The Facts

Mayor Daniel Lurie reached an early tentative agreement with 10 unions representing 24,000 city workers: 12% raises across 2027 to 2031 (3% per year) and no layoffs through June 30, 2029. Union members must still ratify the deal, report Joe Fitzgerald Rodriguez, Gabriel Lorenzo Greschler, and Maggie Angst at The Standard.

The Context

The agreement heads off bargaining that was expected to become contentious after police received 14% raises. Earlier this year, unions threatened San Francisco's first major city-worker strike in roughly 50 years as Lurie pursued layoffs and spending cuts.

Lurie has already reduced the size of city government. His first budget eliminated 1,237 authorized positions in 2025–26 and another 25 the following year. His latest budget schedules 249 more position reductions in 2027–28. The Controller says that budget also contains about $300 million in ongoing savings, cutting the projected 2028–29 shortfall from $742 million to about $450 million.

The fiscal problem remains. The City's March forecast projected its annual deficit growing to $1.09 billion by 2029–30, with salaries and benefits the largest spending-growth category. The Mayor's Office has not publicly explained how it will fund the raises, but we expect it will be similar to strategies used in the past: closing open roles and counting on attrition and retirement.

The GrowSF Take

Absolutely nobody wants a City worker strike, so we're glad to lock in a mutually agreeable solution early. But committing to a new contract as we're facing a looming billion dollar deficit is a risky strategy.

The Board should approve this agreement only if recurring savings or revenue fully cover it without degrading core services.