Updated

Updated · The New York Times · Jun 9

San Francisco Voters Reject CEO Tax Hike 53.6% to 46% as Tech and Mayor Opposed Measure

Updated

Updated · The New York Times · Jun 9

San Francisco Voters Reject CEO Tax Hike 53.6% to 46% as Tech and Mayor Opposed Measure

Q: What is San Francisco's Plan B to fund city services after voters rejected the proposed 'Overpaid CEO Tax'?

San Francisco does not appear to have announced a new dedicated replacement tax after Proposition D failed. The practical fallback is Mayor Daniel Lurie’s existing budget plan, which was written without counting on Proposition D revenue. That plan relies on closing the city’s deficit through spending restraint, slower hiring, position cuts, attrition, and departmental reorganization rather than a new immediate revenue source. Reporting indicates Lurie’s proposed two-year budget of about $16.9 billion was designed to address a large structural shortfall by reducing ongoing costs and prioritizing core services. At the same time, the city is trying to protect key programs with targeted reserves and selective investments. That includes using emergency reserves to help offset pressure from federal cuts affecting health and safety-net services, while preserving funding for areas such as homelessness response, mental health, public safety equipment, and some housing support. So, in practical terms, San Francisco’s “Plan B” is fiscal triage: balance the budget through cuts, efficiencies, and reserve use, while continuing to look for other funding options later. The broader debate over new progressive taxes has not ended, but based on the available reporting, there is no clearly identified post-Prop D replacement measure yet.

3 articles · Updated · The New York Times · Jun 9

53.6% of San Francisco voters opposed Proposition D, defeating a tax increase on highly paid corporate executives that labor unions had promoted as the “Overpaid C.E.O. Tax.”
The measure would have expanded a 2020 pay-gap tax and raised rates by comparing executive pay with the median wage of all company employees, not just San Francisco workers.
A city analysis projected the proposal could raise $250 million to $300 million a year but also cost about 940 jobs, a trade-off opponents said would drive businesses out and slow recovery.
Mayor Daniel Lurie and tech leaders including Sergey Brin and DoorDash co-founder Tony Xu campaigned against it, underscoring San Francisco’s recent shift toward a more centrist politics.