SF Union Leaders Respond to City's Joint Report, See Pathway to Avoid Major Cuts

SAN FRANCISCO, March 31, 2025 /PRNewswire/ -- On Monday, March 31, union leaders in IFPTE Local 21 and SEIU Local 1021 responded to the City and County of San Francisco's Proposed Five-Year Financial Plan, otherwise known as the 'Joint Report.' City workers say that the budget can be balanced without major cuts to services, but only if wealthy tech companies pay their fair share in taxes. Workers point to the example of Airbnb's refusal to pay its taxes, making them a major contributor to San Francisco's deficit.

Labor unions have been meeting with Mayor Daniel Lurie in the hopes of partnering on the City's budget challenges. The vacancies resulting from a citywide hiring freeze have saved the City over $200 million in the General Fund. Unions have proposed further cost saving strategies to Mayor Lurie. These include $100 million in reductions to contracting out, and holding corporations accountable in paying their fair share of taxes.

"San Francisco can balance its budget without major cuts to core services, but only if wealthy tech companies pay their fair share," said Sarah Perez, San Francisco City Employee and SF Vice President for IFPTE Local 21. "We're asking Mayor Lurie to join us in calling for accountability. It's time to pick up the phone."

"While Airbnb co-founder and board member Joe Gebbia is busy with Elon Musk stealing our healthcare and Social Security, his company is shaking down our city too," said Kristin Hardy, San Francisco regional vice president for SEIU 1021 and SF General Hospital employee. "Airbnb is cheating on their taxes and screwing over our Muni lines, public hospitals, and libraries. San Franciscans are overwhelmingly demanding more mental health, substance abuse, and homeless services, as well as street cleaning, to address the conditions on our streets. Yet that's not happening because of corporations like Airbnb that don't want to pay their fair share of taxes."

Since 2019, Airbnb has repeatedly sued the City and County of San Francisco in hopes to lower their tax rates and claw back over $120 million from public service funding. Of the $120 million in back payment Airbnb is currently seeking, roughly half of it would come from desperately needed homeless and mental health services. The City is currently withholding tax revenue (likely as much as $90 million) that could go towards balancing the budget, but is being set aside in case Airbnb refuses to drop their lawsuit and pay their taxes.

Airbnb is one of the largest tech companies headquartered in SF, with revenue surpassing $11 billion in 2024 alone. They've benefited from massive tax breaks due to the recent passage of Prop M, to which they contributed $550k through their PAC "Committee to Expand the Middle Class Issues Committee Sponsored by Airbnb Inc."

Workers say Airbnb's attack on public services isn't limited to San Francisco. Airbnb co-founder and current board member, billionaire Joe Gebbia, took a position on Elon Musk's DOGE team which is working to dismantle public services in order to pay for tax cuts for the richest Americans.

BACKGROUND ON CONTRACTING OUT
The City and County of San Francisco spends on average $5.2 billion each year on contracts, according to an SF Chronicle analysis in 2023. In fiscal year 2022-23 alone, the city awarded $7.1 billion in new contract agreements and on average has awarded $6.2 billion in new agreements yearly since 2017, reflecting the City's increasing reliance on contractors. Notably, this increase in contract spending predominantly benefits contractors with no roots in San Francisco, with only 6% of awarded contract dollars going back to our local economy. Since 2017, $41 billion has been awarded to contractors outside San Francisco. Unreliable contractors are costing the City, and more importantly taxpayers, valuable public funds when they misuse resources, fail to provide services that were paid for, and charge for unnecessary profits that could fully fund additional services. Click here to read more about the history and shortcomings of contracting out of San Francisco public services.

SOURCE IFPTE Local 21