A significant financial battle is unfolding in San Francisco as the San Francisco Chamber of Commerce has amassed nearly $1 million to support a business-backed initiative aimed at countering a labor union-supported tax measure. This potential ballot measure, which could appear on the June 2024 ballot, seeks to amend the city’s Overpaid Executive Tax, a move that business interests are vigorously opposing.
The Chamber’s director of public policy, David Harrison, expressed confidence in the funding secured, stating, “We have full confidence that we have funding to gather signatures and move forward with the campaign.” He indicated that additional contributions are expected by the end of January. The business coalition is reacting to the Stand Up for San Francisco initiative, which aims to generate approximately $200 million annually for public services through increased taxation on high-earning companies.
The deadline for submitting petitions for the June ballot is February 2, 2024. Harrison highlighted that the business community feels compelled to initiate this measure due to the labor coalition’s actions. The Stand Up for San Francisco coalition claims that its tax proposal will primarily target large corporations with over $1 billion in revenue and more than 1,000 employees.
In a letter sent to labor leaders, including Kim Evon of SEIU Local 2015 and Debra Grabelle of IFPTE Local 21, the Chamber urged a resolution to avoid a contentious ballot fight. The letter emphasized the need for collaboration to maintain funding for essential city services and transit systems, referencing a previous agreement that played a role in the passage of Proposition M in November 2024, which reformed business taxes with overwhelming support.
The labor coalition has responded to the Chamber’s fundraising efforts through a statement from Sarah Perez, a city employee and vice president of IFPTE Local 21. She criticized the Chamber for attempting to preserve tax benefits that she attributes to President Donald Trump‘s policies. Perez emphasized the growing support for the Overpaid CEO Act, which aims to secure funding for critical services such as hospitals and first responders.
The Stand Up for San Francisco coalition has garnered significant financial backing, including more than $1.34 million from SEIU Local 1021 and its affiliated political action committee. It includes a diverse array of unions, such as the San Francisco Firefighters Local 798, which recently endorsed the proposed tax measure. The initiative seeks to modify the existing tax structure imposed on businesses whose highest-paid employees earn more than 100 times the median salary of local workers.
As the conflict intensifies, Mayor Daniel Lurie has voiced concerns regarding the potential impact of the tax dispute on the city’s financial health. San Francisco is currently facing a nearly $1 billion budget deficit over the next two years, prompting Lurie to request $400 million in spending cuts from city departments. He underscored the importance of a responsible budget and the need for unity between business and labor groups.
Lurie’s office reiterated the mayor’s commitment to protecting public services and enhancing the San Francisco Municipal Transportation Agency, signaling a focus on a parcel tax measure expected in the upcoming November ballot.
The ongoing debate over the proposed tax measures reflects broader economic concerns in San Francisco. Both sides argue their positions are essential for the long-term health of the city’s economy and the welfare of its residents. The outcome of this financial confrontation could significantly influence the business landscape and public services in the city.
