Agnos Proposes Sweeping Plan to Cut Projected Deficit in S.F.

Mayor Art Agnos, struggling with a projected $179.6-million municipal budget deficit, proposed a sweeping plan Monday to eliminate 1,089 city jobs and cut back public services, including police and fire protection and public transit.

Mounted police would still patrol Golden Gate Park, but desk sergeants would be put out on street patrols, and four Fire Department trucks would be retired--a controversial move in a city of densely packed, wood-frame structures. Bus service also would be trimmed, and four branch libraries would be closed.

“I think some of these cuts should have been made whether we had a budget deficit or not. I think it is good management to do so,” Agnos said, jabbing at his predecessor and potential gubernatorial candidate, Dianne Feinstein. At one point during Feinstein’s nine-year tenure, the city had a $152-million surplus.

At the same time, the new mayor, a former social worker, urged no cuts in a variety of social service programs, including programs for children and teen-agers, paramedic ambulances and a city hospital for “the frailest of our elderly.”

Unions Skeptical

Public employee unions were skeptical of the mayor’s proposals, which union official Paul Varacalli described as “just the opening salvo” in what could be a protracted battle to balance San Francisco’s budget.

“We’re mindful of the fact that six of the 11 (members of the city board of) supervisors are up for reelection in November,” said Varacalli, executive director of the United Public Employees Union Local 790. Board members in the past have sought ways to balance the budget without layoffs or salary freezes.

Part of Agnos’ informal deficit-reduction plan, which was disclosed three weeks before his formal budget proposal is due, assumes voters will approve two June 7 ballot measures to cut the deficit by allowing $30.7 million in higher business taxes and by postponing $10 million in city pay increases.

Such as-yet unauthorized deficit-shaving proposals apparently are forbidden by City Charter from inclusion in Agnos’ formal budget proposal, due six days before voters decide on the measures. The mayor declined to discuss how he plans to resolve the problem.

Together, the budget cuts and tax and fee hikes would total $199 million, thus permitting a small reserve and modest added spending on the AIDS-swamped General Hospital and the grafitti-spattered Municipal Railway, which runs the city’s buses, streetcars and cable cars.

Overall, San Francisco under Agnos’ plan would lose more than 4.5% of its unusually large 24,000-person work force. Even after the cuts, however, Agnos said the city still would have the highest per-capita rate of police officers and firefighters of any city in California.

Ironically, Agnos was elected last November on a platform offering generous social spending--a promise he postponed upon taking office and confronting an unexpectedly large deficit.

“I did not run for mayor in order to cut services, postpone pay hikes or raise taxes,” he said after announcing plans to do all three. “But there is no way to redirect priorities or to tackle the real problems of the city until we put our fiscal house in order. That’s what I’m doing in the fairest way I know how.”