police, fire, dcyf, rec/park. i think that will be a good time for us to weigh in at least publicly about what to think about some of the proposals, but are there other ways in which we could start the process and be helpful helping us get to the balance? >> absolutely. i think the committee hearing process is a good start. i would like to hear from you individually, however you would like to do it, about what your priorities are. the mayor has been starting to have discussions with you, i know. i think his intention is to put together an outline of what the budget would look like and essentially make that available to you and the public to start providing some feedback on what that is going to look like.

we have, starting tomorrow, a group of cbo's coming in to meet with the mayor and our office and with a number of department heads to talk in particular about health and human service cuts that are proposed as part of the department's submissions and the contingency proposals. the goal of those meetings will be to take a look at what they thought process is for those departments, decision making, and to suggest alternatives, a more efficient way to do work for an alternative that we can approach those reductions to minimize service impacts. we want to hear that. i think, probably, the best ways are through these hearings and for us to communicate individually, either off line or through the hearing process

-- either offline or through the hearing process. if there is something you are uncomfortable with, which i think a lot of them are, to start getting some alternative ideas out on the table over the next two months. supervisor chu: thank you. why don't we open this item up for public comment? are there any members of the public who wish to speak on item 1? >> ♪ name your price for tickets to see paradise we could always use some more so please make the budget shine with more pennies and dimes

and try to remember the kind of september when we had more more legal tender and deep in december you will have money if you will lend her then you will follow follow with even more deep in september you will have more money and all you board members and you will help us and you will remember and we will follow with more money through the city thank you ♪ supervisor chu: thank you. any other members who wish to speak on item 1? seeing none, public comment is

closed. can we continue this to the call of the chair? without objection. would you call items two and three. >> item two, a hearing on the federal budget impacts on san francisco for fiscal year 2011- 2012. supervisor chu: would you call also item 3? >> item 3, resolution urging the federal government to minimize the cuts to the community development block grant program proposed by the president and the united states congress. supervisor chu: thank you very much. before we begin on the federal impacts, i want to announce that on the budget website of the board of supervisors, we have put up their -- there a number of hearings that we will be having. we have also included online the dates of when some of the town halls will be happening across the city, so people are well aware of their opportunities to come and bridges debate. we also will be putting up the departments that will become in

a fight advance of their budgets so people will set aside the time to come and speak. again, on the san francisco government board of supervisors website, that information was available, and, of course, we are open to suggestions. with that, why don't we turn it over to kate from the mayor's office to provide an update on the federal budget impact? >> thank you. in back to talk to you about the uncertainty associated with the federal budget. there continues to be uncertainty in terms of what the final cuts will be to the city and when we will know what those are. as you all know, the federal fiscal year runs from -- it is

an oct. to the end of september fiscal year. in this current fiscal year, there is no budget. they are operating on a continuing resolution, which means they'd provide appropriation authority on a rolling basis. at this point, i think they are operating on a two-week extension. ideally, we would have a federal budget at the beginning of the fiscal year, but that seems to be difficult for them. and is challenging for us because it means it is hard to plan. the president proposed his budget in the middle of january, and proposed some significant cuts to programs that affect community members in san francisco and that will also affect our budget. many of those cuts were proposed at even deeper levels by

congress. so i thought i would review a couple of the major cuts that have been proposed and what those level of cuts would look like if they were adopted by congress. for example -- and you will here momentarily from the mayor's office of housing, the community development division -- in greater detail. an annual basis, the city receives approximately $22 million, and those funds support a variety of computing -- community programming. most of those funds are channel through non-profit organizations in the community. on an annual basis, we receive about $22 million. the president proposed a 7.5%

cut in year one, and in the second year, a 10% cut, so approximately $2 million. congress has proposed a 62.5% cut, so that would be about $12 million or $13 million. the department is planning, based on our conversations with our federal lobbyist and with their own contacts, on a 25% to 30% cut. we believe that it is very likely there will be a significant reduction to cdbg in the fiscal year 2011-2012 budget, and that it may deepen in fiscal year 2012-2013. another program, for example, that is proposed for a cut by both the president and congress, is the whole program, which provides -- it is a federal formula that provides funding

for low-income home ownership programs, home rehabilitation programs, rental assistance to low-income individuals. that program currently receives $8.5 million, and the president has proposed a 9.5% cut, and congress has proposed a 10% cut. so $850,000 there. the other one that is important that i wanted to point out to you now with some specific numbers is our work force investment act funding. as you know, this funding supports training for individuals related to job training -- training and support for individuals who have been laid off from their current jobs, and we receive about $6.5 billion right now. the president has not proposed a cut, but the house of representatives has proposed a

100% cut, completely eliminating the program. that seems unlikely to actually happen. however, it does not seem unreasonable to think that there may be a cut. as you can sort of here, many of these reductions proposed by the federal government could come count each other, right? cdbg funds, work force and economic development, as well as community development. we know we also have concerns about what is happening at the state level with redevelopment. so there may be compounding impact that i think are important for us to be thinking about. other impact that will not affect the city's budget directly but could affect our community in san francisco are proposed cuts to programs like head start, the corporation for national service, as well as

proposals to change family planning funding or eliminate family planning funding. two other things i wanted to point out to you that are important to be aware of as you are thinking about the budget and the federal picture. the federal stimulus acts was signed into law at the beginning of 2009, so some of the funds that were associated with the recovery act are expiring or have been fully extended. for example, there was an additional grant of funding for workforce programs and work force training. that funding has been entirely extended or will be by the end of the fiscal year. so there will be an impact on services in san francisco. the expansion we were able to do

with that federal funding -- the funding is no longer available. i also know that many people are concerned about the ryan white funds, and we have been fortunate to receive stop-loss funding with the support of now leader nancy pelosi's office. currently there are, as you are all i'm sure aware -- we are in a time of no earmarks, so this stop-loss funding is viewed by many as an earmarked, and currently does not exist for san francisco. that impact on the city's budget and services in the hiv/aids are reno would be about $4.3 million -- the hiv/aids arena. supervisor chu: supervisor, you have a question? >> i did. i have heard some talk that the leader was going to get that

move into the base line or whatever it is called, so we may end up possibly not losing that funding. do you have any insight into that? >> i did have a conversation with the speaker's office, and my understanding is that the funding is not secure at this time. they have not been able to move it to be based. -- move it to the base. supervisor wiener: is it that they have not succeeded yet and may not succeed? what level of optimism or pessimism do we have at this point? >> at this point, my understanding is that no one is particularly optimistic about any funding that could be characterized as an earmarked -- an earmark, as this is sometimes characterized. happy to answer any other questions you may have.

supervisor chu: thank you. just for the rundown of the different programs and where we expect some of the impacts to be -- we currently receive $22 million. the cut on the table is up to a 10% cut in the out years. the department thinks it will be more like 25% or 35% loss. and then in terms of the whole program, we expect an $850,000 reduction, roughly? 10%? and then for the work force investment funding, the president has put forward a plan not to make any cuts to the dollars that we get, but the house is currently proposing eliminating that entire funding, correct? >> that is right. supervisor chu: in terms of other programs where it does not directly flow the has an impact on services provided, we are not sure exactly what the impact on the city overall would be, but

heads the family planning monies -- anything else we are missing? >> americorps this up. there may be others. i'm happy to provide details on programs that benefit san franciscans but do not flow directly through san francisco's budget. supervisor chu: that would be great. i know we have item 3 also, which is a resolution. would you like to present that item as well? >> i think mr. chu from the mayor's office of housing is here to address that issue. >> good afternoon, director of community development from the mayor's office of housing. i think you have heard the description of the possible cuts. let me give you a little bit of

the latest update we have from our partners, the national community development association. they have been working, trying to have meetings with each and every senator because that is where we feel we may have to focus to save this program. in their meetings with the senators, they had discovered that many of the newest senators were unaware that cdbg supported any services in their state. the educational process, i think, was useful. however, while many of the senate republicans have met with the support cdbg, they are so far united in their desire to see more federal cuts and are united in not supporting any program over any other. there was an attempt by ncda to draft a letter signed by all the members of the u.s. senate, which would support maintaining

the current level of fiscal year 2010 funding. unfortunately, republicans all stock to say we are not able to sign on to that, and some of the democratic senators felt as if it might be a conflict to support one program over another. both the california senators did sign on to that letter, asking the president to hold the line and actually increased his budget. in terms of how it might affect san francisco, we did our initial projections at a 30% cut. we know other jurisdictions that have a contingency scenario anticipating a 60% cut. we felt that that is not likely to be at that rate. again, the latest news we have

from washington was that vice- president biden and other senate democrats were planning to offer up perhaps $30 billion in cuts for fiscal year 2011, including cuts that have been made in the past including the continuing resolution. conservative republicans were asking for $60 billion, so this would be meeting them half way, which matches up with our projection for 30% cuts. the petition to maintain level funding has been supported by the u.s. conference of mayors. we're doing all we can to preserve the funding, but we did want to offer this resolution so that the mayor and board could be on record to work with the city's congressional delegation and other partners to preserve as much as possible for cdbg.

the national committee development association did say that they -- the national community development association did say that the fiscal year 2012 budget negotiations may be even more difficult than the fiscal year 2011 discussions in terms of cdbg. \ that is one thing to keep in mind. in the past, when we had this, we needed to go back up, but we do not anticipate this reduction. if anything, it may go down. that is a little bit more the background, and we do ask your support in passing this resolution. supervisor chiu: -- supervisor chu: thank you. quick question in terms of your timeline -- i know that the cdbg money is go out for your rgp process in a bit -- for your rp

fp process in advance of our budget. what dates are looking at, and will your department's work basically be centered around an assumption of a 30% cut production? and are you going forward with a potential contingency, or are you going to leave it at the 30%? >> that is an excellent question. we are going forward with our 30% projection. as of now, hud requested we stay on the same time line, which required us to submit our action plan by may 15. we usually come to the board through this committee at the end of april for and accept and expend resolution. there may be a possibility that we come to your not with it will accept and expend if we do not have the actual allocation, but instead, we come to you with a request to approve the submission of the action plan with this contingency budget, which will allow us to satisfy

the hud requirements. we would come back to you, perhaps in may, for the true accept and expend, and we would amend the action plan. does mean that there is, unfortunately, a degree of uncertainty with the cbo's. we would be discussing with each of you individually your suggestions. in the best case scenario, we do have some contingencies. we do have some contingencies if it is worse than 30%. it will be a very difficult discussion if it is greater than 30%, but we intend to see you at the end of april for either and accept and expend for an approval to submit the action plan with this contingency. supervisor chu: thank you. and the question for ms. howard, with regards to the budget, again, the federal fiscal year,

right now, they are operating under a continuing resolution with extensions that occur periodically. when have we received with the federal budget would look like, and when do we think that will be? >> apologies, supervisor. i'm not sure what the typical timeline is. in just checking around. do you happen to know? and in the past, i think that the budget has tended to be approved in february or march. we get our allocations as early as february, sometimes march. right now, we have gotten mixed messages as to whether or not congress will be able to come to an agreement. at the end of this continuing resolution. which, as ms. howard said,

expires april 8. we may be able to get to you before that time, but it can go either way. supervisor chu: thank you. if we do not have questions from the committee, and going to open up for public comment -- i'm going to open up for public comment. >> ♪ federal cuts budget day by day cuts day-by-day 0, city and state why did you take the money away you promised us so dearly and the budget yearly and i hope you hear me budget cuts day-by-day

bring it back away if you hear me bring the budget back and near me we need the budget clearly budget yearly day-by-day ♪ thanks. supervisor chu: any other members of the public who wish to comment on these items? >> good afternoon, supervisors. i'm with the chinatown community development center. i'm here today on behalf of a network of asia/pacific islanders serving community- based organizations. it is a network of about seven coalitions that actually span roughly 25 to 30 organizations and provide services to the entire city in terms of our

geographic scope. first of all, i wanted to thank supervisor chu for putting this hearing on. one of the things that is not well understood in our communities is just how much the federal budget impacts the services we are able to provide, and i do not think folks in our community really have an understanding of how these cuts are going to hurt us and potentially change the face of our communities. we have been trying to gather some data on just how deep these cuts are going to go, and even though our network is about 25 or 30 organizations, we are beginning the process, and we have gathered some data on cuts to about six organizations right now. just based on those six, we found out that federal funding helps fund services to about 5000 clients, so it's 60% cut -- a 60% cut would mean a loss of

about 3000 or so low-income clients in the city. i also wanted to point out something else. i do not know of it is mentioned, i walked in a little bit late, but one of the cuts being proposed by the republican congress right now is a complete cut to hud's section 202 budget, which is one of the sole federal sources for senior affordable housing. that program has created about 1000 units of senior affordable housing in san francisco. if that is cut out, you can understand what the impact will be. thank you very much for your time. i urge you to support the resolution and work closer with the community on protecting these cuts. supervisor chu: thank you. question for you with regards to the section 20 to funding cuts, can you explain that in more detail for me? >> hud has a program to fund

development for housing developers doing senior units. the units are structured somewhat similar to section 8 where seniors who do qualify a actually only have to pay up to 30% of income as rent. it is really an incredibly vital program for seniors. chinatown community development center completed in roughly 2007 a building in chinatown called the international hotel. a beautiful new project on the corner of jackson street. 101 units. even though there was only 101 units in the building, whenever we opened up the application, on the first day, there was a line spanning about to reveal a blocks, and we ultimately ended up getting 10,000 applications for 100 spots. i think that really speaks to the need and demand for affordable senior housing. these types of draconian cuts

are not just going to impact senior housing and cdbg. they are going across the board, and i think the kind of devastation they could bring to volatile communities in the city and across the country are really profound. i really applaud the city and supervisor chu for bringing up this issue. supervisor chu: what was the impact, do you think, from that potential cut? >> this was proposing to zero of that program. i think for me, the impact would be that it would be near impossible, i think, to create that kind of deeply affordable senior housing if those cuts are actually imposed. given the state of the universe and be right now in terms of affordable housing financing, i'm sure that has been discussed here, or if not, it probably should be discussed here.

unfortunately, any cuts to that degree, so i would be concerned that we would not ever be able to get deeply affordable units in this or any other city again. supervisor chu: thank you. next speaker please. >> i am with self-help for the elderly. i want to underscore what was repeatedly stated, that the federal funding that the cbo's are receiving for our service, and any cut would have a really adverse impact on the lives of all of our clients. i want to highlight this by just sharing with you, i send out a survey to all of our components, and we have 12 programs stretching from nutritionto