San Francisco is set to lose hundreds of millions of dollars annually, as businesses flee the city due to rising crime, homelessness and an inability to recover from the pandemic policies, according to an analysis of official figures by DailyMail.com.
Companies are citing concerns over employee and customer safety in the city’s ‘deteriorating’ downtown area that has been plagued by drug use and rampant crime. Downtown foot traffic has diminished to just 32 percent of pre-pandemic levels, with public transit similarly impacted, according to official forecasts.
As leaders estimate a budget shortfall of $1.3 billion within five years, a worst-case budget scenario compiled by the city’s chief accountant paints an alarming picture, with the decline in property tax revenue alone potentially reaching $200 million annually.
The office building vacancy rate has hit all-time highs, with May data showing 31 percent of office space – equivalent to 18.4 million square feet, or 92,000 jobs – that lies unused as retailers depart and customers steer clear.
Despite a $780 million deficit, Mayor London Breed presented San Francisco’s highest-ever $14.6 billion budget, which calls for significant spending increases on police, homelessness, and substance abuse.