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Paying a Living Wage Raises a troublesome dilemma ~~' ~~~ for community-based nonprofits 3i ~~~ `~`' By Bruce Fisher and Ann Lazarus HE MOMENTUM toward enacting living wage legislation in San Francis- co is the cause of much consternation among San Francisco's community-based nonprofit organizations. While many sup- - ~ ~ port the idea of a living wage in principle, there is widespread concern that the po- - - -~ tential imposition of an unfunded wage increase through city contracts will inevita- bly result in service reductions and work- force layoffs. A central tenet of living wage proposals is that they help lift low-income workers out of poverty and raise living standards for everyone. As founding members of the Human Services Task Force, a coalition of more than 50 community-based agencies providing vital health and human services to San Francisco residents, we fully sup- port the concept of paying all our em- ployees alivable wage. These workers often earn significantly less than their city counterparts, due to the difficulties in continually securing increas- es in city funding as well as in private support. However, we share major con- cerns about the potential impact of a living wage on our ability to deliver services. Many of these same agencies are largely funded through city contracts, with no guarantee that the amount of the contract would increase to reflect the higher wage levels. Unless we are given increases in :: funding, the only response we could have would be to reduce the amount of services the agency could deliver, including the possibility of layoffs and program closures. The ironic impact would be on the most vulnerable populations, i.e., the elderly, abused children, homeless, mentally ill ~~-and welfare recipients, thus undermining - the noble intent of a living wage. More- . over, nonprofits are understandably leery that any increase would be forthcoming, as most of us rarely see cost of-living adjust- ment in our contracts. Board, of Supervisors President Tom ' , Ammiano has been holding hearings on the need for a living wage in San Francis- co. While not disputing that such a need _ -=` =exists, the nonprofit community has failed to hear anyone address how a wage in- crease would be funded. A number of relat- ed issues also deserve attention, including the following: ^ Should community-based nonprofits be included in San Francisco's proposal, when they have been exempted from such legislation in most cities, including New York, San Jose and for the most part Los Angeles? ^ If an agency only receives a percent- age of its total funding from city contracts, would the living wage nonetheless apply to all employees? ^ In order to continue to provide entry- level and training opportunities for youth and unskilled workers, should certain clas- ses of employees be exempt, and how should those be defined? ^ What might be the impact on welfare- to-work programs? ^ Will there be limits on the use of volunteers, interns and other nonfull-time While not disputing that a need exists, the nonf~ro fit community has failed to hear anyorce address how a wage increase would be funded. employees? ^ Is there a reasonable threshold amount of a city contract that would trig- ger the payment of a living wage? ^ Is there an intent to mandate other working conditions or benefits in a living wage ordinance? Additionally, living wage ordinances in places like Oakland and San Jose apply strictly to agencies contracting with the city. San Jose estimated its bill would cover only about 500 workers. Because San Fran- cisco is also a county, legislation here Margaret Scott would encompass the major human ser- vice providers whose contracts are with the county. Thus, the scope of San Francisco's pro- posed legislation would be dramatically greater, extending to thousands of workers in more than 550 agencies. that provide nearly $200 million in community-based services. W e believe that all of San Francisco must be able to answer the question of who will pay for a living wage. If the city feels it can afford to add the resulting increased salaries to the contracts it lets, without needing to raise any additional revenue, then there may be awin-win for all parties. However, unless we are thoughtful, living wage in San Francisco may cause unprece- dented layoffs and reductions in vital hu- man services for our neediest citizens. Bruce Fisher, the executive director of the Huckleberry Youth Programs, and Ann Lazarus, CEO, Mount Zion Health Sys- tems, are co-chairmen o f the Human Ser- vicesTask Force.