>> hello. welcome back to the budget and finance committee. we are back from recess and we've got three more departments to go on our budget hearing process. the final departments that are left are the juvenile probation department, department of public health and the human services agency, so we'll begin with the juvenile probation department and chief zimmerman. >> thank you, madam chair, committee members. chief proa big officer. it's my pleasured to a vance before this body my seventh budget on behalf of all of our dedicated staff, particularly allison mcgee and katherine mcgwire who are here that had a lot to do with directing and preparing a very thoughtful and responsive budget. but most importantly, i am here on behalf of the youth and families who rely upon the work otojuvenile probation -- of the juvenile probation department.

i have a presentation and i have provided folks with copies of the power point but i'm going to proceed with this. the work of the juvenile probation department essentially is designed to hold youth accountable while facilitating opportunity for them to develop pro-social competencies that ensure long-term safety and identify and utilize the lease restrictive placements and quite honestly, the least expensive placements and interventions that do not comprise public safety and produce positive outcomes. the contribute to the overall quality of life for san francisco residents in the sound framework of public safety as outlined in the welfare and institutions code. i tell you, let's take a look at our five-year outlook and before we look through the binoculars i have provided everybody on this power point, the first thing

like at in the five-year outlook is five years from now there will be a much leaner chief probation officer standing before you. a much lighter, and a nimble -- representing a nimble department that's more effective in using fewer resources but producing greater outcomes. but in our five-year outlook, we've taken a look at some of our expenditures along those lines. salaries and benefits represent, as you know, the mayor portion of our budget. and any of those challenges in the next five years will be faced with similar departments regarding that and the city as a hole. also impacted by the state corrections realignment impact. and the eventual closing of the department of juvenile justice, the division of juvenile facilities would have an impact on our department. as you knowing our department

takes great lengths to reduce and limit the number of youth that we send to secure correctional facilities. we only have five youth in the correctional facility right now that costs the city about $25,000 a year for each of these five. but in five years most of those youth will be out and on a regular basis the department rarely sends more than two of these youth to this state correctional facility. but one of the things we're seeing is the formulases that are proposed by the state to date fall very short of the actual cost to provide the necessary rehabilitative programming for youth who would otherwise go to the department of juvenile justice. while re-entry efforts are key across the board in relation to the re-alignment program, i want

to make mention of the fact that fully funded probation which is a nonentry program the much cheaper in the long run than any re-entry program and certainly has more positive outcomes. switching to the five-year outlook in terms of revenue, we anticipate that the governor's budget proposal will contain a plan to permanently fund the programs that are now funded by the state's vehicle license fee and that are a source of funding for the juvenile probation and camps fund and they are in the iteration is worth about $1.7 million and we expect full funding for fiscal year 2011-2012. >> chief, can you hold on just a second? we have just lost quorum.

all right. let's take a look at the five-year planning scope that we have identified here. there is no question that our department is continuing to improve the outcomes for youth by reducing the unnecessary use of detention and the numbers in juvenile hall have stabilized to the extent we're using it and presenting it for those who present the most sublick risk to safety and we have had a chance to speak to each of you and your

aids about that we look forward to some further discussion and at the ranch. and we deal with youth who are returning from long-term placement in facilities which are out of the state of california. and then our look toward you by improving the case management system by introducing an electronic way by details the work and the reports that are filed and in the filing system. and we are exploring revenue options available through title 4e and looking for some adjustment in the way that those funds are calculated and referred back to the city and to address the limited options for high-risk youth who would

otherwise be sent to california division of juvenile justice. continuing in our department planning for the five years, we recognize the significant challenge with respect to succession planning and recognizing in a study that was completed by the department of human resources in 2009, 75% of j.p.d. staff would be eligible for retirement and we know the high costs associated with one-time payouts and the enhanced h.r. support necessary and also the operational disruptions caused with orientation and training. not at least of this would be the vacuum of lost institutional knowledge we would need to make up. this is exacerbated by the need to manage extended leaves of absence and as you can see that

at least 20 employees are out on extended leave. we also need to fill the necessary vacancies at the present time and we have four significant leadership positions that are vacant in the work of filling the responsibilities and are usually associated with the additional responsibilities placed on existing management staff. and the department has a tremendous need to maintain our budget flexibility to satisfy the statutory minimum staffing ratios associated with the two facilities. and in summary, one of the things i wanted to point out was one of the budget highlights and the grant funded initiatives that we bring to the budget where we've been able to leverage the private foundation funding through the generosity of the foundation and looking to enhappens the case management

system, update our policy and procedures that reflect the national standards and the best practices across the country and to finance the cost benefit analysis taking a look at the various dispositions that we now utilize for our youth. and to understand which dispositions provide the greatest sense and protection of public safety in the long run. the bottom line is we have appreciated the dialogue we have had with the budget analyst office and prepared to accept the $107,000 plus cut in the overtime budget that has been, that we have negotiated in very positive and productive dialogue with the budget analyst office. and that's what we're here to present here today. along with our thanks and not only to this board and the staff that we've met with in prep pags

for some of this budget and the budget analyst's office beginning with james beard and harvey rose. in the efforts through our discussions with the department of human resources through mickey callahan. thank you for this opportunity and i'll be able to answer any questions that you have. >> thank you, chief. why don't we go to the budget analyst report? >> madam chair and members of the committee, our total recommended reductions in the department is $107,000 and that's 100% general fund and they are ongoing reductions. it would still allow an ip crease of $717,000 or 2.2% in the department's budget. and be glad to respond to any

questions. >> thank you, mr. rose. it sounds like the department is in agreement. i have one question as it relates to log cabin ranch which has gone through a transformation from what it was even 10 years ago and i am wond wondering if you can speak about the work you are doing there. >> well, it begins with the almost 600% increase in the resident population at the ranch. beginning with about six when i arrived in 2005 and now up to 24. our hope is through the efforts that we have established in absolutely changing the way that the program sad ministered at -- the way the program is administered at the ranch and the modest improving in living conditions is being embraced as a positive and pronounced dispositional al alternative for the court. we have added modest amenities to the living situation and the

programming and increased the clinical component. our partnership with the unified school district is solid as it's ever been. in the introduction of the conservation core, the san francisco conservation core and urban sprouts, incorporating that in the program of the daily youth and changing the way the staff interact with youth and are more interactive in the daily programming and in the development of aftercare programming that precedes the release of the youth from the ranch. we are very excited about this model and believe that it is already paid some significant increase in the futures of youth and we are looking forward to providing at least a more long-term analysis of the outcomes with our cost-benefit analysis. >> chief, you had had a conversation with us before about the alternatives in terms

of sentencing from the courts and generally there are a few opi opings. one is to send to the state system which we tend not to do. there is the option of potentially parole or basically probation if the offense is not a significant offense. and the other two alternatives is the log cabin ranch or placement out of home and often out of state. can you talk about the differences between the last two options because those are the ones that tend on the more controversial? >> sure. well, first of all, we certainly do not support and understand there may be some circumstances, but the use of ydc which is a temporary detention center and does not have the value and the programmatic content that would be necessary for a long-term placement. it was designedcismly for short-term stays. we recognize in some instances

the courts have chosen that as a long-term disposition as opposed to the department division of juvenile justice. but what we're looking at is the significant relatively significant number of youth who require the temporary removal from the community and those that are youth are placed in residential treatment facilities and many of which are out of state. while these can be very, very effective programs, we're still want to use the results of the cost-benefit analysis and how successful. but nevertheless, when youth return back to hair homes, the tran -- return back to their homes, the transition into the community poses significant challenges that we believe the value of the log cabin ranch that is able to work on these and improving these family dynamics and family resources and engaging not only the family but the community in a re-entry while they're at log cabin ranch

is, we believe, a more significant and prudent model. that is the direction we're taking and that is why we're moving in the direction of reclaiming the use of log cabin ranch and fortifying with nutritional value and re-entry piece that is significant with the programming. >> thank you, chief. given that the department and budget analysts are in agreement, colleagues, can we take that without objection? that will be the case and thank you for your presentation and we won't be seeing you next week. >> thank you. thank you very much. >> thank you. next department, department of public health.

>> good afternoon, supervisors, chair chu. we wanted to start our presentation today with looking at the five years' outlook and in the next five years the department will have challenges but also some great opportunities, particularly under health care reform. but in a chronological order, we wanted to share with you some of the issues we will be facing in the next five years and some that have already started. the expansion of supportive housing at laguna honda and it is an ongoing commitment we have that will be continued until the

court settlement and we are doing 10 housing offsite on the yearly basis. in that same conversation with laguna honda, i want to inform supervisors after 15 years the department of justice has terminated the oversight due to the work including the expanded housing role that we have played and we're very happy about that and it continues to look and integrate them to insure that the individuals that are there are at the right placement. as well as you know we built a new facility and the debt service costs and the principal and interest on that debt and match the revenue. health care reform will be one

of the greatest challenges for the future and changes in state and federal funding will provide more assistance with coverage and will go from a disability status to an income status and anticipate 36,000 will be eligible for medical and will increase the revenue in the future, particularly the individuals serving now in the programs where we're not able to match the program dollars. this also requires that we expand access to primary care and specialty care and i will talk more about that with the federal dollars we're receiving as well as we are going to be required to invest in information systems to achieve meaningful use for electronic medical records and qualify for medicaid and incentive programs. we are moving from a billing system to electronic health records which will require an additional investment.

and as well in the future and already this is beginning now that we are transferring medi-cal eligible seniors and persons through the san francisco health plan to managed care. we are completing and building san francisco general hospital and san francisco general hospital will be looking at needs of equipping the hospital and the debt service cost and principal interest on debt and depreciation. many of the items we have included in our 11-12 budget. to give an overview, we're one of the largest departments in the city with the largest budget reduction and primarily funded with earned revenue from the general fund dollars and less than 25% of the total budget is comprised of general fund and

draw down for matching revenue and supports those we cannot bill for including the inmates and the uninsured. this limits our options to reduce general fund and limits us to general fund that is not matched and this is one of the negotiations that we had with our community-based organizations because they also in their cuts did not want us to cut where we were also cutting revenue along with general fund. many of our general fund nonmatched funds are in the community programs area, particularly in some of our substance abuse and mental health areas. the new dollars we are receiving will require -- and they're tied to investments to achieve outcomes. we did receive about $53.5 million, but of that we have

needed to expend $30 million. the federal funding is tied to standardses and milestones that includes expansion of coverage and care coordination for low income adults, promotes public hospitals and transformations and attaches funding to the transformations. one of the greatest areas that we'll be working on this next year is trying to expand the timely access standards and this will require us in a few years to make primary care appointments within 10 days and especially within 15 days. and again, meaningful use of electronic health records and to store stimulus dollars that will require us to move towards electronic health records. >> can i ask a quick question? on the timely access standards, the one that says requires primary care appointments within 10 days and and is intended --

>> and general fund reductions towards our target started at $69.6 million from funding from new medi-calwaiver program approved in december 2010 and allowed us to be able to use some of the revenues and in total we were able to identify revenues for $10.2 for the 10-11 and 54.6 in 11-12 towards the reduction plans. and while revenue provided most of the general fund savings, we could not meet the targeted reductions without formulating from efficiencies to reduce spending without cutting services and an additional nine million and through the mayor and the budget approximately 6 million of the budget cuts were

not accepted and all residential treatment cuts restored the outpatient cuts. and the revised budget includes $3.1 million of remaining services reductions and the total general service savings. >> it was originally $69 million and ended up with $67.5 million in meeting the target but the majority of that was actually revenue increases and was revenues. >> revenues from the medi-cal waiver program and efficiencies and laguna honda. >> another way is $67.5 million and $3.1 of that is service cuts. >> exactly. >> just to go over the

reductions again t nonresidential outpatient were 3.1 and some efficiency and program closures and savings along with relocation efficiency that moves clients accessible to permit housing and from about 200 new housing units coming online and we could move some of the individuals in stabilization beds to that housing and save about $300,000 and the prop j contract hospital security that you will hear about soon and that brought us to $3.6 million. that is the end of my presentation. >> i'm sorry. with regards to the budget analyst recommendation? >> we do have some concerns with the recommendations and our staff was meeting with mr. rose's staff today and i am sure we will get those to you by next

week. >> mr. rose? >> madam chair and members of the committee, i recommended reductions detailed on pages 43 to 51, total $2,393,343. of those recommended reductions, $2,393,343, in other words, the entire amount or 100% are general fund reductions and about $1.8 million or 77% are ongoing reductions. these would still allow an increase of $110,115,852 or 7.5% in the departments and the 11-12 budget and we also recommend closing out unexpected encumbrances to