The most recent union contracts with the city’s police and firefighters, will cost the city an additional $100 million over the next two years, and over $300 million over the next four years, according to a memorandum of understanding between the city and both departments that was discussed today at the Board of Supervisors Budget and Finance Committee.
The city of San Francisco is currently facing a $634 million budget deficit over the next two fiscal years— an improvement compared to the $936 million deficit predicted in December of 2025, but still staggeringly high. The short fall is partly due to federal and state healthcare cuts, and partly due to the city’s own free-spending practices during more fiscally abundant times.
Departments across the city have been asked to make cuts toward reducing $400 million in general fund expenditures in preparation for this summer’s budget process, which culminates on June 30.
Those deficit numbers do not yet include the compensation discussed at today’s meeting, which, once approved by the Board of Supervisors, will go into effect on July 1st and be non-negotiable until the next contract. That would be June 30, 2030, when the proposed contract ends.
At the meeting, discussion of the new contract was positive. “If I had to pick a couple of words to characterize what these agreements are really about,” said Carol Isen, human resources director for the city, “ it would be that they provide both stability and certainty for the city over the next four years as you’re approaching— I think— a very difficult budget cycle over the next two years.”
The city’s team negotiated the contract with the unions “at Mayor Lurie’s direction” as part of “extensive good-faith negotiations between the city and our labor partners.” Isen said, adding that over 95 percent of the police and firefighters voted to ratify the new contract.
“We really believe these agreements are fiscally responsible for the city,” said Ardis Graham, Employee Relations Director for the city and county of San Francisco, emphasizing that the pay raises and other benefits that are a part of the new contract are necessary to deal with the police department’s staffing shortages.
“I certainly have prioritized this police understaffing in San Francisco,” said Supervisor Dorsey to Graham. “Where are we with fire staffing? Are we in good shape?”
The fire department is fully staffed, said Wong, and does not appear to have a recruitment problem.
The agreement includes a 14 percent pay increase for members of both the Police Officers Association and International Association of Firefighters Local 798 over the next four years. Police officers will receive additional raises once they reach 8 and 10 years of employment — critical, Graham added, for discouraging officers from leaving the department once they had acquired some experience.
“I’ve been around for 30 years,” said Lewis Wong, president of the Police Officers Association. “I believe this is the best contract I have ever been a part of.” Police recruitment was up, Wong said, and the contract was going to make it even better. “It’s going to make a big difference if you do pass this tentative agreement.”
The negotiating parties were sensitive to the city’s budget shortfall, Wong added. As a sign of that concern, he added, the negotiators had focused on a four-year contract, instead of a more typical three years. “We understood,” Wong said. “We want to help the city out.”
Overall, Wong said, it was a remarkably convivial process. “I don’t think we had any conflicts during this — We didn’t even have one little dispute,” Wong continued. “This contract — it’s not just for the police and for fire. It’s for the citizens.”