Mayor to unveil plan to close The City's deficit 

From a mid-Market Street location today, Mayor Gavin Newsom will unveil how he has closed The City’s $483 million budget deficit.

At 3:30 p.m., Newsom will present details of his proposed city and county budget for the fiscal year that begins July 1 at the Luggage Store, 1007 Market St. The location is a nonprofit arts organization known as The 509 Cultural Center.

Newsom was faced with the challenge of closing the historic deficit after facing a similar size deficit last year that left many services cut to the bone. Leading up to today, he had negotiated concessions from labor unions in San Francisco to help bridge the gap.

“It will be a balanced budget with no new general tax increases,” Newsom spokesman Tony Winnicker told The Examiner on Monday. “We will protect public safety and vital services and a social safety net even as we invest in jobs and economic development.”

The location at Sixth and Market streets was chosen because it’s in an area that has seen its share of trouble through the years, but investment during the recession has improved the neighborhood, according to Winnicker.

Once unveiled, the proposed budget will go before the Board of Supervisors, where a battle over spending priorities will ensue. Usually, it’s because of the board’s effort to restore cuts dealt to social services.

The proposed budget must be submitted to the Board of Supervisors on June 1 for review and adoption. The board’s five-member Budget and Finance Committee, chaired for the second year by Supervisor John Avalos, will hold hearings, make adjustments and negotiate with Newsom about the finer points before ultimately sending the proposed budget to the full board for approval.

A debate has already begun between supervisors and Newsom about contracting out certain services for millions of dollars in savings. Newsom’s budget proposal is expected to include contracting out jail health services. And, there will be talk of putting tax measures on the November ballot.

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