stand the alternative. this is a debate i want to have, because i think this is right. i believe we can generate $8 million of revenue that would go to our general fund contribution, to affordable housing, and not have to make the equivalent cuts in discretionary programs that disproportionately affect poor people. i have been doing this 16 years. i still do not get the argument completely, except the ideological discussion. it is so ideological, i think it gets in the way of having a real discussion about what this is going to mean in terms of increasing revenue, not just this year, but in subsequent years, that can be used to help programs for poor people and

working families. i know it is not going to be popular, but i believe it is an important debate. there is a loophole. if you both purchase these online travel companies, it is a good deal. they go out and buy a bunch of hotel rooms for about $100, and a market it to you for $150. they pay the hotel costs on $100, and a pocket the difference -- they pocket the difference. that is a pretty good deal, and we think it is wrong. we think it is illegal, and it is called the online a hotel tax loophole. i do not believe this -- this is not a new tax. people already paying this tax

were not collecting it. i want to thank him for his outstanding work on this. he has been an outstanding partner organizing this. thank you. he deserves credit. beyond that, there are no new taxes. there are no new taxes in this budget. we were able to draw down $227,000 in revenue without tax increases. i know some folks prefer tax increases. i do not. i think they should be on the table in the absence of an alternative. i think it is sometimes dangerous to support tax increases that will reduce

revenue in the meantime and not resolve problems we fundamentally need to resolve. by being creative and focusing on leveraging and looking differently at the revenue sources. $345 million in capital is invested in this budget. we are investing close to a historic amount in repaving our streets. this is a big deal. supervisor mar and supervisor maxwell, $50 million. francia's for your hard work.

we support this budget, and 150 will be maintained. we invest in new balboa park saw improvement. we invest in the veterans building and the work that needs to be done, and we are going to build on 10 key public spaces. the water system improvement program is happening. transkei terminal is taking shape, and we're about to tear down the ugly of facility and begin the grand central station. the new terminal at the airport will finally be done. we have improvements at the waterfront. we have an opportunity to step up to the plate and right the wrongs of a generation.

this presents itself this month. the hospital, real progress has been made, and if we are lucky and supportive to be able to improve our police stations and water system, we hope the folks take a good look get that on the june ballot, so those are just 10 highlighted projects. thousands and thousands of jobs in this fiscal year with projects that will be supported by our capital plan with general fund contributions. work-force development is another big part. you cannot have economic development strategy without work force development strategy. we put in five new district we want to find. that will bring us to 15 at the

end of the fiscal year. we have investments for three new marketplace initiatives. we have a new health care accounted for. supervisor maxwell has been working on it, and the academy should provide additional work- force training. year is the news. summer employment for kids. we are going to increase the number of placements by 50% in this year's budget. this is a big deal i think. we got creative from 1100 to now over 1700 slots. we tripled the number of summer camps. this is not supposed to happen,

yet we are getting creative. thank you for all the support she has provided, and you guys have been on this. everybody is asking what is going on with the summer programs, so thank you for keeping us in gauge. the summer youth employment program will be -- keeping us engaged. the summer youth employment program will be enhanced. 3005 human beings have the dignity of work. thank you for his leadership. this is amazing. here is the good news. we just got the appropriation of of the house for enhancements. if the senate agrees, this is a staggering number -- if the senate agrees, we will draw down from $154 million into our local

economy for. that is how this program is. over half of those are african americans. i am so proud of that. this is a big deal to get started, so this extends to the entire board for the hard work on this. thank you, speaker policy, and thank you for highlighting this. after school for all will be a reality in this year's budget. that is of a deal as well. we will be 97% there with this budget carmen something that got

-- with this budget, something i think we should be proud of. they create a new office of child care and early learning. thank you for their guidance and support. phase one will be the consolidation of staff, and then we are going to get to phase two by the end of the calendar year, but it is an exciting reorganization. i know some have been particularly concerned about this. i know the president of the board has been worried about the cuts to children and youth programs. i watched a big portion of the hearing and got a good sense of the concern. it was not close to 30% cuts. hopefully we will work on

getting this down. here is the good news. we went through a process. 200 independent people analyze the programs. this is an independent process, and i want to thank the integrity of the process and all the community leaders, and we set a tear of priorities. -- tier of priorities. this proves if you show up, that is not all of these cuts, and i get it, but we substantially added back. i had about 40 kids who came to visit maine for the soccer

league. -- visit me for the soccer league, and it is a great program, and we do not want to have to cut it. she was very aggressive about that. we substantially put dollars back. these are just some of the programs. it is by no means an exclusive list. there are still cut off. -- cuts. we are looking forward to working with supervisor dufty on one of them. the problem is he calls about so many of those programs is so difficult, and he makes

compelling arguments, so thank you. well-done. arts and culture, there are no cats. -- cuts. i am proud of that. one of the first places we cut, the board will go through with some of these, but we cut some of these programs completely. there are some changes to the museum. they are not surprising. new york is proposing to cut 25% of its budget for libraries,

which is amazing, and here we are, and the commitment that went down, but we are still able to do this. we're halfway there. this year's budget will have a friend new branch libraries completed. two are brand new region will have eight brand-new libraries completed. -- this year's budget will have 8 brand new libraries completed. i want to thank you for are rarengaging -- for engaging the children's department. the work he did at literacy programs, summer reading

enhancements. the director of libraries as an issue with some of the challenges in our libraries, and they have had this great partnership that is going to be enhanced to reach out. we connected to hundred seven people to services 3 of we want to keep the program going and address some of the issues. i am watching some of the commercials, and i am living in a parallel universe. we did a little objectives have finding. the district attorney, whose core services are maintained in

this budget, had the highest rate of felony convictions. 5700 felony cases, the highest rate of convictions since 1995, and she deserves a round of applause, and i do not want to see that rolled back. she should continue to have the resources to do that could work. people have a right to their opinion. here is another set of facts that is missing, and 80% increase since 2003 of the number of people sentenced because of the work she is doing. the va office is substantially protected, because i do not want to roll back the success of her work and the programs she is

committed to. michael harris has been here a long time, and he has put his time in as a city. i am started to appreciate it. it was a treat working with him as well, because he is willing to be creative, and he has been hard-headed. over time will be reflected in this year's budget. the jail but it is stabilized so we can redirect some of the resources of the sheriff's department. he is willing to try different things in terms of his commitment to security and for

food service, and he should not be criticized for being open- minded to this, including general health, and i know how controversial this will be. i respect his willingness to be supportive under the circumstances, and just the jail house service program will save $11 million annually. think about where that money can go. i appreciate the commitment. i want to thank the poa. i understand why it is confusing. i have been doing this too long as well, but i want to thank

the union for saving jobs for men and women in uniform. they stepped up with a consequence of their w concessions. there will be no police officers laid off. all of us know how much we need to do. $3.3 million in i.t. enhancements in the police department budget, which i think is important. because there is no layoff, we will meet the criteria, and that graduating class will largely be on the streets over the next fiscal year.

how many cities can lay claim to know police officers being laid off and significant concessions from the bargaining units? i am very proud of that. i will defer a little bit more, but the budgets are maintained as a baseline for last year. now i know there is some concern about caseloads and a need for enhancement, and we can have that debate over the next few months, but there were no significant cuts. juvenile and adult probation, we all know we have a significant challenge, and we are leveraging more federal dollars. she was in my office multiple

terms, so we are holding the line there, the same as juvenile probation. i know all of us agree. it has been difficult the last few years. we want to get this thing rolling, and i want to thank the chief for his part in getting this forward. we saved some money on salaries, some debt reduction. fire department, we maintain staffing, so most firefighters are being laid off -- so no fire fighters are being laid off. wage concessions from firefighters, $7.9 million. fire fighters stepped up to the plate. like our police officers, they

deserve credit. they also found new ways to generate crevenue. one of the revenues services is taking over the $1.6 million enhancement. it just works out because of the way we are staffing that we will generate new recovery efforts in that. we know we need to make some improvements to the crime lab. there is not a human being in this room that does not recognize that. this year's budget includes $5.9 million in enhancements to the baseline funding in the crime lab. working with the district attorney, working closely with the public defender and others.

we have to prioritize the following. eight additional new staff for public defenders to make sure they are doing everything they can and have the resources to update and reorganize that. $2.6 million to eliminate the backlog for controlled substances, focusing on the backlog end outsourcing. i want to get this done. this needs to get done. she is fighting for this top priority in the budget. we do the same thing. we make enhancements, and we fund the backlogs. we put $2 million at the crime lab. things large and small.

there are substantial enhancements there. resources will not be our excuse for not modernizing the crime lab. i want to thank you every but a for working together -- everybody for working together to make this a world-class crime lab that will be a model to others, because i am convinced that the end of the day that will be the outcome of this difficult process commo, and ths because we will make these commitments to right the wrongs and make this crime lab the priority that all of us recognize it should bee. the department of public health. 1.4 $4 million budget. at the end of today common -- at

the end of today, the general fund is reduced. let's put that in perspective. 1.5% reduction in the budget. the operating budget actually goes up. it is because his team and all the good folks in my budget office got aggressive arms budget revenues. $80 million was new revenue. without that would be cut off. what city is fully funding universal health care? san francisco is fully fund universal health care in this budget. we got some enhancements.

folks in this room know a lot about that. do not worry about it. $12 million in mental-health funds. a significant portion of the target was done for new revenue and not through cuts, so here are the cuts. i told you about some of itthe prop j. i will take that any day to a mental health cut, but that does not deny the fact that even with that we have to make tough choices, and in that budget there are some tough choices. our priority is residential drug treatment, and not only is it prioritized -- is substantially invested. if you work at progress -- it is

substantially invested. the cuts we have heard about our $2.5 million less. there are no cuts to the residential program. we are working on investing in residence. i believe in residential. based upon a lot of research and analysis. the cuts we propose, and the board will engage in a spirited discussion, and even if we had all the money in the world, we should not be wasting money on programs that are not working, because there are some programs that do not work, and i do not know

i had to figure out a way to balance the budget. we had to cut some of the outpatient programs. those are not insignificant, they are different than last year. we've looked at offsetting those with a huge enhancement of supporting pachmann housing. there is a real narrative here. i hope you spend time with members of the board to see the connection. we had some tough love moments in the budget. it is so much easier not to make these cuts. i hope we have an honest debate about some of these programs.

let's put it in perspective, this is 242 million. they propose to cut less than 2%. i know that you will hear dramatic devastating cut. we're almost there. we have some interesting proposals. this will save $7.4 million. we will put it back again. the chair will love this, i hope that he has a smile on his face. we did not touched this version. we look forward to working with you on this. looking at some other cuts, i could not do it.

hiv and aids, we think we are in a margin where we can substantially manage this. there are some other prevention dollars that are worth having this. this is in a march and we can't work together. we have big contracts that will save $7.7 million. there is a new contract that will save $1.7 million. we restored a couple of the outpatient programs that you did hear about. we have enhanced the despite a million dollars. i appreciate that feedback and support.