>> we will be approving our budget on the 26. next tuesday is when we will be bringing forward an approved budget. we are working off of baseline numbers we have had in the past. if the governor's budget -- if the governor's tax measures pass, this is what your budget measure will be. if it does not, this will be your budget. that is what we're working of love. supervisor chu: basically, like you did before? >> correct. supervisor kim: i saw that the school board committee is considering shortening the school year by four days. is this in addition to the furloughs you put in place this past school year? >> correct. these are additionally negotiated furlough days. supervisor kim: how many do we currently have in the calendar?

>> for this year, and there is an additional -- >> [inaudible] >> right. the four we currently have, another proposed -- we are in negotiations that we are asking for more, but i think the union is at a lower number right now. i think the last number i saw was two or three. that has not been solidified. the other concern is if the tax measures do not pass, they will be five from the state that we are proposing. we will have another week short of our school year, which will -- we will tag on to the end of the school year, so those will be negotiated for a low base that we have worked with the union on. we will just cut the last part of the school year. supervisor kim: could you tally

up how many days that is total? >> it is hard to say right now because we are in negotiations. supervisor kim: we have the floor, and we already have a nominee? >> we have four for the current year. supervisor kim: so we're talking eight additional? >> at 8, plus the other five others. supervisor kim: what has the discussion been? i know these are choices the school district absolutely does not want to make, but what is the discussion in terms of how we get to our goals around stood achievement every year if we have maybe 13 less than structural days next year? as little as six, but maybe as many as 13. >> you can imagine what those discussions have been. they have been extremely difficult, doing more with less. we are still trying to make some investments around core curriculum and supporting our

students, particularly our african-american, latino, and pacific islander students and invest in those areas. we are fortunate to have federal dollars that support the areas of most need for the bayview and the mission. we gotta try to do some of the additional outside funding that we have. we were just having the discussion that i of the city does not step up the way that it has, we would be one of the 25% of school districts in the state that have filed for bankruptcy or will not be meeting their budget requirements, meaning they have no reserve. they have nothing to account for what the potential budget impact will have in the coming school year. city dollars make up for what a lot of the state has done. supervisor kim: so we have districts that will definitely be shortening the school year? >> yes. we have districts that are

closing schools. they are bankrupt. i mean, our state will come in, which we know they do not a very good job with any way, but they will come in and take over, so school boards will have no authority over any oversight of their districts. carlos was just saying we are up to 25% of our school districts in the states that have already filed. supervisor kim: my last question is on the sick grants. i know that as additional funding for 10 of our schools, which the district has identified as the schools that need the most help. i imagine we cannot use those funds just for those 10 schools. being that those are schools often with the largest achievement that, do you think we could use those funds to supplement those extra days with students will not be learning? >> yes, i think what will make that harder the difficult is all of those dollars are also already budgeted, and we are in

the last year of our funds. moving forward, we are not going to have those dollars available, so we are going to see significant decreases in those areas as well. as you know, three years is not sufficient time to do the kind of impact we want to do, so we are going to be scrambling. those are some really hard discussions that we are having. supervisor chu: thank you very much. a quick question to the mayor's budget office. item nine is a budget approval to the children's council of san francisco. which department does that go with? hsa? ok, thank you. supervisor chu: ok, i had intended to go to the human services agency next, but before we jump into that, i wonder if we might be able to go to the county education office. i know they have been patiently waiting, and i think it is a relatively small one.

>> the county education office, supervisors -- the calculation of dollars, the small amount we provide to the school district to pay for a portion of the superintendent's salary set by formula. supervisor chu: thank you, and there is no budget analyst recommendation on that item? >> that is correct. supervisor chu: thank you very much. now we will move to the community services agency. >> good afternoon, supervisors. director of the human services agency. prior to your request, i will give a very high level overview of hsa's budget and then speak

to some specific new initiatives and then identify the cut areas we had to make. all right. first of all, again, a very high level of the budget, which, as you know, is the price is comprised of the department of aging and adult services and the department of human services. this slide breaks down the sources of funds that are in our budget, which is roughly $700 million for each of the next two fiscal years. generally, it is about 1/3 federal, 1/3 local, and 1/3 state, although the state share has been reduced over time due to realignment, which is basically their move to dedicate specific revenue streams -- specific tax revenue streams to fund specific programs, therefore bypassing the state general fund and going directly to counties. most recently is what you see in

the pie chart realignment, which is about $35 million. this is the part of a.b 109 that the public protection realignment that includes, as well as all the criminal justice program, includes child welfare services, job protection services, foster care, and adult protective services. given the language that has been worked out in the legislature and agreed to by the governor, it looks like this is a good deal for the city and that, again, these programs that have historically been part of the state general fund negotiation and subject to reductions are now protected with these revenue streams. we think that the language protect us from costs -- from unforeseen cost due to different changes in law or court cases or federal regulations and accounts for those changes, the results in cost pressures on the county's.

this next slide breaks down where we spend our money. again, very high level. the human services agency administers 10 large programs, and there's a lot of sub- programs under those, but you can see about a quarter of them goes towards adult services. largely in-home supportive services, but also adult protective services. other aging independent adult programs. the next largest is our family and children's services. i just spoke to that. that is now largely supported by realignment. that is ostensibly foster care, child protective services, adoptions, and other child welfare preventative family services. the next largest is our housing and homeless services, which is about $86 million, about 12% of our total budget. largely general funds. 15 million of that would be federal money, and that is

through the federal mckinney act that we get every year. you can see the other programs. workforce development programs, which i will speak a little bit later about our jobs now program. we do eligibility for medical. we do not deliver medical services, but we certify families, senior adults for medical, and we have our assistance programs, which is our public assistance program for single adults who do not qualify for any other public assistance, and then we administer food stamps. supervisor avalos: we are seeing eye of fiscal year 2014, there will be a drop of close to -- what looks like $4 million for adults services. what is that attributed to? they are changing formulas? >> i met -- and to my have to do with the ihhs caseload

projections. we received a federal grand for technology that was about $4 million. we received in partnership with the department technology. supervisor avalos: we will not see any service delivery on that? >> we are not. the state budget, it looks like, was recently agreed to in pencil by the government and legislature today, make some changes. we need to figure out what that means operationally for us and for consumers. we do not think it will have an impact. at this point on, consumers are on our funding, but it is a fairly complicated deal. it has to do with the state increasing their responsibility, so we will have to see how that plays out. just another slice out of our

budget. the shows in terms of our budget how much money goes directly to families and other single adults and seniors who receive public benefits. certainly grants, public assistance, cash grants for single adults and families, as well as in-home supportive services and wages. on the operating side, the staff and contract with our community partners to deliver services in our neighborhoods. i want to point out a couple of -- three specific program areas where we are seeing some significant changes. i want to talk briefly about how the agency is responding to those changes. this is the program that provides what is now in the form

of an edt card which basically allows families to purchase food. from 2009 through 2011, we had a 64% increase in our case load. in the last fiscal year, we have seen another 9% increase. this is all good news. we want families and single adults who are entitled to benefits to receive them. we have taken a lot of measures to increase access to individuals, but at the same time, you have seen a significant increase, but we have not increased staff significantly. very small increase beer the question is -- how can we do this? we have significantly altered our business processes using the technologies to get rid of the old caseload model where eligibility workers carry cases to a generic service center model, much like a customer service center you would have for a credit-card company, for example, where calls can come

in any case worker can assist someone with renewing their benefits, with lost cards. any sort of assistance they need. it is better for clients because they get immediate assistance rather than having to wait for a call back, but it also allows our department to manage a much higher caseload with the same or just a partial increase in staff. we did this largely in response to the state's abdication of their responsibility to fund our administration of state and federally mandated programs, and we had to respond with innovation and creativity at the local level. i am speaking to this and to our next program, in which we will see a similar phenomenon. the key to this is technology, and specifically, our ability to develop systems internally to support this sort of work. supervisor avalos: supervisor kim has a question. supervisor kim: i know the you

have had two positions at least that look to be vacant since 2009, and given the sharp increase in the number of people and old, good to talk about those vacancies and how you have been able to meet the growing need. >> i think they are clerical vacancies. certainly, clerical support is critical to the new business process model. we have had for it -- we have, for a number of years, then under a hiring slowdown or quasi-freeze, and as a result, we accumulated a significant number of vacancies, almost double our normal attrition rate. we are slowly catching up, and we are getting approval to hire here we go through several service exams, we go through the every process, but the same

time, folks are retiring and leading theory like a lot of city departments, we have an aging work force. we are seeing a lot of retirements. we did a significant number of hiring last year, and what did we get? 180-something? we hired 180 new -- filled 180 vacant positions. at the end of the year, we had a net gain of -8 in terms of tilt positions because it was so difficult to catch up. what a lot of it had to do with being able to catch up. it may say it position has been vacant since 2009, but if you look at a single position, that when a clerk may have been, but we are hiring clerks at the same time as full sleep. certainly, we need to keep those positions full, largely because they are supported with federal and state dollars. supervisor kim: i know because

you have talked to our office about her technical innovations have helped do not have to fill vacancies because there's just not as much staff needed, but in these cases, these are decisions that you want to see come back online? >> yes, to clarify, it has not -- we have not chosen not to fill vacancies due to technology, will we have chosen not to add new positions. largely because the state is not increasing our administrative allocation, so any new position would cost the general fund a lot more, and this is a phenomenon that is going on across the state for county human services agencies. this is sort of leading up to one element of discussion with the budget analyst around i.t. we have seen an increase that will be significant in 2014 because we will see at least

30,000 newly eligible clients will have come into our doors to the health care reform act in 2014. these are single adults age 19 to 64. supervisor avalos: i did have a question on your last slide. we have been talking about doing new modeling of outreach for food stamps, looking at school sites and things like that. has that really been explored? is that actually being conducted? >> as part of the food security task force, we have embarked on a number of initiatives. one of them specifically in response to a change in the state rules around asset tests. basically, you could have assets like own a house, and if you have a low income, you would now be eligible, and this is for -- so we are targeting a new group of folks, age 65 and older specifically, who may not be on ssi. they may have assets but not income, so now they are

eligible, and they never knew they were. schools are identifying families who are eligible for school lunch, subsidized lunch assistance. supervisor avalos: is there support for doing applications at the schools, or do they have to go to the center? >> we now have the ability to apply online. there is a computer and an internet connection, and they can apply. medical, again, we have seen a moderate increase, but we will see a significant increase in 2014. again, the same response as an agency. we need to change our business processes. we have already to an extent, but we need to fully implement the service center model and eventually merge with other programs. so i bring all this up to say that we need significant i.t. support internally to refine our

current systems, work within the context of the state eligibility system, and several of the budget analyst recommendations speak to i.t. positions specifically, or deleting them out of our budget. we are working with the budget analyst office now, presenting these arguments as well as some other i.t. needs, so i am confident we will come to a resolution that we both think is reasonable and supported with the data. the third area that received a lot of public attention around the holidays, and that is homeless families. we experienced a significant increase in the number of families on our shelter waiting list. you see on the chart 242. it did spike to 267 at one point, which was our high. we were able to secure a very large private donation, and following that, a large private

give to our community partners, we received another 1, and have the mayor and kirk -- committed to increasing general support for its rental assistance, eviction prevention, and a renewed partnership with the housing authority. as a result, we have placed 89 families to date into permanent housing with subsidies or to the housing authority, and we have seen our waitlist decrease. in addition, you will notice in our budget a significant investment of general funds to support new support of housing units that will be coming on line in the next two years. so our reduction targets -- you can see on slide -- a little less than $5 million in general fund. each of the next two fiscal years. we are pleased to say that we have met these without any

program or service reductions. in 2012-2013, we are meeting our targets largely through increased federal revenue. this does not represent any sort of lessening of services or service reduction. it is simply a swap of federal money to replace county general fund. we are proposing that that be towards our reduction target for 2012-2013 and continue on. in addition, you will see some administrative efficiencies we were able to achieve. our 1% fte reduction through eliminating vacant positions, and our contract savings is negligible. this is largely combining services under a single contractor, creating some efficiencies there, not renewing certain contracts that may have run their course or providing services that are no longer

necessary. in the next year, we are largely taking advantage of the new eligibility for medical among single adults. you will see that in terms of savings and leveraging new federal and state revenues. because single adults will be eligible for medical, their eligibility for cap can be worked through by individuals but also the medical eligibility, which will allow us to draw down federal and state revenues to do their work. supervisor avalos: with his a bit conservative estimate -- >> we anticipate a conservative $1 million in savings just on eligibility from medical. the next is really an amalgamation of increased leveraging through our california works program and other federally mandated state -- and state programs, working

closely with our front-line staff to make sure that they are accurately accounting for the work that they are doing and attributing their work to the federal and state supported programs that they are administering. i know the committee is interested in our effort around jobs, so i had a few slides that show what we have done and what we are proposing to do for the next fiscal year. largely, this is around our jobs now program, which is our large scale, subsidize work program. the target for this is families on public assistance, but also single adults who are low-income and out of work. we placed, since the beginning of the current fiscal year, over 1300 individuals into jobs through this program, and when you break it down, over 250 were the clean streets-clean parks initiative.

i know my colleagues have talked you about it already. we provide private-sector employees with a modest subsidy to hire individuals coming through our work force development centers and through our training programs. we have had a really large success in this program. in fact, such a huge success that employers keep coming back because they are finding that we are meeting their needs by prescreening candidates. we are continuing our summer youth program, which employs kids who are in public assistance households through the summer. the existing funding in our current budget is about $7.25 million. the mayor is proposing to add another $5.3 million to expand this extremely successful program. i will show you where those

funds are going towards. basically, we will be able to increase the number of people served in our four major areas. the clean streets/clean parks program, we will double the number of individuals. we also have 200 people at any given time, but we are shortening the work to six months rather than 12 to save money on the benefit side, but also to get more people into the job experience/job training, on the job training slots. 285 individuals for a supported jobs program. this is our initiative for folks who cannot compete on the private market given their barriers to employment. they go into a trap that is much more intensive in terms of training and support on the job. our public sector trainee program, which is largely human services positions -- these are public service trainees in our apartment. one of the byproducts of this is the we are getting individuals

off public assistance, working -- obviously in our agency that serves low-income individuals. many of them have been able to successfully compete for civil service positions and qualify and have been hired. beauty of that is getting individuals who were formerly on public assistance now working with families and individuals in those same circumstances. the last piece i mentioned, our private sector. 200 individuals being served replacements in the private, for-profit sector. just a subset of what you see there. again, continuing our summer youth program. then, an initiative that is targeted to transitional age youth. this is hsa's large piece around you who are transitioning out of foster care, emerging or coming

out of public assistance programs, getting them referred over to community-based organizations to get job training and to be placed. so our major initiatives that you see in our proposed budget -- one of them is over $500,000 general commitment to expand support of housing units for homeless schizophrenics. specifically, these are individuals who are going through a pilot program with the federal government where they are getting ssi immediately upon application to our office for public benefits. under the old rules, there would have to wait nine to 12 months to be eligible, and the approval rate was very low, given the difficulty of having someone who is homeless and schizophrenic trying to navigate the system. what we are proposing is not only do they get ssi immediately, but immediately

placed into housing with wraparound service and assistance navigating the process. the second is $100,000 to provide transportation for individuals seeking shelter. this is going to be kind of -- it is a dedicated route with specific pick up times, 60 hours throughout the week, seven days a week. supervisor kim, you were interested in this. this will help us deal with the issue of not enough tokens at shelters and not enough muni access, and really a dedicated band -- van for the service. the next bullet is that feeling of subsidized state budget cuts. the last piece i want to mention is simply a run language access. supervisor