San Francisco leaders push for $100M annual investment in nonprofit worker wages

The San Francisco County government meeting held on July 4, 2025, focused on critical discussions regarding the nonprofit sector's funding and support for workers and services. The meeting highlighted the urgent need for increased investment in nonprofits to address ongoing inflationary pressures and historical underfunding.

Debbie Lerman, a key speaker, emphasized the necessity of implementing a cost-of-living adjustment (COLA) as recommended in the controller's report. She pointed out that while the budget currently funds the COLA, there remains a significant gap of at least $20 million needed to adequately cover the cost of doing business, which has risen over 5% this year.

Lerman advocated for a long-term strategy that would require an annual investment of approximately $100 million over several years. This funding is essential to raise nonprofit worker wages to a level that reflects the historical underfunding, particularly for legacy contracts that have persisted for decades.

The discussion also included the need for a comprehensive implementation strategy to tackle the challenges of increasing wages. Key proposals included funding all health and human service contracts for San Francisco nonprofit workers, establishing wage floors that ensure a true living wage, and addressing wage compaction to encourage individuals to accept mid-level positions.

Additionally, Lerman called for the provision of multi-year contracts with built-in escalators to prevent the need for repeated budget requests each year. This approach aims to create a more stable and sustainable funding environment for nonprofits and their workers.

In conclusion, the meeting underscored the pressing need for a strategic investment in the nonprofit sector to ensure fair compensation for workers and the continued provision of essential services to the community. The discussions set the stage for future actions aimed at addressing these critical funding challenges.