much. it is so important to have those landlords, and we could use more. and have so many homeless veterans to come to this city. it is very important to make sure they are housed. our shelter system. i can say enough about that, joyce. they are the first line in defense in getting those veterans of the street and getting them housed. our community partners. i have been working with them for 20 years. for me coming it is so important to have that community partnership. they have been so instrumental in getting them housed. clothes, jobs, training. it has been an incredible thing to have this city team working together and collaborating to end homelessness. and we will do it. so, thank you very much. i appreciate it. [applause]

>> jake used the word remarkable to describe the san francisco housing authority. i will introducehenry alvarez from the san francisco housing authority. >> i am the son of a veteran as well. bevin told me to think about this in ways we have never thought about it before. our goal is to get better rents and housing as quickly as we possibly can and be as innovative as we possibly can. i just want to thank our staff, here with us today. [applause] mr. mayor, we will do everything in our power. we will move that line as quickly as we can. thank you it very much. >> next, the mayor spoke about

exceptional listen. i want to welcome the leader of an exceptional organization in san francisco. [applause] >> thank you so much. this room is pretty amazing. we have all the players here in the room. and the interest the media has. a lot of this is reflected in the public perception that we cannot let what happened to vietnam veterans happened to the newest generation of that's, right? we cannot have the term " homeless veterans." we have a this much interest. the public is saying we have got to do something. we cannot have business as usual. there is a sense of urgency. every day, someone on the street supper's. we can have that. there are 50 -- there are more than 50 veterans. whoever calls san francisco unpatriotic doesn't know the

meaning of the word. thank you. [applause] >> and now, we will have the opportunity to hear from all landlord. i would like to welcome judy wu. judy? [applause] >> my name is judy, and i am currently housing six veterans. they are great attendance. they pay on time. nice and clean and no complaints. i think the program is great. i am really thankful. thank you. [applause] >> as we said, we have veterans that are here. we have federal and local partners here. we will allow the press to talk to us individually. thank you for being here, and we will make ourselves available. thank you so much. [applause]

>> thank you. good morning, everyone. thank you very much. as many of you know, i'm a person that doesn't like a whole lot of drama. but i do want to make sure that we take this opportunity to enjoy. this budget is one that's important to all of us, it certainly is one to me and one that reflects a lot of great work. first of all, let me thank everybody for coming this morning. certainly board president david

chiu for helping me co-host this and carmen chu and her work with us already started and will help guide us, along with board president david chiu on all of the hearings that the rest of the board will have. i want to thank each and every member of the board of supervisors as well. you've been weighing in and we've been creating a different dialogue on the front end to make sure that all of our constituents know what we're doing, more transparent, and ultimately where our values are. i also want a big shout-out and thanks to everybody in this room. there's a lot of department heads and commissions and labor representatives and representatives from our non-profits and community members as well. thank you for engaging us in this really dedicated six-month process. i want to go back to the very first neighborhood budget hearing that we held about almost six months ago.

it was one where i was asked at the very beginning, what does the budget mean to you? and i wasn't the only one. there were several supervisors that were there, and we all said pretty much the same thing. it really is a reflection of our values as a city and it's one that we want to work hard at, but ultimately it is who we are and it's a combined effort here, a collaborative effort. so it still is that way, and you'll see from the highlights that we'll be announcing today, as reflected in this budget, it still is a reflection of all of our values. so good morning, everybody. thank you for joining me here today. again, thank you for board president chiu and budget chair carmen chu and all the others that i've identified here today. i also want to say at the outset this budget reflects countless hours of work.

a lot of work behind the scenes. in addition to all the neighborhood budget meetings that we had, there were numerous, numerous staff meetings. kate howard's done a wonderful job with her staff. they've met with all of the different departments -- [applause] this is her first full year budget working with us and she's done a great job and her staff has done a great job. it isn't just putting numbers together, it's listening to each of the finance personnel from each department, it is engaging in the numerous meetings that we have with community, it's engaging with staff of the various supervisors, the non-profits. we had special meetings help, it was health and human services and housing and homeless advocates and others.

she was there and her staff was there at every turn making sure that we listened and it reflected in both number-crunching and challenging what the priorities are and so forth. also want to give a shout-out to steve cava. steve, wonderful with all your work. [applause] it's not easy. you and micki callahan, it's really not easy at all to face a year when there's 27 contracts open, trying to face everybody in the room, trying to make sure that we can make promises we can keep. having been a former employees relations director, i know that keeping promises with our labor representative is critical to building trust and to make sure that we carry out and we honor all that they do every single day in carrying out services for us.

to all the department heads and your wonderful staffs, thank you. i also want to make sure i acknowledge all of our labor unions, all of our representatives. for years you've worked with us and sacrificed and bemoaned the bad budget years, but you've stepped up in every occasion. for the department heads and non-department heads who we've shared challenges with, thank you for sacrificing so many years. and now we get to, i think, a budget that has some relatively good news and a good foundation. this year we begin the hard work of presenting the city's first two-year budget. and we began that year with a $263 million deficit for our general fund. and then the coming year, the second year of $375 million shortfall. that's what we faced at the very beginning. but because of the fiscal

discipline that we put in process, a discipline that's reflected in the great work of ben rose enfield and his staff and the controller's office that keeps reminding me of the credit ratings of our city and that we must make sure that we do things in a very solid financial way, we made investments in job creation and we made commitments to reform with that guidance. now san francisco's economy is recovering and reserves are going. in fact, during the last nine months the controller has reported that our revenues were $172 million more than projected. this is good news. this is good news, but it did not come without commitments, without sacrifice by everybody and all the groups represented in this room. i would like to again thank owe employee unions for working with us to find a common goal, saving more than $28 million in

your contract negotiations with us. i'm happy to report that i'm presenting a responsible and balanced two-year budget. while we spare the city the deep cuts we've experienced over the last several years and one that i present to you in a san francisco economy that's recovering, in this budget you will see investments. investments that ensure that people who live, work and visit our city feel safe, investments that protect our social safety net that supports seniors and youth, low-income and working-class families, investments that support our neighborhoods, our infrastructure and our commercial corridors. this budget reflects a lot of collaboration and partnership with our san francisco community. one thing we agreed on early was that in a time of state and federal cuts, protecting our social safety net is more important than ever, and in this budget i've rejected all service reductions in our

health department and human service agencies. [applause] s i've included full restoration of federal cuts to programs and services that serve people with h.i.v. and aids. the loss of redevelopment has been a severe blow to our city, especially for this first street corridor. so we will invest in economic initiatives in the heart of bayview to stabilize businesses and attract new ones. [applause] we will also continue our investment in central market and especially sixth street, where the elimination of

redevelopment has left a gap in services. with our community partners and including the very spirited arts community that's been so wonderful in helping us lead that effort, we'll support businesses in that sector, attract new ones, and keep the area clean and safe. we will also invest in the youth of sfsk and in their education. i will propose releasing the $6 million in rainy day funds to support our public schools, to offset the state's deep cuts to education. [applause] most importantly in this budget we are putting san franciscans back to work. you've heard me say on many occasions recently our unemployment rate dropped from 9.6% in early 2011 to 7.4% today, our lowest since 2008. [applause] we, as a city, along with our

business partners and every neighborhood, we created 22,500 net new jobs in san francisco in just the last year. [applause] that's good. that is really good, but we need to do more. with this budget we are continuing to invest in strategies and incentivized job creation, training, and place our residents for their jobs for the 21st sent re. we are creating a climate that gives entrepreneurs and investors confidence in our city, allowing them to work with us to innovate, grow and create jobs, whether they are in neighborhoods, small businesses or tech start-up or a thriving global headquarters. in neighborhoods, we are more than doubling grants available to small businesses, and we are including $4 million for neighborhood commercial districts through our new invest in neighborhood strategy. that includes job squad and the recapitalize the small business

revolving loan fund. we are bringing staal to the neighborhoods -- city hall to the neighborhoods where it belongs, to support small businesses. my proposed budget includes $4 million in smart capital investments and $441 million in smart capital investments in our city's 10-year capital plan to improve and invest in the city's infrastructure. [applause] over the next two years we'll invest in and improve or water system and continue investing in our waterfront. we will also continue to invest in our parks. and i've joined the members of the board of supervisors to introduce $195 million bond measure to keep our parks clean and safe. [applause]

all told, over the next two years enterprise departments will spend more than -- will actually support more than 8,700 jobs in san francisco by infusing $1.3 billion into our local economy. as our economy grows and as we add jobs, we must redouble our efforts to expand housing opportunities and build more housing for people at every income level. i get it. i know there's anxiety out there, because rents are start together creep up again in every neighborhood as our economy recovers. but the answer to scarce housing and rising rents is not to stop growing our economy or creating jobs. that's why we proposed the housing trust fund measure for this november, to create a permanent source of housing and revenue to fund the production of housing at every level of our economic spectrum. i am pleased to share with you,

too, that my budget also includes a six-year police and fire hiring plan. [applause] this hiring plan for police and fire will train the next generation of san francisco public safety personnel. we are planning for anticipated retirement, reducing overtime and making sure our public safety departments are appropriately stand. mow, of course, this submission of the bubt is not the end of the process. i've looked forward to working with the full board to ensure that our residents receive quality services while we balance the budget and continue in our economic recovery. i again want to recognize supervisor carmen chu and the board of supervisors for their steadfast leadership and commitment to building a collaborative process, backed up with our board president, david chiu.

thank you steve cava, chief of staff, thank you budget office, director kate howard, and to best rosenfeld, thank you to you and your wonderful staff and i will advance, thank you harvey rose, for his work he'll be doing. this is very less dramatic presentation, i know that. but all the work that's been done in a very comprehensive way, and i want you to know that the values of the city are intact, we are moving forward, and we are investing in all of our neighbors in san francisco. thank you very much. [applause]

ok, back to work. and the good morning, everyone is. welcome to san francisco. -- >> good morning, everyone. welcome to san francisco. i wanted to express my appreciation at being here at autodesk. not only do you have a great company here, but pretty soon, one of those models out there will be something like a three- dimensional arena for basketball or something like that.

that might happen very fast. i wanted to come here and start by thanking the u.s. high-speed rail association for their good work, their collaborative work for so many years in building a forum and getting so many players together to develop coalitions and consortiums for building a high-speed rail system in america, and thank you very much, the association, for hosting this conference in san francisco. when our city's economy is going again, and most importantly, we are adding jobs, and we are ready. for those of you that are new to san francisco, you should know that we are building the very first high-speed rail project in the united states. our transbay transit center, which will be completed in 2017. tomorrow, we move forward improving the transit center's district plan.

it is not just a multi modal transit center, but a comprehensive plan for the transit center to become part of our new downtown. san francisco is no longer a city that is afraid of growth. we have had those debates in the past, and we have gone through them, but we have embraced smart growth in the right places. around our voter-mandated terminus of high-speed rail is the right place for development. we spent years planning the extension of the california -- caltrain an extension of california real, and many of you in this room have been part of that, and now, it is time not only to get it done, but to get it done right because we have a lot to do. growth, all over the country, but particularly for me, growth must have been and must be done and must be done in a balanced

and equitable manner to achieve regional, environmental, economic goals. great land use and transportation together. the transit district plan we have, for example, will add 11 acres of new open space to the center of our city, including a five-acre elevated part. 4000 units of housing. 1400 of those units affordable. in addition to acting as the grand central of our west. the how of bringing high-speed rail to california is as important as the why. to provide economic vitality to california and to our cities. i would like to again thank the association for organizing this event. i would like to thank governor brown and the california high

speed rail authority for bringing forth a new business plan that really response to the earlier criticisms and sets us on the right track. in closing, i would like to thank president obama, leader pelosi, secretaries boxer and feinstein, as well as leader lahood for the commitment to public transit, creating jobs, and investing in san francisco. again, thank you this morning for being here, and let's get it done. appreciate it. [applause] >> tonight, we paid for the two

teachers, especially those in san francisco public schools who have made san francisco the top- performing urban school district in california. each day, thousands of teachers provide children with the skills to be successful in life, including learning how to analyze problems, appreciate the arts, and become active in sports. we all know how important teachers are. that is why the giants continue to participate in the annual thank a teacher today campaign, a month-long celebration of san francisco public school teachers. it happens each may and is a program of the san francisco education fund, the oldest nonprofit dedicated to supporting san francisco public schools. and now, let's give a warm welcome to mayor ed lee, sanders is a unified school district incoming superintendent, and the teacher of the month award winners who are joining us today.

mr. mayor. >> thank you. you are such a leader in our community. and thank you to the san francisco giants and all of you for supporting our teachers in san francisco. i want to thank the incoming superintendent. school board member hydra mendoza. the san francisco education fund. and all of our amazing sponsors for joining me tonight to honor the mayor's teacher of the month award winners. it is my pleasure to a knowledge and honor the dedication of our superb public school teachers in san francisco. the 10 teachers being honored here tonight are standing behind me and were nominated by parents, students, peers, and community members to understand the value of an excellent teacher. the 10 teachers standing here have exceeded all standards.

they have dedicated themselves to creating a classroom environment that fosters learning, diversity, and character development. these teachers are shaping this generation of youth into leaders who will create a better world. they have one of the most important jobs in america and this award is our symbol of our immense gratitude for all of their tireless work. in collaboration with the san francisco education fund, thank a teacher campaign, it is my privilege to present this month's -- this year's teacher of the month award winners. [applause] >> thank you, mayor lee. good evening, giants fans.

[applause] ladies and gentlemen, we are so proud to be standing here with our all-star lineup. some of the finest teachers in san francisco. can you give them a big, rousing round of applause? [applause] the educators you see here this evening touched thousands of lives every single day. they make it possible for san francisco to continue to be one of the most educated cities in the united states. we are proud to have them here this evening. we would like to thank mayor lee. we would like to thank our friends with the fund and also the san francisco giants for allowing us to show you our all- star team this evening. we also want to thank each and everyone of you for trusting your children to us every single

day. i can tell you with complete confidence that they are in very, very good hands. thank you on behalf of the 56,000 students in san francisco. thank you and congratulations to our all-star team, our teachers. >> thank you so much. how about a big round of applause as we celebrate our teachers tonight? [applause]