backs. we're doing the crises, 10 years into it, okay, 14 million a year, we're not getting equity. maybe we can take a look at that and try to figure out, addressing the affordability issue, for example. the mental health treatment system, i talked a little bit about this. you know, if you talked about kind of the old coolers like the joe ruffin who worked in department of public health 30 years, mental health, some other folks who had been around a long time. they talk about san francisco, the flourishing mental health system we had in the 1970s, and then the loss of our board and care, and all this stuff happened. but we continued to seriously deconstruct our mental health treatment system. we lost a lot of really solid program. we had amazing peer run programs that were incredibly effective that we lost. we can do creative things. we can have assertive outreach. we can do a whole bunch of

stuff where it addressed the very severely mentally ill people that were not going today. we have a whole lot of untreated mental illness out there. i think we all can acknowledge that. we need to make sure we address it and we should be making sure that people have medical treatment in the same way they do and, you know, they get in a car accident or any other medical issue. it's really not the case right now in san francisco. people do not have access to mental health treatment in the way that they should. and lastly, we'd really like to see a concerted effort to end family homelessness and get really aggressive about it. even though many of our families are chronically homeless, you know, many of our families go from shelter to hotel to shelter, friend's house to shelter. experience homelessness a long time.

we've been astounded at the numbers there and we have less than 10% of our housing in the pipeline for homeless people targeting homeless families. we've got 2400 children experiencing homelessness in our public schools. all of this impacts the city and it's the most devastating for the kids and the families. but it's not insurmountable. i feel like a city like san francisco could really get aggressive about it, put some serious resources into it and end it, halt it, stop it. thank you again for having me. if you have any questions. >> thank you very much. colleagues, any questions? and i want to thank you for working together. we had a great conversation the other night and met a few times. thanks, look forward to working together on these issues. >> thank you. >> any questions, colleagues? okay. at this time, no more speakers left, we'll open up to public comment if there is anybody in the public who wishes to comment on this item on in hearing, please step forward.

everyone has 2 minutes each. if you want to comment please line up on the side wall and we'll start taking people one at a time. thank you for being here. mr. wright. i want to comment on the treatment and demonstrations where black people, particularly african americans not getting shelter assistance and how it's centered directly in the bayview district. about 10 years ago i came before you and i pointed out violations of civil rights and differential treatment pertaining to females when you have drop-in centers for males and there was controversy where you were shutting down female drop -in female centers. females are on the receiving end of domestic violence and they're having trouble and down in their luck. i have to come in and speak

where you have a situation enjoyed by males and not enjoyed by the females, and as a result shortly thereafter there was a drop-in center created at the mission district area by that freeway on otis street. now, i'm coming to you again under the same pretense of constitutional law. you seem to be violating constitutional law, due process, equal protection under the law pertaining to blacks in the bayview district where you don't have any shelter systems out there. it's not fair to them to have a drop-in center there and be up all night without the shelter system to get themselves together. so, i wanted to point that out to you. and also would like to speak on one more reason why there is such a cycle of homelessness pertaining to people have drug addiction problem. i recently found out that

there's a proposal by an individual who happens to be a black man who wants to pass out crack pipes. subject to that on the ground that's keeping people in the recycle loop when the truth of the matter is you need educational system to let them know that smoking cocaine deteriorates your brain and your cerebellum, the main part of your brain that causes you to remember instead of encouraging them to come get crack pipes -- >> thank you, sir. i appreciate it. thank you. next speaker, please. hello, supervisors. brian basinger, director of the aids housing alliance. thank you for taking the time to hold this hearing. i'd like to encourage you to also think about reframing the angle about how we look at services in san francisco. we can look at services also as a job creator. i know that people with hiv and aids bring down more federal and state money in san francisco than we consume in resources.

and, so, economics, it's all about bringing in money from the outside and keeping it and recycling it. and also in our service category there is actually not a lot of leakages, leakages. so, those funds are recycled within the local economy. you know, people with aids, other disabled folks, homeless people, we're job creators. and i think it would be interesting if somebody commissioned a survey to look at just how many jobs people with hiv and aids and the populations that we talk about are creating here. also they were touching on it earlier, we would really appreciate giving great era tension to the needs of homeless lgbt people where 15% of the population, about 29% of the homeless population, similarly people with hiv are 2% of san francisco's general population, but we're 10% of the homeless. and, so, there's a lot of disparities and homelessness and also there is disparate

impacts about homelessness. recently i was speaking with the epidemiology department at the department of public health and 20.4% of people with hiv have been displaced from san francisco in five years. and what happens when we get displaced is we lose that package of civil rights and legal protections that we have invested decades and creating in san francisco. we lose rights, we lose access to marriage equality, we lose access to job protections, we lose access to protections against discrimination and housing sexual orientation and gender identity. there is an entire package of civil rights we lose when we leave san francisco that you people don't have that problem with. so, i really want us to focus on that, thank you. >> thank you very much. next speaker, please. good afternoon, supervisors. dan bauer sock with the homeless prenatal program. i have two points i wanted to make. first of all, i wanted to call your attention to the city of los angeles's plan to end

chronic homelessness and [speaker not understood] by 2015. i don't want to hold them up as a para gone, but it's a plan, call to action, diverse group of stakeholders. it's not just about government action, but also the private sector, faith-based groups, individuals. they call people to action to donate to the cause to help out in whatever way they can. and it's written in an accessible way. there's not a lot of policy discussion. it's more about the concrete steps that the community is taken to tackle this issue. it affects everyone, not just the government, not the specific group. there are milestones and they're checking in, measuring their goals. there is accountability, there is a regional mind-set where it's not just focused on one city or county. we know it's a regional issue so let's tackle it with regional solutions.

and second of all, i wanted to speak to supervisor avalos's point about section 8. there are some weaknesses right now with that model. fair market rates set by hud have not kept pace with [speaker not understood]. what we end up having is landlords that don't want to accept the vouchers because they can get more in the private market. we now have more people with vouchers searching for housing than landlords willing to take them. i think it's important we get creative, maybe stacking subsidies on top of each other. we can't just throw money into a program like that, we need to get creative about the rules of the program and how we can compensate for of this smoke imbalances. thanks. >> thank you. and thank you for what you do in your organization. next speaker, please. good afternoon, i'm bill hirsch with the aids legal panel. we provide legal services for people living with hiv and

aids. i want to speak to the homelessness prevention piece of the plan. i am here to say that the recent investment that the city has done in eviction prevention strategies has made a real dramatic impact on our ability to provide services. we hired a new housing attorney and it makes all the difference in both the number of folks that we can serve and the extent of the service that we can offer an idea very quickly where we can work with city and publicly funded housing to try and prevent evictions through mediation. we're going to come forward with a proposal on that. it would be great if we could see the city invest that support. thank you. >> thank you very much. next speaker, please. good morning, supervisors. i'm gail grumman, the executive director of the community housing partnership, the

largest builder and operator of permanent supportive housing here in san francisco. so, i want to thank you for having this hearing today and we really wanted to sort of hit on an aspect that both bevan dufty the director of hope and trent rohr the director of human services agency touched on, something that we see sort of a lack in our continuum, which is a pathway and the housing ladder for individuals. we know at the community housing partnership, now having close to a thousand units of permanent supportive housing and close to 1800 people living in that housing, that we know there are individuals who couldn't transition to either affordable housing, public housing or housing with less service intensive. but the bear ire to that is affordability. at the cusp of a city that is having an equity crisis and affordability crisis, we hope the board of supervisors and the mayor's office will look at housing ladder, all the stock of housing in san francisco

from supportive to affordable housing to public housing. we know there are thousands of public housing units that are off line that will be brought back online over the next 3 to 5 years through the revision process of what the mayor is doing with public housing and transfer to nonprofit ownership. we hope there's a pathway for supportive housing tenets to move to that independent housing [speaker not understood] and keep the affordability of only paying 30% of their income. we hope you'll consider that and we really think that pathway could really move people out. chp predicts by 2020 if there was a housing ladder, that over 10% of our portfolio could move to market rate or housing. [speaker not understood]. thank you very much. >> thank you very much. any other member of the public wish to comment? okay, if there is anyone else, please step forward and line up here.

howdy. well, let's start here. it disturbed me they talk a lot about the hot team but i wish you would have had somebody that actually works and is a part of the hot team actually come and say something. i think they'll say a lot of what they're saying, but they'll give you different ideas. i'll give you a better idea of what's happening. one of the things i have come to understand is you're having people who are undocumented, who are getting stuck -- i mean, one of my friends, i don't know why he got stuck, but i guess he just couldn't get an id for whatever reason. i guess he went through the foster care system. i don't even think he knew where he was born. that's probably why he got stuck. the other part of it is some people -- all of these programs and all that stuff they're not going to be able to access them. one of the things that happened

was is a lady -- an employee that was working with this lady got fired. she got put into like laguna honda. she just wasn't going to make it. so, though are some of the issues that it's being very cloaked in all of these stats and statistics that they're telling you. the other thing, too, what's being missed is families in s-r-os. to me that's a problem. so, you might have a 90-square foot room, you've got a family living in it. you change the definition. the other thing, too, is the housing authority. i think you need to be aggressive, maybe you need to fire whoever is running that because it's not good enough. i wanted to talk about put a team together where they would talk about low-cost solutions to help thing. maybe $5,000 or less to bring solutions to the table. i've talked to several people.

i can't get it off the ground. i feel part of the problem is we need -- all of these service providers are doing all of this stuff and our voice gets blocked. we get totally blocked out of the conversation and i want to talk about habitable housing. >> thank you very much, sir. thank you. are there any other members that wish to comment on item number 1? all right, seeing none, public comment is closed. [gavel] >> colleagues, i don't know if you have any comments here. i want to thank everyone for being here. i want to thank my colleagues for sitting with me through this hearing. i think all the speakers, thank you for your time, your preparation. certainly having worked together with you the last few months, and also in advance for all the work we're going to be doing together moving forward. this is obviously a very complicated issue but one i think is critically important for our city and our population here in san francisco. and one that i think it is about time we started to focus on. so, if no other questions or comments, could i have a motion

to table item number 1? we can take that without opposition. [gavel] >> okay. madam clerk, can you call item number 2, please? >> item number 2, resolution retroactively authorizing the san francisco department of public health to accept and expend a grant in the amount of $173,515 from centers for disease control and prevention to participate in a program entitled building resilience against climate effects: empowering san francisco communities to address climate change, for the period of september 1, 2013, through august 31, 2014. >> okay, thank you. i believe cynthia from dph is here to speak on item number 2. thank you for coming. >> good afternoon, supervisors. i'm the manager of planning and fiscal policy in the environmental health branch in the san francisco department of public health. and i'm here today seeking a retroactive authorization for an acceptance in the amount of

$173,515 from the center of disease control climate ready states and city initiative to prepare for climate change challenges and build resilience against climate effects. this is the second round of funding we have received from the cdc which has been awarded to 16 states and two cities, san francisco being one of them. the past three years has allowed the health department to engage in several initiatives to under the potential health impacts of climate change at a local level and we have worked to improve climate change preparedness in san francisco. the department of public health priority activity focused on vulnerability assessments, outreach in education, building partnerships and community resilience, developing tools and indicators and emergency preparedness planning. one example we completed was an assessment of san francisco's vulnerability to he can stream heat events. climate models predict extreme

heat will produce severe heat in san francisco with 39 extreme heat days by the year 20 50. our city will face more deadly hot days and poorer health outcomes, especially our vulnerable population. i know we just pep the last couple hours talking about the homelessness, the homeless population is specifically vulnerable to climate specs, specifically extreme heat and cold snaps. this assessment was used to develop a heat wave disaster which is now part of the annex of san francisco's new emergency operation plan. additionally we created interactive heat run vatctionv map to under which areas of san francisco are most at risk [speaker not understood]. satellite and temperature data based on cultural, behavioral,

and other demographic characteristics and san francisco's neighborhoods have been made publicly available on data s.f. with the funding from the cdc we will continue to assess climate trends, define disease, develop specific interventions, methods, and aloe virginiavctiontion effect of change of at-risk population in san francisco. in partnership with the city administrator's office, the department of emergency services, department of environment and our many stakeholders, we will promote community resilience through education, empowerment and engagement to reduce impacts of climate change i'm happy to answer questions about our climate and health program or -- >> supervisor mar? actually, i'm very supportive, but i did have a question. i know what the elimination of [speaker not understood], his role. i'm worried that we're not going to be really focused on equity and the strategic initiative like this was funding within dph.

but i'm just wondering what's going on with the role that dr. bakia had been playing and how is dph responding to that? >> sure. i just want to ensure you that the department of public health is committed to ensuring equity. i have been the principal investigator on this project and the main contact with the city for the last three years. and, so, we have a very strong staff that works very hard and i don't think his absence will be an issue moving forward. >> so, who's been dealing with the roles that dr. batia within your department? >> right now i'm filling in helping lead the program with [speaker not understood]. we have an acting director [speaker not understood], the director of population health is working on these issues until we find a new districter. >> that's on top of what they already do. you don't have a replacement then? >> for the past several years i have been a key leader in health equity and sustain ability and we have a pretty

collaborative decentralized staff. so, i definitely want to ensure you that we're all working very hard and that we're all really committed to equity. >> okay. any further comments? okay, thank you very much. we do not have a budget analyst report so we'll open up to public comment. anybody wish to comment on item number 2? seeing none, public comment is closed. [gavel] >> colleagues, can i have a motion to move this item forward with recommendation? we can take that without opposition. [gavel] >> mr. clerk, can you please call item number 3? >> item number 3, hearing on the mayor's fiscal year 2014-2015 and fiscal year 2015-2016 budget instructions to department heads and general fund deficit projections and other related fiscal year 2014-2015 and 2015-2016 budget updates. ~ >> okay. next we've kate howard our budget director here. thanks for waiting.

>> kate howard, mayor's budget director. i have talked to several of you about the mayor's instructions previously, but let me walk you through an overview of those instructions and i'm happy to answer any questions that you may have. i'll plan on being as brief as possible. an overview of the general fund deficit for the next two years, i'll talk to you a little about what the specific instructions were and we can review a timeline that we'll all be experiencing over the next several months. you will remember that we balanced the city's budget just last june together for the coming two fiscal years. that was largely driven by revenue growth, smoothing our fund balance over two years to start from an even place, a variety of departmental and

city-wide solutionses including differing funding for our i-t capital and equipment investment. looking ahead, you'll remember that all of our two-year -- all of our budgetses this year are open. so, we have fixed two-year departments, the puc, the port, the mta, and the airport, and all of our other departments will also be open for the next two years. we'll also be negotiating new labor contracts with all of our bargaining units except for the police and firefighters, and we know that the economy as well as the state and federal government will likely continue to have an impact on how we balance our budget overall this year. this slide gives you a summary of what's changing since we balanced the budget last year,

and what's on the revenue and expenditure side. you'll see tax revenue improvement in both years, changes in our fund balance, and relatively significant changes on the outlook for the health department's revenues. on the expenditure side, the major change is full funding of the prop h set aside which is not pulling the prop h trigger which we did do in the second year of the adopted budget last year. so, the numbers here in front of you is the projection that our office has developed over the last several months working with departments. you can see first it's growing by about 63 million in the first year and 133 million in the second year. while uses grow at a faster pace than that than the sources are growing. those gaps create a shortfall

leaving us a projected $100.7 million in the first year and $118 million in the second year. >> was this when you sent out the budget instructions in december? i know next week we're going to have a sick month update. >> that's right. the numbers you're seeing today are ~ working projection at the time we issued the instructionses. those were issued on december 18th. as you correctly point out, the controller i believe will publishing their six-month report early next week and it will be reporting to you on the results of our current year performance. any under spending or better than expected revenue would generate year-end fund balance that that would -- which could be applied to the circle ~. so, like any projection, this projection assumes a number of thing.

i want to make those explicit to you so you know kind of what's included and what's not. the fiscal '15 budget is -- we have used as our base case the budget that was adopted and signed about -- adopted by this board and signed by the mayor back in august. that means staffing levels remain consistent. funding for capital equipment and i-t are what was adopted by the board and signed by the mayor. we have updated both salary and benefit costs to the best of our knowledge. however, we have not updated -- we haven't made any new projectionses about the results of the city's labor negotiations. because we're just beginning those conversations and those negotiations with our labor unions now. if seems premature to make an assumption about what the results of those will be. since revenues are growing, we won't be eligible for either a rainy day, budget stabilization

withdrawal. and as i mentioned, the major changes that have occurred since we balanced the budget are the health revenue changes which i'll show to you momentarily, funding of the coverage baseline, and smoothing our fund balance over the two years. so, a couple of charts that give you a little more detail on the specific numbers. so, this is our revenue outlook for the next two years. you can see the first line is showing you our revenue -- projection of general fund revenue growth. that's largely our local tax revenue. so, property tax, sales tax, business tax, hotel room tax, real property transfer tax among others. and you can see that that is a healthy revenue growth. as a rule of thumb, i think $100 million is -- that's good revenue growth and we're exceeding that based on our

current projection in both of the next two years. you can see we're smoothing our fund balance again over the next two years. we have slightly less than we previously budgeted available in the first year, but we have that as a starting source in the next year which makes it easier to balance the second year. [speaker not understood] one-time sources, one-time payments or litigation settlements where we might be paid a certain amount of money, those sorts of things. and then finally, the other significant change noted here are changes in our public health revenues. and the largest piece of that is bait r based on a [speaker not understood]. the current year the state is taking back about $17 million from the health department and we're projecting ~ next year we'll double that which will be

offset by positive news at the health department in other areas. so, those are the big pieces on the revenue side. this next slide just highlights for you at a high level what's happening with baseline set asides and our reserves. you can see as our revenues grow, we continue to feed our base lines. things like the children's fund, the library baseline, the open space fund, and certainly the largest line. you can also see at the bottom what we're projecting at this time as the balances that we will budget into our general re serve, our budget stabilization reserve, and our rainy day reserve in the next two years. >> sorry, those are additional funds going in? >> these are total balances that will be appropriated in those areas. so, i don't have the number off the top of my head, but there's

over $100 million, significantly over 100 million dollars in the stabilization reserve today. there will likely be an additional deposit into the budget stabilization reserve in the coming year. >> okay. >> ms. howard, can i ask through the chair, what's the percentage of our general re serve of our total budget? >> so, we have adopted financial policies. this board has adopted those policies which are aiming to grow the reserve to 2%. i believe not by this year but by the subsequent year going to a 1-1/2%, but i can confirm it and circle back with you. the next one is highlighting for you major changes on the city-wide cost side. clearly