Hundreds Of Workers Rally Against Budget Cuts

SAN FRANCISCO — Hundreds of city workers on Wednesday used their lunch break to rally in front of San Francisco City Hall, urging Mayor Daniel Lurie not to cut funding to certain city departments amid a projected upcoming budget deficit of over $800 million.

Workers from various unions held up signs and chanted slogans like, "When public services are under attack, what do we do? Stand up, fight back!"

As San Francisco gears up to set its budget for the next two fiscal years, city workers are concerned that their departments will receive less funding, leading to job cuts and layoffs.

With a looming budget deficit estimated at $817 million, Lurie may have to slash spending in some areas in order to shrink the shortfall. As departments prepared their budget presentations earlier this year, Lurie required that they each propose ongoing cuts of at least 15% for the 2026 and 2027 fiscal years.

Yet Lurie has also stated that spending cuts are simply a short-term fix.

"We must invest in permanent solutions for our economic success as we dig ourselves out of the nearly $1 billion budget deficit we inherited," Lurie said in a speech marking 100 days in office. "We can't just cut our way to change -- we will learn to do more with less, because we have to."

Lurie's office did not respond to a request for comment on his upcoming budget proposal in time for publication.

Instead of cutting spending to public service departments such as libraries and sanitation, leaders from labor unions such as SEIU Local 1021 and IFPTE Local 21 want Lurie to demand that major corporations like Airbnb and Uber drop litigation against the city.

"The budget will not be balanced on the backs of the working people of San Francisco who keep this community running, who keep this community thriving and who are the basic foundation of the success in this community," shouted SEIU Local 1021 President Theresa Rutherford in a speech at the rally . "We are going to fight like hell and we are going to win."

Businesses like Airbnb, Uber and Lyft all have lawsuits against San Francisco seeking to recover millions spent on local taxes they argue were overpaid. All together, the litigation totals could cost the city $415 million, which is more than half of the estimated budget deficit, according to a joint report from the mayor and city controller's office.

District 7 Supervisor Jackie Fielder came to the rally to demand that Airbnb drop its lawsuit demanding $120 million in back taxes. Airbnb's suit claims that the city improperly applied the tax on gross receipts between 2019 and 2022.

"They want to gut $120 million and get out of paying their fair share just to line the pockets of their CEO, of their shareholders," Fielder said. "This is a for-profit corporation literally raiding city coffers."
The unions say that the budget shortfall could be significantly mitigated if these major companies cease their lawsuits against the city.

"This deficit is being driven by all these lawsuits, by Airbnb and other rich corporations," Rutherford said. "This budget will be balanced by them paying their fair share and we will insist on that!"

A spokesperson for Airbnb said in a statement that the company cannot comment on pending litigation, and that it's in compliance with tax obligations. Despite their lawsuit against the city, Airbnb said it is committed to San Francisco, noting that the company renewed its lease for its headquarters in the city to 2037.

The company also believes that it serves as an economic driver for the city, rather than a drain on San Francisco's fund.

"Airbnb is a critical source of economic empowerment in communities across the country, including San Francisco where Airbnb was founded," a spokesperson said in a statement. "Across the city, thousands of hosts rely on the extra money they earn from sharing their home to pay their mortgage, save for their kids' college education, build a nest egg for retirement, or simply to cover rising costs of living."

Uber and Lyft did not respond to requests for comment in time for publication.

Lurie's budget proposal will be released in June. The Board of Supervisors must vote to approve a budget plan in July.

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