to make the city the primary provider of electric power in San Francisco with a goal of 50 percent clean-energy generation by 2017.

The powerful utility wasn’t only the biggest spender last year — it claims the No. 1 slot on a list of all campaign contributions spanning from 1998 to 2008, which the Guardian compiled using Ethics data. PG&E dropped a juicy $14.7 million into local political campaigns over that period, beating out runner-up Clint Reilly by more than $10 million.

Below are brief introductions to the 10 biggest spenders, 1998-2008.

They’ve got the power. The colossal sums PG&E has forked over to influence ballot measures over the years puts the utility in a category all its own. SF isn’t the only municipality where the company has poured millions into defeating a public power proposal. In 2006, when Yolo County put measures on the ballot to expand the Sacramento Municipal Utility District (SMUD), which would have edged PG&E out of the service area, the utility spent $11.3 million to try and keep it from happening.

Pay to the order of Clint Reilly. Reilly, the former political consultant, now runs a successful real estate company. While his name routinely comes up on the roster of campaign contributors, he owes his status as No. 2 to his 1999 campaign for SF mayor, into which he poured some $3.5 million of his own money. "Most of the money we give is for Democratic candidates or progressive politicians, or neighborhood-oriented issues," said Reilly, who also served as president of the board of Catholic Charities.

Committee on really high-paying jobs? Third in line is the Committee on Jobs, a political action committee that aims to influence local legislation affecting business interests. The PAC is bankrolled in part by the Charles Schwab Corporation, Gap, Inc., and Gap founder Don Fisher — all of whom surface on their own in our Top 30 list. With a grand total just shy of $3 million, the committee coughed up about $100,000 in campaign-related spending in 2008. Much of that funding went to similar political entities, including the SF Coalition for Responsible Growth, the SF Chamber of Commerce 21st Century Committee, and the SF Taxpayers Union PAC (see "Downtown’s Slate," 10/15/2008). This past November, the COJ also backed the Community Justice Court Coalition, formed to pass Proposition L, which would have guaranteed first-year funding for Mayor Gavin Newsom’s small-crimes court in the Tenderloin. Prop. L failed by 57 percent.

Bluegrass billionaire. San Francisco investment banker and billionaire Warren Hellman has dropped nearly $1.2 million over the years into local political campaigns, our results show. Dubbed "the Warren Buffet of the West Coast" by Business Week for his sharp financial prowess, Hellman co-founded Hellman and Friedman, an investment firm, in 1984. Hellman is known for putting on Hardly Strictly Bluegrass, an annual SF music festival. While he tends to contribute to downtown business entities such as the Committee on Jobs and the Golden Gate Restaurant Association, in 2008 he devoted $100,000 to supporting a June ballot measure, Proposition A, that increased teacher salaries and classroom support by instating a parcel tax to amp up funding for public schools.

Fisher king. Don Fisher, founder and former CEO of Gap, Inc., is another one of SF’s resident billionaires. While Gap, Inc. turns up in 17th place in our results, Fisher himself has poured more than $1.1 million into entities such as the Committee on Jobs, SFSOS, the San Franciscans for Sensible Government Political Action Committee, and other conservative business groups. Fisher’s total includes money from the "DDF Y2K family trust," a Fisher family fund that shows up in Ethics records in 2000. In that year, $100,000 from that trust went to support the Committee on Jobs’ candidate advocacy fund, and another $40,000 went to a pro-development group called San Franciscans for Responsible Planning.

Not a very affordable campaign, either. Sixth up is Lennar Homes, the developer behind the massive home-building project at Hunters Point Shipyard, which the Guardian has covered extensively. The vast majority of its $1 million reported spending was directed to No on Prop. F, a campaign sponsored by Lennar to defeat a June ballot measure that would have created a 50 percent affordable-housing requirement for the Candlestick Point and Hunters Point Shipyard development project. The measure failed, with 63 percent voting it down.

Chuck’s bucks. Charles Schwab Corp., which set up shop in San Francisco in the mid-1970s, is an investment banking firm that reports having $1.1 trillion in total client assets. The corporation ranks seventh in our Top 30 list, with some $973,000 in donations. In 27th place is Charles R. Schwab himself, the company’s founder and chairman of the board (and the guy they’re referring to in those "Talk to Chuck" billboards posted all over SF). If Schwab’s individual and corporate donations were combined, the total would be enough to bump Warren Hellman out of fourth place. Schwab’s dollars are infused into the Committee on Jobs, the San Francisco Association of Realtors, the Golden Gate Restaurant Association, SF SOS, and other downtown-business interest organizations. "We’re a major company here in the Bay Area and a major employer," company spokesperson Greg Gable told the Guardian. "We’re interested in political matters across the board — it’s not limited to any one party." But it’s limited to one pro-downtown point of view.

The brass. The San Francisco Police Officer’s Association is another major player, spending some $913,000 since 1998 on political campaigns. The organization backed candidates Carmen Chu, Myrna Lim, Joseph Alioto, Denise McCarthy, and Sue Lee for supervisors in 2008, contributions show. All but Chu lost.

At your service. SEIU Local 1021 and SEIU 790 crop up frequently in Ethics data, with a grand total of about $860,000 in spending over the years. SEIU representatives recently turned out en masse at a Board of Supervisors meeting to urge the supervisors to support a June 2 special election to raise taxes in order to boost city revenues and save critical services from the hefty budget cuts that are coming down the pipe.

Friends in high places. No real surprises here: the Friends and Foundation of the San Francisco Public Library contributed its money to, well, ballot measures that would have affected the library. In 2000, for example, the F and F plunked $265 thousand into an effort called the "Committee to Save Branch Libraries — Yes on Prop. A."

Top 30 San Francisco campaign donors, 1998-2008

1. Pacific Gas & Electric $14,831,486
2. Clint Reilly $4,138,089
3. Committee on Jobs $2,970,857
4. Warren F. Hellman $1,191,970
5. Don Fisher (incl. Don & Doris Fisher Y2K trust) $1,164,286
6. Lennar Homes $1,002,861
7. Charles Schwab Corporation $973,176
8. S.F. Police Officers Association $913,834
9. SEIU Local 1021 & SEIU Local 790 $860,979
10. Friends & Foundation of the S.F. Public Library $858,082
11. California Academy of Sciences $818,154
12. Residential Builders Association of S.F. $753,857
13. Steven Castleman $665,254
14. S.F. Association of Realtors $647,299
15. S.F. Chamber of Commerce $614,824
16. SEIU United Health Care Workers West & Local 250 $585,937
17. Gap, Inc. $573,959
18. California Issues PAC $556,238
19. Corporation of the Fine Arts Museums $541,474
20. Wells Fargo $464,899
21. Building Owners & Managers Association of S.F. $464,027
22. Bank of America $429,316
23. Golden Gate Restaurant Association $422,685
24. SF SOS $407,491
25. AT&T Inc. and affiliates $404,704
26. Clear Channel $391,783
27. Charles R. Schwab (individual) $362,250
28. Yellow Cab Cooperative $344,907
29. S.F. Apartment Association $280,376
30. San Franciscans for Sensible Government PAC $279,009

Newsom still MIA

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By Tim Redmond

You know the mayor is in serious trouble when his business allies say he’s missing in action. From the Chron this morning:

Scott Hauge, a San Francisco business owner who is president of the advocacy group Small Business California, said the meetings that Chiu organized this week were the first occasions small business has been brought into City Hall talks since budget negotiations started heating up several weeks ago.

“The mayor has not brought us to the table, which is very frustrating because we are the major employers in San Francisco and we are really hurting right now,” said Hague, adding that he’s worked with every mayor since Dianne Feinstein and that it is unprecedented to have a board president, not the mayor, convene these types of discussions.

While nobody who has been attending Board President David Chiu’s meetings will talk about the details, I’m getting the clear impression that business (including the Chamber of Commerce and the Committee on JOBS) and labor (particularly SEIU Local 1021) are actually making progress toward a July special election that could help prevent a total meltdown in city services.

And Newsom didn’t even send a representative to the meetings.

My favorite comment from the mayor:

“But I guess the question is, what more can I do? I can make things up to do today in order not to go down there (to San Jose)

Newsom has to “make things up to do today?” How about talking to the key stakeholders and trying to arrange a deal on a budget that everyone can live with?

Nathan Ballard, the mayor’s press flak, told us that

The mayor has been meeting with labor, business and the supervisors to work together on solutions.

But nobody in business or labor or on the board of supervisors seems aware of that.

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