On Nov. 4, San Franciscans will elect a new mayor -- or narrow the field to two -- who will face a number of old problems. The next mayor should turn to the city's private sector, which stands in stark contrast to the lethargic and wasteful public sector.

The budget of San Francisco weighs in at a staggering $4.9 billion, more than the budget for the entire state of Arkansas. Only Washington, D.C., and New York City exceed San Francisco in per-capita spending.

San Francisco ranks dead last in areas such as emergency medical services, street repair, water distribution, fire protection and law enforcement, according to a study by the Reason Public Policy Institute, which examined how California's 10 largest cities deliver public services. Out of 44 cities nationwide, San Francisco ranked a mediocre 24, and it's police department rated the worst at solving violent crimes.

Creative source
When one turns to San Francisco's private sector, however, the picture is one of creativity, entrepreneurship and dynamism.

Richard Florida, an economist at Carnegie Mellon University, constructed a "creativity index" that places San Francisco at the top of the nation. The key, Florida believes, lies in the ability to boost economic growth by attracting the "creative class," highly diverse, highly talented people who lead the way in competitive, cutting-edge industries.

Such people boast the ability to translate creativity into regional growth, new ideas and new businesses.

Small businesses employ 52 percent of private-sector workers in San Francisco, generating an annual payroll of $16 billion and creating most new jobs.

But small businesses in the city, already overburdened by regulations, are showing the effects of tough economic times. Further damage could be avoided by giving small business a greater voice in City Hall.

Giving small business a voice
Proposition D, on the Nov. 4 ballot, would create a strong, independent Small Business Commission. At least five of the seven commission members would own, operate, or be officers of a San Francisco small business. The members would be unpaid and the commission would not increase the budget.

The commission would have policymaking and lobbying authority on legislation affecting San Francisco's 108,373 small businesses.

A strong Small Business Commission would also make success less likely for job-killers such as Proposition L, which mandates a citywide minimum wage of $8.50 per hour.

This 26 percent increase would drive businesses out of the city, force employers to cut health-care benefits and job training, and create unemployment among low-income workers.

When confronting the city's problems the new mayor should understand that the resources are already here. The challenge is to reduce the drag of a wasteful, inefficient, and stagnant public sector and let San Francisco's top-rated creativity flourish.