>> good morning. welcome to the budget and finance committee. my name is carmen chu. i'm joined by the supervisors. mr. victor young is here. we actually had two recess meetings. the meeting that was supposed to start today at 1:00 and another that was supposed to star at 1:05, so we are combining both of those meetings at this time. mr. young, the 1:00 schedule and agenda, items 1-5. >> item number one, consolidating budget and annual appropriations. fiscal year ending june 30, 2012 and 2013.

item # two, the annual budget. [unintelligible]

>> and would you call from the 1:05 scheduled meeting. >> item #one fiscal year ending june 30, 2012 and 2013. item #2, fiscal year ending june 30, 2012, fiscal year ending in june 30, 2013. item #3 no, -- >> mr. clerk, we have to the

bill agendas. 1:00 and 1:05. can i take a formal motion to combine the two? >> motion. >> ok, we can do that without objection. thank you, colleagues. this is the culmination of a of a very long budget process. before we take comments from individuals and give our thanks to those who worked very hard on this, i wanted to make a motion to accept a package that you see before you. what you see before you is a summary of the budget balancing plan. it represents roughly $17.3 million worth of changes and adjustments to the budget at this time. this represents roughly $3.1 million in changes and adjustments to the public health department.

2.5 to the human services agency. 2.3 to the children, youth, and family department. small restoration to ihss. small changes to the street maintenance work. restores security and to the san francisco general hospital. allows us to have an economy class for the departments and has a number of neighborhood improvements among other economic development initiatives and city planning efforts. to articulate, we walked through what those look-alike in terms of general broad categories. overall, it would be an amended to reflect different changes that were made. partially behalf except through this committee, budget analyst productions.

3.2 million in non-general fund cuts. there's also a fund balance technical adjustment about 346,000. war memorial hotel tax. sales tax being recognized. we will submit later as a technical adjustment. productions to the department of technology worth $250,000. in addition to that, one final piece. as we discussed in our budget conversation, we had asked controllers office to work with departments in particular with the large overtime departments what they are over time but does look like and to make sure that what we truly believe the overtime. these are all cost neutral adjustments to the budget, so we are making changes over time for salary reductions and working in

conjunction with the department. this will allow for greater transparency and to make sure we really are reflecting what the department believes will be the overtime budget in the coming year. colleagues, this is the package of amendments i am suggesting that we make. can we take a motionless? >> motion to accept the amendments presented. >> we have a motion and a second. can we take that without objection? that would be the case. and to the mayor's budget office, with regard to the technical adjustments? >> thank you, madam chair. greg wagoner. i have a couple of items to submit to you. the first two are items that we have discussed earlier this week, with you and your staff and had intended to submit earlier in the week, but did not make the final submission, so we are doing that now.

the first is an addendum to transfer a function letter, which includes a couple minor adjustments that are being approved in the budget that you are adopting, transfer of a total of seven positions -- i'm sorry, eight positions, all of which are simply administrative corrections associated whips management adjustments in th budget -- associated with. when transferred to the administrative services department. seven positions from public works to the public utilities commission, gardners. and 1 position from the department of human resources to the access a recorder, which is a human resources position. i will submit that letter to you and to the clerk. the second piece is our first technical assessment again. this is from earlier in the

week. we submitted this to you and your staff informally, but i am introducing it formally here. \ this is a set of technical assessments that are truly technical corrections to the mayor's budget commission. the largest pieces included in this adjustment are corrections to budget associated reports the coit project entries in the budget system and transfer the justice project from the department of technology to the department of administrative services. there are several other smaller corrections that are detailed in a letter. the total impact of these adjustments is 346,00408 dollars of general fund money. that money is available for

operation and is factored into the technical adjustment that i will submit next and that is being used by this committee in the proposal that you have just adopted for the balanced budget. lastly, the technical assessment, which provides the funding available to implement the budget amendments that you have just adopted and includes a set of revenue adjustments totaling $9,196,000467 and that includes the sales tax revenue that you mentioned in your presentation on the last item of $3,050,000 offset by a reduction of $420,000 in baselines for the

current year, an increase of $3,110,000 in sales tax revenues offset by $430,000 allocation to baselines for the budget year. current year reductions proposed by the board of supervisors' budget and legislative analyst's totaling $1,084,467 will be added into the budget as an increase in fund balance, a close out of $70,000 in current your work orders from the comptroller's office as recommended by the budget analysts. $682,000 in matching funds get the human service agencies associated with the funding that you have appropriated in restoration at hsa peridots are matching funds required to make those programs holw. an-- whole.

and the land america settlement that is appropriated in your budget for the city attorney and district attorney's office. i will submit these adjustments to you and to the clerk's office. >> thank you very much. to clarify, the technical adjustments are simply submitted. we don't need to take a motion on that, correct? so i think that is the budget. any comments from colleagues? if not, i do want to say thank you to a number of individuals who really helped us get through this process. first, i want to thank the mayor's office, the mayor, himself, in addition to chief caba, is able staff, in terms of the budget office being led by greg widener, rick has played a great role as well as your staff.

the comptroller, we could not balance this without your help. thank you for all your assistance. cynthia, thanks for spending the night and helping us get through the final balancing. to the budget analyst, thank you for all your help. these cuts are always something we count on and rely on to make our budget work. so i want to thank you folks for taking a fine tooth comb through the budget to help us. to the city attorney, cheryl adams, who sit with us they are today and i want to say to thank you for your guidance in terms of your legal advice. and to part clerk, mr. victor young, you are here all day waiting for us to get our act together. i want to say thank you for helping us get through the budget process. in my office i want to say thank-you cady and tammy. katie has been a tremendous help in organizing and getting information out as quickly as

possible and always been helpful in addressing questions. there's no way i could have imagined it being done better than with katie. she worked with nonprofits, or would department, would with every single aspect of the process. she deserves a tremendous, tremendous thanks. and to my colleagues here. your patience and all of your staff for their work on the budget and getting us to this point. and to our department heads and folks in the community who have helped us to get to a place where we can feel good about this budget. overall, the budget, again, we spoke in high levels and allows for restoration and adjustments to the budget, that's worth $17 million. many of the things that are important to us, making sure that we support small businesses is emphasized by allowing us to add additional resources to our

office of small business, something that is very important to many of our businesses in the community. not only that, we have been able to add and will take a look at public safety in other places where we are seeing different supervisor and different boards having decisions to layoff officers. in san francisco, this board, we have prioritized making sure that public safety is a significant concern and is a top priority of this board. we cannot do that without the leadership of members of this board and all the partners to make sure that we do fund the police academy class in the coming year. again, republic comment before on the drop program and what we would expect as on retirement -- expect to see on retirement. we have been able to work very closely with our community advocates to make sure we are restoring and making adjustments to the budget that is going to be significant in terms of

shoring up our public safety net system. this is something not only important to families and seniors but also to children and the city. we talk a lot about what we are doing to make sure families stay in san francisco. some of this will go towards helping make sure that happens. the editing is, on a final note before i close and yield the floor, with regard to how it is that we are looking on a more long-term basis. i want to just know, this is the first year we have put together a five-year financial plan, something that is important. the comptroller's office has done a tremendous job putting that together and working, with the department your departments are finally beginning to take a long-term look at how we are going to balance the budget. something i feel good about in this budget is that we do have a $15 million reserve that is there to be able to weather some of the stormy expect to see from the state budget with regard to realignment, with regard to redevelopment agency issues.

i feel good about that. we are also making sure that we have some funds to been to deal with potentially any cuts to a child care subsidies, should that be something that this court and the mayor wants to address in the coming year. and so, really thinking prudently, making sure that we have some good ways to address the things we expect to see coming down the pipeline will be important. again, i want to close by saying thank you to all the folks who have helped put this budget together. it's been a long night. we are there. i think it's worth it. >> supervisor? >> thank you, madam chair. i think you have eloquently recognized everybody to be commended and appreciated. i won't return to that roster. i think you thoroughly covered it. i would like to take this opportunity to thank you, madam chair, for your steady

leadership in directing this budget committee. this is my sixth year on the budget committee. i believe i'm the longest serving member of the board of supervisors on the budget committee. this has probably been the scariest budget session i have ever been part of. even beyond this bewitching hour, i cannot tell you how concerned i was because of how tranquil and noncontroversial and calming pizzle process has been where i kept waiting for the other shoe to drop. but yet quite frankly, we are beyond the witching hour that we are now reconvening. those shoes did not drop. both feet and legs on behalf of the city are well-planted into the ground. this is a dramatic change from what we have been experiencing

the last several years where our budget deficit last year and the year before that exceeded well over a half billion dollars. we have been in four years of a real funk. we have seen the year before us right now and that we are ready to balance and move forward is the least of the deficits. i think that portends some very optimistic signs for san francisco and for the people of san francisco. so i want to say faugh it has been a pleasure to serve with you, madam chair, and the rest of our colleagues on the board. it has been a good chemistry. i think that has been well blended with everybody that madam chair had identified. both here within the city government and our staff that well supports us even in these odd hours of the night. and to the andwhadvocates who ae

unsung, steadfast in their commitment, oil in their love for san francisco if,, to the causes that will motivate them to be here with us when they really should not have to. so, once again, san francisco shows how we get it done no matter what hour of the night. i want to say, well done. i'm sure there will be clean up will have to do. but the fact is, it is nice to keep that perhaps this might be a harbinger of better things to come for the city, and perhaps this nation, and perhaps this state. the status also now just signed its budget -- this state has now signed its budget appear this is the first time the state has done it before we have in a few years. that iconcord also indicates perhaps there might be a convergence of better things to come. so, madam chair, well-done.

>> thank you, supervisor chiu. >> thank you, colleagues. i agree with supervisor mirkarimi's analogies, but i won't repeat them. i want to thank our chairman. carmen, you did a great job this year. q and your staff ran a smooth process. i think we all really appreciate that. i also want to echo a different process this year, one that engaged the community much more transparently, much more intensely early on. and i think with that and put it let us to a process that was much easier to get done. i also want to echo the thanks that we all have for all of you who spent thousands upon hours this year from rn to our budget director to the budget staff, are controller, our budget

analysts, our city attorney, and our community. i want to thank the budget just as coalition and supervisor avalos for the work you've done in recent years to help move us forward and helping us all together as a community. i'm proud of this budget, in addition to all or wheaton, to ensure public services and families are taken care of. -- to all the work we have done. we are implementing our first police academy class. this is party we have to ensure the health and safety of our residents. that is a great step and i look forward to future budgets, hopefully moving forward as well as we have been able to do this year. >> thank you. supervisor wiener? >> thank you. i want to echo the praise of the chair. carmen has done an absolute

ly great job. i want to talk a little about trees. for years we have been bleeding our department of public works and our recreation and parks department, two departments that impact the most people on the most frequent basis, and maintenance and other services have really suffered as a result. this year the department of public works cuts under thousand dollars from tree maintenance. --i want to restore that $600,00 so they could hire some arborists to take care of their trees so they don't pose public safety hazards, for instance the woman killed when a tree fell honon her.

we were unable to add the arborist funding to the park, but i am proud we were able to add day cap on the cut. i want to thank my colleagues for supporting that in a difficult budget year. our trees are an important part of our city, important environmentally. we need to maintain them properly. i also am very happy that we were able to restore funding for homeless outreach and for hiv services, which are both critically important city-wide and particularly in my district. so i am very happy we were able to do that. we were also able to do some pedestrian safety improvements as well as a playground funding. i am very happy about that. thank you to everyone. >> thank you, supervisor. i want to add a few things.

i really want to emphasize how much i appreciate the mayor in this process. we talk a lot about what it took to get here. even before this, before the june 1 admission, i want to recognize the merits tremendous effort in doing the 10-community town halls -- sanke10 communityn halls. and the $10 million that would normally have been cut in terms of services. that is something significant. the mayor was able to address these issues early. that is something we really need to recognize. i want to recognize a supervisor avalos who is your lead in the evening. . farrell and elsbernd were here late in the evenings as well. thank you all for setting the road ahead of us and for all of

your help. the other big group that we did not thank yet that we have to is labor. we spoke about this before, but part of this whole package being able to come together is possible because we have asked our labor partners in the fire department and the police department and the nurses to assume a level of savings that they did not have to do. and so, that is a tremendous sacrifice that they have been willing to do on their own. i absolutely believe that they deserve the praise for helping us get to where we are. with that, colleagues, if there are no other further comments, we have to move a few items. items one and two which have been combined from the two agenda is representing aao and aso. we have made amendments to that. can we movie studio itee these e

or july? >> tso moso moved. >> we have the two-year budget and apa resolution. >> there have been a couple questions on this and i would like to have a conversation with the budget analyst about desperate. as i discussed with the city attorney, one thing that might be appropriate at this time possibly is to continue this item to the next budgeting. we do have to resolve this motion by the end of this month and potentially as sparkler to explore an option of a one-year exercise options. just throwing that out for conversation. to see it that makes sense for

us to continue this out and we can have a conversation in the next few weeks about that possibility. >> order motion is to send this item forward to the full board without recommendation at this time? -- your motion? >> i would like to and continue to the next budget meeting. >> that might be the second week of july. >> not sure. but me ask the deputy city attorney. would it make sense to send this to the next budget committee meeting or send this to the full board which an instruction to r clerk to explore potential one- era contract extension? >> through the chair, the term of the existing contract expires this year. under the contract there is an option to renew for an additional two years. the board needs to notify the budget analyst by august 1 if

the board wants to exercise that option. as long as this gets to the board for action by august 1, you will have enough time to act. so i would think the continuance to the 12th would probably give you enough time. >> ok. even if there's not a meeting on the 12th, if it's on the 19th, there would be enough time? >> the 12th is the day the budget is at the school board. if we are talking about a different date -- >> we are talking about to the budget committee. >> two options. send item out without recommendation, which would allow us to have a conversation still before make a decision at the full board. another option is to continue the items to call the chair until we have a date certain on a meeting date. >> i would be fine with the second option. >> any thoughts, colleagues? >> so continue this. >> if thawo