us, including the city itself, needs to turn up the heat on federal officials to cut the military budget and stops this outrage. we do not want our taxes going to death and destruction and. i want to emphasize the federal military budget is a local issue. >> thank you. five good afternoon, supervisors, and thank you for having me. i am just an ordinary citizens, but i want to emphasize that the rays would help all of the nonprofits hear their employees more, and they would do the same thing they are doing with more

money. good how do they come to work every day? they come to work vico's -- because they love what they are doing. how are you going to raise the money? you or maybe instead of having a fancy chair, you might not spend the money. the employees in the nonprofits need to get a raise. that makes it easier for them to work with us. thank you for having me here today. supervisor kim: next speaker. >> good afternoon, supervisors. we have been working in the nonprofit sector for most of our careers. i work for meals on wheels.

we have experienced a 37% growth in demand for our services. we have that about a 5% increase in funding. this year, we are 43% funded by the city. 67% funded by individuals and private corporations. i want to thank the department for the public-private partnership that we currently have. it is the only way we will be able to continue to provide services. that is why we are here today. we have to sustain this model and we are here because we are at risk for losing the model we have today. better services, better outcomes, it saves the city so much money. if we do not change the process, we will see an increased use of services.

if we see this, we will continue to have less service in the community. we will put together a multi- year contract to show a decrease in service. the other risks we see is if we end up with unions, that will be the ultimate demise. i do think there is a model for doing this. we need to be able to put in that increase. i do not think there is anything to reinvent. the model is already there, but nonprofits need access to it. >> i am diagnosed with skin so effective -- schizoaffective

disorder. i am a single parent of an 11- year-old son. my son is the most important part of my life. as a consumer in the mental health system. without an increase in the budget, there will have to be lay offs in order to give cost- of-living raises. with layoffs, that means less quality of service for all consumers and more stress for employees and consumers. people not be able to afford to stay in these jobs. i can only speak for myself, but i am thankful for the services that are provided to me. without them, i would not be able -- i would not be stable enough to take care of myself and my son.

who knows? i may have ended up in a hospital, in jail, or even dead by now. we need these services, we need our jobs, we need our cost of living increases. we probably all know someone with some sort of mental illness. if not, you do now. thank you for your time and patience. [applause] supervisor kim: thank you. >> good afternoon. i am the director of human resources at huckleberries youth programs. i have been there for two years. i am here to talk about rising health care costs. 10 years ago, the average health care costs per employee was $1,360. 11 years later, at this fiscal year, it is now $3,950.

that is a 58% increase. when i talked to a broker about what to expect for the next year, he said, roughly 15 to 20%. over these years, cost increases in everything from health insurance to gas, food, utilities, we had to explore many options in an attempt to balance the budget. most of these cuts were absorbed -- most were absorbed on the backs of our staff. when staff leaves, positions have been left unfilled. many staff had to forgo salary increases. in addition to that, staff have had to take unpaid furloughs. in addition to that, several staff work reduced work schedules, myself included. at a time when demand for services has increased, costs

have continued to climb. the mandate that was put forward about 10 years ago for the hcao. there was an attempt to have it filled by the city. that never happened. i am asking the city to take a look at that. it is costing quite a bit of money. two other points -- we are not asking for a raise. thank you. supervisor kim: next speaker. >> good afternoon. for the first time, i am standing here and not representing anyone. i am just a citizen. by 36 years of experience in the non-profit field. 10 years as an executive director. eight years as a health commissioner.

i've heard the word partnered used a lot today. there are some partners to get special deals and some partners to do not. you heard about -- when we did, we were told to put in a four- year contract with escalators. those escalators never get funded. that line in every contract with a nonprofit that such contingent on the city having finding. somehow, at the end of the budget year, the nonprofit contract cost of doing business gets cut out. where are we going to find the money? that is the question you have to face for the entire budget deficit. controller confirmed that there is a 3% increase in non

personnel costs. it is already there. every year, each of the mayor or the board takes it out to fund other priorities. this is a priority. these partners are necessary for health care reform. sitting on the health commission, i am aware of what the health care reform requires. that requires pre-and post- hospital services. it is not about the hospitals anymore. it is about keeping people out of hospitals. if you continue the hollowing out of this sector, you will not have the capacity to keep people out of san francisco general. that this house important this is. please make this your priority. -- that is how important this is. please make this your party. >> good afternoon. i am employed with hospitality house. i am here to address the cost of

doing business as a service agency in san francisco that serves the poorest of the poor. poverty is not something that people seek. poverty has always been with us. how we deal with poverty is what matters. we request that the city work with its contractors, of which hospitality house is one, in an equitable way through profit- sharing that levels the playing field and strengthens all facets of city services. this could be accomplished by bringing back corporate tax on progressive scale so as not to hurt small business, but put the business dollars back in the city coffers and aid in reducing cuts to essential services. with the planned cuts to city contractors, the frail elderly, the sick, the mentally ill, and

children will suffer needlessly. some nonprofits employees were already working to end three jobs to make ends meet while working in understaffed conditions. san francisco, whose motto gold in peace, iron and more -- unofficial motto, not smug, just better -- can surely find a way to increase funding stream so we can better serve and strengthen our communities. thank you, and please help us make san francisco a stronger city through community neighborhoods that supports all of our people. supervisor kim: thank you. next speaker. >> this is a very strange experience. i am more accustomed to

listening to public testimony. i am here today, i have recently joined the board of family service agency. i now cheer their finance committee. we have been -- i now cherish their finance committee. -- chair there finance committee. there is very little cash. they rely heavily on the line of credit. when budgets, revenues stay flat, the only thing we can do is make immediate changes to service levels. we have no choice. the impact on our employees and clients can be very immediate and direct. it is a real challenge to continue providing the services we need to provide. most of you remember me as cfo for the health department. in the 10 years i was in that position, i presided over some

pretty tough budgets. we had the dtot.com collapse, te recession, this is not one of those years. this year, the deficit does not look at large to me. the recession seems to be coming to an end and it appears that each quarter, the city's results were better than the previous quarter. the time is right to reset and start finding sustainable solutions to our budget problems and stop the one time solutions better made up of employee concessions and flat funding. that time has -- that time has to come to an end. it is not sustainable. it is nothing more than a one time solution. over a period of years, it has a huge impact on the employees and on the workers and the clients

being served. i would really encourage you to find a solution to this and take a new approach this year. thank you. supervisor kim: there is a question. supervisor kim: it's great to see you back here. did dph also contract with for- profit entities? >> there were a few. it might have been contracts for specialized services around dialysis care at the hospital with outside agencies. we have a number of it contracts. supervisor kim: you had a number of real-estate contracts as well. in those for-profit contracts, was it almost expected? did you automatically puts in an

escalator? >> i think most of those contracts for multi-year contracts. they did have a five-year plan for funding. there was an increase built into those. that is pretty standard. when we would send out a rfp, we will be looking for a five-year contract. in many cases, they would try to build savings into the early years. they would fund the contract at a below market levels for a year or two. >> thank you. i am imagining, there is a lot of conversation around the treatment of the nonprofit contracts versus other contracts. to be fair, some of the contracts with service providers also allow for us to recover or pay them for the actual cost of utilities, for

example, those kinds of things. we may be paying for the actual bill, correct? >> i am trying to think of examples. i am not sure where that would apply. the contracts are the large i.t. contracts and a large contracts that we rely on. uc is another example of an organization that has two components. they have the non-faculty cost of doing business. and costs that we could just easily provide ourselves, but have opted to have the university provide those services under their auspices. we need to pay for those costs. or we could take it back and run it ourselves. we could hire those employees.

that component of their increase each year it is a couple of 8 percent. anything above that typically has been for occasional increases to faculty costs that are necessary to attract and retain radiologists, anesthesiologists, surgeons. supervisor kim: not to diminish any of the pressures that nonprofits have faced in terms of health care costs, but i want to be careful of the blanket the saying that all nonprofits have had -- have not had any adjustments. i would imagine we might find within different contracts different provisions. i want to caution that. that is the point. >> thank you. >> standing with me are

representatives of our 203 employees. i am telling part one of our story. the board chair is here, as well as one of our case managers. the episcopal community services service over 12,000 unhoused folk or people who would be homeless or could be homeless, but for services like hours each year. we do that through permanent supportive housing, shelters, education and employment, and senior service programs. we are a key partner with the city and its work to prevent ending -- prevent homelessness. we need some help. since 2007, our health insurance costs have increased by 76%. our workers' compensation coverage, the premium has cost

more than 200% more. we will spend half a million dollars on workers' compensation this year. our food costs have doubled, are rents have increased by 2%. the effects of no increase, first of all, these good folks have not had any raised since the end of 2007 but for more modest longevity increases. in fact, we have decreased their wages by discontinuing our employer contributions. we have lost 18 jobs, effective last july. our senior service center is not open every weekend. we do not teach in the evenings. each of our staff members have a higher caseload. we're not able to support our recently house employees, which

puts them at risk for return to homelessness. [applause] supervisor chu: i am going to call a few more names. >> good afternoon. thank you for having us. i am a resident of the city and a founder of a private equity firm. i have the privilege of serving as president of the board of directors of the episcopal community services. the operating -- i'd join karen and our staff, board members and clients, urging that fiscal year 2013 is the year that you include a cost of doing business adjustment. about 70% of breaking million- dollar budget is supported by contracts -- -- contracts by the

city. it also provides supportive housing, many of the services carriage is listed, that depend on this funding. -- karen just listed, that depends on this funding. we have been asked to offset with private fund development. we worked very hard on that, and continue to do that. between 2006 and noun, we'll ground are donor base from 400 to about 635 organizations. that is great, but it is nowhere near enough to offset the loss that inflation has caused on all of these. what we are looking for is that we have no other alternative for

covering that gap. we will continue to build their funding capacity, but we need your help. as a resident and business owner, i am proud diversity has a history of caring for the most vulnerable among us. i ask you to ensure the city of san francisco remains the city that cares. thank you. [applause] >> good afternoon, supervisors. i am a proud member. i want to speak briefly about my experience on the front lines. i saw 18 of our jobs disappear last year due to layoffs. our caseloads and supportive housing grew about one-third. our behavioral health team shrunk to a team of eight workers, serving five shelters. that means fewer of us have been

around to respond to crisis, to provide conflict resolution, and to prepare meals. this meant that when i came to work, there were a few of us working in the shelter. i would have to take on extra duties. this meant that providing safe, secure, and dignified accommodations to are homeless residents has been more difficult. flat funding has also meant flat wages. the non-profit sector collapse far behind comparable wages in the public sector. we believe that our work does warrant a justifiable living race. some of us have responded by taking on second jobs, if we could find them. i was fortunate enough to find part-time work. i worked seven days a week, a 16-hour shifts.

some of my close co-workers, have not been so fortunate. they have lost their jobs. some of them have eventually become homeless again. for some of us, we are on the verge of burnout. with my colleagues, i urge you to recognize that this is the time to adjust contracts. [applause] supervisor chu: if i could ask folks to hold their applause. thank you. >> i and the executive director, and we are an organization that provides very basic services to chronically homeless in san francisco, saving the city all

lot of money every year. there have been no increases in the city budget since 2007. therefore, we have not had the ability to cover escalating costs of doing business. those increases for us included 2% annual increase in rent, medical insurance, we're facing a 12% increase. our workers' comp increase came in at 21%. we had no plans for how to address that. food and client related cost increases every year, as you are well aware. our buildings and equipment are aging. we are due for a liability insurance increase the share as

well. since we are mostly supported by city funds, we have not had the additional funds for salary increases and staff has had no increase since 2007. i want to speak to the contacting issue because we are given a lump sum to work with every year. we can redistribute that the way that we want to cover utilities or whatever. it is still the same lump sum. it means that we have to reduce staff in order to continue. we scramble for other supplemental funding to cover the costs, fundraising is very difficult in this economic environment. it results in a deficit for agency. the impact over the years means no raises for staff, and reducing the staff in our shelters, centers, which affects the quality and quantity of

services. i support the cost of doing business. supervisor chu: thank you, next speaker. >> are in the executive director of hamilton family center. we provide a range of services to homeless families that help the families become rehoused. we have a contract with the city to operate a large homeless family shelter in the tenderloin. we have about 50 families in there every night. we have had flat funding since 2007. we of that increase in health care, workers' comp. we have been unable to provide appropriate wages to our staff. we have had to cut some staff, cut children's programming. we have had an increased acuity of need in our population staying in shelters every night because of mental health cuts

and the pressures of the recession. families are under a lot of stress. you would think that with a shelter that has 50 families every night, we would be able to have at least one staff person on each floor every night 24-7, but we cannot do that. we have an understaffed shelter situation. we have a lot of turnover. we have lower quality of services because of that. we could get our families housed more quickly if we had better staffing and safer conditions. it feeds on itself, and as the star of the situation, the decrease in quality of services just feeds on itself. it is time to stop the bleeding. supervisor chu: a few more names. next speaker, please.

>> good afternoon. i am the executive director located in the mission district. i am here in support of the cost of doing business. i think all the speakers have provided you with a good analysis and understanding of why this cost of living is needed and necessary. i want to share redact in the last year, i have had to have conversations with key staff who have painfully separated from the organization of around the fact that they cannot afford to keep their families in the bay area. not only in san francisco, but in the bay area because of the salaries. for me, the ultimate impact is on capacity, on the generation of leadership we need to have in our communities, in our city come to be able to provide the kind of compaio