Budget committee backs amended Small Business and Economic Recovery Act, sends it to full board

The San Francisco Board of Supervisors Budget and Finance Committee voted to forward an amended Small Business and Economic Recovery Act and a related charter amendment to the full Board of Supervisors with a positive committee recommendation.

Chair Sandra Lee Fewer opened the meeting and summarized the measure, saying the amendments increase tax relief for small and cost-sensitive industries harmed by the COVID-19 pandemic and would allow the city to unlock funds now constrained by existing litigation. President Norman Yee told the committee the mayor supports the amended measure and said it would free up $300 million for the general fund through a 20-year backstop tax that would only take effect if the city loses pending litigation.

The proposal includes a charter amendment intended to prevent the new revenue from triggering baseline funding reductions for several voter-mandated funds, and an ordinance to change the business and tax regulations code. Under the amended measure, businesses with San Francisco gross receipts of $2,000,000 or less would be excluded from certain changes and businesses with less than $1,000,000 would see a reduction in their registration fee. The measure also targets tax reductions for industries hit hardest by the pandemic, including hotels, food services, restaurants and manufacturing, and delays consideration of new taxes until January 2022 with phased increases for large industries thereafter.

Public commenters urged approval on childcare and workforce grounds. Maria Lu Story, an organizer with Brand Voices in San Francisco, said the ability to access childcare funds already approved by voters is essential to economic recovery and warned that childcare closures tend to be permanent. Naina Charles, public policy communications director for the Children's Council of San Francisco, said the council supports the amendment because releasing so-called "baby fee" funds would help keep childcare providers afloat and expand access; she said about 3,500 low-income children are on the childcare waitlist.

After public comment, Chair Fewer moved to send the item to the full Board of Supervisors as a committee report with a positive recommendation. Supervisors Walton and Rafael Mandelmann recorded "aye," and Chair Fewer voted "aye." The clerk announced three ayes and the motion carried.

The committee took no further business and adjourned.