. >> good afternoon, everyone. welcome to the board of supervisors life in prison meeting for wednesday, may 20

2015 my name is mark farrell i'll be chairing this committee joined by is supervisor yee supervisor kim and and their and joined momentarily by supervisor tang sfgovtv for 0 covering this mr. clerk any announcements documents to be included should be submitted to the clerk. items acted upon today will appear on the item one arrest a bucket you update for budget year 2015-2016 this was continued and the puc staff had to leave i'm going to continue this item to the call of the chair the puc will be back in a couple of weeks ago we'll do it in one swoop mr.

kelly will be there unless questions or comments open up for public comment seeing none, public comment is closed. >> mr. chair, i move we continue this item co-chair. >> by supervisor mar and supervisor yee a we'll take that without objection. madam clerk call item 2. >> a hearing on 89 or 9 months status report and mayors budget report. >> we have the controller's office here to talk about her 9 month report. >> thank you thank you for having me michelle from the controller's office

just a quick update on the sales report published on may 8th at a high-level we're projecting an high balance of 37 i would million dollars $86 million above what we projected move to the change is better than expected revenue and the department of human services continuing a change for the 6 month recorded a deposit to the stabilization sewage and that's been completely offset by a $60 million deposit to rainy day reserve on the revenue side on the tax revenue a $90 million improvement from the 6 month mark as you can see the big

number here is real property tax being consisted higher this year empty a transfer in the highest tax budget about a 60 percent increase over the first 9 months of prior year it is from the sales large buildings also business taxed are flerg flowering the updated employment and that finally hotel tax room rates coming in higher than projected people are willing to pay a lot of money to stay in hotel i'm sure you're aware of this is given to the library and public permit $13 million more than projected departmental $65 million in net

surplus among the departments and the big change that is $30 million better than the 6 month report the change is entirely at the did you want from the hypotheticals laguna honda revenue and increased patients increased recoveries as well as the pharmacy savings so the big change is the public health to date the board has appropriated $2.4 million if the general revenue from hiv preservation a self-supporting supplemental for the restroom and no fund impact on the general fund to reappropriate permanent dollars for overtime

at a number of departments i already mentioned in terms of or in terms of of reserves the big change is we're projecting a rainy day deposit part of it goes to the city and under prop c to the school district separate reserves we're projecting among the city and school combined together a $60 million deposit among the 3 the other important figure on this table at the end of the current fiscal year we project that our longer or reserve is available for 8 percent of general revenues our goal is 10 percent we not to talk about uncertainty and talk about waiting to see

the final relatives of what happens in the current fiscal year and the vulnerability of the business tax after our shift as we transition into a business television station you've heard about the affordable health care act and the effect on public health revenues we had big swings related last year to this and finally a sort of new issue on the plate is an board of appeals decision against the city that requires us to pay supplemental cola's to employment's the appeal to the supreme court has 90 days to say if they'll review the case we'll have more information soon

this will have a short time effect in re2r5k9d payments the real substance is to increase the city rates into the future so this is a very kind of large potential impact we're working with the retirement system and their tuffries. >> in terms of that item do we know when we're going to have instructions. >> we'll start rivera against the retroactive payment. >> we we don't know we have not planned too much around yet the future portion the effect on the employer contribution rates there's a question over the period of time we have to pay over is it 5 or 10 years or

something what time period is really the big unknown >> the retirement system policy is 5 years we hope for something different and on the non general fund is a enterprises are doing strong building inspection with the airport and the municipal transportation agency because of the general fund baseline revenues increasing at the port a few issues we are dealing with in guest tax to fund as well as related to the drought the effect on the water and power we also seeing see worsening at hetch hetchy i think a couple of things to remember any additional revenues that come into the general fund 3 of every $4 is to the rainy

day of the 25 percent it goes to feed the baseline really good news in the current year is largely spoken for and this information and anything else we get including the government budget has been incorporated into the city budget. >> thanks very much any from minute prospective any questions on the proposed budget we can continue to talk about that. >> i would say the single biggest dollars amount will happen this year this is a difference as okay. >> all right. we'll continue with that item any committees supervisor mar. >> quickly the real property

tax surplus is $69 million and i said that was for mostly like large buildings in the highest income bracket how does that compare to past years this there i know we've seen property tax and hotel taxed is that a significant increase in what we see or real property tax surplus as it is? i worry about i knew the exact answer it is extremely hard to predict it depends on kind of at the large level it has to do with the attachmentness of real estate trusts and other investors changing the interest rates we'll see that wash

through that is really tough to predict the pace at which it tracks we're projecting a small that the current year will be a peak year that will step down slightly and consistent with the 5 year financial plan this is a high-level compared to the 2009 2010 >> thank you can i ask a little bit which one with the most vulnerable of the tax arrest transportation. >> okay. i want to be clear okay. >> another additional slides or - >> i ran through quickly that's it. >> thanks very much colleagues, any further questions at this time okay. seeing none we'll open up for public comment anyone wish

to comment on item 2 seeing none, public comment is closed so colleagues this is an item specifically on the 9 month report we've held it can i have a motion to file this item. >> motion by supervisor tang we'll take that without objection. madam clerk can you call item 3. >> item 3 a hearing for the budget update for the fiscal year 2015-2016 for child support. >> good afternoon supervisor farrell and members of the committee i'm karen roy the director for the department of child support services joining me are my assistant director director carolyn and cherlyn administrative reviews and

another colleague thank you for inviting the department to present and in the interest of time i'll keep my remarks short my presentation will provide you with a high-level of review the demographics of our caseload performance and our structure i'll complete it with the program initiatives child support program understand that sometimes parents need help in meeting their obligates for economic support for their children many parent respond to the support are struggling with poverty lack permanent housing and seek long term employment and significant barriers to gain employment in response the department has restructured it's service system to one that is

family centered healthy parent needs stronger stooiz ties and fosters cooperative parent based on district representation our clients are predominantly african-american with the number of asian and caucasian families increasing many of those families are current receiving public assistance but it is important to note our services are available to all parents who need them regardless low income families will have minded out of public assistance rely heavy on child support child support is 40 percent of families income for deeply poor mothers child support is 63

percent of families annual income for the f 2014 collected and distributed $26.5 million of that 4585 percent of every dollar collected $22.5 million went directly to families to coffee the basic needs of their children the remaining was gifted between federal, state, and local and represents the welfare costs one hundred percent is from federal and state the city doesn't have the general fund costs and reduced the expenditures for 2016 and fiscal year 2017 to live within it's revenue stream the significant budget change rests with the growing covets of doing

business today and tomorrow with the fund the department receives 12 years ago those are the growing costs of salaries and benefits and office space i'm pleased to say the department has submitted a budget for fiscal year 2016-2017 funding solutions were 3 fold first, we effective managed the administrative costs to provide excellent in housed customer service while controller the impacts to the budget dick services are 95 percent of the budget second the department began working with the department of real estate a full year to leverage the opportunity to renegotiate now terms and bake anticipated floors into this budget early negotiations lead to competitive rates and no

increases in rental costs over the life of the lease which translates into long term lease savings and we plan to share our office space and savings with the department finally the depth has overhead and non-salary spending keeping costs in line with the needs of the smaller workforce and reallocating savings to fund the projected savings in salary costs over the last decade our caseload has steadily dropped from 28 thousand cases and hundred and w 8 budgeted positions in 2004 to 13 thousand cases supporting by hundred and 4 budgeted positions in 2015 we maintain vacant positions that represent salary savings but can be filled should our

caseload grow no new positions and no over time budget going forward we'll continue to engage our employees to look for ways to deliver quality case management that is cost-efficient and keeps pace with the needs of our clients the department will carefully manage the staffing level and reduced the spending in non-salary costs we'll continue with the will injury cases and remain committed to reducing the injury cases and the treats that wish evaluations and other focuses and cultivating opportunities if utility existing program services build resources and promises 6 of

percent federal match on every there's have found those are viable and the department will live within points baseline and that service delivery continues to exceed its statewide performance department has a workforce that is culturally competent and case workers appreciate and respect the cultural population to provide customer service to folks they've got the language understanding that effective communication that without it inequality in service delivery is very possible we regularly analysis and criticize our system in relation to the client feedback to assure

system working barriers to access do not occur roughly 2 thousand non-custodial parents are diligent in payment most are men with an average age of 40 years 85 percent of the parents have a relationship with the criminal justice system the department is committed to assist all parents to overcome barriers and conceiving compete for jobs in the local economy we recognize the headwind that has the concerted effort and childcare must be part of that fetter we must continue to grow partnership with the service providers and enhance case

management with holistic remedies that reflect our clients demographics and continue to develop realistic orders that are reliable and make sense for both parents we are we've created initiative to confront the challenges of parent what we face my experience it was practical solutions and practical solutions we have made meaningful process proven to the childcare supporters in other county and states that fresh ideas lead to better we're ranked 4 in collections and although the majority of our parents have very low income parents are stepping up for their children

74 percent of families with children are ref child support regularly and we're going to reach 74 messenger for 2015 we manage will open mitch and continue to build a viable program for all san francisco families by leveraging our partnership with resist city agencies and community based organizations strengthening on or about to our neighborhoods and in reach to our national programs to build the deep client connections and through holistic case management we respect both parents we deliver relevant service that promotes relationships have an opportunity to thank the