failed at the ballot, so that will partially offset, and we have other changes in property tax, but to contribute directly is about $45 million. >> thank you. >> offsetting that stabilization in revenues in general is the loss of some significant revenues. we have known these are coming. the primary one is the expiration of the medical assistance increase done as part of the federal stimulus. that is in the process of ramping down during the second half of this year and will be off the books entirely starting next year. that is a loss of about $47

million mostly in the health department and human services agency, and we also balance the current budget of around revenue from the hospitals' fees the state amendment that allows us to recoup some additional costs at the hospital through this. that is also set to expire at the end of this year, so we do not project continuing revenues beyond 2011, and lastly, the loss of one-time revenues. each year we have those go away in the following fiscal year, and this year those included health department revenues, reimbursement from earthquake bonds, planning costs that recently passed, and other state

reimbursement. other changes in revenue -- we will assume withdraw all from the rainy day reserve in the current or next fiscal year of about $15.7 million. and we project some growth in health and human services state and federal revenues. on the expenditure side, we use employee-related costs of as a significant driver of arms -- our expenditures. we have seen continued escalation in those costs. we are assuming in these numbers the continuation of the significant labor givebacks agreed to last spring, so we

continued to benefit from that. those are all funds approaching $250 million for the city, so that is going to be significant aid to the city in a balancing the budget. those concessions are set to expire in the fiscal year 2013. there is expected growth in costs. those are health and retirement costs, and we will have of faith over the coming months for two months -- we will have updates over the coming month or two months. continuing on the expenditure side, we have an increase in our required contribution to baselines. about $17 million is due to the fact that in the current budget

we have pulled the trigger on crop h. -- prop h, so that comes back into the budget. there is a subsequent policy decision that will come into play, and the balance is set aside due to the voter-approved formula us. our capital budget, we continue to assume we will find the general fund cash allocation to capital assumed in the 10-year capital plan that would give us to a fourth of $70 million in capital spending. for the past couple years we have deferred project or found alternative funding sources to offset this number, but because of the use of the capital plan assumption, that drives our

deficit and number up by 44 craig $6 million. -- $44.6 million. we are assuming a cost of living adjustment for contracts and materials and supplies. this is a policy decision that needs to be made about whether to fund this increase, but we have tried to include it to a place to acknowledge the cost pressures affecting our contractors in the same -- to at least a knowledge because of pressures affecting our investors. we have the expiration of some savings on the equipment and technology costs and an increase in debt service partially due to new debt coming on line but partially due to some restructuring to balance the current budget out of our debt service there are about -- debt

service. there is about $9 million due to a one-time savings. we have the fund to support candidates included with those qualified for the elections. that is how we get to our bottom line of $293.4 million, and i am happy to answer any questions about the specific lines or anything else you have, but just to point to a couple of additional uncertainties.

we are still half a year away from submitting the budget. there are things we know are going to change over the coming year. some could change for the good. some could change for the bad. >> i will try not to do my impersonation. >> chief among the uncertainties are what is going to happen with the economy. it looks like things are stabilizing compared to where we were last year, but we do have some uncertainty about our revenues and costs. we also have uncertainty due to the state budget. the state is facing another large deficit. we expect more information about how the incoming lawyer 10 --

intends to address that. we will get other indications once the proposal is released in january. againswe have a place holder asd in our deficit projection that is part science and mostly art. it is looking fact -- looking back as a reasonable estimate. >> it is at this point of checking in. we are significantly better than what has come in the recent past. >> that is correct for the current year. i would caution that things

could change the budget we adopted this past summer. as you are referencing, the actual impact of the adopted budget were about $7 million, so there was some additional funding we were able to give to cover other revenue losses. however, i think it is fair to say a significant number of solutions and assumptions included in the final adopted state budget are no longer standing, so there may have to be some corrections where the state revisits some decisions made in the past budget and also make an additional future policy decisions to balance next year. there is certainly the possibility that if they are able to work some magic or are

able to fall back on other entities rather than the city of san francisco, we could come out food. i am highly cautious about being optimistic about that happening. i am wary about what happens when the state puts the budget out. as far as the instructions included in the budget instructions, we have asked the departments to make a reduction of 10% of their general funds adjusted as we have in the past voting approved spending requirements. we adjust those and apply the targets to the remaining

discretionary general fund to reduce general fund support by 10%, and we have asked them to propose ideas totaling 2.5%, so one quarter of that amount in the current year. the goal was so we could get some ideas on the table in the current year so the current reductions we can take early action and benefit from 18 months worth of savings instead of waiting until the budget is adopted next year. those proposals we have asked to be turned into my office by december 21. we will take a look of those and talk through with the department, and we can act on them and immediately or to the

extent that policy decisions we can make appropriate to whoever the incoming mayor is so they will have a set of options on the table to work with, and in addition to that, we have asked for another 10% contingency provided by each department. as always, we have asked departments to prioritize or service delivery, finding proposed solutions were possible that minimize disruptions and impacts on services. lastly, the high-level calendar for what is coming over the past few months, december 21, we have

asked the department to submit ideas for current productions. we will see if additional proposals, but my expectation is that nothing will be certain once we do see that proposal, although it should give us some indication, and we will have further updates to current numbers in february, and there will be an adjustment to the deficit production value. lastly, enterprise departments on may 1 and general fund departments to come before this foreign for deliberations --

this board for deliberations, so i am happy to answer any questions. >> i think we are ok. thank you for your presentation. i do not envy it your job. >> ♪ bring the budget home for christmas ♪ please we would appreciate that ♪ ♪ let the money snow, we need it so with the present under the tree ♪

christmas tree we will find a budget were city hall lights shine ♪ ♪ please bring the budget home for christmas, and don't you think it is about time ♪ ♪ if only in my dreams ♪ >> on that note, we will close public comments, and we can continue these comments. >> we are going into closed session. this is item five. settlement of lawsuits with insurance, the ordinance for the lawsuits versus the insurance company.

>> to spot this, i am going to close session. do any to do public comments about going to close session? >> that is correct. the maker of motion. >> a motion to go into closed session. >> we are open to public comment going into closed session. seeing none, we will close

chair avalos: ok, we are back from a closed session. we have a motion to go back into closed session? supervisor mirkarimi: i have a motion. chair avalos: any other motions? we are adjourned.

>> good evening. i am the secretary of the police commission. on behalf of the commission, i want to welcome everyone to the

san francisco 2010 medal of valor ceremony. please stand and join us for the pledge of allegiance. i pledge allegiance to the flag of the united states of america and to the republic for which it stands one nation under god indivisible, with liberty and justice for all. thank you. mayor newsom was unfortunately unable to attend this evening. he sent his congratulations to the medal of valor recipients. we are joined by commissioner president thomas does it go, dr. joe marshall, commissioner james slaughter, commissioner petra dejesus. we are also joined by chief of police george gascoign.

also with us are the it assistant chief. this isn't she said of the operation pirro. assistant chief denise schmitt. deputy chief john murphy, enforcement and security at the mta. commander sandra tong of the airport bureau. commander james dudley of the airport operations bureau. commander daniel mahoney, chief of the operations staff. commander daniel lazard, chief of investigations. this is a time when we stop and offer special members of the police department. these are members who have distinguished themselves through their bravery and dangerous situations. it is important to note one of the criteria for the medal of honor this one failed to --

failure to take such action would lead to center. these are actions above and beyond call of duty. at this time, i would like to invite the chief of police, cheif gascon, to come up here and speak. >> thank you, everyone, for being here. this is a special moment in policing movie get to celebrate the incredible acts of bravery by the men and women in our department. before i say a few words about these incredible men and women sitting in the front, i want to thank their families. your support, day in and day out, or caring, companionship, your ability to talk to your loved ones as they are going through difficult times -- i was

going to say men and women, but today we have just men. able to get through the incredible things that they see day in and day out, the things that they have to do to accomplish these things well. it is very special for me to honor you. this is a very arduous process. there was a great deal of review looking at your actions. for those of you who earned a medal of valor, or acts of courage were clearly above and beyond what we would expect of someone. you're not only exemplified the best at the san francisco police department can offer, but you offer the best that our profession can offer. i cannot say enough good things about your actions. the rest of you, again, your dollar, courage, -- quite frankly, the line between a gold

medal of valor and a bronze one is a very thin line. all 11 of you that are here today took incredible steps in order to save lives, in order to protect our community under a difficult situation. i want to congratulate you. you are someone who makes us incredibly proud. will come to this ceremony today, to the families, congratulations. god bless. >> thank you, chief. next, i would like the president of the police commission, thomas mazucco, to say a few words. >> thank you. on behalf of the san francisco police commission, commissioners slaughter, de jesus, and others,

we want to let you know what an honor it is to stand before you for these awards. for the audience, the police commission, by way of the san francisco general orders, has the authority to audit and review each of the metals you are seeing presented tonight. it is an awesome responsibility but it is also an incredible experience when you sit here and listen to the heroism and valor of these officers, as you do tonight when their commanding officers present what they did. you will hear things about your loved ones and family members that you never left new before. as commission members, we sit there with a lot of pride and a lot. also, we come to the graduation of police academies. for those we come to congratulate, to the promotional

ceremonies. for the medal of valor, we come to honor. what is valor? you look at the definition. it means personal bravery, heroism, gallantry. that is what each and one of these officers has done, bravery, personal heroism. but before we talk about your dollar, i want to give our appreciation to the people that brought them there, from the academy staff, field training officers. those are the true professionals that prepared these officers for what they do out on the streets. talking to one of the officers receiving a medal tonight, i asked him, what were you thinking about when that went on? he said, i was not thinking, i was reacting to the training that i got in the academy. i would like to think the family members. as the chief said, the family

members are the ones supporting you, the one that see the good and dark days. they are the ones that will give you to who you are today. thank you to the family members for sharing these heroes with the police department. and to the officers, valor-- --t is that are characteristic to quantify, that brings you to do something that is above and beyond the call of duty, where you are willing to risk your life for the sake of others or for public service. it is an incredible gift. in talking to one of the officers receiving an award tonight, he told me about a suspect with a gun that just killed somebody and he held back from firing his weapon because it would have killed him. he did not want to strike

anybody nearby. it was a veteran officer who could never tired and gone home. that is belair. that is why we are proud to be at the commission tonight. you are truly san francisco's finest. thank you, on behalf of the commission. [applause] >> both the chief and commission president mention this long review process to become a medal of valor recipient. i want to give you a brief idea of how these acts were reviewed to get us here tonight. when an officer's actions are such that any supervisor take notice of any break, that supervisor officer prepares a report detailing the event. the commanding officer then conducts a personal investigation of the event, and if they approve the nomination,

it prepares the report to the chief of police. the chief than four or -- forwards these nominations to the office of the police commission. then those are sent off to a screening committee. if the awards screening committee approved the nomination, they send it back to the commission office so the awards committee secretary can set up a meeting. this is a meeting of all of the department's captains and command staff where the nominating commanding officer who presented the nomination, while the officer is sitting there, answering questions about what they were thinking, what they were doing. next, by secret ballot, the awards committee votes on whether to award and what grid of metal. finally, they presented to the police commission for final approval. you should be proud of your family members who are here. this is something that every

captain looked at before these awards were made. it is a tremendous statement about what these people did to be here tonight that stood up to that kind of betting. -- vetting. at this time, i want to call forward mr. lazard to read the spirits of officer suguitan. >> on saturday generate 23, 2010 at 1721 hours, ms. johnson phoned the police to report that phoned the police to report that her roommate, mr.