Unions

Who can buy (and run) the Chronicle?

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By Tim Redmond

If Hearst Corp. isn’t satisfied with the concessions it gets from San Francisco Chronicle unions — or if the media giant never intended to keep the paper open — the time may come when the only major daily in San Francisco is circling the drain.

At this point, SF Appeal is reporting, the unions would like a chance to buy the paper , and Gawker is playing around with names of people who might invest.

A little perspective here.

First of all, the Chron isn’t worth much of anything right now. Hearst paid $660 million for the paper, but I’m sure the accountants have already written that off as a total loss and are ready to take the tax deduction. Nobody should be serious thinking that they have to raise a lot of cash to take it over.

The bigger issue is running the thing. Even with really smart management, and a new editorial plan, , the Chron will be losing money for a while, and it would take, say, $50 million to guarantee operating expenses for a couple of years. So any angel investor would need deep pockets and a willingness to lose money for quite some time.

But let’s stop and think about this. When Hearst bought the Chron, the bean counters in New York wanted to shut down the Examiner, but after the feds intervened, the company was forced to sell the Ex to the Fang family. Although “sell” isn’t actually the right word — the Fangs got the paper for nothing, and got $66 million cash to run it.

So why should we tolerate Hearst simply stopping the presses?

We shouldn’t.

Mayor Newsom, Speaker Pelosi, Senators Feinstein and Boxer — all the political leaders in this town — should be demanding that Hearst make a reasonable effort to sell the Chronicle. And by “reasonable,” I mean a deal no worse that what the Fangs got with the Ex.

If the Guild (or some other credible group with a reasonable business plan) wants to buy the paper, Hearst should give it to them — and provide $66 million in transition money. That’s still a good deal for the conglomerate — if the Chron is in fact losing $50 million a year, then the transition pay isn’t much more than one year’s losses. Hearst gets a major tax write-off, gets rid of a money-losing headache, and looks like a decent corporate citizen.

San Francisco gets to keep a daily newspaper, and somebody else gets a chance to try to make it work.

I’m not sure if the feds can order a company not to fold a newspaper right now, but I know that Congress has the power to pass a law preventing a newspaper closure unless and until every effort is made to find a buyer (at a cost the reflects the actual value of the asset, which in this case is about $1.75). Nancy? Dianne? Barbara?

Letters

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THE VICE MAYORS


Thanks so much for the great article on Climate Theater ("Still crazy after all these years," 2/25/09). I’ve lived and worked in SoMa since 1973 and can think of no art venue that has done more to create a vibrant, inspiring community.

If playa types like Suck Up Willie Brown (I’ve seen him at Hollywood parties) and our current mayor, The Talking Haircut, could live in Climate World for six months, they might develop souls.

Joegh Bullock and Marcia Crosby are the co-mayors, or shall I say vice-mayors, of South of Market. Thanks for giving them props.

John LeFan

San Francisco

THE FATE OF THE CHRON


Good riddance to the San Francisco Chronicle and good luck finding a buyer.

I know of one union that has already been cut to the bone — pressmen and prepress workers, Local 4N. As a matter of fact, there will be about 200 press workers out of a job in June when the Canadian Company Transcontinental starts printing the Chronicle at the new printing facility in Fremont. Not one member from the San Francisco Local has been hired.

All production department union jobs are being outsourced. This includes mailers, machinists, and electricians. I wouldn’t count on any of them giving anything up since they are going to be unemployed come June 29th.

Maybe the Hearst Corporation should cancel the 15-year, $1 billion contract it signed with Transcon. I’m sure all the unions that will be out on the street come June would be willing to sign contracts for a lot less.

Bruce Carlton

Local 4N retiree, San Francisco

SF’S SLEEPING GIANT


Paging Matt Gonzalez! If truth is the first casualty of war, what is ceded in total occupation? Calvin Welch’s op-ed ("It’s a recession, let’s get cracking," 2/25/09) reflects the nascent realization that what San Francisco lost in electing Gavin Newsom over Gonzalez, the nation has now lost in validating the pro-corporate centrist DLC (Democratic Leadership Council) wing of the Democratic Party on a grand scale.

The opposition from the right is inarticulate and, as Welch notes, the truly democratic left is hopelessly inarticulate. Sustainability, of our environment, our economies, and our health is the challenge that must be met. It wasn’t that long ago that "a sleeping giant stirred in San Francisco." Can it happen again? Paging Matt Gonzalez!

Poplicola

From sfbg.com

The Guardian welcomes letters commenting on our coverage or other topics of local interest. Letters should be brief (we reserve the right to edit them for length) and signed. Please include a daytime telephone number for verification.

Corrections and clarifications: The Guardian tries to report news fairly and accurately. You are invited to complain to us when you think we have fallen short of that objective. Complaints should be directed to Paula Connelly, the assistant to the publisher. We prefer them in writing, but Connelly can also be reached by phone at (415) 255-3100. If we have published a misstatement, we will endeavor to correct it quickly and in an appropriate place in the newspaper. If you remain dissatisfied, we invite you to contact the Minnesota News Council, an impartial organization that hears and considers complaints against news media. It can be reached at 12 South Sixth St., Suite 1122, Minneapolis MN 55402; (612) 341-9357; fax (612) 341-9358.

Doesn’t anybody here know how to run this state?

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By Tim Redmond

Well, the polls look pretty shitty for Gavin Newsom For Governor (thanks, sfist for the tip), and his ratings will just get worse as he attempts to solve a budget crisis without working with the supervisors or the other key stakeholders. At this rate, the way he’s treating the city employee unions, there’s no way he’s getting labor support, and for a candidate who will be running as a liberal to be shunned by labor is a major problem.

(And if he thinks a movie-star wife will give him some glam, check out the reviews.)

And Newsom’s counterpart to the south, Mayor Antonio Villaraigosa, ain’t looking so hot right now.

John Garamendi has been reborn as a progressive populist, but a guy who was at best a moderate state legislator is going to have his work cut out for him wooing the left in a primary. And Jerry Brown … well, Jer’s on the right side of the same-sex marriage debate (finally), but he was a terrible mayor of Oakland and has changed his political spots so many times that nobody knows quite which Jerry we’ll get this time around — or whether his current manifestation will last.

Is this really the best the Democratic Party can do?

I guess we should be glad that the Republicans have an even worse lineup. But that’s not exactly something to celebrate.

Retired Chronicle pressmen suspect Hearst

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by Sarah Phelan

Chronicle employees have remained silent about Hearst Corp.’s claims that it needs to make major cuts now, or it will sell or shutter the paper. Their silence is understandable: folks everywhere are afraid of losing their jobs in a major recession. And, as the California Media Workers Guild reports, talks with Chronicle management representatives continue, focusing on management’s latest response to the Guild’s proposals to minimize job losses through cost cuts and business-recovery initiatives.

The Guild previously reported that their negotiators had offered Chronicle management representatives, “a comprehensive package of proposals to cut costs, minimize layoffs, generate new revenues and speed the transition from newsprint to online communications,” but Chronicle management expressed doubts about whether the would be enough to avert deep job losses in the Guild’s ranks.

But while Chronicle workers remain mum, and Chronicle editor-at-large Phil Bronstein tries to take credit for this crisis, Denis Mosgofian, a past president of Local 4, which has represented pressmen in the Bay Area for 110 years, has shared his theory about what just happened.

Mosgofian, who has been in the printing trade since 1972 and with the Chronicle since 1987 until he retired in 2001, believes Hearst may be overstating just how bad its finances really are. He also doubts whether Hearst is sharing its books with the Chronicle in a way that would help the newspaper evaluate Hearst’s claims. Here’s what he said:
March 2, 2009

“The Hearst Corporation announced early last week that they would either get concessions from the unions at the San Francisco Chronicle and be able to cut costs or the Hearst Corporation would seek a buyer or shut the paper down.”

“This announcement comes at the midst of the recession/depression. It comes after the Chronicle has already shut down its Richmond and San Francisco production operations and just four months before closing its very large Union City production plant and outsourcing its production to a Canadian non-union printing company named Transcontinental, which has built a brand new production plant in Fremont, California, scheduled to begin production of the Chronicle on June 29, 2009.”

Editor’s Notes

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› tredmond@sfbg.com

When the news broke last week that Hearst Corporation was threatening to shut down the San Francisco Chronicle, the pundits across the country raised the obvious question: will San Francisco become the first American city without a major daily newspaper?

I think it’s a little early to say that Chron is actually going to vanish; part of what’s going on is clearly a shot across the bow of the paper’s unions, a warning on the part of tough-guy publisher Frank Vega that he’s deadly serious about cutting costs. That will mean widespread layoffs, outsourcing of union jobs, etc. Hearst is a big corporation run by bean counters, one that has major financial problems at many of its media properties. It’s not going to keep sustaining $50 million a year losses in San Francisco.

But Hearst is also a major political player in the United States, California, and San Francisco, and a big-city newspaper carries with it a lot of influence. Shutting down the Chron would be a huge step, one that the Hearst board members, who include William Randolph Hearst 3rd, a Silicon Valley venture capitalist, are going to do only as an absolute last resort.

What happens if we lose the Chron? Well, in the short term, we’re stuck with the Examiner, which recently lauded Pacific Gas and Electric Co.’s CEO as an icon of alternative energy. I need say no more. In the longer term, something will arise to replace the Chron, probably several Web-only daily newspapers, but they’ll never achieve the clout an old-fashioned morning paper had on the political, cultural, and civic dialogue. Those days are numbered anyway; the urban news media of the future will be smaller, less concentrated, and less individually influential.

I’m not a huge fan of Hearst’s San Francisco flagship, but it’s always a shame to see a newspaper die. And I’m convinced that the creaky old Chron could still survive. But it will need major surgery — not just on the finances, but on the content. Because these days, nobody I know under 30 bothers to read it.

So for Mr. Vega and his editor, Ward Bushee, allow me to offer some hints at reviving the moribund publication:

1. Become a San Francisco paper. Nobody reads the Chron for national news any more. You can get The New York Times delivered or read it on the Web and get far better coverage than anything the Chron offers. So give it up. Go local. And by local I don’t mean Walnut Creek and Orinda; forget the suburban readers and try to convince people in your central circulation area that you have something worth reading every day.

2. Trade C.W. Nevius to the Examiner for a draft choice and a writer to be named later and hire seven young, progressive columnists who can talk about issues that people in one of America’s most liberal cities actually relate to. Run a front-page opinion column every day, by a different one of them — make every powerful interest in the city nervous.

3. Redirect the energy and money from the national news to local investigative reporting. A team of five reporters can break a dozen major stories a year. We do it here on much less.

4. Since David Lazarus left for the L.A. Times, there’s not much muckraking on the business desk. Forget the wire stories and the puff — kick some corporate asses.

5. Hire a liberal editorial page editor.

6. Ray Ratto. Go team.

The Rainy Day Fund — a better way?

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By Tim Redmond

I get the concerns about Sup. Chris Daly’s proposal to amend the city’s Rainy Day Fund. But in the end, there’s probably a way to make it work that’s better than a lot of unpleasant alternatives.

The Rainy Day Fund was Tom Ammiano’s gift to San Francisco, a brilliant piece of legislation that has saved the public schools and will save hundreds of jobs and critical public services this year. The bill ensures that the city sets aside some of its money in good years, so there’s something to draw on in really bad times.

And these are really bad times.

Last year, money from the Rainy Day Fund saved the school district from laying off hundreds of teachers. In the wake of the governor’s assault on public education, the local schools will need another allocation to prevent this year’s disaster.

The way the bill works, the city can take up to half the money in the fund in dire times, and the schools can get up to 25%. That means there’s no temptation to raid all the money at one time.
If we hadn’t had the fund – and there were plenty of people who didn’t think it was a good idea when Ammiano introduced it – we’d be in way worse shape now.

What Daly wants to do – with the support of city employee unions – is amend the legislation to allow the supervisors, by majority vote, to take as much of the money as they need to preserve health and human services if the city’s deficit exceeds $250 million.

Ammiano is against that; he sees it as an attack on the idea of the fund, which is supposed to ease budget problems not just in one year but for the future as well. Sup. David Campos, who I respect and trust, is also against the Daly measure. “This year is bad, but next year is going to be bad, too,” he said.

And I get that, and I get that labor wants to preserve services (and jobs) right now, because once those jobs and services go away, it’s really hard to get them back.

So let’s recognize that both sides have a point, neither side is bad or evil, there are good progressives who disagree on this – and take a look at the numbers.

The Chron — for sale? Shut down?

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By Tim Redmond

Well, that’s the news, anyway. Frank Vega, the publisher, sent a memo out to employees today that lays out some grim options (thanks, SFIST for breaking the story and running the memo):

Memo from Frank Vega, Chairman & Publisher
February 24, 2009

Dear Fellow Employees:

The rapidly declining economy, coupled with severely declining advertising revenues, is forcing nearly every newspaper company to re-think how it conducts business while continuing to serve its respective communities.

Despite all of our best efforts as an organization, The Chronicle continues to show staggering losses each week. Recent staff and expense reductions have not stemmed these losses, which are only worsening in the present economy. In response to our financial picture and the bleak economic forecast for the foreseeable future, our management team has begun a series of cost-saving initiatives designed to alleviate those losses.

First and foremost of these cost savings will be a significant reduction in force across all areas of our operation affecting both represented and non-represented employees. We will shortly begin discussions with union leadership on proposals. Our current situation dictates that we accomplish these cost savings quickly. Business as usual is no longer an option.

If we are unable to accomplish these reductions in the immediate future, Hearst Corporation, which owns The Chronicle, has informed us that it will offer the newspaper for sale or close it altogether. We know these are painful times for everyone and we face difficult choices. We share in the sincere hope that we will reach agreement with all parties involved on the concessions needed to continue to operate and provide the Bay Area with a quality newspaper.

I will update you throughout this process. Thank you for your support and good work, particularly in economic times that are difficult for all of us.

Now, I agree with the SFIST folks — this could be a shot across the bow to the unions, a message that they better accept deep job and pay cuts or lose everything. Vega is known for being a tough negotiator who wore a gun to work during the Detroit News-Detroit Press Press strike in 1995. And even he’s had a hard time getting costs under control at the Chron, which is still losing roughly $1 million a week. I doubt that Hearst would actually shutter the only major daily paper in San Francisco. Particularly since Vega has negotiated a contract with a Canadian company to print the paper on fancy new presses — and it would be expensive as hell to get out of that.

On the other hand, the green-eyeshade guys in New York aren’t going to tolerate these losses much longer. And if the Chron goes on the block, you have to wonder: Who’s going to buy it?

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.

Budget talks, without the mayor

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EDITORIAL The president of the San Francisco Board of Supervisors, David Chiu, is doing something Mayor Gavin Newsom should have done a long time ago. He’s putting the key stakeholders in the budget debate — labor, small business, downtown, nonprofits, etc. — in the same room and talking about solutions.

And while none of the participants want to talk publicly, it’s clear that all sides think they are making progress. The most likely outcome ought to be a winner for everyone: a special election, delayed until July, when the public can vote on some revenue measures that would blunt the awful impact of a half-billion dollar budget deficit.

For this to work, everyone is going to have to give up something. The city employee unions will have to be willing to reopen contracts and accept either reductions in raises or some layoffs. Some political leaders’ pet projects and highly paid patronage employees will have to go. Downtown will have to accept some new taxes on the wealthy; small business will have to stomach a sales tax. And the supervisors will have to hold hearings on and negotiate a budget this summer before they know for sure that the money will be there to pay the bills.

We have actively pushed for a June election, to make sure the money is there when the budget is approved — but July is a perfectly acceptable compromise. In fact, it has a certain amount of political synergy. The mayor will present a bloody, brutal, budget in May that includes devastating cuts to essential programs. The supervisors can then offer the voters a clear choice: accept those cuts — or vote to approve a package of revenue measures on a special election ballot.

The effort will be a whole lot easier if the mayor stops being such an obstructionist — and if his allies on the board are willing to join with what could be an emerging consensus. Under state law, any new taxes San Francisco enacts this year would require a two-thirds vote of the people — a tough threshold. But if the supervisors and the mayor agree unanimously to declare a budget emergency (and a deficit that equals half the discretionary money in the general fund is by any standards an emergency), then a simple majority can approve a tax hike.

So far the mayor has been almost entirely missing in action here. Although his press secretary, Nathan Ballard, told us the mayor has been meeting with budget stakeholders, that’s news to many of the people in Chiu’s group. Even business leaders, who in the past have been loyal to the mayor, are now openly criticizing his absence from the discussions. It’s crazy — Newsom is running around the state, working on his campaign for governor, while the work of keeping his city from a total meltdown is going on without him. Newsom absolutely must engage here, and start attending Chiu’s meetings. He’s been insisting he won’t support a June election, allegedly because there’s no broad coalition calling for it. But that coalition may be coming together to talk about an election in July — and Newsom isn’t even paying attention.

Meanwhile, three of the supervisors — Sean Elsbernd, Michela Alioto-Pier, and Carmen Chu — have also opposed a special election, and they’re going to have to change their tune. Even Republicans in the state Legislature — who signed a pledge never to support any tax increases — worked with the governor on a budget plan that includes some significant tax hikes. The Democratic moderates on the San Francisco Board of Supervisors shouldn’t be able to get away with refusing to look for new sources of revenue — soon, as part of the next year’s budget — to keep the city from fiscal calamity.

Dick Meister: Jobs may decline, unions won’t

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The percentage of workers belonging to unions grew last year for the second straight year

By Dick Meister

(Dick Meister, a San Francisco-based journalist, has covered labor and political issues for a half century.)

After nearly a half-century of steady decline, American unions are showing unmistakable signs that they’re finally reversing direction.

Fallout from the union clash

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› steve@sfbg.com

Fallout from the power struggle between Service Employees International Union and its Oakland-based local, United Healthcare Workers, has been felt particularly strongly in the Bay Area since SEIU took over UHW and ousted its leaders Jan. 27 (see "Union showdown," 1/28/09).

After SEIU replaced UHW head Sal Rosselli and more than 70 elected leaders of that union for defying SEIU demands, Rosselli and his team formally resigned from SEIU Jan. 29 and formed a new union, National Union of Healthcare Workers, hoping to draw thousands of current SEIU members disgruntled with the top-down management style of SEIU head Andy Stern.

It took a few days for SEIU to take physical control of UHW’s Oakland offices, where Oakland police officers were called Jan. 30 to mediate a final showdown between UHW loyalists and the new SEIU management team, which is under the direction of two SEIU executive vice presidents that Stern appointed as trustees: Eliseo Medina and David Regan (see "SEIU seizes last holdout: UHW’s Oakland headquarters," Guardian Politics blog).

"It’s not about the building, it’s about the members," Regan told the Guardian Jan. 30, later adding, "At the end of the day, the members of the union get to decide if they want to be in the union or not be in the union."

And after a weekend when Rosselli said SEIU was aggressively trying to close outstanding contracts with many employers, a move that would make it difficult for members to disaffiliate from SEIU and join NUHW, he filed petitions showing that many members do indeed want to leave SEIU.

"We don’t trust them with our contracts and we don’t trust them with our dues," Shayne Silba, a psychiatric technician with Alta Bates Summit Medical Center in Oakland, told reporters during a Feb. 2 teleconference announcing that about 9,000 workers at 62 medical facilities have filed petitions with the National Labor Relations Board asking to leave SEIU and join NUHW.

Rosselli said that more than 50 percent of workers at most of these facilities signed the petition, and he’s asking SEIU to honor the request and let them go.

The list of facilities includes some prominent Bay Area medical centers such as Children’s Hospital in Oakland, Alta Bates, and California Pacific Medical Center and other entities run by Sutter Health. Sutter has clashed with union members and community leaders over numerous issues, including the future of St. Luke’s Hospital in the Mission District.

"The Sutter Healths of the world are colluding with SEIU just like they did before the trusteeship," Rosselli told reporters, echoing his persistent theme that SEIU is too cozy with employers and doesn’t negotiate good contracts.

SEIU spokesperson Michelle Ringuette disputed that characterization and the accusations that the union was trying to quickly sew up outstanding contracts with employers to forestall moves to NUHW. "There were an astonishing number of contracts left incomplete," she said. "It’s callous to leave contracts open for whatever purpose."

Regan said SEIU will challenge the NUHW petitions. "We are not going to let these discredited, deposed members weaken UHW," he said, adding that the petition drive "is incredibly cynical and reckless in this economic climate."

But the wheels are now set in motion for a protracted fight over who will lead UHW’s 150,000 members, as well as the question of whether Rosselli’s highly democratic management style might be attractive to members of other unions.

"We’re getting calls from other SEIU members from other locals about joining NUHW," Rosselli said, citing Alameda County Medical Center, whose employees are part of the San Francisco–based SEIU Local 1021, one of many locals that have been reformulated in recent years by Stern, who then appoints its leaders.

Rosselli plans to hold a founding convention for NUHW in March, when members would vote on bylaws and a constitution, and elect their leaders, while Regan said SEIU will work to win the confidence of its members: "We have to show people that we’re on their side and we care about the work we have to do together."

>>Read more union struggle coverage here.

Bad budget ideas

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EDITORIAL There’s nothing easy about solving a half-billion-dollar budget shortfall, and most of the people involved in the grisly process of making the numbers add up at San Francisco City Hall know there will be blood on the floor. Labor unions representing city workers know there will be layoffs, salary concessions, or both. Community-based organizations handling critical front-line services know they’ll have to reduce staff and curtail their mission-driven operations. The supervisors know that a lot of good projects and great ideas won’t get funded this year.

The mayor, unfortunately, isn’t acting as if this were a crisis at all — he’s been out of town more than he’s been around the past few weeks. The San Francisco Chamber of Commerce and, sadly, some small business leaders, are refusing to accept the idea that taxes — some taxes, not enough to stave off deep cuts, but enough to prevent disaster — ought to be part of any budget package.

And along with the cuts — which, as Rebecca Bowe reports on page 11, will have far-reaching implications for San Franciscans — a number of really bad ideas have been floated, most of them quick fixes that would generate cash for now, but lead to serious problems later.

Among the worst ideas the mayor has put forward — in fact, it’s one of the worst budget ideas we’ve ever heard — is the notion of increasing the number of condominium conversion permits from 200 per year to 1,500 per year, and possibly allowing every property owner waiting for a conversion permit to get one, now, for a price.

It’s true that selling off condo conversion permits would bring in revenue. Raffling off building permits and planning code variances would bring in money, and so would selling development rights in city parks, and so would auctioning off appointments to boards and commissions. There are lots of stupid ways to generate cash, and the fact that a proposal would be lucrative is not by itself an argument in favor of it — even in times like these.

There’s a good reason the city limits condo conversions. Nearly every piece of property that becomes a condominium was once a rental unit, and the speculative pressure to take rent-controlled apartments and turn them into market-rate condos is immense. It’s bad enough that tenants — particularly those with relatively low rent — face eviction every day because of the state’s Ellis Act and the push by real-estate interests to create tenancies in common. Without conversion limits, the number of those evictions would soar; rent control would be eviscerated, the cost of housing would rise, and the economic cleansing of San Francisco would roll forward another few giant steps.

Newsom and his real-estate industry allies like to say that this sort of proposal is painless, since nobody has to pay higher taxes. Only people who want to convert their units, and are willing to pay a high fee for the right, would wind up paying. But that’s silly — the tenants of San Francisco would pay the cost — an immense cost — while the wealthier property owners made profits.

Selling off the taxi medallions (see "Don’t privatize the cab medallions, 1/21/09), another Newsom idea, fits in the same category. In the short term, it could bring millions into the city coffers. Long term, it would turn control of the taxi industry back to speculators and big companies, hurting the drivers and the public.

The mayor (and Sup. Sean Elsbernd) also like to talk about eliminating set-asides — those parts of the budget that voters have earmarked for particular purposes. But most of that money (the Children’s Fund, for example) goes to worthy programs: eliminating the "set-aside" protecting doesn’t save any money unless you cut those programs.

There are plenty of good budget ideas out there (see "Beyond the bloody cuts, 12/17/08). But the supervisors ought to make it clear that the bad ones are off the table.

PS: Where were all these anti-tax folks in the Chamber and the small business community, and supervisors like Elsbernd, when the city had a chance to bring in millions without any new taxes — by creating a public power system or raising utility franchise fees? They were siding with Pacific Gas and Electric Co. That’s part of the reason we’re in this fix.

Where federal banking money should go

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OPINION The federal government is shelling out hundreds of billions of dollars to prop up failing financial institutions, with no end in sight. Taxpayer money is going to commercial banks and insurance companies that took outsized risks and participated in extraordinarily complex financial transactions, motivated by no purpose beyond the hunger for profits. They were allowed to engage in this destructive behavior despite being among the most heavily regulated companies on earth. This is a terrible mess, and we’re all paying for it.

Yet there is one type of financial institution that remains unsullied by the current crisis – community development financial institutions, or CDFIs. CDFI is an official federal designation given to community loan funds, credit unions, and community development banks that have a mission first and foremost to address the financial needs of working people and low-income communities.

To be designated a CDFI, a financial institution must go through a rigorous screening process administered by the Treasury Department and prove that its core mission is to bring about economic benefits for the underserved and that it’s accountable to the communities it serves. In the Bay Area, active CDFIs include the Northern California Community Loan Fund, One California Bank in Oakland, and my own organization, Opportunity Fund.

CDFIs make microloans to new and emerging small businesses. They offer fair and non-predatory mortgage loans to first-time homebuyers, often combining their loans with homebuyer counseling. And they finance the construction of new affordable rental housing, health clinics, and social service facilities. Opportunity Fund, for instance, has invested more than $120 million into some of the most troubled neighborhoods in the Bay Area, with a loan loss rate of less than 1 percent. And we have somehow managed to do this without the use of complex derivatives, credit default swaps, or exotic mortgage products. We have done it by taking prudent risks on hardworking people who deserve a chance.

Unlike lenders motivated by greed and empowered by questionable financial "innovations," CDFIs are generally in much healthier financial condition than their mainstream counterparts. Despite being regulated by nothing more than our mission to make our communities better, we are not in need of a bailout.

We are, however, forcefully and unapologetically asking for a major share of any economic stimulus that Congress approves.

If the treasury can pour $700 billion (and counting) into corporations that pushed the envelope way too far in pursuit of profits, surely it can and should inject $5 billion or $10 billion into CDFIs, which will invest that money in our neighborhoods and into a better life for those who are struggling most right now.

The Treasury Department invests in CDFIs through its CDFI Fund, so this stimulus can be administered with no new bureaucracy. Furthermore, we are ready to put the money to work right away instead of salting it away like many banks did with the first round of bailout money. Opportunity Fund has identified $50 million in shovel-ready affordable housing developments that we could finance immediately if we had the capital, and our sister organizations also have real deals in their pipelines.

Let’s work together to make sure that this time around some of the money in Bedford Falls goes to Jimmy Stewart, and not all to Mr. Potter.

Eric Weaver is CEO of Opportunity Fund (www.opportunityfund.org).

Meister: Labor to Bush: Good Riddance!

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Dick Meister, a San Francisco-based journalist, has covered labor and political issues for a half-century. Contact him through his website, www.dickmeister.com.

Labor to Bush: Good Riddance!

By Dick Meister

With the departure of George Bush from the White House, working people and their unions have finally ended one of their toughest fights ever ­ an eight-year struggle with the most virulently anti-labor president in American history.

Of all those bidding Bush good riddance, none have more reason than organized labor and the workers it champions. The record of Bush’s antipathy to them is truly staggering.

Consider, for starters, Bush’s appointment of a notoriously anti-union secretary of labor , Elaine Chao, and an anti-union majority to control the National Labor Relations Board.

The Bush appointees have played a major role in stripping union and civil service rights from more than a million federal employees, cutting back raises that had been due them and most others on the government payroll, and shifting thousands of unionized federal jobs to private non-union contractors.

They’ve increased the staff and budgets for investigating and auditing unions, while decreasing those for enforcing employer violations of labor standards, including those covering child labor and pay discrimination and violence against women.

Profiles of change

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› amanda@sfbg.com
Photos by Pat Mazzera

"Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America," President Barack Obama told US citizens on his Inauguration Day. "For everywhere we look, there is work to be done."

He’s not just cheering himself on — he’s asking his constituents to embrace what’s to come and to consider what more we can be as the individual moving parts of this incredibly complex country.

Even as far back as the Democratic National Convention, Obama turned his campaign slogan into a call to action. "All across America something is stirring. What the naysayers don’t understand is this isn’t about me — it’s about you."

That rang in the ears of people profiled below, who changed their lives in response to his call. That inspired other changes, suggesting that the effort to elect Obama is having a spillover effect on organizing at other levels — which may become a part of how US citizens respond to his actions in office.

Expectations are high for the changes he will order and already there’s indications of what’s to come, such as the closure of the Guantánamo Bay detention facility, the end of the military’s "don’t ask, don’t tell" policy on homosexuality, and a commitment to action on climate change.

Many are eager to see more fundamental change in areas such as war, jobs, housing, energy, and transportation — areas we explore in this issue — as well as greater engagement between the White House and the grassroots groups that helped elect Obama.

In the profiles and stories that follow, the Guardian asks questions about what and who will change and how to move past a pithy slogan to trigger the transformation this country desperately needs.

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MARIA GOMES

Maria Gomes was committed to Obama from the beginning. "I signed up right after he announced," said this Menlo Park resident, who joined Silicon Valley for Obama and volunteered on the campaign.

Her first big assignment was in Iowa, where she spent 10 days campaigning before the caucus along with her husband and two teenage children. For Gomes, Obama’s Iowa win was a particularly powerful and pivotal moment. "I just realized the power of the volunteers and how awesome it was," she said. "It was clear to me after Iowa that he was going to win, so I just dove in."

Gomes, a 60-year-old lawyer, took an eight-month unpaid leave from her work as an immigration and dependency attorney for San Mateo County to devote herself fulltime to Obama’s campaign. It was the first time she devoted her life to get a politician elected.

"In fact, I [had] steered away from politics because I don’t really like politics," she said. "This was different. I really strongly felt the people carried this campaign. I canvassed with CEOs, doctors, young people … nobody took a back seat in this campaign. We did not take it lightly."

She and her husband served as precinct captains in California. After the primary, she coordinated volunteers and voter registration efforts for the general election. Gomes traveled to seven states in the months leading up to Nov. 4, spending Election Day working on voter protection in Las Vegas.

"I felt that the only way he was going to get elected was if people got in there. It wasn’t just going to happen," said Gomes, an immigrant from Cabo Verde, off the western coast of Africa.

And it’s not over for Gomes. Her whole family went to Washington DC for the inauguration, where she answered Michelle Obama’s call to volunteer on Martin Luther King Jr. Day. Gomes has also signed up to work on Kamala Harris’ run for attorney general and she’s still active with her fellow workers at Silicon Valley for Obama.

"About a week after the election I went to a meeting for our field office. Five hundred people were there. We brainstormed how to stay involved in his campaign," she said. They ranked issues they’d like to see addressed by Obama and organized themselves into teams to work on messaging them to the new administration. "We received a survey from the national team…. The [Silicon Valley] team took the national survey and made it local, community by community. That’s the kind of movement that’s happening now. I’m sure it’s going on everywhere because the campaign wanted every state and every county involved." Her husband is now on the tech team and she’s doing fundraising work for the inauguration.

"It’s not over. Nothing has stopped," she said, adding that she believed this kind of organizing would be very present in the administration. "It’s going to be governed by the people. I plan to be involved for the next four years at whatever level I can. I still write e-mails to whoever I think can change something. I hope it will be transparent enough that we can still communicate to people higher up in the administration — all the way to Barack and Michelle Obama."

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AARON KNAPP

Aaron Knapp graduated from law school in 2002 and spent the subsequent six years working for big corporate law firms. By 2008, he began to feel that all of the major decisions in his life had been made based on money and materialism, an certain emptiness that changed suddenly at summer’s end.

"Obama’s speech at the Democratic National Convention was a real turning point for me," he recalled. "The change that I needed in my life was to join in this campaign that transcended the individuals."

He said he did what he always wanted to do: "I quit a job I don’t enjoy." Knapp went to work instead on the Obama campaign, spending about four months in Nevada. Putting Obama in office became too important to not give it his all: "I just wanted to make sure on November 4, I could say to myself I did everything I could."

On election night, with the feeling of victory rushing through him, there was also a kind of malaise, a feeling of "now what?"

"Our roles in the campaign were predetermined — there are a finite amount of things you do in a campaign. Make phone calls, gather data, knock on doors…. After the election, after we won…. What do we do now? Those predetermined roles are no longer set up for us," he said.

Knapp said it required some soul searching to find the next important thing to do: "The task is to get real specific."

He’s now writing a book and working to get the Employee Free Choice Act passed by Congress. The act would amend existing labor laws to make it easier for workers to create unions that are recognized by employers. In 2007, it passed in the House and failed in the Senate, but it was part of Obama’s platform during the primary season, and one of the reasons he garnered support from organized labor.

But, said Knapp, "It’s one of those things that’s being put on the back burner as we transition in this administration…. While Obama was championing this cause during the campaign, there’s no sign of it now."

The waning of enthusiasm for it is indicative of how Obama’s administration may start to handle some of those crucial campaign promises that drew so many people into his fold. That piqued Knapp’s interest and reminded him of the goals of his grandfather, an auto worker for Chevrolet during the 1940s, who passed away during Knapp’s first year of law school: "My grandfather always would plead with me to do whatever I could to get the labor laws back in order. So that’s an issue that’s really important to me."

Knapp also said that it’s important to keep the grassroots Obama movement alive by continuing to push crucial legislation that was part of his platform for change.

"It goes right to the controversial pieces of law and policy that he’s addressing," Knapp said. "If he’s able to keep this mobilization together, that will help him significantly in getting policies through."

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PAULI OJEA

Pauli Ojea, who’s about to turn 30 years old, says that she’s spent her entire adult life "voting for the loser" and advocating for change that’s been slow to happen.

A New Jersey native, Ojea came to California to work for the San Francisco Conservation Corps on environmental education programs. That lead to a position with Breast Cancer Action as a community organizer, where she found that hopeful efforts were often frustrated by political pitfalls.

Then, Ojea attended a 2004 event where she heard Van Jones speak about how a new green wave was coming and it needed to lift all boats. When a position opened with Jones’ new organization, Green for All, she applied to be a policy analyst for the Oakland-based green-jobs advocacy group.

In between the two jobs, she spent a week campaigning for Obama with her mother, a Spanish immigrant who groused that if he lost, she’d be spending more time back in Spain.

Ojea now works on federal green-jobs policy and climate change equity, and has already been deeply affected by the Obama election. "For most of my career in advocacy, there’s been this sense that we probably don’t want to work on federal policy because we’re not going to get anywhere," she explained. "I started at Green For All with Barack Obama elected as president and we’re actually putting a lot of resources into federal policy, and there’s this whole feeling like we’re going to get somewhere. That’s shifted for me. I imagine that for a lot of other environmental and social justice advocates, there seems to be a door opening."

She’s even more enthused after meeting with members of the Obama transition team who were tasked with a review of the Department of Energy. About 30 to 40 people, representing organizations including the Sierra Club and Natural Resources Defense Council as well as renewable energy business leaders and public officials doing energy work in different states, convened in Washington DC to discuss energy policy.

"I’ve been to a lot of public agency meetings and what usually happens is you have maybe an hour and a half of presentation from the agency and maybe a half hour for all the organizations and people trying to get in their piece," she said. "This was different. It was about a two-hour meeting and the whole time it was dedicated to hearing from the community, from businesses, from people with experience in energy efficiency. The transition team members were fully engaged, actually listening, asking questions, asking for clarifications if they didn’t understand something. They were really humble and they seemed really excited about what kinds of changes were possible. I’d never been part of a process like that."

Ojea sees more potential than ever for the activist community in the Obama administration. "It could provide more opportunity and open more doors for what your activism is about. There’s such a difference between being used to being on the outside of the fence, behind the barricade, screaming because it’s the only way to be heard. Is that going to change? Are we going to be inside the fence?"

She recalled Obama’s campaign observation that "change doesn’t come from Washington, change comes to Washington." She’s hoping the Obama team’s outreach will continue.

"We’re at a really strange and critical time," Ojea said. "As Van says, in America, in terms of the economy, the floor has dropped out from under us. But with the election of Obama, the ceiling has come off. There’s a lot of opportunity, and things could also go downhill. What are we going to do?"

Municipal ID program takes off

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It took more time than it should have, but San Francisco’s long anticipated ID Card program took off today. Assemblymember Tom Ammiano, who authored the ID card legislation, helped debut the program by receiving his own card at City Hall today.

The card is all-in-one photo identification card that streamlines access to City services and offers discounts at local businesses. The card allows folks to establish borrowing privileges at the library and a family account with Recreation and Parks. Nine banks and credit unions have also stated that they will accept the card to open a financial account.

“The card will help a wide breadth of San Franciscans – children that don’t have a school ID, immigrant workers that want to open a bank account, and seniors that no longer have a need for a driver’s license,” Ammiano stated in a press release.”The transgender people will also benefit from an ID that accurately represents their identities.”

Six aren’t enough

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› news@sfbg.com

The historic Jan. 8 vote electing Sup. David Chiu as president of the Board of Supervisors — rare for its elevation of a freshman to the post and unprecedented for a Chinese American — clearly illustrates the ideological breakdown of the new board.

The six supervisors who claim membership in the progressive movement (Chris Daly, Ross Mirkarimi, David Campos, John Avalos, Eric Mar, and Chiu) gave Chiu the presidency after their efforts to give it to Mirkarimi or Avalos fell short, while the other five supervisors voted for Sup. Sophie Maxwell in each of the seven rounds, refusing to support any of the progressive picks.

But there are limits to what a bare majority of supervisors can do in San Francisco, particularly when the mayor is threatening vetoes and the city is wrestling with a budget deficit of gargantuan proportions. Overriding a mayoral veto or approving some emergency measures requires eight votes.

So the first question is whether Mirkarimi and Daly can come together after their split divided progressives and led to Chiu as a compromise candidate. But the second, more important, question for progressives is whether they can attract swing votes such as Maxwell and Bevan Dufty when the need arises.

The answers to those questions could start coming immediately as supervisors consider proposals to close a looming $575 million budget gap, including the proposal for a special election on revenue measures in June. Mayor Gavin Newsom opposes that election, so the board would have to muster eight votes in the next month to move forward with it.

They might even need more than that. A confidential memo to supervisors and the mayor by the City Attorney’s Office that was obtained by the Guardian sorts out the complex requirements needed to approve new taxes, including the requirement of unanimous board approval to place tax measures that can be passed with a simple majority vote on the ballot this year.

So President Chiu, who pledges to bring his colleagues together, certainly has his work cut out for him.

 

POLITICS AND POLICY

Achieving a unanimous vote on anything significant or controversial seems impossible right now. Mirkarimi is unhappy with Daly for thwarting his presidential ambitions; Maxwell and Dufty are unhappy with progressives for keeping her out of their club; and Chiu must quickly learn his new job during a time of unprecedented turmoil.

Chiu told his colleagues that he was “incredibly humbled” by an election that he didn’t think he’d win, and said that he is “acutely aware that I am new to the institution and the body.” But observers say Chiu’s temperament, intelligence, and connections to both the business community and the progressive movement could serve the city well right now.

“I think Chiu is a great choice. He has the humility that will help him,” outgoing Sup. Jake McGoldrick told the Guardian.

This compromise pick for president was praised by all sides, from the progressive coalition that feted him after the vote at a party at the SoMa club Temple. Rob Black, government affairs director for the San Francisco Chamber of Commerce, told reporters that “David seems to be someone who is very willing to listen and willing to ask questions.”

“We have a progressive supervisor running the board,” Mirkarimi told the Guardian as he walked back to his office following the vote. Or, as Daly told us, “In the end, the progressive coalition stuck together and I’m happy about that.”

Walking back to Room 200 after the vote, Newsom told reporters that Chiu was “an outstanding choice” who represents “a fresh air of progress.” Asked whether he expects to have a better working relationship with Chiu than with outgoing president Aaron Peskin, Newsom replied, “That’s a gross understatement.”

“We’re looking forward to working with the new Board of Supervisors,” Newsom spokesperson Nathan Ballard told the Guardian after the vote. “The mayor has a long relationship with David Chiu. In fact, he was on our short list to be named assessor just a few years ago.”

Yet at the progressive party that night, Chiu sounded like a rock-solid member of that group, promising to help Mirkarimi with police reform, Campos with protecting undocumented city residents, Mar with strengthening city ties to the schools, and Avalos with safeguarding progressive budget priorities.

“I think this is the best outcome we could have,” Mirkarimi told the Guardian shortly after Chiu was elected. “I was the deciding vote that delivered Sup. David Chiu, the first Asian American president of the board. That doesn’t mean that the seasoned experience of Maxwell and myself wasn’t hard to pass by.”

In fact, both Dufty and Maxwell groused about the progressive bloc’s opposition to Maxwell, noting her positions on issues such as public power, affordable housing, and transportation issues. “The people that voted for me did so because they felt I would at least listen to them,” Maxwell told us, expressing frustration at not being accepted “by the board’s progressive clique” which, she noted, “are all males.”

“I think David will be great,” Dufty told the Guardian. “Obviously there was a desire to have someone strongly aligned with the progressive movement. I think it’s a mystery that Sophie isn’t considered part of the progressive movement.”

Progressives are going to have to work at resolving those differences if they are going to play a leadership role in the midyear budget cuts and prevent an expansion of the bloc of five supervisors who stuck with Maxwell and often align with the mayor.

“There has been tension between Ross and myself, but also between Sophie and Ross,” Daly told us. “Sophie is feeling that she might be a progressive, too. And some of the things we do on the board need eight votes. The rift between Ross and I is little. The real question is, when do we get Bevan and Sophie back?”

After fending off a progressive challenger in his reelection bid two years ago, Dufty seemed to move to the left, only to return to Newsom’s centrist faction — which mixes social liberalism with fiscal conservatism — in the last year. He prevented progressives from being able to override a mayoral veto of their decision to cancel $1 million in funding to Newsom’s Community Justice Center. And on Jan. 6, the old board delayed a vote on a mayoral veto of an ordinance that amends the Planning Code to require Conditional Use hearings and permits for any elimination of existing dwelling units through mergers, conversions, or demolitions of residential units, something sought by the tenant groups that are an important part of the progressive coalition.

Those issues, and the thicket that is the budget debate, illustrate what Daly admitted to us last week: “We can’t run this city with six votes.”

 

THE BUDGET MESS

The most pressing problem facing the new board is the budget, which requires $125 million in midyear cuts for the current fiscal year and will be an estimated $575 million out of balance for the fiscal year that begins in June. Chiu’s first move to deal with it — one lauded by progressives — was to name Avalos as budget chair.

“John Avalos has more experience on budget issues than me,” Daly, who chaired the Budget Committee for two years, said of his former board aide. But even Avalos was awestruck by the tsunami of bad budget news hitting the city, telling us, “I was visibly shaken.”

Mirkarimi and Elsbernd, the Budget Committee’s two other current members, also admit they face a daunting task.

“We can’t put a Band-Aid on the problem,” Elsbernd told the board last week. “This is not just about San Francisco now, but about San Francisco 20 years from now. We need to think about the next generation.”

Mirkarimi agrees with Elsbernd, at least in terms of the enormity of the problem.

“We cannot be incrementalist. We can’t dance around the edges,” Mirkarimi told his colleagues, shortly after making the surprise announcement that he’s expecting a child in April with Venezuelan soap opera star Eliana López, who he’s dated since meeting her last year at a Green Party conference in Brazil. Elsbernd and his wife are also expecting their first child.

Progressives strongly argue that such a large budget deficit can’t be closed with spending cuts alone, so one of Peskin’s final acts was to create legislation calling a special election for June 2 and having supervisors hold hearings over the next month to choose from a variety of revenue measures, but Newsom and the business community opposed the move.

“Basically, it’s not fully baked. It will take a citywide coalition (à la Prop. A) to win something like this and the coalition just hasn’t been built yet,” Ballard told the Guardian. Even Mirarimi echoed the sentiment, telling the Guardian, “I’m not opposed to a June election, but you can’t put something on the June ballot that’s half-baked because I doubt we could win in November if we put something half-baked on in June. My preference is that we work harder to create alliances to assure a healthy chance of getting something on the ballot and delivering a victory.”

Yet many progressives and labor leaders say it’s important to bring in new revenue as soon as possible, particularly because the cuts required by the current budget deficit would slash about half the city’s discretionary spending and devastate important initiatives like offering health coverage to all San Franciscans.

“For Healthy San Francisco to survive, the Department of Public Health has to have a minimum level of funding,” said Robert Haaland, a labor representative with the public employee union SEIU Local 1021. “Given the cuts that have been proposed, it’s not going to survive.”

While Peskin was criticized for acting prematurely, the City Attorney’s Office memo indicated that he couldn’t have waited and still allowed supervisors to play the lead role in determining what ended up on the June ballot. The memo was requested by Daly.

“In response to your specific inquiry about maximizing the amount of time a committee could deliberate the underlying measures and ensuring that the Board would have enough time to override a Mayoral veto, the emergency ordinance and the resolution calling for the special election should be introduced today,” the City Attorney’s Office wrote Jan. 6, the day Peskin introduced his revenue package.

Even then, supervisors would need to vote to waive certain election procedures, such as the 30-day hold for proposed ballot measures, and to move expeditiously forward with hearings, selection of the tax measures, and preparation of findings related to the special election and declaration of fiscal emergency.

The City Attorney’s Office wrote that the package needs final approval by Feb. 17. “We recommend that to meet this deadline, the Board adopt the resolution at its January 27 meeting and that the Mayor sign the resolution no earlier than February 2,” they wrote.

But Newsom has indicated that he would veto it, thus requiring eight supervisors to override. “Aaron had the right to do what he did, but in some ways he rushed the discussion, so it’s been a bit rockier than it otherwise might have been,” Dufty told us, noting that he’s still open to supporting a June ballot measure. “There is no way to avoid spending cuts, and we need more revenues and more givebacks from public employees … I think labor is spending a significant amount of time with the mayor, and he’s making a strong effort to work with the board. I’m trying to encourage us all to work together to the maximum extent possible.”

In fact, San Francisco Labor Council director Tim Paulson told the Guardian he couldn’t talk about the tax measures yet because of intense ongoing discussions. Ballard said Newsom might be open to tax measures in November, telling the Guardian, “Ideally we could do it all by streamlining government, reducing spending, etc. But the mayor lives in the real world and so he is open to the possibility of a revenue measure with a broad base of support.”

So, can the new board president help coalesce the broad base of support that he’ll need to avoid cuts that would especially hurt the progressive base of unions, tenants, social service providers, affordable housing activists, and others who believe that government plays an important role in addressing social problems and inequities?

“In light of the global meltdown, national slowdown, local crisis, and largest budget deficit in history, I believe this board understands the importance of unity and working together,” Chiu told his colleagues. “We don’t have time for the politics of personality when we have the highest murder rate in 10 years, when businesses are failing, and the budget deficit grows exponentially.”

Sharing the pain

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› sarah@sfbg.com

When Mayor Gavin Newsom walked across City Hall to the Board of Supervisors Chambers last week to announce that the city is facing a $576 million budget deficit, it looked as if he was putting political differences aside and genuinely inviting the board to "share the challenge" of bridging the 2008-09 budget chasm.

For years, voters and supervisors have urged Newsom to appear before the board for monthly policy discussions. And for as many years, Newsom has refused, claiming such invites were "political theater." Now that he’s finally made the trek, critics say the context makes the gesture more theatrical than substantive.

Within minutes of Newsom’s unannounced Dec. 9 visit to the board, City Hall insiders began to fear that the Newsom was only pretending to walk the unity talk: details of his $118 million in proposed mid-year solutions were not made available before the appearance, giving the two sides little to discuss and raising questions of due process.

"If the mayor was interested in real collaboration with the board, he would introduce his mid-year proposal to the board for our deliberation, just like the annual budget," Sup. Chris Daly told the Guardian. "But after we asked in three different ways, we found that he will be making over $70 million in cuts unilaterally — without the board’s approval. Now we have to figure out how to get the public a seat at the budget table."

Unlike during the normal budget process, the mayor has tremendous power to make cuts mid-year. But with details slow to emerge, the legislators weren’t the only ones left in the dark about the proposal, which includes slashing the Department of Public Health’s budget by 25 percent, cuts that DPH director Mitch Katz told the supervisors is going to require fundamentally changing how government runs.

Several City Hall workers told the Guardian how, in the days after Newsom made his budget deficit announcement, Controller Ben Rosenfield was seen running from department to department, trying to track down the program-level details.

Supervisor-elect John Avalos, who has a deep understanding of the budgetary process from his years as a legislative aide to former Budget Committee chair Daly, confirmed that the mayor’s $118 Million proposal "doesn’t tell you much."

"There is $47 million in increased revenue that has come in that offsets the shortfall, and there’s a higher-than-expected census at San Francisco General Hospital that allows us to recoup some money. But although there are all kinds of service/non-service cuts in Newsom’s proposal, we have no details to work with," Avalos told the Guardian.

Two days after his board appearance, Newsom penned an op-ed for the San Francisco Chronicle in which he again appeared to be holding out his hand to the board. But Avalos, a candidate for president of the board, observed that Newsom continues to protect his own pet projects, which include the 311 Call Center, the Community Justice Center, and the Small Business Assistance Center.

"The pain needs to be shared and minimized all round," Avalos warned. "The mayor needs to come forward and help us, not simply cut all the programs that the Republicans want to see cut. There is this huge backlash from folks saying, ‘Why do we spend $1 billion on our public health system? Maybe we don’t need public health.’ But our services are there for a reason."

Avalos said he worries that if we cut all these programs now, it will be very hard to get them back down the line. "When revenue is back, the focus will be on things that are important, but not on services that help the most vulnerable folks," Avalos predicted.

Within three days of Newsom’s appearance before the board, Peskin had figured out a mechanism whereby the public could weigh in on Newsom’s cuts: he introduced legislation that combines the mayor’s $118.5 million proposal with an alternative $8.5 million in cuts that Peskin has proposed.

"So, now there’s a de facto collaboration," Peskin told the Guardian. Peskin’s package of alternative cuts — which has since been pared back to $5.5 million because duplication with the mayor’s list was found — includes budget reductions in the Mayor’s Office of Economic and Workforce Development, Emergency Management Department, Fire Department, Police Department, Mayor’s Office of Criminal Justice, the 311 call center, and city grants to the opera, ballet, and symphony. Peskin is also proposed wage freezes that could save another $35 million.

Peskin’s counter-move allows the public to weigh in on the combined proposals. It requires department heads to publicly defend cuts to programs, services, and personnel — cuts that were developed, per Newsom’s request, behind closed doors. Or as Daly put it: "The mayor’s and the board’s proposals need to be deliberated not through a staff member to the mayor, but in full view of the public."

The board also wants to publicly discuss the layoffs, which Newsom said would total 399, a number that rose to 409 when the list was actually released. Peskin’s legislation also provides an avenue for fired workers or their representatives to publicly air discontent. A list of eliminated positions obtained by the Guardian shortly before press time shows that most of the positions were service providers making less than $70,000. Although union officials have complained that the ranks of highly paid managers has grown sharply since Newsom became mayor (visit sfbg.com for the complete list and more analysis).

SEIU’s Robert Haaland estimates that 75 percent of layoffs targeted line workers in service jobs. "As far as we can tell, the pain is all at the bottom," Haaland told the Guardian.

And while Haaland didn’t openly support Peskin’s counter-proposal — a citywide sliding scale of pay cuts in which the highest earners take a bigger hit and an across-the-board union wage freeze — he acknowledged that at least the proposal targets the powerful Police Officers Association and the Municipal Executives Association, and not just SEIU workers.

Haaland claims that under Newsom’s behind-closed-doors method, "the institutional bias of department heads tends to come into play" in making layoff decisions.

"It’s human nature. No one talks about it, and I don’t know that there’s a grand conspiracy," Haaland said, expressing his belief that it’s easier for managers to cut people they don’t work with than those around them or people at the top. "They also tend to target the union activists, the members who are a pain in the butt, and who they don’t like."

Newsom told the Chronicle in a Dec. 15 article that "labor is going to be a principal part of the solution." Tim Paulson, executive director of the San Francisco Labor Council, told the Guardian that "the SFLC is listening to its affiliates to see if there are any collective strategies." But Haaland observed that the city is "contractually obligated to the unions," which may further complicate ongoing negotiations.

With Sup. Bevan Dufty advocating to restore more than $500,000 in HIV/AIDS funding cuts and Sup. Sophie Maxwell is trying to avoid cuts at the Small Business Center, newly sworn-in Sup. David Campos stressed the need for a meaningful vetting process.

"It’s important for us to have a process that sheds light on the human impacts of the proposed cuts so we have a better sense of what it means to citizens of San Francisco," Campos said at a Dec. 12 board committee hearing.

Campos also made it clear that he is not afraid to target the arts, arguing that deep-pocketed patrons can help ease their pain, even as advocates countered that attacking entertainment will further deplete the city’s coffers by potentially hurting tourism. "As much as we appreciate the need to support the arts, we’re going to have to look at other avenues some of those folks can turn to, to get the funding that is needed," Campos warned. "People who have the greatest needs don’t have those options. "

With repeated rounds of painful cuts predicted in the next six months, Peskin told a Dec. 12 Government Audits and Oversight Committee hearing that it’s critical for the board to express its priorities. "These include keeping Rec and Park facilities open, providing basic mental health services, and preserving public sector jobs," Peskin said. "It’s also important that everyone share the pain, but not necessary that everyone share the pain equally."

Outside the meeting, laid-off worker Allanda Turner described her pain and the devastation she feels at being let go in the midst of a recession. "I’m a parent. I just purchased a home. I’m feeling almost no hope at all," said Turner, who fears she will be applying for the medical services, unemployment, and food stamps that she refers clients to as part of her job with the city’s Human Services Agency.

"The mayor always says he advocates for the poor, but we are the most underpaid," she said. Meanwhile, while her colleagues claim that their department "gave Newsom what he wanted" by adding layoffs to an original list of cuts that included fewer jobs.

"These are unit clerks, employment specialists, eligibility workers, and line workers," said Sin Yee Poon, a DHS contract manager. "Eight of them are child-protection workers."

There will be one last meeting of the current Board of Supervisors in January, and both incoming and outgoing members are already specuutf8g that unless Peskin’s legislation passes with a veto-proof majority, the mayor will veto it and this period of symbolic unity will come to an abrupt end.

"We have the capacity, the ingenuity, and the spirit to solve this," Newsom told the board. "It’s going to take all of us working together. It’s in that spirit that I am here. The mid-year solution — difficult and painful as it is — it’s the easy part. The difficult part comes in the next four months."

But as legislators explore the possibility of adding to their budget tools in the future through charter amendments and special elections, one aide stressed the importance of taking an active role now.

"It’s important for the board to set the stage now for the budget discussions in the spring."

Hot and bothered

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› le.chicken.farmer@gmail.com

CHEAP EATS After breakfast we went to Whole Paycheck. I needed to pick up a chicken, an onion, and carrots and celery for work. Earl Butter needed a lot more than that, but of course couldn’t afford anything at all, since Whole Paycheck’s pricing is designed to keep out riffraff, such as teachers and newspaper columnists.

Earl was sad, so I bought him a bottle of hot sauce. Floyd & Fred’s, extra hot. My new favorite hot sauce. It’s made out of key lime juice and habanero, and comes in a cute little bottle with a cute little picture of a distressed lime on it, mouth open, eyes rolling, and flames licking out of its head.

I first discovered Floyd and Fred in Crawdad de la Cooter’s refrigerator. Except back then it was just one of them, I forget which. Probably Floyd.

You can’t fit two people in a refrigerator.

"What’s this?" I asked Crawdad, way back whenever, because I’m always interested in new kinds of hot sauce.

"You can have it," she said.

Crawdad is 10 times the heat demon I am. In fact, she taught me how. So as soon as I tasted Floyd & Fred’s, back when it was Floyd’s or Fred’s, I could see why she didn’t go for them. Him.

It was so mild, I used half the 5 oz. bottle on one little bowl of soup. Well, the good news is they make an extra-hot version, which is pretty much perfect. And the bad news is I only ever seem to see it at Whole Paycheck. For $5 a bottle! Those of you who are paying attention, and good at math, will realize immediately that we’re talking, let’s see … 5 oz. bottle, $5 a bottle, carry the one … what? Roughly a dollar an ounce.

At which rate my standard size (10 oz.) bottle of my old favorite hot sauce, Tapatío, for example, would have set me back (hold on, I’m going to use a calculator this time) … $10, exactly.

Actual cost: oh, $3.65.

So you see? This is why I never shop at Whole Paycheck, except when I’m shopping for someone else. My Canadian says they’re union busters. I think, at $5 for a cute little tiny 5 oz. bottle, they’re busting a lot more than unions.

But it is good stuff, Floyd & Fred’s. I’m an addict. I keep a bottle of extra-hot in my purse at all times, and rarely if ever mistake it for perfume.

The other day, though, I was in a public restroom, rummaging frantically through my purse, not quite exactly saying but almost audibly thinking, "tampon tampon tampon" (I do this sometimes, by way of establishing ladies room cred) … when I came upon my little hot sauce bottle and noticed, for the first time ever, that there’s a phone number just below the nutrition facts, 415-987-LIME.

"Cell phone cell phone cell phone," I thought, rummaging. I had one! Took it outside, dialed, and a man’s voice answered. Just: "Hello?"

"Hi … Floyd?" I said. "Fred?"

Silence. Then: "Yes?"

I briefly summarized my situation, that I was a starving artist slash chicken farmer and a hot sauce junky and where I lived, in the woods, and so forth, and he interrupted me after 15 minutes and said, "There’s a Whole Foods right near you."

"Whole what?" I said. "I can’t afford to shop there! Do you sell directly to people?"

By the case, he said. How many bottles in a case? Twelve. How much? (You’re going to love this …) Sixty dollars! He must have heard my mathematical wheels squeaking through the phone because he made a quick adjustment: $50, free delivery.

Well, $4.16 a bottle is still steep. But addiction is addiction, and delivery is delivery, so I made the deal, and now won’t have to worry about hot sauce for a long, long time, fuck Floyd. Fuck Fred.

———————

My new favorite restaurant is Moki’s in Bernal Heights, because Sockywonk picked up the check. Great sushi, but the chicken coconut curry soup (which we expected to be something like Thai tom ka gai), didn’t have no chickens in it. Nor even the flavor of chickens. Fuck Moki.

MOKI’S SUSHI & PACIFIC GRILL

Sun.–Thurs., 5:30–9:30 p.m.; Fri.–Sat., 5:30–10:30 p.m.

615 Cortland, SF

(415) 970-9336

Beer & wine

AE/D/MC/V

7.5 better ways to balance the budget

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OPINION In Mayor Gavin Newsom’s seven-and-a-half-hour YouTube series on the state of our city, he spends barely 30 seconds addressing the budget deficit.

Newsom’s mid-year budget cut plan is completely out of touch with the fundamental priorities of our city. At a time when residents are feeling the impact of the recession in their daily lives, the mayor’s plan guts our public health safety net by slashing programs that serve seniors on fixed incomes and by reducing frontline healthcare workers.

What’s more, the mayor’s mid year cuts leave untouched his bloated senior staff and protects management-heavy departments around City Hall.

So, in response to the effort to balance the budget by slashing tens of millions in health services for the city’s neediest, a coalition of health workers, health providers, and patients are putting forward alternative ways to address the city’s budget problem that are worth our time and thought.

Among the ideas offered by the Coalition to Save Public Health are the following:

1. Start at the top, not at the bottom. Since the mayor first took office, the number of highly paid managers has skyrocketed while the number of employees providing basic city services has stagnated. It’s time to tighten our belt at the management level and eliminate all but the most essential positions that pay more than $100,000 per year.

2. Practice what you preach. In November 2007, the mayor announced a non-essential hiring freeze to deal with the budget crunch. Newsom then promptly spent hundreds of thousands of dollars hiring new senior staff including highly paid and duplicative special assistants for climate control initiatives, "neighborhood empowerment," and a new greening czar. All new staff hired since November 2007 who are paid more than $100,000 should be cut.

3. Cut duplicative programs. The city spends more than $10 million per year on small business outreach and economic development. The Mayor’s Small Business Assistance Center duplicates those services and costs nearly $800,000 every year.

4. Listen to the voters — cut the Community Justice Court. Proposition L was rejected by more than 57 percent of the San Francisco electorate. It’s time to listen to the voters and preserve revenue by cutting current-year funding for the CJC.

5. Save on spin, spend on substance. A recent controller’s report found that the city spent more than $10 million in salaries for public relations and public information staff, including funding for seven people in the Mayor’s Office of Communications last year. The mayor should cut all unnecessary PR staff and reduce his spin operation to two people.

6. Cut the fat, not the bone. Both police and fire unions are due for 7 percent pay increases. As the city cuts salaries or lays off staff across the board, the mayor should work with the board to reopen fire and police contracts.

7. Eliminate unnecessary drivers. For years, the Fire Department’s battalion chiefs have relied on "chief’s aides" to chauffer them around the city. The estimated cost for these positions is more than $2 million.

7.5 Cut in half the city’s contribution to the opera and symphony. In the current year, the city is contributing close to $4 million in General Fund revenue to the operation of the opera, symphony, and ballet. We can’t afford to subsidize organizations with enormous endowments while we slash services for people in need.

Aaron Peskin is president of the Board of Supervisors.

Politics behind the picture

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The new Harvey Milk movie, which opens later this month, begins as a love story, a sweet love story about two guys who meet in a subway station and wind up fleeing New York for San Francisco. But after that, the movie gets political — in fact, by Hollywood standards, it’s remarkably political.

The movie raises a lot of issues that are alive and part of San Francisco politics today. The history isn’t perfect (see sidebar), but it is compelling. And while we mourn Milk and watch Milk, we shouldn’t forget what the queer hero stood for.

Milk started out as something of a pot-smoking hippie. “The ’70s were a hotbed of everything,” Sup. Tom Ammiano remembered. “Feminism, civil rights, antiwar.” Milk’s early campaigns grew out of that foment. “Sure, he wanted to be elected,” Ammiano told us. “But the main ingredient was courage. He was fighting with the cops when they raided the bars … what he did was dangerous.”

Milk never would have been elected supervisor without district elections — and the story of district elections, and community power, ran parallel to Milk’s own story, for better and for worse.

Milk tried twice to win a seat on the at-large Board of Supervisors and never made the final cut. But in the mid-1970s, a coalition of community leaders, frustrated that big money controlled city policy, began organizing to change the way supervisors were elected. The shift from an at-large system to a district one in 1976 was a transformational moment for the city.

“I think that San Francisco doesn’t always appreciate the sea change that district elections brought,” Cleve Jones, a queer activist and friend of Milk who helped Dustin Black write the script for Milk, told us. “It wasn’t just important to the various communities that had been locked out of power at City Hall — it was the glue that began to grow the coalitions.”

Milk was elected as part of what became the most diverse board in the city’s history, with Asian, black, and gay representatives who came out of community organizations. The board, of course, also included Dan White, a conservative Irish Catholic and former cop. And it was the assassination of Milk and Mayor George Moscone by Sup. White — and the civic heartbreak, chaos, and confusion that followed — that allowed downtown forces to repeal district elections in 1980. That gave big money and big business control of the board for another 20 years, a reign that ended only when district elections returned in 2000.

Milk was a gay leader, but he was also a tenant activist, public power supporter, advocate for police reform, supporter of commuter taxes on downtown workers, and coalition-builder who helped bring together the labor movement and the queer community. It started, ironically, with the Teamsters.

“Those of us who came out of the antiwar movement remembered that the Teamsters supported Richard Nixon until the very last moment,” Jones said. “And they were seen as one of the most homophobic of all the unions.”

But in the 1970s, the Teamsters were at war with the Coors Brewing Company, and trying to get San Francisco bars to stop serving Coors beer. Allan Baird, a Teamsters leader who lived in the Castro District, saw an opportunity and contacted Milk, who agreed to help — if the Teamsters would start hiring gay truck drivers.

“It wasn’t just San Francisco and California,” Jones recalled. “We got Coors beer out of every gay bar in North America.” And gays started driving beer trucks.

Today, the queer-labor alliance is one of the most powerful, effective, and lasting political forces in San Francisco.

Milk was never popular among the wealthier and more established sectors of the gay community; he believed in a populist brand of politics that wasn’t afraid to take the fight to the streets — and beyond San Francisco. A central theme of the film is the fight against Proposition 6, a 1978 measure by conservative state Sen. John Briggs that would have barred homosexuals from teaching the public schools.

Milk, defying the mainstream political strategists, insisted on debating Briggs in some of the most right-wing parts of the state. He refused to downplay the gay-rights issues. And when Prop. 6 went down, it was the end of that particular homophobic crusade.

Milk was always an outsider, and he ran for office as a foe of the Democratic Party machine. “His campaign for state Assembly was all about Harvey vs. the machine,” former Sup. Harry Britt told us. “His main supporter was [Sup.] Quentin Kopp. He didn’t run as the liberal in the race; he ran against the machine.” And for much of the next 20 years, progressives in San Francisco found themselves fighting what became the Brown-Burton machine, controlled by Willie Brown and John Burton.

It’s too bad the movie wasn’t released early enough to have had an impact on Prop. 8, the anti same-sex marriage measure that just passed in California. Some critics of the No on 8 campaign say the message was far too soft, and that a little Harvey-Milk-style campaigning might have helped.

But for us, one of the most striking things about the movie is the fact that Milk and his lover, Scott Smith, were able to leave New York with very little money, arrive in San Francisco, rent an apartment on their unemployment checks, and open a camera store. That wouldn’t be possible today; the Harvey Milks of 2008 can’t live in the Castro — and many can’t live anywhere in San Francisco. The city is too expensive.

In fact, for all the victories Milk won, for all the successes of the movement he helped to build, much of his agenda is still unfulfilled, even in his hometown.

The first time Harvey Milk gives a public speech in the film, he’s standing on a soapbox … literally. He brings out a box with “soap” written on the side; a funny gag, but a serious and telling moment for him and San Francisco.

The issues that Milk spoke so passionately about in that speech included police reform, ending the war on drugs, protecting tenants and controlling rents, and improving parks and protecting people’s rights to use them liberally — all issues with as much resonance today as they had back then.

The movie leaves us with a painful question. For all the celebration of Milk’s legacy by San Franciscans of various political stripes, why have we made so little progress on some of his signature issues? We celebrate the martyr — but often forget what the man really advocated.

Support for gay rights is de rigueur for anyone who aspires to public office in San Francisco. But a quarter of city residents still voted to take away same-sex marriage rights in this election. Many older gay men today are barely able afford their AIDS medication and rent. And transgender people and other nontraditional types are still ostracized, unable to get good jobs, and sometimes treated contemptuously when they seek help from their government.

Sure, marijuana is supposedly legal for medical uses in California and pot clubs proliferate around San Francisco. But even these sick patients are still targeted by the federal government and its long arms in San Francisco, including former US Attorney Kevin Ryan, whom Mayor Gavin Newsom named his top crime advisor and who is now seeking to crackdown on the pot clubs. Why, 30 years after Milk was shot, does one have to claim an ailment or illness to smoke a joint in this town?

Two-thirds of city residents are renters, a group Milk championed with gusto, but we barely beat a state initiative in June that would have abolished rent control. Housing is getting steadily more expensive. And in this election, Newsom and his downtown allies opposed Proposition B, an affordable housing measure, and Proposition M, a common sense measure to prohibit landlords from harassing their tenants. Such harassment is a common tactic to force tenants from rent-controlled units, even though the City Attorney’s Office is currently suing the city’s biggest landlord, Skyline Realty, for its well-documented history of harassment. Newsom may be the champion of same-sex marriage, but when it comes to issues like tenants’ rights, we suspect that Milk would be appalled at Newsom’s gall.

Ted Gullicksen of the San Francisco Tenants Union noted that in the wake of Milk’s death and before the repeal of district elections, San Francisco established rent control and limits on condo conversions. The tenant movement has grown steadily stronger and more sophisticated, he said, as it had to in order to counter increasing economic and political pressures and creative gambits by landlords.

“The city has gentrified phenomenally since that time, and that’s put tremendous pressure on tenants and on condo conversions,” Gullicksen told us. “It continues to be a real struggle.”

Police reform was also a huge issue for Milk and his gay contemporaries, who suffered more than most groups from the behavior of thuggish cops protected by weak oversight rules and a powerful union. And today, the Police Officers Association is stronger and meaner than ever, but the oversight has improved little, as both the Guardian and San Francisco Chronicle have explored with investigations in recent years.

And in our public parks, San Francisco officials in recent years have banned smoking cigarettes, drinking alcohol, playing amplified music, and even gathering in large numbers without expensive, restrictive permits. Even in the Castro, where Milk and his allies took it as a basic right to gather in the streets, Newsom and the NIMBYs unilaterally cancelled Halloween celebrations and used police to chase away citizens with water trucks.

Is this really the city Harvey Milk was trying to create? In the film, he talks about transforming San Francisco into a vibrant, tolerant beacon that would set an example for the rest of the country, telling his compatriots, “We have got to give them hope.”

Well, with hope now making a comeback, perhaps San Francisco can finally follow Milk’s lead on the issues he cared about most.

>>Back to the Milk Issue

Guardian: ‘Fighting Newsom’s mid-year cuts’

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By Bruce B. Brugmann

(Scroll down for the Guardian editorial in Wednesday’s edition (ll/19/08), “Fighting Newsom’s mid-year budget cuts”)

Once again, the Guardian is editorializing about the problems of the structural city budget deficit, which of course will be worse because of the economy and because of Mayor Newsom’s moves for mid-year cuts aimed at our lame duck Board of Supervisors.

And once again, the Guardian raises the issue, as we have since our first PG&E/Raker Act scandal story in l969, that the city is losing tens of millions a year by allowing PG&E to control its cheap Hetch Hetchy power and instead forcing the city’s residents and businesses to buy PG&E’s expensive private power. (See Guardian stories and Bruce blogs for details.) And it is most annoying that Newsom and his hired gun, Eric Jaye, worked so hard to defeat the Clean Energy Act (H), when public power would be the biggest potential source of new revenue for the city. Jaye conveniently advises Newsom and runs his campaign for governor at the same time he consults for PG&E and ran PG&E’s campaign against H. Neat.

More: it also annoying that the San Francisco Labor Council allowed PG&E to hold labor hostage in this campaign and in effect allowed PG&E to drum home the charge, without labor counter, that city workers are so dumb, so incompetent, and so lazy that they can’t run an electricity system. This posture puts city workers and their unions at a disadvantage when the budget axe starts falling.

The Guardian editorial: “Fighting Newsom’s mid-year cuts”

Women bringing new strength to unions

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By Dick Meister

Women are well on the way to overtaking men in the ranks of organized labor
— and for good reason. As a new study shows, women who’ve joined unions have significantly better pay and benefits than working women who have not joined.

Although only about a fifth of women workers overall currently belong to unions, they already make up about 45 percent of all unionized workers. They’re expected to become a majority within a dozen years, according to the study by the Center for Economic and Policy Research.

The people’s election

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By midnight Nov. 4, the drama was long over: John McCain had conceded, Barack Obama had delivered his moving victory speech — declaring that “change has come to America” — and the long national nightmare of the Bush years was officially headed for the history books.

But in San Francisco, the party was just getting started.

Outside of Kilowatt, on 16th Street near Guerrero, the crowd of celebrants was dancing to the sounds of a street drummer. In the Castro District, a huge crowd was cheering and chanting Obama’s name. And on Valencia and 19th streets, a spontaneous outpouring of energy filled the intersection. Two police officers stood by watching, and when a reporter asked one if he was planning to try to shut down the celebration and clear the streets, he smiled. “Not now,” he said. “Not now.”

Then, out of nowhere, the crowd began to sing: O say can you see /By the dawn’s early light …

It was a stunning moment, as dramatic as anything we’ve seen in this city in years. In perhaps the most liberal, counterculture section of the nation’s most liberal, counterculture city, young people by the hundreds were proudly singing The Star Spangled Banner. “For the first time in my life,” one crooner announced, “I feel proud to be an American.”

Take that, Fox News. Take that Sean Hannity and Rush Limbaugh and Sarah Palin and the rest of the right-wing bigots who have tried to claim this country for themselves. On Nov. 4, 2008, progressives showed the world that we’re real Americans, too, proud of a country that has learned from its mistakes and corrected its course.

President Obama will let us down soon enough; he almost has to. The task at hand is so daunting, and our collective hopes are so high, that it’s hard to see how anyone could succeed without a few mistakes. In fact, Obama already admitted he won’t be “a perfect president.” And when you get past the rhetoric and the rock star excitement, he’s taken some pretty conservative positions on many of the big issues, from promoting “clean coal” and nuclear power to escautf8g the war in Afghanistan.

But make no mistake about it: electing Barack Obama was a progressive victory. Although he never followed the entire progressive line in his policy positions, he was, and is, the creature of a strong progressive movement that can rightly claim him as its standard-bearer. He was the candidate backed from the beginning by progressives like Supervisors Chris Daly and Ross Mirkarimi (a Green). And only after his improbable nomination did moderates like Mayor Gavin Newsom and Sen. Dianne Feinstein jump on the bandwagon.

From the start, the young, activist, left wing of the Democratic Party was the driving force behind the Obama revolution. And while he has always talked to the Washington bigwigs — and will populate his administration with many of them — he would never have won without the rest of us. And that’s a fact of political life it will be hard for him to ignore, particularly if we don’t let him forget it.

For a few generations of Americans — everyone who turned 18 after 1964 — this was the first presidential election we’ve been able to get truly excited about. It was also the first presidential election that was won, to a significant extent, on the Internet, where progressive sites like dailykos.com raised millions of dollars, generated a small army of ground troops, and drove turnout in both the primaries and the general election. The movement that was built behind Obama can become a profound and powerful force in American politics.

So this was, by any reasonable measure, the People’s Election. And now it’s the job of the people to keep that hope — and that movement — alive, even when its standard-bearer doesn’t always live up to our dreams.

The evidence that this was the People’s Election wasn’t just at the national level. It showed up in the results of the San Francisco elections as well.

This was the election that would demonstrate, for the first time since the return of district elections, whether a concerted, well-funded downtown campaign could trump a progressive grassroots organizing effort. Sure, in 2000, downtown and then-Mayor Willie Brown had their candidates, and the progressives beat them in nearly every race. But that was a time when the mayor’s popularity was in the tank, and San Franciscans of all political stripes were furious at the corruption in City Hall.

“In 2000, I think a third of the votes that the left got came from Republicans,” GOP consultant Chris Bowman, who was only partially joking, told us on election night.

This time around, with the class of 2000 termed out, a popular mayor in office and poll numbers and conventional wisdom both arguing that San Franciscans weren’t happy with the current Board of Supervisors (particularly with some of its members, most notably Chris Daly), many observers believed that a powerful big-money campaign backing some likable supervisorial candidates (with little political baggage) could dislodge the progressive majority.

As late as the week before the election, polls showed that the three swings districts — 1, 3, and 11 — were too close to call, and that in District 1, Chamber of Commerce executive Sue Lee could be heading for a victory over progressive school board member Eric Mar.

And boy, did downtown try. The big business leaders, through groups including the Committee on Jobs, the Chamber, the Association of Realtors, Plan C, the newly-formed Coalition for Responsible Growth, and the Building Owners and Managers Association, poured more than $630,000 into independent expenditures smearing progressive candidates and promoting the downtown choices. Newsom campaigned with Joe Alioto, Jr. in District 3 and Ahsha Safai in District 11. Television ads sought to link Mar, John Avalos, and David Chiu with Daly.

Although the supervisors have no role in running the schools, the Republicans and downtown pushed hard to use a measure aimed at restoring JROTC to the city’s high schools as a wedge against the progressives in the three swing districts. They also went to great lengths — even misstating the candidates’ positions — to tar Mar, Chiu, and Avalos with supporting the legalization of prostitution.

And it didn’t work.

When the votes were counted election night, it became clear that two of the three progressives — Avalos and Chiu — were headed for decisive victories. And Mar was far enough ahead that it appeared he would emerge on top.

How did that happen? Old-fashioned shoe leather. The three campaigns worked the streets hard, knocking on doors, distributing literature, and phone banking.

“I’ve been feeling pretty confident for a week,” Avalos told us election night, noting his campaign’s strong field operation. As he knocked on doors, Avalos came to understand that downtown’s attacks were ineffective: “No one bought their horseshit.”

A few weeks earlier, he hadn’t been so confident. Avalos said that Safai ran a strong, well-funded campaign and personally knocked on lots of doors in the district. But ultimately, Avalos was the candidate with the deepest roots in the district and the longest history of progressive political activism.

“This is really about our neighborhood,” Avalos told us at his election night party at Club Bottom’s Up in the Excelsior District. “It was the people in this room that really turned it around.”

The San Francisco Labor Council and the tenants’ movement also put dozens of organizers on the ground, stepping up particularly strongly as the seemingly coordinated downtown attacks persisted. “It was, quite literally, money against people, and the people won,” Labor Council director Tim Paulson told us.

Robert Haaland, a staffer with the Service Employees International Union and one of the architects of the campaign, put it more colorfully: “We ran the fucking table,” he told us election night. “It’s amazing — we were up against the biggest downtown blitz since district elections.”

The evidence suggests that this election was no anomaly: the progressive movement has taken firm hold in San Francisco, despite the tendency of the old power-brokers — from Newsom to downtown to both of the city’s corporate-owned daily newspapers — to try to marginalize it.

Political analyst David Latterman of Fall Line Analytics began the Nov. 5 presentation at the San Francisco Planning and Urban Research Association election wrap-up by displaying an ideologically-coded map of San Francisco, drawing off of data from the Progressive Voter Index that he developed with San Francisco State University political science professor Rich de Leon. The PVI is based on how San Francisco residents in different parts of the city vote on bellwether candidates and ballot measures.

“Several of the districts in San Francisco discernibly moved to the left over the last four to eight years,” Latterman told the large crowd, which was made up of many of San Francisco’s top political professionals.

The two supervisorial districts that have moved most strongly toward the progressive column in recent years were Districts 1 (the Richmond) and 11 (the Excelsior), which just happened to be two of the three swing districts (the other being District 3–North Beach and Chinatown) that were to decide the balance of power on the Board of Supervisors this election.

Latterman said Districts “1, 3, and 11 went straight progressive, and that’s just the way it is.”

In fact, in many ways, he said this was a status-quo election, with San Francisco validating the progressive-leaning board. “A lot of people in the city didn’t see it as a chance for a drastic change citywide.”

In other words, keeping progressives in City Hall has become a mainstream choice. Whatever downtown’s propaganda tried to say, most San Franciscans are happy with a district-elected board that has brought the city a living-wage law and moved it a step toward universal health insurance.

The fate of the local ballot measures was another indication that Newsom, popular as he might be, has little ability to convince the voters to accept his policy agenda.

Voters rejected efforts by Newsom to consolidate his power, rejecting his supervisorial candidates, his Community Justice Center (as presented in Measure L), and his proposed takeover of the Transportation Authority (soundly defeating Proposition P) while approving measures he opposed, including Propositions M (protecting tenants from harassment) and T (Daly’s guarantee of substance abuse treatment on demand).

Asked about it at a post-election press conference, Newsom tried to put a positive spin on the night. “Prop. A won, and I spent three years of my life on it,” he said. “Prop B. was defeated. Prop. O, I put on the ballot. I think it’s pretty small when you look at the totality of the ballot.” He pointed out that his two appointees — Carmen Chu in District 4 and Sean Elsbernd in District 7 — won handily but made no mention of his support for losing candidates Lee, Alicia Wang, Alioto, Claudine Cheng, and Safai.

“You’ve chosen two as opposed to the totality,” Newsom said of Props. L and P. “Prop. K needed to be defeated. Prop. B needed to be defeated.”

Yet Newsom personally did as little to defeat those measures as he did to support the measures he tried to claim credit for: Measures A (the General Hospital rebuild bond, which everyone supported) and revenue-producing Measures N, O, and Q. In fact, many labor and progressives leaders privately grumbled about Newsom’s absence during the campaign.

Prop. K, which would have decriminalized prostitution, was placed on the ballot by a libertarian-led signature gathering effort, not by the progressive movement. And Prop. B, the affordable housing set-aside measure sponsored by Daly, was only narrowly defeated — after a last-minute attack funded by the landlords.

All three revenue-producing measures won by wide margins. Prop. Q, the payroll tax measure, passed by one of the widest margins — 67-33.

Latterman and Alex Clemens, owner of Barbary Coast Consulting and the SF Usual Suspects Web site, were asked whether downtown might seek to repeal district elections, and both said it didn’t really matter because people seem to support the system. “I can’t imagine, short of a tragedy, district elections going anywhere,” Latterman said.

Clemens said that while downtown’s polling showed that people largely disapprove of the Board of Supervisors — just as they do most legislative bodies — people generally like their district supervisor (a reality supported by the fact that all the incumbents were reelected by sizable margins).

“It ain’t a Board of Supervisors, it is 11 supervisors,” Clemens said, noting how informed and sophisticated the San Francisco electorate is compared to many other cities. “When you try to do a broad-based attack, you frequently end up on the wrong end (of the election outcome).”

We had a bittersweet feeling watching the scene in the Castro on election night. While thousands swarmed into the streets to celebrate Obama’s election, there was no avoiding the fact that the civil-rights movement that has such deep roots in that neighborhood was facing a serious setback.

The Castro was where the late Sup. Harvey Milk started his ground-breaking campaign to stop the anti-gay Briggs Initiative in 1978. Defying the advice of the leaders of the Democratic Party, Milk took on Briggs directly, debating him all over the state and arguing against the measure that would have barred gay and lesbian people from teaching in California’s public schools.

The defeat of the Briggs Initiative was a turning point for the queer movement — and the defeat of Prop. 8, which seeks to outlaw same-sex marriage, should have been another. Just as California was the most epic battle in a nationwide campaign by right-wing bigots 30 years ago, anti-gay marriage measures have been on the ballot all over America. And if California could have rejected that tide, it might have taken the wind out of the effort.

But that wasn’t to be. Although pre-election polls showed Prop. 8 narrowly losing, it was clear by the end of election night that it was headed for victory.

Part of the reason: two religious groups, the Catholics and the Mormons, raised and spent some $25 million to pass the measure. Church-based groups mobilized a reported 100,000 grassroots volunteers to knock on doors throughout California. Yes on 8 volunteers were as visible in cities throughout California as the No on 8 volunteers were on the streets of San Francisco, presenting a popular front that the No on 8 campaign’s $35 million in spending just couldn’t counter — particularly with so many progressive activists, who otherwise would have been walking precincts to defeat Prop. 8, fanned out across the country campaigning for Obama.

“While we knew the odds for success were not with us, we believed Californians could be the first in the nation to defeat the injustice of discriminatory measures like Proposition 8,” a statement on the No on Prop. 8 Web site said. “And while victory is not ours this day, we know that because of the work done here, freedom, fairness, and equality will be ours someday. Just look at how far we have come in a few decades.”

San Francisco City Attorney Dennis Herrera, joined by Los Angeles City Attorney Rocky Delgadillo and Santa Clara County Counsel Ann C. Raven, filed a legal challenge to Prop. 8, arguing that a ballot initiative can’t be used to take away fundamental constitutional rights.

“Such a sweeping redefinition of equal protection would require a constitutional revision rather than a mere amendment,” the petition argued.

“The issue before the court today is of far greater consequence than marriage equality alone,” Herrera said. “Equal protection of the laws is not merely the cornerstone of the California Constitution, it is what separates constitutional democracy from mob rule tyranny. If allowed to stand, Prop. 8 so devastates the principle of equal protection that it endangers the fundamental rights of any potential electoral minority — even for protected classes based on race, religion, national origin, and gender.”

That may succeed. In fact, the state Supreme Court made quite clear in its analysis legalizing same-sex marriage that this was a matter of fundamental rights: “Although defendants maintain that this court has an obligation to defer to the statutory definition of marriage contained in [state law] because that statute — having been adopted through the initiative process — represents the expression of the ‘people’s will,’ this argument fails to take into account the very basic point that the provisions of the California Constitution itself constitute the ultimate expression of the people’s will, and that the fundamental rights embodied within that Constitution for the protection of all persons represent restraints that the people themselves have imposed upon the statutory enactments that may be adopted either by their elected representatives or by the voters through the initiative process.

As the United States Supreme Court explained in West Virginia State Board of Education vs. Barnette (1943) 319 U.S. 624, 638: ‘The very purpose of a Bill of Rights was to withdraw certain subjects from the vicissitudes of political controversy, to place them beyond the reach of majorities and officials and to establish them as legal principles to be applied by the courts. One’s right to life, liberty, and property, to free speech, a free press, freedom of worship and assembly, and other fundamental rights may not be submitted to vote; they depend on the outcome of no elections.'”

As Board of Supervisors President Aaron Peskin told the Guardian later that week: “Luckily, we have an independent judiciary, because the voters of California have mistakenly taken away a class of civil rights.”

But if that legal case fails, this will probably wind up on the state ballot again. And the next campaign will have to be different.

There already have been many discussions about what the No on 8 campaign did wrong and right, but it’s clear that the queer movement needs to reach out to African Americans, particularly black churches. African Americans voted heavily in favor of Prop. 8, and ministers in many congregations preached in favor of the measure.

But there are plenty of black religious leaders who took the other side. In San Francisco the Rev. Amos Brown, who leads the Third Baptist Church, one of the city’s largest African American congregations, spoke powerfully from the pulpit about the connections between the civil rights struggles of the 1960s and the fight for same-sex marriage.

The next time this is on the ballot, progressive and queer leaders will need to build a more broad-based movement. That is not only possible, but almost inevitable.

The good news — and it’s very good news — is that (as Newsom famously proclaimed) same-sex marriage is coming, whether opponents like it or not. That’s because the demographics can’t be denied: the vast majority of voters under 30 support same-sex marriage. This train is going in only one direction, and the last remaining issue is how, and when, to make the next political move.

The progressives didn’t win everything in San Francisco. Proposition H, the Clean Energy Act, was taken down by one of the most high-priced and misleading campaigns in the city’s history. Pacific Gas and Electric Co. spent more than $10 million telling lies about Prop. H, and with the daily newspapers virtually ignoring the measure and never challenging the utility’s claims, the measure went down.

“This was a big, big, big money race,” Latterman said. “In San Francisco, you spend $10 million and you’re going to beat just about anything.”

But activists aren’t giving up on pushing the city in the direction of more renewable energy (see Editorial).

Latterman said the narrow passage of Prop. V, which asked the school board to consider reinstating JROTC, wasn’t really a victory. “I would not call this a mandate. I worked with the campaign, and they weren’t looking for 53 percent. They were looking for 60-plus percent,” Latterman said. “I think you’ll see this issue just go away.”

Neither Latterman nor Clemens would speculate on who the next president of the Board of Supervisors will be, noting that there are just too many variables and options, including the possibility that a newly elected supervisor could seek that position.

At this point the obvious front-runner is Ross Mirkarimi, who not only won re-election but received more votes than any other candidate in any district. Based on results at press time, more than 23,000 people voted for Mirkarimi; Sean Elsbernd, who also had two opponents, received only about 19,000.

Mirkarimi worked hard to get Avalos, Chiu, and Mar elected, sending his own volunteers off to those districts. And with four new progressives elected to the board, joining Mirkarimi and veteran progressive Chris Daly, the progressives ought to retain the top job.

Daly tells us he won’t be a candidate — but he and Mirkarimi are not exactly close, and Daly will probably back someone else — possibly one of the newly elected supervisors.

“It’s going to be the most fascinating election that none of us will participate in,” Clemens said.

The danger, of course, is that the progressives will be unable to agree on a candidate — and a more moderate supervisor will wind up controlling committee appointments and the board agenda.

One of the most important elements of this election — and one that isn’t being discussed much — is the passage of three revenue-generating measures. Voters easily approved a higher real-estate transfer tax and a measure that closed a loophole allowing law firms and other partnerships to avoid the payroll tax. Progressives have tried to raise the transfer tax several times in the past, and have lost hard-fought campaigns.

That may mean that the anti-tax sentiment in the city has been eclipsed by the reality of the city’s devastating budget problems. And while Newsom didn’t do much to push the new tax measures, they will make his life much easier: the cuts the city will face won’t be as deep thanks to the additional $50 million or so in revenue.

It will still be a tough year for the new board. The mayor will push for cuts that the unions who supported the newly elected progressives will resist. A pivotal battle over the city’s future — the eastern neighborhoods rezoning plan — will come before the new board in the spring, when the recent arrivals will barely have had time to move into their offices.

Obama, of course, will face an even tougher spring. But progressives can at least face the future knowing that not only could it have been a lot worse; for once things might be about to get much better.

Amanda Witherell and Sarah Phelan contributed to this report.