>> a good morning, everyone, and welcome to the regular meeting of the transportation authority finance. erica ching is our clerk. i would like to thank bob and bill from sfgtv pfor providing access to this meeting. >> this is an actuioion item. >> any correction to the minutes? is there anyone from the public wishing to speak? public comment is closed. any comment?

we move it forward without objection. ms. ching, can you call the next item? >> the 2012 annual budget and work program. >> this is cynthia fong. >> good morning, commissioners. yes or the deputy director of finance and administration. why have before you starts with the fiscal year annual budget. this budget was brought to you at the preliminary stage for the information in. they have not received any changes from last month, and i have a short power. presentation for you to recap what we saw in the budget.

as you may recall, the budget includes six different pieces. we have the tax revenue and a federal state and regional revenue, the capital expenditures operating with the service costs. this package includes four components, and the first attachment is the high-level executive version with the rigid with the comparison to fiscal year 1011. you have the annual work plan, and this breaks down into each of the five sections that the authority will indicate what we plan on working on next year. you have a line item detail, listing all the different federal and state and regional type revenues, and this shows

what we will be spending for the fiscal year. you also have a line item description, with revenues and expenditures. we have a pie chart that is here on the power point presentation. this is what we will be receiving and what we anticipate to receive in terms of revenue, and the majority of the revenues come from this, we expect 68.5% in the coming year. the next largest source of revenue -- this is the part where project, that brings in about 20% of the revenue, amounting to $20.6 million. >> this is entirely the parkway?

>> a good majority of this. >> 20 million of that is this. >> as we watch the calamity that is sacramento will not have to worry about this, because this is largely one project. >> the next largest source of income in the federal grant revenue -- this is 5.9%, with these consistent projects. . this represents about 3.8 million, as is 877,000. on the next slide, we have a view of the different expenditures, and we also have a

part indicating the amount of sales tax revenue in this program. as you can see in the first fiscal year, we have received the half year of sales tax revenue, with the all-time high received in fiscal year 2007. this was down to 68.2 million and the seed is creeping up to about $2 million. the next slide, we have the expenditures we anticipate for fiscal year 2012. 90% of the entire budget will go to the capital project expenditures, and this represents a few of the larger

projects such as the central subway project, the presidio park or project, the other projects on the radio communications systems, the different street improvements and expenditures. the largest amount of expenditures for this service, we anticipate 300 million with the bond issue in 2012. we have always included the potential that issue and we anticipate using this as long as the funding agencies are in need of further projects. we also have personal expenditures, of 3.4%, and there

have been no changes to the prior year salaries, in alignment with the cost of living. we have the non-personal expenditures, of $3.2 million of the entire budget, consisting of the operating cost for rent, the legal fees, anything that is needed to maintain the front office. next i have slides for the work program, and since i have already gone through this in the last month, i would like to offer questions for any of the commissioners task, for collaboration or detail on any of the projects. >> i have one question.

of the capital project expenditures, what percentage of the major projects -- what percentage of these projects would be like the three or four big ones? >> most of the money going for those is for those projects. >> be no worse and francisco is that, in terms of if we can fill the requested capital contributions? and how much they will be purchasing? >> just the capital. >> these contributions -- we're working on this with a mass transit authority. we are responsible for matching the capital grants, but since this has been in place we have been trying to use this offset

and we're getting to the place where with the tough financial years that we have had, we're running out of funding. i think that we will be able to get very close, trying to mix and match the share with the eligibility issues. the bottom line is that we got pretty close to what they can actually provide for the capital budget. i think this is the order of 4- $6 million. >> if you can keep me up to date, i will appreciate this. >> and are there other questions? >> i have one question and maybe will cover this later. to be clear, in terms of the projects being proposed right now, is there any money allocated in the budget for the

fort mason tunnel extension? this is a project we have been talking about a lot in my district. i just want to be clear about where the funding -- the lack of funding is one of the biggest issues and i want to see where you are with this. >> we will pass the question over to maria. >> let me introduce myself. i am the chief deputy. the fort mason tunnel is not included in the plan. we have not been approached about something like this. the extension does have about $5 billion in the infrastructure plan, however, this would be included in the five-year program for the system. this is a larger category that names this project. when this last program came

before the committee last year, after the previous commissioner, alioto-pier did not want to include this, i think the expenditure plan so that we could provide the remaining funding, until there is a larger funding plan in place. >> this is earmarked wherever. >> i know that one of the other projects -- i was wondering in the next year, about the expenditures on those projects. >> this is 1-$3 million that will be spent. the planning division in the coming fiscal year, if there was any more budget we could bring this to you back and around

january or march. >> and other any other questions? please continue. >> if there are no further questions on the authority, i would like to say that we are seeking approval for the fiscal year 2011-2012 from this committee. >> we will open this up for public comment. is there anyone from the public who wish to speak? seeing none, we will close public, and can we move this forward without objection? thank you. please call the next item. >> said in federal legislative update. this is an information item. -- state and federal legislative update. this is an informational item. >> the legislative update this month. >> i wanted to just give you

what was going on with respect to the recommended legislation for washington. we're in the midst of the legislative session. many of these bills will be taken to this file, and the senate will take up a new system and the assembly will take this off on the 27th. you will see a lot of this, with the bills that will make it onto the floor. this to pass $8 million, with $13 billion in new cuts, and we have been revising this. this will be a purely cut budget, where the governor will

propose 12-$13 billion in cuts across the state. and the other proposed budgets that we are looking at. this will bring along the same ideas that the governor proposed earlier this year. this is with respect to tax increases. we do not see the support for the republicans and the majority -- this is the revenue generating budget. one of the concerns that thinking may be interested in is the protection that we receive under the budget and the transportation. this will go back to the legislature, and we are

protected with those funds. with proposition 22, the super majority is now protected. we do not need that to be able to do this by the legislature. we are protected by those funds. and moving forward, looking at the no budget situation, the results of the budget -- that would essentially run out of cash. they definitely have to see what happens at this time. right now, this is one of the scenarios that we have, no budget. the treasurer -- but cannot sell bonds with respect to this, and we have spoken with the treasurer and this has gone to wall street to talk about the

appetite that they have to have the california bonds without the passage of the budget. we will be working with the treasurer's office, in getting periodic updates. with respect to what we're getting from the authority, we have 76 -- parking and the maufas bill. this is page 25. this would cap prop 1-a for the amount that is already available. and this is already the high- speed rail program. both of these have been held in committee, and now they come to the offer and the committee, the committee into each other to work on the next step.

the next bill, the stills with the transit visit development, and it opens a leave of the law for government infrastructure by eliminating the requirement for approval of the infrastructure plan. this bill is on the assembly floor, and i don't see as having any problems with this, and the next bill i want to highlight, a this is-- this is ab-- >> this would give more flexibility for infrastructure financing, for trarnsit village development, with affordable housing? mr. elsbernd? >> and eliminates the requirement for the election.

>> i would follow up on how supervisor mar characterized it. the bill would require a certain amount be spent on affordable housing. >> it does set up criteria -- >> it makes it more flexible, but less flexibile by specifying how it will be spent. >> to use the revenue for the purposes of improving moderate income housing supply, for moderate income housing? thank you. >> and next bill is ab-1041, another bill. this would permit -- this will extend the current law, that allows sentences to to use the support it -- enforcement of

the transportation lanes and the issuance of citations based on the photo evidence of transit and parking. this is phase six of the handout. this will be taken up at any time. this bill provides provisions for the content, and it allows and authorizes the local agencies for the bidders with 60% more domestic content and the united states. this bill is on page 18 of the handout, and the assembly pr