Progressives and Next Mayor

San Francisco’s diverse progressive communities need and will elect a pro-business mayor. Here’s why.

When times are good, progressive rhetoric flows as heartily as taxes. But when the local economy slows — like now — unemployment and underemployment reach 16 percent, and budget deficits top $500 million, then discretionary tax dollars and the flow of charitable contributions slows down.

This means serious cutbacks for nonprofit groups and arts organizations — whose members and workers just happen to vote progressive for the most part.

The nonprofit industry is big business in San Francisco. There are more than 835 nonprofits vying for city contracts. Nonprofit groups receive $1.5 billion in city contracts yearly. That’s nearly 10 percent of the city budget and 20 percent of the General Fund. That comes from the progressive San Francisco Bay Guardian.

Seven-thousand nonprofits also rely heavily on grant giving. A recent study showed that nonprofits provide 8 percent or $700 million of wages earned in the city. Large private foundations provide half of the funding for most city nonprofits. With the weakened local economy, contributions have declined, and nonprofits have cut back.

In addition, dozens of arts organizations rely on local government grants and corporate and individual giving, and they’re hurting. As reported here, Grants for the Arts, funded by the San Francisco hotel tax which supports 220 city groups, cut $2.5 million from its $10 million budget last year. Even the San Francisco Ballet laid off dancers and cut senior staff pay by 10 percent. A sluggish, unattended economy also hurts private contributions. The 21 foundations that support Bay Area arts groups gave $10 million less last year.

As taxes have declined, a major fissure has appeared among progressive and left groups in San Francisco. There’s open criticism of the Cadillac health and retirement benefits for city workers. That’s because tax dollars spent on gold-plated health and retirement plans are dollars diverted from nonprofit services and arts groups.

It’s for this reason that San Francisco voters, including voters from the left, will choose a candidate that can bring health to the local economy and tackle the government unions in contract negotiations. That’s the only way nonprofits and arts groups will survive. It’s the only way that government contracts, grants and private giving can be restored.

Campaign rhetoric fades quickly in the face of economic and fiscal realities. Reality has hit the progressive community.

Arthur Bruzzone is a regular contributor to Viewpoint and president of Bruzzone Strategic Investments (BSI).