Supervisor Tom Ammiano’s Proposed Mandatory Employer Healthcare: What Others are Saying

“To a certain degree this proposal would fall under the category of being a ‘regressive-tax.’” – Michael O'Connor, co-owner of The Independent, a small business in San Francisco and Small Business Commissioner, December 5, 2005.

“If this goes on I will have to close up shop and the city will lose 50 jobs in the Tenderloin.” – Small business owner John Loh presenting testimony during the Small Business Commission hearing on January 9, 2006 . Loh has owned a small business for 15 years in the Tenderloin and has 30 full-time and 20 part-time employees.

“This ordinance does not provide health care for the majority of San Franciscans, it unfairly burdens businesses who may be already providing health care, places a mandated fee on all businesses without representation and does not provide for any costs control or oversight.” Jim Maxwell, President San Francisco Council of District Merchants Association, representing 18 Merchant Associations in San Francisco at the Small Business Commission hearing January 9, 2006.

““I believe if this were to pass, the proposed Health Care Initiative would be the breaking point for many small businesses in San Francisco , including mine.” Mary Gassen, President of Noe Valley Bakery and Bread Company in written testimony January 9, 2006 . Noe Valley Bakery and Bread Company pays 50% of their employees’ health insurance plan.

“I will outsource as much of my production work as possible to places like Daly City, Emeryville and other places with lower costs” – Dan Scherotter, chef and part-owner of Palio d'Asti, a restaurant in the financial district. The restaurant pays $240 per employee each month to provide health coverage for most of their 40 workers. Having to make extra payments to reach the $345 plateau would amount to more than $50,000 in additional costs.

“Under Ammiano’s legislation, we would be penalized for finding a good plan for less than the city pays.” – Pete Mulvihill, Co-owner of Green Apple Books and Music in written testimony January 5, 2006 . Green Apple has 28 employees and covers their full-time and part-time workers. Green Apple is a well-loved community business whose workers are also members of UFCW, Local 101.

“This will cost us nearly $700,000 a year. I don’t know how we could ever raise our pizza prices enough to cover these costs.”- Todd Parent, Extreme Pizza at the Small Business Commission hearing on January 9, 2006 . Extreme Pizza employs 175 people in San Francisco and offers health, vision and dental benefits to their employees.

“We are providing health care already, we don’t need it legislated” – Stephen Cornell, owner of Brownie’s Hardware in San Francisco at the Small Business Commission hearing January 9, 2006 .

Supervisor Tom Ammiano’s Proposed Mandatory Employer Healthcare: What Others are Saying

“Asking small locally owned businesses to take this responsibility on when our national and state leaders are afraid to address the issue is not reasonable, and suggests a basic misunderstanding on how small businesses function.” – Neal Soffman, President of A Clean Well Lighted Place for Books in written testimony January 9, 2006.

“As an employer with three small businesses, we face the possibility of having to reduce the number of positions available for training our clients. Our employment opportunities allow our clients to acquire necessary job skills before seeking employment in the community as well as provide revenue for the programs run by our non-profit.” – Patrick Regan of Community Vocational Enterprises, Inc. (CVE) in written testimony. CVE provides opportunities, training, and support to individuals with mental health disabilities, empowering them to fulfill their employment potential.

“This legislation not only would create a burden on city businesses, it would also be the wrong medicine to cure San Franciscans’ health care worries.” – San Francisco Examiner, January 6, 2006

“Under the current draft, small businesses will be either unable to perform, be competitive or be able to compete for any contracting positions. San Franciscans will have to pay the higher price for food and services. Neighborhood stores will be out of business and lose its charms of novelty. The City and County of San Francisco will be looking at bankruptcy.” – Darlene Mar of the Council of Asian American Business Associations in written testimony January 9, 2006.

“It would be a very negative influence to become required to participate in a more expensive, involuntary program. I don’t think we could afford to continue in business under these circumstances.” – Tim Hallen, owner of Golden Gate Tank Removal in the South of Market neighborhood. Golden Gate Take Removal offers health insurance to all their employees through the San Francisco Builders Exchange.

“An issue with the ramifications and potential consequences to small businesses like this should not be considered without more thought and more time for input and review.” Carol Yenne, President of Noe Valley Merchants Association in written testimony January 8, 2006.

“It’s not hard to imagine that some employers simply will move out of The City if Ammiano’s proposal creates a new financial burden for them, while others will cut jobs or forgo new hires. Requiring that jobs come with health coverage won’t do much good if the jobs aren’t there. – San Francisco Examiner, November 24, 2005.