SAN FRANCISCO — San Francisco Mayor Daniel Lurie notched an early victory in his crusade against the city’s twin crises of homelessness and fentanyl addiction, getting sign-off from the powerful Board of Supervisors to bypass bureaucratic hurdles that have slowed expansion of shelter capacity and treatment programs, and more leeway to pursue private funding to help finance those initiatives.
The measure, dubbed the Fentanyl State of Emergency Ordinance, marks Lurie’s first big step in fulfilling a campaign promise to visibly reduce homeless encampments and open air drug use within six months of taking office, in part by adding 1,500 shelter beds and expanding behavioral and mental health services. That pledge helped Lurie, a moderate Democrat and political newcomer, triumph in the November election against incumbent London Breed and three other City Hall veterans whom he accused of allowing homelessness, addiction and the companion ills of retail and property crimes to fester.
During a City Hall news conference Wednesday before signing the legislation, Lurie said the new authority will allow his administration to “act swiftly and effectively.”
“The fentanyl crisis is not a nine-to-five operation,” Lurie said. “It doesn’t take breaks, and neither will we.”
Lurie introduced the ordinance shortly after his January inauguration, and has spent the last month negotiating for its passage with San Francisco’s Board of Supervisors, an 11-member body that acts as the city’s legislative branch. The supervisors gave the ordinance their final approval Tuesday in a resounding 10-1 vote.
That overwhelming support marks a dramatic shift in the power dynamic between the mayor and the board, whose leadership for years has been considered staunchly progressive. The board frequently opposed Breed — also a centrist Democrat — in her tough-on-crime efforts to crack down on drug dealers and bolster police powers.
The November election resulted in a turnover on the board, as voters weary of sprawling homeless encampments and brazen drug use looked to shake up local governance. The newly constituted board has five new members and a more moderate bent.
“Progressives are much reduced on the board, and the ones that have been sort of progressive before are more toward the center now,” said Jason McDaniel, a political science professor at San Francisco State University. “I do think that the board and the mayor have a common sort of goal of … trying to solve some of these problems that the electorate seems to still be quite upset about.”
Supervisor Rafael Mandelman, who was named president of the board last month, worked with Lurie on amendments to narrow the ordinance in ways that appeased the board’s more liberal members and secured a majority vote. Mandelman is among the supervisors who have moved toward the political center in recent years after he was elected in 2018 as a progressive representing the Castro district.
The ordinance cuts red tape in the city’s emergency response to homelessness and drug use by temporarily bolstering the mayor’s authority — and reducing the board’s role — in approving city contracts related to homelessness, addiction and mental health. It expedites the procedures for hiring outreach workers and public safety employees tasked with staffing shelters. It also exempts such contracts from the city’s stringent competitive bidding process until 2026.
The board still has the opportunity to weigh in on contracts worth from $10 million to $25 million, but the ordinance requires supervisors to act within 45 days of a contract proposal.
A critical component of the ordinance allows Lurie and certain members of his administration over the next six months to solicit private donations of up to $10 million for these efforts from individuals with business before the city, waiving a prohibition on behested payments from “interested parties,” a broad category that includes contractors, lobbyists and companies.
That allowance gives Lurie, an heir to the Levi Strauss family fortune, the opportunity to leverage a Rolodex of wealthy connections in the tech and business sectors accumulated through his family’s decades in philanthropy and his own experience as an anti-poverty nonprofit executive. The outside funding could help backfill a budget deficit projected at nearly $1 billion, and avoid cuts to homelessness and treatment services that could undermine Lurie’s efforts.
Lurie said the relaxed rules will help the city quickly set up a 24/7 “stabilization center” in the heart of the Tenderloin district for police to drop off people who need medical care, as an alternative to jail and emergency rooms.
The waiver raised concerns among a handful of supervisors, who advised Lurie to use his powers carefully and referenced an embarrassing series of scandals that have shaken City Hall in recent years. That includes the 2022 federal prosecution of a former director of the San Francisco Department of Public Works for a long-running scheme involving bribery and kickbacks. The same year, San Francisco voters approved a ballot measure that restricted city officials from soliciting private donations from people doing business with the city.
“With my vote today, I am putting a great deal of faith in Mayor Lurie’s administration to utilize these extraordinary powers to carry out the will of the voters and provide housing, shelter and treatment to our most vulnerable, and to do so without repeating the corrupt practices that have tainted the public’s trust in city government for years,” Supervisor Jackie Fielder, a freshman member, said after voting in support of the ordinance at a Feb. 4 meeting.
Supervisor Shamann Walton, a progressive, voiced concerns about weakening government checks and balances and the lack of details in Lurie’s plan before casting the lone “no” vote against the ordinance.
Lurie on Wednesday pledged “full transparency” about who contributes to the funds for enhanced services. “The public will know who we are talking to and who donates,” he said.
Despite Lurie’s early victory, political observers said that future policy disagreements between the board and mayor’s office are almost certain. While tackling fentanyl abuse is a popular issue, said Democratic political consultant Jim Ross, debates over Lurie’s recent City Hall hiring freeze and the looming budget crisis are likely to spark more tension.
“This is his first legislative issue,” Ross said, “and I think there’s are a lot of members on the board who don’t want to start their time … making an enemy of the mayor.”