City Poised to Overcome Economic Challenges as Mayor Announces Comprehensive Jobs, Education & Homelessness Initiatives

01/13/10 – San Francisco’s continuing investment in job creation, workforce development, education and the green collar economy will help lift the City out of its current economic recession and cement its role as a global innovation and investment hub in the 21st century, asserted Mayor Gavin Newsom tonight in his State of the City Address.

With creating jobs and fostering economic growth in San Francisco as his number one priority for the next two years, Mayor Newsom announced a series of initiatives, including a renewed local economic stimulus package and new education and homelessness initiatives.

“By focusing all our energies on creating jobs and economic growth and by investing in people and place, together we will overcome the challenges we face today and emerge a global leader for innovation and investment,” said Mayor Newsom. “We’ll reward new businesses and small businesses that provide health care to workers and hire new employees. We’ll train our people for the new green economy and we’ll close the graduation gap in our public schools. We’ll put thousands to work building new neighborhoods at Hunters Point and Treasure Island and rebuilding our City’s infrastructure for the future.”

Economy & Jobs:

Mayor Newsom’s number one priority in his remaining two years in office will be growing San Francisco’s 21st century economy through job creation and new business development. Creating new jobs and businesses is key not just to overcoming our current economic anxieties and challenges, but to securing our long-term competitiveness as a global hub for innovation and progress.

Mayor Newsom announced a renewed, comprehensive local economic stimulus plan for the City:

· No taxes on new hires for two years
· Tax credits for small businesses (20-49 employees) that provide health care to their employees

· Extension of biotech payroll tax exclusion to allow any biotech business that begins operations in San Francisco before December 31, 2014 to access the full value of the existing credit.

· Innovation Fund: $11.5 million in loans as little as $50,000 apiece, targeted at an “Innovation Corridor” that stretches from Central City through Mission Bay and down into the Bayview. Administered by a community lender, it will target new and existing businesses in cleantech, biotech, new media, and IT. Provides jobs to low-income people. Working in cooperation with HUD.
· Mid-Market Reinvestment: $11.5 million for re-imagining and redeveloping and reinvestment in the Central City. We will fundamentally rethink mid-Market’s vision with the Better Streets Project (sidewalks, public spaces, public amenities, traffic calming) to make Mid-Market a shining retail and entertainment district again, complete with affordable housing and transit-first policies. Working in cooperation with HUD.
· Contracting reform: Accelerating capital construction and taking steps to make sure local San Francisco firms are competitive on these opportunities.
· Fight for $652 million jobs and infrastructure bond for seismic and public safety in June 2010.
· Continue SF role as “green collar economy” center with $5 million to successful GoSolarSF in FY10-11 and $500,000 restored this year.

Education:

The 21st century economy demands an educated, prepared workforce. We must rise to this challenge and close the graduation gap that afflicts underprivileged communities in San Francisco. By addressing truancy and chronic absence, we can close the graduation gap. In San Francisco last year, 32% of African American, 19% of Caucasian and 19% of Latino students didn’t graduate public high school. Today, Mayor Newsom announced the launch of the Truancy Assessment Referral Center (TARC) to help close the gap.

Open Innovative Truancy Assessment Referral Center (TARC)

· A joint effort with the San Francisco Unified School District (SFUSD), SF Juvenile Probation Department (SFJPD), SFPD, Department of Children, Youth, and their Families (DCYF), city providers, and the school district to open a new drop-in facility at 44 Gough St. This is an innovative, first-in-the-state model that leverages existing City resources to specifically target young people who are both visibly truant and chronically absent.
· Providing creative incentives for students to stay in school
· Working with local merchants and communities to discourage kids from skipping school
· Better coordinating data sharing throughout the city to help the kids of families in crisis

Homelessness:

San Francisco has made measurable, demonstrable results on homelessness, more than 10,000 people are off the streets and out of shelters and into permanent housing since Mayor Newsom took office. But the fact is that in one of America’s greatest cities, we still live alongside thousands of homeless men, women and children. This is shameful. We are not doing all that we’re capable of doing to solve homelessness. That is why today Mayor Newsom pledged a 50% reduction in street homelessness and 30% reduction in overall homelessness by the end of 2010, and announced plans to make Project Homeless Connect permanent.

Permanent Homeless Connect

· An enduring, daily version of the comprehensive service model we forged back in October 2004.
· At first, Permanent Connect will offer round the clock drop-in, referrals and all of the assistance of a regular Homeless Connect. By the end of 2010, it will evolve into a full-fledged response to the root causes of homelessness and help to alleviate the symptoms of it. We’ll offer a much-needed place for those afflicted with substance abuse or mental health challenges so they find the help they need.

Government Reform & the 2010-11 Budget:

Last month, Mayor Newsom acted quickly to eliminate a $45 million budget shortfall that was due in large part to substantially reduced property tax receipts. Because of this quick executive action, every bond agency has affirmed our City’s strong ratings as safe and stable. The ability and discretion of the executive branch and the elected Mayor to take decisive action in a budget crisis is critical to protecting our City’s economy and fiscal stability. But even with our decisive mid-year adjustments, like governments at every level, we face historic budget deficits and a shortfall projected still at nearly $500 million next year. Painful choices again are ahead. The easy decisions are behind us. And under any scenario, cuts to services are likely and increased revenues are needed.

Mayor Newsom announced that he will oppose Must-Spend legislation. In February, when the City receives new six-month budget reports, Mayor Newsom announced that he will give a budget update and hold several budget “town hall” meetings.

· Oppose Must-Spend: Mayor Newsom will oppose proposals at the Board of Supervisors that would hamstring the executive branch’s ability to respond quickly to a fiscal crisis and require that the mayor spend money the City does not have and jeopardize the City’s credit ratings. The so-called “must spend” proposal is nothing short of an attempt to recklessly grab power from the executive branch that threatens our City’s future financial stability and health.

· Budget “Town Halls” and Update in February: In February, the City will receive new 6 month budget reports that show the magnitude of our challenges. Mayor Newsom will give a new budget outlook and update and hold several budget “town hall” meetings in February. For FY 2010-11 (due June 1 at the Board of Supervisors), based on the latest information and input from the community and neighborhood stakeholders, Mayor Newsom will propose an “economic growth budget” that uses our resources to help create jobs, overcome our fiscal challenges and grow forward.

“I’ve never met anyone who thought taxes were too low,” said Mayor Newsom. “There’s a limit to how much more we can tax and cut, but there’s unlimited potential in how much more we can create jobs and grow our economy.”