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Nonprofit leaders press Board to boost contracts to 3% amid years of flat funding
Summary
Nonprofit directors, union representatives and human‑services advocates urged the Budget & Finance Committee to raise the mayor’s 1% ‘cost‑of‑doing‑business’ increase to 3%, saying frontline contractors have gone years without raises and need $9 million to restore parity and stability.
San Francisco nonprofit leaders and union representatives told the Board of Supervisors’ Budget & Finance Committee that the mayor’s proposed 1% increase for nonprofit contracts is insufficient and urged a full 3% cost‑of‑doing‑business adjustment.
“Nonprofit workers are the heart, the soul, and the spirit of San Francisco,” said Michael Gause, deputy director of the Mental Health Association of San Francisco and member of the Human Services Network, urging the committee to support the higher increase. Gail Gilman of Community Housing Partnership said a 3% uplift — roughly $9 million citywide, by advocates’ estimates — would help organizations retain staff and offset years of flat funding and rising costs.
Speakers cited rising health‑insurance and workers’‑comp premiums, higher food and rent costs, and long stretches of flat contracts as drivers that have left agencies stretched thin. “Since 2007 we’ve seen a 76% increase in health insurance premiums,” said Ken Reggio of Family Service Agency, urging flexibility in how agencies apply any added funds.
Labor representatives also pressed for revenue changes to sustain the increase. “You have options in front of you,” said Larry Bradshaw of SEIU Local 1021, pointing to payroll and business tax reforms already under discussion.
Committee action later in the meeting addressed agenda scheduling and technical amendments; the board did not adopt a new COLA during the hearing, leaving the request for the full board’s deliberation.
The committee accepted budget analyst and controller technical changes to several line items and agreed to transmit most budget items to the full Board with amendments; separate votes on revenue measures and a larger COLA remain subject to later action by the Board of Supervisors.
