non-profit partners of implementing the reductions in the health departments budget. for that reason we made a decision not to make any reductions this year while we wait to see what are the services that will be reimbursed and where are the actions of the people who are covered and not convinced. this will help us to see how it's going to be implemented >> you mentioned that public healthy won't have to come forward next year. this committee could make changes. i think there's a deserve do close some the cuts for the hiv 0 services and probably looking at the community organizations that may have the service

provided in basis organizations that could be cut and maybe 4 tow $5 million in all funds. would that trigger 31 any way the combustibility u budget could use the allocations without coming forward with a supplemental in the middle of next year >> that's a hard question for me to answer because - >> the flexibilities in the budget to be able to deal with it. >> i haven't seen what the budget analyst is going to propose maybe you, talk to the health director. but my own view is we've made the effort to address the structural gap over the last

three or four years. it will be a priority to make sure that once we've fixed it it will be fixed >> we can't make any adjustments to it or can it be stabled throughout the next fiscal year. >> i think i would want to see what kind of changes the committee would be recommending. >> moving on 80 to human services. many of you have talked about the homeless housing and the mayors budget continues that into the coming year and second year as well. the human services is responsible for the human acts it's they're responsible to enroll individuals in medi-cal.

we've also included additional funds for program for seniors as well as the b top that's keep us connected senior technology program. 15 the budget also includes funding to support a wage increase for home wage workers to 1175 an hour. just to remind you the budget includes $42. million for the housing trust fund. so next i thought i'd walk through the high-level how we've balanced. at the highest level i will say we balanced through a

combination of revenues. some citywide changes month significantly related to the dmoopz the health care and pension costs. we certainly could revisit this section and some departmental changes. this table loolts highlights for you, we started with a $123 million and again in the second year. we were able to identify an additional $19 million and another 96 in the second each year. you can see the revenue improvement when it improves we feed our baseline like muni and

the baseline. changes to reserve this is largely due we thought the health department was going to save us some money and some one time sources. this next slide highlights citywide you changes. we're funding our capital program that's the 92 percent level. in the second year wife identified some savings because it's not the full plan level. citywide work orders are costing us like workman's comp and other things. 32 the second year and it's

almost by 10 million and finally some small savings and debt service. year two solution i called out separately because there's things that are different than what we previously assumed and their you treated differently in the first and second year. so the y pi make up part of the

difference and a for the mayors budget is it includes 4 million to offset the loses. i think the health department can speak more on that

>> when they do their budget presentation? >> okay. thanks. >> but as you can supervisor those services are a wide range of things including mental health and support for people who are home it's a variety of health and health related support. >> supervisor wiener. just to clarify it's not just ryan white it's ryan white cuts and directly health department staffing. it was actually $8 million in cuts and the mayor had last year back filled 4 million and made up the other 4 million but it gets worse as time goes on. so the mayor back filled the 8 million and there's another additional 4 million.

we do have that breakdown we're happy to provide that. >> this is just again that first table walking you throw the citywide solutions and departmental. i'll be happy to answer any other questions you might have now or happy to answer he questions over two weeks >> just a question i was multi tasking. in the second year you have a savings of $1.18 million that's when we're looking at the overtime and the new recruits that are going to help lower that costs >> that is exactly right. so essentially when we add a second fire class in the first

year of this budget because those recruits will be available to worko. we actually see savings in theo. budget. >> which resulted n in overall savings new. >> so the 1.8 million is money from having the class the first year. >> colleagues any further questions? >>

an appropriation do we know exactly what the results is going to be. we have e time to ask if they can instead of that and they don't have to come back. how are they doing >> their come back to ask for a full release of that supplemental. >> okay. >> can i? >> supervisor. >> i want to add when the fire

department does return to us with an additional request for a supplemental. i want to see numbers and data that supports the requests. specifically a clear understanding of the number of firefighters or based on where the overtime is actually coming from whether it's the baloney chiefs and as it relates to the amount of money we're spending on overtime and what that means. i want details especially, if we're being asked for an additional supplemental. the last time we were asked for a supplemental well i don't want to come back and say i've told you see.

not only are we faced with a situation where there is money we may have to pay in order to deal with the department was out of money for the filling stations but the loss of one of our boats. i want to be comfortable when they come forward >> the supplemental from the fire department that's assumed to be coming forward. is that an provision within the fire department >> it's an appropriation within the fire department. you'll be reinviting the same item the need to move money into overtime salaries. there is no impact.

>> supervisor avalos asked about the upcoming meeting on tuesday on the proposed health cuts. and >> mention the public health acts have been fully funded but there's a reduction coming up. that will probably be a topic for on the meeting but can you elaborate more. what types of cuts again would it $8.8 million in year two come to. thank you for that question. it's a little bit of a hard question. part of the plan as the affordable care act begins to be pledged take in that information and use that to structure the

rfp proposals to the communicated. and so, you know, i don't think that the department has yet identified specific reductions within the system of care. i don't think they've said mental health and substance abuse they have not made torres those decisions? >>. it's the conversation with the community and as they get information about what kinds of services are covered under the affordable care act and what's not and the perspires created those things will inform how the rfp moves forward. supervisor reed still questions? >> any other questions at this time? >> at this point we'll have ben

roman field come up. and we have other folks in the audience to answer questions on item 6 and 7. good afternoon ben rosen field. as your aware it allows the controller to make comments. we do this through the revenue letter and it's available on the controllers website. there's a lot of daily in this report on the assumptions and it walks through the reserve requirements through baseline requirements and we'll probably refer back to it but what i have today is a simple summary. general we find the mayors

budget reasonable. they reflect projections of economic growth in san francisco although slowing somewhat. there's kind of two notable factors that we continue to monitor. the first, of course, is related to the state of budgets. it talks about available of money and there's more fluctuation with the state and local budget. just as a reminder the state of allocation is more. we'll be talking over the weeks about the current budget looks like. as the state moves closer to a budget on time this week there

are positive and negative implications. not notoriously is related to federal health care reform and how much money the state will be pull back from counties associated with that. that's the most significant negative that will come from the state that budgeted that we'll be monitoring and reporting back to you. >> mr. rosen field. we'll know day-by-day. we have a reference of the claw act the budget proposal includes $300 million that's pulled back from county to state.

our cut a $17 million. it's a fairly significant number but certainly lower than what we feared but we'll know more information duo all this week and weep update the committee. >> is it a moving target in the last week? >> supervisor kate howard mayor's office. the mayors budget did not include this new information and so we'll, needing to be adjusting to see how we jointly want to respond to that >> thank you. >> that's the big one. on the local side we're continuing to monitor our local year. our projection for next year is

that we've grown 10 percent. it's an unexcepted recovery it's not sustainable and won't continue at that pays but the shape of our recovery looks like over the next 24 months will be the subject of constant monitoring. and we'll talk about some of those significant run upstairs in the presentation. so the highest level we do have local taxes growing. in the gin fund and then the fourteen, 15 budget apologizes typo grows by an additional $9 million in the budget that's before you. and again the local recovery

could pull those down rather rapidly. the fund available from the current year that's allocated evenly over the two year period continues to improve. on net the budget grows the proposed stabilization over the next time period it tote budget grows by 7 percent vs. the current year budget while the general fund it growing more rapidly because of

the tax. but in the next year we've got an 11 percent growth. just briefing highlighting the rates of growth. of course, there's a lot more daily in the report. i can see at the top of this page - well, starting at the bottom of the page local projection is going to be 8 percent. so very strong recovery projected and that's consistent with the recovery in the current year. property tax was flat for several years and recession so, now to grow to a healthy rate. the assessor will be closing the

role and it's a reasonable he projection and pay role he tax growths and business growths an 11.6 percent includes estimate license fees that was a proposed by the prop. if you test out that policy adjustment that the voters adopted and the mayor proposed. the only other one is towards the end of the page we're at a historic growth in transfer tax and that's up 5 followed from the transfer taxes we received four years ago. we've gone up to two hundred and

50 million. the budget pulls that estimate down to 2 hundred and 25 million but this remains the most volatile projection. >> so this decrease is off the 2 hundred and 50 million? >> what do we propose for the last fiscal year. >> this is a projection. okay >> and i'll confirm that for you specify supervisor. >> this is graphically the property taxes we never saw a

decline in any tax year it was a typical in the state. the blue line at the top of the package is our business collection taxes we dropped in 9 and 10 and been steadily gone up. hotel tax followed almost identical shape and steady recovery. anticipate transfer taxes you can see on the payment has been the most volatile to approximately 50 million and growing up to two hundred and 50 million projected. that's the one to watch as we work ahead. and again, we watch that tax on

a month to month basis briefly on some of the uses of reserves. the budget does propose to draw the maximum remaining allowable rainy day reserve it's total is 8 million and 4 million in the second year of the budget. the budget does propose to draw $3 million from the one time account of the rainy day recess and use it for various one time purposes. and then our x reserve are both balances that can be drawn

entirely over the two year period and that's for one time purposes. you have legislation in front of you that authorizes that use. there are deposits in the reserve. and consistent with the general receive does grow over this period of time to 1.5 percent of revenues in the second year and that reserve is opportunity in the budget before you. that growth and transfer tax is feeling deposits to the stabilizati stabilization reserve.

when they receive historical deposits they will be available when the tax revenues decline. given our transfer of taxes over the two year time we expect 16 second yearhe first year and >> on our formulas for getting up to 2 percent for the general reserve it's a formula so we can't put any less than that amount we can put into more into the reserve; is that correct? >> the way it sits and works with the project it says that once the board and mayor adopts the financial policy they have to be approved by the mayor and

the board. you're correct you could choose to allocate for money then or than the reserve the financial policy itself allows the board of supervisors by a two-thirds vote to suspect u suspend those policies. it's loopholes an option that's available to the mayor and board. and if the proposed budget it has a 12.5 percent as our reserve and then we're increasing that over the next two years >> until you get up to two percent. the last budget was up to one percent. and the report duces briefly to highlight here generally