Mayoralty of Gavin Newsom - Economic Policy

Economic Policy

During Newsom's first term as mayor, tourism, air traffic, and hotel occupancy increased while unemployment decreased by 2.5%. 57 new companies and 35 new biotech firms opened in San Francisco, including the California Institute for Regenerative Medicine Stem Cell Institute. Newsom supported biotech and clean industry tax incentives to bring more businesses to San Francisco. In 2005, Newsom implemented the Working Families Tax Credit, providing the average San Francisco family with an extra $300. Newsom has made efforts to reach out to San Francisco businesses. In 2004, Newsom had a 100 in 100 campaign, meeting with 100 CEO's in 100 days to try to make San Francisco more business friendly.

While the unemployment rate has decreased, San Francisco has 90,000 fewer jobs since 2000. Rising costs of living, combined with the blue collar jobs leaving San Francisco, have made it harder for blue collar workers to live in San Francisco. Newsom has worked to address these problems with affordable housing and has claimed that the new high tech companies will also bring some blue collar jobs to San Francisco.

On October 27, 2004, during a strike by hotel workers on a dozen San Francisco hotels, Newsom joined UNITE HERE union members on a picket line in front of the Westin St. Francis Hotel. He vowed that the city would boycott the hotels by not sponsoring city events in any of them until the hotels agreed to a contract with workers. The contract dispute was settled in September 2006. Newsom's support of the workers angered some businesses who had been traditional Newsom backers.

In order to help balance San Francisco's budget in 2004, Newsom supported Proposition J to increase sales taxes and Proposition K to increase business taxes. Both measures failed in 2004. Newsom laid off hundreds of city workers and cut city services in 2004 to balance the city budget. Newsom helped close San Francisco's budget deficit in 2004 by consolidating 6 city departments that reduced the city budget by $78 million.

In an attempt to provide universal wireless Internet access to city residents free of charge, Newsom spent 18 months trying to develop a city-wide Wi-Fi zone. Google WiFi partnered with entrepreneur Jaz Banga, and his company Feeva, beginning in 2005 to provide free Wi-Fi in Union Square, but the plan was to blanket the city. Negotiations with the Board of Supervisors and Internet Service Provider EarthLink ended when EarthLink pulled out of the talks. Newsom said he would continue to work for universal Wi-Fi. Other unachieved efforts include a cruise ship terminal and a waterfront YMCA.

During Newsom's time as Mayor, the San Francisco 49ers caught Newsom by surprise when they announced they would be moving to Santa Clara. Newsom received some criticism for being too hands off in the discussions, a claim Newsom denies. In 2005, Newsom participated in the announcement of the 2007 Major League Baseball All Star Game that would be held in San Francisco. He participated in the 2007 All-Star Legends and Celebrity Softball Game.

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