San Francisco Healthcare Initiative -- Reality-Based Community Gives the Finger to Small Business

Bad news for small business in San Francisco:

The San Francisco Board of Supervisors gave initial approval Tuesday to a plan to extend health care coverage to the uninsured by opening up and expanding the city's system of physicians and clinics now serving poor city residents.

The plan, a merger of proposals put forth by Supervisor Tom Ammiano and Mayor Gavin Newsom, would go into effect next year, provided it passes a second board vote next week and is signed into law by Newsom -- both considered virtual certainties.

"We want to put health care on the front burner," Ammiano said, just before the unanimous 11-0 board vote in favor. "We are well on our way to that admirable goal."

The key political compromise that led to passage Tuesday was an agreement between the mayor and the more liberal Board of Supervisors majority that city businesses be required to contribute to health care coverage for their employees.

It would require businesses and other employers to pay $1.06 or $1.60 per hour per worker, depending on the size of the company. The balance of the estimated $200 million annual cost of the program would be covered by consumer premiums and co-payments and by the $104 million a year San Francisco already spends on providing care to uninsured patients at city clinics and hospitals.

...Following the vote, a teary-eyed Ammiano made his way around the board chambers, giving hugs to fellow supervisors and shaking hands.

"This is an absolutely historic day for workers in San Francisco," said Tim Paulson, executive director of the San Francisco Labor Council.

Not everyone, however, praised the plan's passage.

Nathan Nayman, director of the downtown business association Committee on Jobs, questioned the financial underpinnings of the program and predicted it would be a hardship for small- and medium-size businesses.

Employers already providing health care coverage at spending levels above the per hour per worker minimums contained in the measure would not be required to pay into the city plan.

"There's no structure to control costs," Nayman said. "There's no structure to monitor and come up with a plan to make sure that the costs do not reach a situation where they're out of control."

I agree that healthcare is a major problem in this country. Insurance is insanely high and our system doesn't work. Instead of getting to the root of the problem, progressives continue to see this as a battle between greedy businessmen and the common man.

The contrast between Tom Ammiano and Nathan Nayman couldn't be more striking. Emotionalism trumps good sense and sound thinking. Apparently, the Board of Supervisors failed to discuss with some of the small business leaders in the community how an initiative of this nature might affect their businesses. I'm beginning to wonder if our city government isn't just anti-business, but pro-alternative reality. For a city that is continually building office space in the South of Market/South Beach region, how are they going to attract businesses who can find the rent and regulatory climate in the Penninsula and East Bay are much more favorable?

San Francisco has some of the best mid-tier restaurants in the world. It isn't just the quality of the restaurants that is striking, it is the sheer quantity. Many of these restaurants are small-to-medium size, and have a very intimate feel. Naturally, restaurants are a huge draw for the city, but although the number of people flocking to restaurants is high, the competition is much greater. About 90% of restaurants in San Francisco fail in their first year.

Now, with this ridiculous initiative, restaurants are going to have to find ways to squeeze their already razor thin margins. We'll see if this can hold up in court, but so far, the progressive in San Francisco have managed to pull off some frighteningly bold regulations against businesses.

Craig Stoll, owner of the restaurant Delfina, wrote a hilariously sarcastic parody in the Chronicle following Tom Ammiano's night of tears and shirtless hugs:

Dear Editor:

Supervisor Tom Ammiano released details of his brand new groundbreaking legislation this morning that will provide housing for all San Francisco workers and their families.

Under the new legislation, Businesses that employ more than one person will be required to provide a permanent place to live for each worker. Employers will have three choices: they can reimburse employees directly for 75% of their mortgages (calculated by an average of mortgages in a 10 county survey), they can pay into a fund, at the rate of $5.00 per hour worked, that will go toward building new housing throughout the inner Mission or Employers may adopt workers as members of their own family and provide housing in additions built-on to their own homes at the employer's expense.

"It's time business did their share" said Ammiano at a budget and finance committee meeting over the cheering of throngs of union activists and homeless people who packed the chambers. "We figured 'what the heck', if businesses could afford full healthcare for all of their employees, they might as well house them too. What's another $5.00 per hour?"

"We're tired of businesses shirking their social responsibility" echoed Chris Daily after the meeting. "And I'll punch anyone in the neck who disagrees with me".

Business owners vowed to challenge the measure arguing that they shouldn't bear a disproportionate share of a problem that is city wide. Steve Falk president of the chamber of commerce warned that the few businesses that didn't close would flee the city in a mass exodus. "We should set up a task force to study the impact of task forces on legislation that has to do with impact studies."

Matt Gonzalez, former supe, stated later in a phone interview that "there are too many businesses in San Francisco anyway". Supervisor Bevan Dufty said "Well, usually I'd tell you what you want to hear but I'm up for reelection so I'll do what ever I'm told to do by the rest of the board".

When confronted with arguments by business that they couldn't possibly afford the new tax, Ammiano said it's not a new "tax". He then put his hands over his ears and sang in a loud voice "la, la, la la, I can't hear you-la, la, la la".

The mayor was unavailable for comment.

Craig Stoll
Delfina Restaurant
July 17, 2006

From experience, Delfina is an incredibly delictable Italian/fusion restaurant. Craig's jem is located here:

3621 18th St
San Francisco, CA 94110-1531
(415) 552-4055

I suggest you go there, not only to eat some great grub, but also to support his cause. Anyone who can tear into the Board of Supes like that gets my dollar.