SF faces $576M budget deficit

March 31, 2009 11:39:16 AM PDT
The city of San Francisco faces a budget deficit in the neighborhood of $576 million dollars for the fiscal year beginning July 1st.

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City leaders have called the financial situation a crisis with a capital C. Today Mayor Gavin Newsom will lay out the latest figures regarding the budget, by law it must be balanced by the start of the fiscal year.

Newsom has already ordered all city departments to cut their budgets by 25 percent. Hundreds of city employees, many from the Public Health Department, Department of Human Services, Recreation and Park Department, and Public Works have already been laid off. The Mayor is also negotiating with labor unions representing the nearly 29,000 city employees. He wants them to agree to financial give backs.

Some smaller unions have, including the one representing managers. But the largest union, SEIU is still in talks. We may get a progress report on those negotiations today. We also expect to get new details of the mayor's local economic stimulus plan which includes tax rebates for companies that purchase materials and products in the city, loans to small businesses and temporary elimination of payroll taxes for companies that add jobs.

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