San Francisco may be forced to cut over $200 million from the city’s budget to avoid the damage done by the infamous “doom loop.” Mayor London Breed wrote a letter to several city departments asking them to make cuts. This comes just three months after Mayor Breed signed off on a $14.6 billion budget for the city.
The term “doom loop” refers to a city losing money due to businesses abandoning their locations. This includes office buildings, retail stores, restaurants, and more. When buildings that contain businesses shut down, tax revenue is lost by the city. No more rent is being paid at these gigantic skyscraper office buildings. No more tax revenue or rent/mortgage gets paid at small and large businesses. The result is almost like what takes place when a small town becomes abandoned. In the case of San Francisco, the city is not abandoned but some parts are and this is causing a budget shortfall.
San Francisco has no one else to blame other than city leadership for the onslaught of the “doom loop.” The city has been lax on crime which creates an unsafe environment. If businesses and workers have the option of their employees working remotely, they will take it. Not just for convenience, but for safety. If the city cannot protect workers, then the workers will not show up if given the option. C-19 may have sparked the semi-exodus of businesses and workers from the city, but the groundwork was already laid for such a thing to take place.
EXCLUSIVE San Francisco mayor orders police, health and other departments to propose cuts of $206 MILLION in desperate attempt to reverse city’s ‘doom loop’ spiral into economic collapse | Daily Mail Online