of course not. well, it was too graphic for the kids, so i'm going to have to block you. you know, i got to make this up to you. this is vinny's watch. >> 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)out.

>> hi, i'm japanese with the san francisco public utilities combination sometime people call

me sewer girl our systems has served the area for 1 hundred and 50 years we're planning you understand public health and our environment don't think that so come in down and see how >> there are kids and families ever were. it is really an extraordinary playground. it has got a little something for everyone. it is aesthetically billion. it is completely accessible. you can see how excited people are for this playground. it is very special. >> on opening day in the brand- new helen diller playground at

north park, children can be seen swinging, gliding, swinging, exploring, digging, hanging, jumping, and even making drumming sounds. this major renovation was possible with the generous donation of more than $1.5 million from the mercer fund in honor of san francisco bay area philanthropist helen diller. together with the clean and safe neighborhood parks fund and the city's general fund. >> 4. 3. 2. 1. [applause] >> the playground is broken into three general areas. one for the preschool set, another for older children, and a sand area designed for kids of all ages. unlike the old playground, the new one is accessible to people with disabilities. this brand-new playground has several unique and exciting features. two slides, including one 45-

foot super slide with an elevation change of nearly 30 feet. climbing ropes and walls, including one made of granite. 88 suspension bridge. recycling, traditional swing, plus a therapeutics win for children with disabilities, and even a sand garden with chines and drums. >> it is a visionary $3.5 million world class playground in the heart of san francisco. this is just really a big, community win and a celebration for us all. >> to learn more about the helen diller playground in dolores park, go to sfrecpark.org.