. it is a budget continues our efforts to expand universal health care to those that are uninsured. expands and complete the five- year promise we made to do universal access. it included millions of dollars to help out cuts at the school district. $49 million from the rainy day fund has been sent to the school districts. that is amazing. [applause] that invests $345 million into capital. that is more money to repave our streets than ever. over $50 million, if you are wondering. that allows the city to maintain its hours at the library branches. it allows the recreation and park system to potentially add

20,000 hours of new programming time that did not exist one year ago. it allows us to maintain the number of sworn personnel in the police department, maintain the pressure -- the infrastructure of fire stations throughout our diverse community. that is a pretty remarkable thing. we did not have to raise taxes to do it. we balanced the budget without raising taxes. i do not believe he should raise taxes when you do not need to. some people may disagree. i am really proud of that. i will condense my comments and conclude by thanking books. we worked for 364 days to get here. we reduced overtime by 16.2%.

because of good management by all department heads here, we are able to pull back $64 million in savings from last year's budget that helped us offset this deficit this year. that is because of their leadership throughout the year. [applause] we invested in new programs. that is remarkable. we're putting another $5.9 billion into the crime lab. that is long overdue. the board was spectacular in this. no politics at play there. no differences were ever publicly expressed in a way that they should not have been. we got that done. we're doing something remarkable. i was with the administrators of the school district. no other school districts in america is doing this.

you supervisor -- thank-you supervisor camps for this. we're giving kids a chance to the college with a trust fund. we're setting aside money in a savings account. i believe that once a mind stretches, it never goes back to its original form. these kids and their parents will bank thin -- think differently about their future. they will now have something that others take for granted. half of latinos and african americans in san francisco do not have access to bank accounts. this is a big deal. it is in the budget. it is something to be proud of. [applause] i could go on and on. you know me. i could go on and on. these numbers are indelible. i live and breathe this for many months.

at the end of the day, it comes down to leadership, storage, collaboration, partnership. that is the final point i wanted to make. this was a remarkable collaboration. it was led by the chair of the finance committee. it hurt him politically and i know it. it is so unfair. he did such a good job last year with the budget. he got more bad backs a -- add backs in history than any of the chair. i got him in a little trouble. i should say terrible things about him to elevate his status with the bloggers. i cannot because i would be lying. he did an extraordinary job. that is john avalos. he deserves a tremendous amount of praise. [applause] thank you, john.

thank you to president chu for appointing him to that decision. that was the best early decision you made a year ago. [applause] i also want to express thanks to the president of the board worked very hard on this budget for a long time trying to stored things back and forth and work with his colleagues and the budget committee and finance chair. i want to thank him for taking some heat as well. leadership is not always easy. dogs do not bark at parked cars. folks who actually do things take a little heat. people can sit on the sideline and talk about the world all they want.

but what had begun to manifest the ideals? david understands that sometimes you have to take some heat. i want to thank president david chiu for his willingness to take leadership on this to help us get to a balanced budget and this point today. thank you for your leadership through this process. [applause] to all of the other members of the board, i think some of you have just got here and some of you have been here. i think you are all here. this could be a 1 hour presentation. thank you. i mentioned david. supervisor maxwell, thank you for your leadership. she is great because she says it will all work out for everyone. thank you for tempering us on all sides of this. thank you to carmen chu and to

all the members of the board to work hard to solve the problems in their district. we did not see the type of parochial policies we have seen in the past. the add backs predominantly citywide. it was not just about the district or constituent. it was about the city. they all sure that in common. to all the members of the board, thank you very much. it was a unanimous budget. [applause] you can read between the lines. [laughter] some of us got it. from labor to the elected family, to all the department heads, if only the meetings were recorded, to the incredible

leadership of steve caba. [applause] i think dufty created a facebook fan club. steve has been the constant, the one that held all this together and kept as all the same page when we were starting to get off the script. he is someone who does not need to be lauded cuts he has been lauded appropriately before. thank you for your work, the long hours with the team and the

committees, all the work you did with the department heads to help get us here. finally, where is the budget director? [applause] he is looking a little haggard for good reason. the grace of god for anyone who wants that job. he did another outstanding job. i think the board will agree that you need to have trust in a controller and a budget director. if you do not have those things, trustha in harvey and deborah. thank you for all the hard work.

those are the anchors to get the technical work done. when they all agree, we tend to agree. when they think it is the right thing to do, we tend to i cannot impress upon you how proud i am of their work and their stewardship and greg's sacrifice in some ways to do the job that he did this year and to all of his teammates that worked so hard through long nights and long weekends to get us to this point. so if i forgot the sheriff, it was not intentional. thank you for your willingness to try new things in this budget and to help steward us through this process. to all of the enterprise department head that are here, for your creativity to help us through this general fund shortfall. i will not go into detail because there is no reason, but thank you. and to the spirit that brought

all of you here. welcome. thank you. if i have not forgotten anything or anybody -- i did mention ben. ben's got a baby. monique is here. [applause] they are the best. they are the best. thank you. she carried as. we were at the 90-yard, and we could get through that final 10 yards, and monique carried us over. thank you for that. we are ready. who? i know avalos is coming. \ [laughter] he and i are going to be back, and i want to thank the chief, and everybody else. room so why don't we sign this

budget? [applause] everyone, try to gather around. nuveeyou guys are all standing .

balanced budget on time. [applause] from the city and county of san francisco. [applause] do mayor newsom: we were finishi, but i did not tell you all to hold on a second. >> is this on? i'm starting to get a collection of these pens. this is a proud day for san

francisco where many municipalities and counties are struggling across the state of california. here in sanfrancisco, we are able to balance our budget, and i'm very proud of the work all across this city from the mayor's administration, the budget director, greg wagner, who has spent a year working on this budget, to my colleagues working on the budget committee, supervisors mirkarimi, elsebernd, maxwell. we had a lot of work that involve months of work on the city budget. we worked closely with community advocates to make sure we were well aware of what changes were being proposed or coming down in this budget. we wanted to work very closely because this budget document is the most important document that comes out of the city and county of san francisco. every aspect of our service, every aspect about how

government is run is embedded in this document, and the public expects us to do our best and to have the best work come out of this committee, and i'm very proud of that work and very proud of everything we have achieved. closing cuts to senior services to make sure the seniors have meals when they need them, cut to the children, youth, and families services have been restored. our safety net is intact. we still have our public protection agencies, the police and fire department during their important work that serves all of san francisco. all of this is because of the great work and collaboration and cooperation across the city and county of san francisco. this is a proud day, and i want to thank everyone for their hard work. labor unions have given back a tremendous amount, have made great sacrifices. i know that our department heads have done the same as well. just looking at the police budget, how the overtime of the

police budget has come down dramatically where it was. about $24 million is now about $7 million in overtime, and that is about the tremendous leadership that chief gascon has implemented through his apartment to make sure we have accountability about how our hours are run there. this is typical work that all our department heads are doing, despite the deficit we are facing. proud day for san francisco. thank you, everyone, for your hard work. let's get on to the next year. i hope that we can have cooperation across the state to make that happen. thank you very much. [applause] >> president david chiu. supervisor chiu: i'm going to be brief, but i want to echo the thanks of the mayor's chief of staff, the budget director, all the wonderful budget analysts

who spent many hours on this. the department heads, everyone here i can see almost to a person was incredibly involved in getting this done. of course, my colleagues. supervisor john avalos, thank you for allowing me to convince you to step up again for a second year. you did tremendous work, as did all of my colleagues on the budget committee and on our board. there are some folks who are not here who i want to really extend a warm thanks to. everyone who represented all of the different and important constituencies that were affected in so many ways -- i want to thank you for the late nights you spent with us at the board of supervisors helping us winnowed down the budget priorities with the few dollars that we have. this is not a perfect budget, but i think it is a good budget. it is a budget that protect course city services in public health, in public safety, and services for it the most

memorable san franciscans we have in our midst -- the most vulnerable. we have continuing challenges. we have budget deficits for the years to come. we have decisions that could come down from washington, d.c., from sacramento that would require us in a few short months to be back at the negotiation table, and the thing that i ask is that with the same spirit that brought us here today, we will bring that spirit to ensure we make the right decisions for san francisco for today and for the future. thank you for being part of this process. [applause] >> thank you. i think all of us can take a moment to really appreciate the fact that we have done something that really distinguishes our city from other cities that the mayor has mentioned and counties in california. there really is a tremendous achievement because of the way we all work together because we

were created. we listened carefully to each other. i want to point out that city employees ratified every one of these agreements by over 90% voting in favor, so this clearly represents the sentiment of all city employees. the truth of the matter is that city employees want nothing more than a well-run, efficient city that is not only a city that is the most progressive city in the country but also the most effective, efficient, and well- run. i want to thank the mayor for his leadership over the last few years in moving san francisco into that direction, and i think on behalf of all city employees, it really is a pleasure to be part of the process. congratulations to everybody. [applause] >> there you have it. you get all of us individually. thank you for coming out, and as david chiu just said, we are prepared. we see some state the mission in terms of contribution, federal, we are ready to go. we are ready to get to work, and

we will be moving on to next year's budget very soon. smile, department heads. thank you all. [laughter]

captioned by the national captioning institute --www.ncicap.org-- supervisor avalos: good morning, welcome to the budget and finance committee. joined by my colleagues supervisor mirkarimi:, supervisor elsbernd. madam clerk, do we have any announcements? >> all persons attending this meeting are requested turn off all cell phones and pagers.

if you wish to submit speaker cards, please place them in the container to your left. please submit extra copies of the bile. supervisor avalos: thank you, caller. please call our one item. >> . item number one, ordinance amending the san francisco administrative code, 106 through 106.28, to impose a wholesalers and certain other persons who distribute or sell francisco to: 1) recover a portion of san francisco's alcohol-attributable unreimbursed health costs, and; 2) fund administration costs. supervisor avalos: thank you, madam clerk. colleagues, this is our second hearing on this item. last week i embedded amendments that we discussed that i will summarize the day. basically we had changed based

on the economists' report that there is a higher level of consumption of alcohol in san francisco and alcoholic sales in san francisco, therefore the fee would not need to be as high to obtain cost recovery. we have lowered the amount by about 25%. the amendments included where we had originally had a fee based on 7.5 cents per ounce and now that the fee is applied three ways for beer, wine, and spirits, beer would be 35 cents per gallon. why would be $1. spirits would be $3.20 per gallon. this would make a bottle of beer about 3 cents, i believe.

the reason why we put three different types of alcohol, it would be easier for us to apply that fee without taking into account the different ways that alcohol can be manufactured and make it easier for the tax collector to do the work and businesses to report on their sales. the amendments, we allowed this hearing to consider the amendments and are facing a timeline based on prop. 26, which is on the november ballot. prop 26, if it were to pass, would prevent the municipalities and state government from creating any fees in the future unless they had two-thirds of the public or the electorate.

you might think that that helps to yield fiscal accountability in the county's, but it might also severely hamstring local governments from making decisions about their finances. today, primarily we have it open for public comments. everyone that wishes to speak will be allowed to speak on the measure. i will be asking my colleagues to move this item forward to the september 7 board meeting. it will be the first one after our recess. i will be around after this week for the month of august to take in concerns. there has been a discussion

about possible amendments that i will consider in the process. we will have those available for introduction on september 7. following are timeline, because of prop. 26, we would like to be able to get this to the full board and make an amendment to have that some members seventh as the first reading. the 14th would be the day for the second reading, moving along our time line to make sure that we can improve this before the prop 26 november election date. we wanted to make sure that these folks have already considered the timeline and potential amendments that we might consider as a part of the legislative process.

colleagues, and the other questions? or do we have a summary of the changes? >> good morning, supervisors. my office is prepared to present a report on the amendments that supervisor of the los introduced last week and their economic impact. we have also modified some of the calculations from our previous report based on calculations and conversations from the initial fork and i would just like to review with you some of our new findings. as the supervisor indicated, the fees are a lower rate broken out by a gallon for beverage type.

35 cents for beer, $1 per gallon for wine. what that means in terms of the price impact of this feet on a serving of the alcoholic beverages is a 3.3 cents increase for 12 ounces of beer, 4.7 cents increase for a glass of wine. where the changes come in our how this affects consumer spending at restaurants and bars on one hand, a grocery stores and liquor stores on the other. given that these fees represent a lower price increase, the change in consumption is lower than what we predicted or projected last time, 1% for each of the beverage types at bars and au