>> good morning. thank you for joining me here at the board chambers, and thank you to board president david chiu, budget chair mark farrell, members of the board of supervisors, our elected officials, our commissioners, and our department heads. and welcome, members of the

public who joined us this morning. this year's budget reflects a lot of hard work between city government and the people that we serve. we've met in every district of the city. we've worked with our elected city family. we listened to hundreds of community leaders and providers who help us deliver services to the people of san francisco. and it's because of this consensus approach that i'm proud to propose a responsible and balanced two-year budget that reflects the core values that we share in san francisco, values of fiscal responsibility, social responsibility, and investing in our city's future. when we began this year's budget, we began like many years before, trying to reduce significant budget deficits. but because we have pursued policies to control costs, grow our economy, create jobs and stabilize our fiscal health,

this year i'm proposing a budget that protects our social safety net, one that increases public safety, and one that invests in our city's infrastructure at unprecedented levels. and it is a budget that significantly grows our city's reserves. this budget is being delivered as san francisco's economy is recovering, going, and moving in the right direction. and san franciscans are getting back to work. in fact, our unemployment rate has dropped, as you all know, from 9.5% in january of 2011 to an astounding 5.4% just last month. (applause) >> i know, i know it has -- it has not been easy. we've had to work hard with our health services system, our care -- our health care

providers, and labor to reduce employee health care costs. and because of our collaboration, we will now save $52 million over the next two years. and we've made tough but necessary choices on everything from escalating pension costs to reforming our unfair job punishing business tax. we've injected a healthy dose of fiscal discipline with two-year budgeting, five-year financial planning, and a 10-year capital plan to get to us this point. but it's been worth it. san francisco's credit ratings have been upgraded by every rating agency in the past year, making our tax dollars go further when we deliver capital projects, and giving our city even more investor confidence. so, now it is not the time to take our eyes off the ball. we have to continue reforms to protect our city's economic recovery and make our city

safe, solvent, and successful. like taking meaningful action to address our $4.4 billion of unfunded retiree health care liability. thank you, supervisor mark farrell, for taking this on. you have my full support on this important issue. (applause) >> while reforms and sacrifices have spared us deep cuts we've experienced during the deepest part of our economic downturn, we still have much work to do. this year's projected $123.6 million general fund shortfall and next year's $256 million shortfall requires strategic choices and strategic investment. so, in this budget you will see fiscal prudence, a high level of services to our residents, investments that protect our social safety net, increased

public safety support for our neighborhoods, support for our critical infrastructure, and investments in our economy and job creation. one thing we agreed on early was that in the time of state and federal cuts, protecting our social safety net is more important than ever. so, therefore, i have rejected all proposed year-one mental health and substance abuse reductions from public health department and i have restored $4 million in federal cuts to programs serving people with aids and hiv. (applause) >> and, and we will continue our efforts to be a healthier city. the affordable care act will extend health insurance to 35,000 san franciscans and our department of public health and human services agency will implement our nation's health care reform.

but on our streets there are still too many people, families without a place to call home. and that's why we are extending a dedicated emergency family shelter to provide year round services, adding 25 more units of family supportive housing and supporting a new approach to housing transitional aids youth and getting them connected to work. (applause) >> to offset the state's deep cuts to our school district, this proposed budget includes an unprecedented $110 million in education support over the next two years, and we are taking on additional responsibilities at our school districts where we will see new support from the private sector for middle schools, and new support with our federal partners with promised neighborhoods grants. and thanks to our city librarian, we will be extending

library hours throughout our city. (applause) >> we are going to make san francisco an even safer city. we developed a six-year police staff and fire staffing plan to train san francisco's first responders. over the next two years ~ san francisco will hire 300 new sworn police officers with six new academy classes. and we will add 120 firefighters with three new fire academy classes. with with 35 construction cranes across our skyline, you can see public and private construction jobs being created every day. in fact, an estimated 223,000 jobs will be created over the next 10 years from city projects alone. for our part, we're making a

sound investment of $25.1 billion in capital projects over the next 10 years through our city's ten-year capital plan. this proposed budget includes unprecedented levels of general fund sub poderth for these smart capital investments. ~ support $72 million in year one and $105 million in year two. thank you, president david chiu, for your collaboration on our city's 10 year capital plan that will ensure we strategically invest in our city's infrastructure. (applause) >> now, this budget will fully fund the street repaving program to improve streets and sidewalks and continue construction and planning on critical projects such as the water and sewer system improvement programs, our new general hospital, the bayview opera house, and improvements to muni. and thanks to the 195 million

dollar voter approved parks bond, we will continue to invest in our parks and open spaces. (applause) ~ >> last year, together with the support of voters, we passed the housing trust fund, a $1.5 billion stream of funding over the next 30 years for affordable housing and assistance to first-time home buyers. over the next two years we have budgeted $42.8 million for new affordable housing development for helping first-time homeowners including first responders with down payment assistance and preserving and stabilizing existing housing. here's a fact. every public dollar for new affordable housing development will be leveraged with two private dollars. all of these investments are needed to protect the housing stock in our city and to make sure san francisco can be

affordable. and we are doing it smartly with some of the strongest tenant protectionses in place. the small businesses are at the heart and soul of our local economy. my proposed budget includes funding for an online business portal to cut through bureaucratic red tape and make it easier for an entrepreneur to start and operate a business in san francisco. this budget continues my invest in neighborhoods initiative that is creating customized plans in 25 different neighborhood commercial districts and providing job squad and providing a job squad that brings city hall to our neighborhood businesses. and because san francisco's truly a global city, we're going to build on the success of china s.f. and expand our outreach to latin america and asian market street, not just to attract businesses to come here, but i'd like for us to

really begin to introduce "made in san francisco" products to these growing market street. (applause) ~ markets >> while the worst of the economic crisis may be behind us, we cannot deviate from our commitment to fiscal responsibility and reform. we will continue to invest in our neighborhoods, in our infrastructure, and most importantly, in our people. i want to recognize budget chair supervisor mark farrell again for leading the budget effort and making this a very collaborative process. i want to thank my staff led by steve kava, and to my budget office led by kate howard. and also a great thanks to ben rosenfield, our city controller and his staff, and then an anticipated thanks in advance to budget analyst harvey rose for his anticipated cooperation. [laughter] >> so, i know this is short, but i think you look at the

budget. to me it's quite a sweet budget. so, let's roll up our sleeves. let's get this budget done collaboratively. and then let's spend our time making sure that we get 6,000 jobs for our youth this summer. thank you very much. (applause) -

>> and it's a tradition every year that our mayor speaks as this fire department and shares his vision of san francisco and looking at some of the priorities so we've dmltd mayor lee to have you been us.

i'm not going to go through his bio i want to thank him for working so trierls less and is growing those jobs. may i mayor lee if you'll come up here i have something from irish it says team port i'm not sure what that's about maybe you can share >> well team port urging to have to approve user at the america's cup. thank you for that efficient introduction. good morning, everybody. to shepherd mulling apprentice listen and thank you for the lights they help me to find my socks in the morning

thank you. the elected here and to join with argue business community and our folks. i recognize a lot of facts you've been working with us in a constant way and i appreciate that. we have to work better we have to continue working with our business community that's the way our city is and becomes for successful. well, today, we're talking about planning a successful future together. sometimes, it's not it's really what we don't forecast or anticipate that calls us together and calls us for tax. i so want to begin with recognizing the rim fire that grew to be california's third biggest wild tire and talented our region or the asian crash that happened at san francisco.

we saw our first responders. i'm very proud of our cities rapid response that protected our water and power system and recognized those police and fire and the staff at the general hospital or the san francisco public utilities commission our elementary medical family who are prepared for the necklaces disfavor to come. it's not if it's a matter of time when something like an earthquake will a happy and we need to keep strong relationships with evidentially and i want our birds back i stood on those grounds in new orleans and wondered why people didn't come back. you are welcome in this city

you're a part of our lifeblood and be with us to rebuild in case third degree anything happens and thank you for everyone that's sobered with the america's cup raises. we're seeing is final races maybe extended bus the september show down continues and really it's about delivering the race sz with thrill and breathtaking images of our bay and that's broadcasted all over the world. obviously we'd like it bigger but it's happening and i want to thank our community and many of us who have joined me to make n this possible. well, today, we're going to do a little look at all the facets

we're aware of the visions and place before you some of the i think incredible looks at the different corridors of our city. as you all know we're living in an extraordinary city this is an extraordinary time we're seeing is economic recovery and, of course, we've been talking about the cranes we in the the skylines but our residents are back to work. when i took office in john giraffe of 2011 our employment rates was over 11 passenger seat percent and today, it's 5 percent so between 2011 and 12 we netted over 12 thousand jobs it's not just one industry. its not just one we're seeing

board based growth in every sector that's beating the u.s. growth rate. it's not by pure luck over the past 2 1/2 years with we've build and stregd the economic infrastructure of the city. a key part of that economic infrastructure is how the city's engaged in our growth. as part of creating expensive area plans we asked residents labor and community and businesses to come together and envisions the future of the city and our neighborhood. those plans did more than determined where that would occur but examined how existing communities would grow. area plans laid the great work for new housing for san

francisco families and spaces. they identified transportation infrastructure and strapping and open space in order to demonstrate to thrive. the success of those plans can be seen in a number of places coming online and the vibrancy of our san francisco neighborhoods. this morning i'm going to take the opportunity to 34 show you how we're royal our cities vision of carefully planned development. the market and obamacare staff plan took on the change of connecting the neighborhood by the railroad it has a walkable community that met a board range of needs from a people to over a

car movement. high quality development of under utilized sites that encourages us to flourish. projects like 2001 market and obamacare staff yes, ma'am brarsz the scale and character andrew retail educational to shops. carefully planning almost 50 percent of the new opts will be affordable for low incomes while creating neighborhood with award winning architect. and moving down market neighborhoods it's needed to know that when you tweet today your tweeting with a homegrown company. that's kind of interesting.

well central markets invades is transforming into a place to live and work and play. the arts community is thriving in central market with ac t renovation of the historic strand and it opened a center for new music. similarly our business community as reindividualized like several comes like skier and date of birth i didn't and, of course, tweeter saw the potential and brought the workers to the neighborhood. we're creating more spaces for people to live. 3 projects alone will all add morning 1 thousand 4 hundred units of housing between van ness and market street. their expanding the corridor into central market set to open

in 2014 it will bring an additional 2 hundred and 50 square feet of retail. a few blocks down another project is almost completely built out it is ran a tlooif district that will include the mexican museum pblg to a unique private partnership. continuing into downtown it the springing up you overnight optimistic the trans bay center. we joined nancy pelosi to pour the concrete foundation that will keep pourp pouring for the next year and a half for the grand central station of the west thank you making sure maria

thank you for your leadership and sharing your progress. i want to recognize this project to our transit center. this will connect san francisco to the downtown expansion and to the rest of the state as high rail is connected. this project is a huge job creator 2 thousand 4 hundred construction jobs will already been created and this project will have created 8 thousand 3 hundred construction jobs and generate over 2 seven hundred thousand jobs. surrounding the trans bay is the district. more than any other area of the city this downtown area is expanding to provide sacrifice

so far businesses inform grow in san francisco. we need this space because 201123.6 mile square feet has been leased that's = have an opportunity of 4 pyramids. of the businesses that are choosing to relocate in our city we've got construction around the area and this incredible building will be the tallest on the west coast. the amen of new office space under the construction is simply unbelievable. one 81 fremont will be the taught it building in san francisco and it's set to be

complete in early 2015 and if you doy square 22 second street and this includes the tore it's 2.2 million square feet of new office space in downtown san francisco. the tuitions it quickly goes to the neighborhood of ring connecticut hill. everyone coming across the bay bridge is giving an up close look at one ring connecticut's second tower. right across the street ring connecticut green completed construction of their building in ermd park. the city is also creating new space to accommodate the needs of our bio tech industries.

mission bay has become a wield hub of bio technical innovation. uc san francisco is placing their crown jewel of their innovation 83 at bin i didn't hill medical center that will provide care to women and children. ic has acted as a nucleus bringing go together institutions including the department of the veterans affairs. and as robert will discuss later today, the va has plans for building on the success of our research facilities. now south of mission bay hunters shipyard will be an innovation district that will act as a test

bed for the latest design in smart cities. the navel shipyards closed we watched this lash gibberish but no more. after decades of planning and entitlement work this time next year 2 hundred and 47 home with 67 hundred imply residents will be built at the shipyard. simultaneously we'll be breaking ground for the total revitalization of alice areas folks will soon be living in save energy efficient housing. in fact, such a point is the importance of building and accelerating the development of new housing for people of all income levels.

that's right. we're focused as much on building new and affordable housing as on the resident towers that grab our headlines. that's why we're building affordable housing throughout the city and keeping pace with the market housing. you should, you know, this. as of all the housing units in the pipeline 24 percent of it will be performly affordable. as a city we're not going to pit one interest against another. market rate development doesn't harm the creation of affordable housing but one cannot exist without the other it's the investigator confidence in our city that our city has the opportunity to do great things. before i include with the discussion of the cranes for tomorrow i want to pause.

first, as you know san francisco in san francisco we don't undertake development for the sake of development we welcome development careful planned sustainable and in the right places because of the benefits it brings to our city and our entire region. we welcome new places to live by insuring we can attract the most people we can grow our economy and create the resources to make that an even reinforce city. we grow our reservoirs for beautiful parked and public health and all the other needs of our residents. of course, development also puts the buildings back to work. policies including local higher and a first source connects san franciscans with those