supervisor kim: thank you. we're now back -- 0h, sorry. supervisor kim: -- >> we met in closed session. i understand the committee will move items 6, 7, and eight forward with recommendations. supervisor kim: thank you.

without opposition. question disclosed. madam clerk, is there anything else on the agenda? >> no, madam chair. supervisor kim: if there is nothing further, this meeting is now adjourned.

>> if you are interested in our local city government and would like to work with 18 other enthusiastic citizens committed to improving its operations, i encoura

supervisor chu: good morning peter i am joined by supervisor mirkarimi, supervisor cohen, supervisor renner, and supervisor chiu. the clerk is victor young. we have members from sfgtv here. do you have any announcements? >> yes, please turn off all cell phones. if you wish to speak during public comment, turned in a speaker card to myself. if you present documents to the committee, please provide a document to the clerk. items from today will appear in the board of supervisors agenda on june 21, 2011, unless otherwise stated. supervisor chu: thank you very much. call item one. >> and to consider release of reserved funds for the supervisors in the amount of $34,515 for the temporary

relocation of the board of supervisors meetings. >> madam chair and members of the budget and finance committee, i am the deputy director of administration, clerk of the board. on february 2, a hearing was held at the budget and finance committee. placed on committee reserves, funds in the amount of $51,054, pending additional details and the temporary relocation. based on a new quote and estimates for media services, the revised costs or between $34,515 for poorer meetings -- for four meetings. san francisco government tv slide, please. >> can we have the overhead display, please? thank you. >> the budget and finance

committee directed the clerk of the board to temporarily relocate to room 416. if room 416 proves to be an adequate, then the north light south courts would be utilized and the cost of the relocation would be $34,515 that would be incurred. although the north and white south courts are not available on all of the meeting dates, and the event occurs on august 9, and for the regularly scheduled meetings of september 6 and october 4, room 416 we need to be used at no additional costs. therefore, the clerk of the board is requesting the committee to release the funds from reserve of $34,515. i am available to answer any questions. thank you for your consideration. supervisor chu: thank you very much. we do not have a report with this item. this item did come before this

previously, and we talked in length about the potential locations for the temporary meetings, or the temporary locations for the meetings. at that time, we have not released the reserves. we had to come forward separately with the actual request of the release of reserved funds. that is what this item is. before we take action, why don't we go to public comment. are there any members of the public who wish to speak on this item? >> supervisors, my name is francisco da costa. as no, i was present at that hearing, and i would like the controller and those who are involved with this item to pay careful attention. first and foremost, i have qualified experience as an ada program director with the national parks service, the department of interior, that has

the highest standards regarding this issue. the way i look at it is that at this time, it is a waste of money. we're putting too much emphasis on the ramp, and in doing so, we're not even revealing the truth. i can tell you that expenses are more than at the 51,707 $4, because this whole area will be torn up, and the amount of money that is going to go into putting the electrical stuff in and upgrading has not been included in this amount. so really, you're not telling us the truth. we would like to know if these meetings are shifted to the other venues, exactly what is going to happen here. if you're just going to be dealing with the ramp or if you will also be dealing with the upgrading and what has been done in this area and exactly how

much money it is going to cost. again, people are suffering. people will talk about health and other stuff. we do not need to spend this type of money when anybody with a wheelchair, and i am physically challenged, can go up those ramps and conduct business in a very excellent manner. thank you very much. supervisor chu: thank you. are there any other members of the public who wish to speak on item number one? seeing none, public comment is closed. colleagues, we have an item before us, a request to release reserves. we have a motion to release. -- the reserves made by supervisor mirkarimi. the instructions to the clerk was to try room at four hundred 16, and if we can continue, we will do that to save money. if not, will take the further option to go to the night courts. with that motion, can we take that without objection? ok, thank you. >> thank you.

supervisor chu: would you call items number two through six, please. >> item number two, interim annual salary ordinance and positions for the annual budget an appropriation ordinance for the fiscal year ending june 30, 2012 and june 30, 2013, establishing these positions, in enumerating and including all positions created by charter or state law for which compensation are paid from city and county funds and appropriated in the annual appropriation ordinance. number 3, interim consolidated budget an annual appropriation ordinance for all expenditures for the city and county of san francisco for fiscal year ending june 30, 2012, and for fiscal year ending june 30, 2012 and june 30, 2013, for the airport commission, port commission, and public utilities commission. item four, antrum budget of the redevelopment agency this city and county of san francisco for

fy 2011 and fy 2012. 5, approving the interim budget of the treasure island development of 34 fy 2011 and fy 2012. item number six, hearing to receive a report from the comptroller's office on the revenue letter of a discussion of the mayor's fiscal year 2011-2012 proposed budget. supervisor chu: thank you very much. these are a number of items that are going with the budget. number 6 is a hearing to provide the mayor's budget office the opportunity to give us an overview about the budget that has been proposed. it includes the opportunity for the controller to speak about their revenue letter. in addition to that, with four other items which comprise the interim budget. as you know, our fiscal year ends june and 30. we typically do not end our budget process and have it signed into effect until august. so we have one month, which is july. so these budgets are meant to be continuing documentation so we have a budget for that one month of july. with that, why don't i turn it

over to the mayor's budget office for a brief overview of what has been proposed.

>> good morning, supervisors. i am the budget director. sorry for the delay. we are working through the mechanics. i will just take you at a very high level through a summary of what is in the mayor's proposed budget. i think a lot of this, you are familiar with, from previous discussions at this committee but also from additional discussions that we have been having over the course of the last couple of weeks. as you know, the fiscal year 2011-2012 budget, at the joint

report, we had a $306 million projected deficit. this is the latest in multiple years' worth of projected budget deficits. is this overhead working? >> i think i got it. again, this is the latest in several years worth of significant budget deficits and driven by the challenges we are seeing in the economy. we had a $306 million projected general fund bang deficit, and that is driven by a number of things.

we have city-wide high rate of growth in our employee costs, driven primarily by fringe benefits, including pension and health care benefits. we also built into our deficit the loss of a significant number of state and federal revenues that we have used to balance over the past couple of years, primarily in health and human services, that are leaving our budget. they are offsetting the modest recovery that we are seeing in our economy and local tax revenues. so the mayor had asked, in the winter of this year, in preparation of the budget department, to propose to increase in reductions to general fund support, and an additional 10% contingency. and those are significant targets that we issue.

just in terms of the very highest level of how we balanced, this pie chart shows you the balance between revenues and expenditures and the solutions that were used to close the $306 million budget deficit. a significant portion of the budget was closed with revenues. some of that is due to new initiatives. a significant amount of it is due to improving conditions in the economy. both in the current year and in -- projected for next year's budget, and about 56% of the solutions are on the expenditure side. just to walk you through some of the high level summary of how we balanced -- these numbers are compared to the joint report, and they represent the total incremental general fund that we used to balance the budget,

compared to the joint report. the first line is our current year expenditure savings and revenue increases. we have had some good news in the current year, which you are going to hear from the comptroller about, on the revenue side, and our property transfer taxes, our payroll taxes, but otherwise, just general, modest revenue strength, as we are starting to see some signs of life in the local economy. the second line on capital budget reductions, that is, as anticipated in our five-year financial plan, we had proposed -- and in the final adopted plan, recommended resetting the level of recommended capital spending, and that will be implemented in the next version of the capital plan. but this involves reducing the projected cash general fund

spending on capital project by about $35 million. that is projected to, again, reset the baseline and those expenditures will grow again over the course of the next five years, until we catch back up and are once again spending at the level anticipated in the capital plan. general fund revenues, again, these are revenue updates. but for the budget year, rather than the current year. the comptroller will talk through that in the revenue letter discussion. debt service restructuring, again, this is something we discussed in the five-year financial plan. the comptroller's office has been spending a significant amount of time looking at our debt service projections, thinking about where we can restructure that, refinance debt, change our payment sc