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A group of men, mostly wearing suits and sunglasses, gather outside in daylight, with one bald man in a brown suit and orange tie standing prominently in front.
SSan Francisco

Police union’s new contract may put San Francisco in a budget bind

  • March 19, 2026

Mayor Daniel Lurie is in the tricky position of navigating how to back a police force that’s key to his public safety agenda while closing an $877 million budget deficit that will likely require layoffs of city staff.   

A tentative contract between the city and the San Francisco Police Officers Association is a strong indication of where he’s leaning. This week, the two parties agreed to a contract that will boost pay for cops by 14% over the next four years, according to a source with direct knowledge of the contract. Officers who’ve been with the force for at least five years will receive an additional 3% retention bonus. 

The contract agreement, which was passed by the union’s board Wednesday and must go to a membership vote, would be a significant pay hike to officers and requires no major cuts, even as crime in the city has broadly declined, and the mayor has ordered the elimination of 500 City Hall positions.

“This agreement sends a clear message that San Francisco values its officers and is committed to maintaining a strong and effective police department,” POA President Louis Wong said in a statement. “We appreciate the collaborative approach taken by Mayor Daniel Lurie and city leaders during these negotiations. While there is more work ahead, this tentative agreement represents progress for our officers, for public safety, and for the future of San Francisco.”

Police and firefighters — the latter are still negotiating their contract — account for half of all discretionary spending by the city, according to a recent analysis by SPUR. The public policy think tank noted that giving both unions their expected cost-of-living increases would not increase the budget shortfall. However, if both unions were to get raises beyond that, it would have a negative impact on the budget. 

But contract talks with tens of thousands of other city workers are slated to begin next year. Other labor groups are poised to point to the police contract as a benchmark, further complicating the city’s path out of its budget hole.

The San Francisco Police Department, which was found late last year to be rife with overtime abuse, recently ordered a 22% cut (opens in new tab) in overtime spending, only to later ask the city for an additional $34 million to backfill positions. 

A police officer and a man in a suit shake hands while a crowd behind them applauds, some wearing police uniforms.Mayor Daniel Lurie, who appointed Chief Derrick Lew late last year, has made public safety one of his key priorities. | Source: Amanda Andrade-Rhoades/The Standard

The new SFPD contract is broadly similar to the one signed in 2023 (opens in new tab), which saw wages increase 10.75% over three years for the roughly 1,700 officers represented by the POA. Their pay is in line with police departments in other cities. 

Lurie is focused on filling the staffing gaps of the SFPD and backing the cops so they can help him clean up the city’s drug issues. 

“This agreement safeguards the city’s long-term financial health while building on our Rebuilding the Ranks plan, which has helped us increase the number of officers in the department for the first time in seven years,” said Lurie in a statement, which acknowledged the steep decline in crime.

Other contract provisions

Along with the raise, the proposed contract retains many generous provisions from the previous contract, including sick-time pay cashouts and child-care reimbursements, according to a source. Among the provisions:

“Like-work-like” pay remains in place. This means that officers of lower ranks, like a sergeant, can fill in for a higher rank, like captain. The sergeant would receive the pay of the captain until someone of that rank is found to fill the position. Officers who are retirement-eligible will receive retention pay if they choose to remain in the department. Anyone with 23 to 29 years of service will receive a 2% premium, and anyone with 30 years will receive a 4% premium.Senior officers, sergeants, and lieutenants who work night shifts receive increased pay. Other perks include standby pay, court appearance bonuses of 50% above base salary, an annual uniform allowance of $1,100, and a premium health package. Officers’ sick time can be cashed out if unused each year. Officers will be given emergency child-care reimbursement of $50 an hour if they are required to remain at work, along with four hours of paid parental release time.

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