#United States #San Francisco #SEIU Local 1021 #IFPTE Local 21

Union Leaders in San Francisco Respond to City’s Financial Plan

On March 31, 2025, union leaders from IFPTE Local 21 and SEIU Local 1021 voiced their concerns regarding the City and County of San Francisco's Proposed Five-Year Financial Plan, also known as the 'Joint Report.' They assert that the city's budget can remain balanced without imposing significant cuts to vital services, but only if wealthy technology companies contribute their fair share in taxes.

The Need for Accountability

Sarah Perez, a City employee and Vice President for IFPTE Local 21, emphasized the crucial role of tech corporations in the ongoing budgetary challenges. "San Francisco can balance its budget without major cuts to core services," she stated. "But this is conditional on wealthy tech companies paying their fair share." The unions have directed particular attention to Airbnb's failure to meet its tax obligations, which significantly impacts the city’s financial health.

The union leaders have engaged with Mayor Daniel Lurie, seeking collaborative solutions to these fiscal challenges. They highlight the over $200 million saved in the General Fund due to a citywide hiring freeze and propose further cost-saving strategies, including cutting $100 million from contracts.

Airbnb's Tax Evasion Claims

Airbnb has found itself at the center of a heated financial debate. Critics allege that the company's refusal to pay its taxes has directly contributed to San Francisco's budget deficit. The tech giant has been involved in multiple lawsuits against the city, attempting to lower its tax rates while seeking over $120 million in public service funding. Half of this amount is reportedly earmarked for essential services like mental health and homelessness assistance, desperately needed by the community.

Kristin Hardy, the San Francisco regional vice president for SEIU 1021 and a General Hospital employee, shed light on the problematic impact of Airbnb's tax evasion. "Airbnb is undermining our public services, affecting Muni lines, public hospitals, and libraries deeply," she remarked. The consequences of these actions resonate with San Franciscans who demand better mental health, substance abuse, and homeless services, emphasizing that a community’s welfare should not be compromised by corporate tax avoidance.

Broader Implications of Corporate Contracts

In analyzing the broader context of San Francisco's financial landscape, it becomes apparent that reliance on contracts has surged. According to a 2023 analysis by the SF Chronicle, the City and County of San Francisco spends an average of $5.2 billion annually on contracts, with $7.1 billion in new agreements awarded in the fiscal year 2022-2023. This trend predominantly benefits contractors outside of San Francisco, with a mere 6% of awarded dollars returning to the local economy, thus straining city resources further.

Commentators have raised concerns that the increasing reliance on external contractors not only fails to support local businesses but also diverts public funds away from communities in need. Unreliable contractors pose a double threat: misusing resources and neglecting essential services, further exacerbating financial woes and undermining taxpayer dollars.

Conclusion and a Call for Action

As San Francisco faces its financial crisis, union leaders are calling for accountability from wealthy tech companies such as Airbnb. They stress that community needs must be prioritized over corporate profits. The unions’ efforts to collaborate with city officials reflect a broader desire for equitable solutions to public service funding. As pressures mount, the urgent plea for tech giants to uphold their fair share of tax responsibility to sustain essential city services remains a pivotal aspect of this ongoing economic struggle.