all right. so we have a motion to move this to the full board with a positive recommendation, can we have a roll call vote. >> on the motion, items 7 and 8, moving forward with a positive recommendation, member mar? >> supervisor mar: aye. >> supervisor haney: aye. >> there are two ayes. >> supervisor haney: thank you so much and thank you for your leadership, supervisor mar. madame clerk, can we please call item number 9. >> yes, item 9, hearing regarding updates on the right to recover program to discuss how many times the program has paused because of lack of funds, how many eligible individuals have failed to receive this economic assistance since the program began, how much money is currently available to assist covid-19 positive residents in the program, how much estimated additional funding would be needed to fully fund the program throughout the duration of the pandemic, the impact of the

program on the individuals who received funding and the public health at large. members of the public who wish to provide public comment on the item, should call 1-415-655-0001, meeting i.d., 187 479 4354. then press pound twice. if you have not done so, dial star 3 to speak. the system prompt will indicate you have raised your hand. please wait until the system indicates you've been unmuted and then you can begin your comment. >> supervisor haney: thank you. do we have supervisor ronen here with us? >> supervisor ronen: yes, i'm here chair. thank you so much. it's such a pleasure to be at my first budget and finance meeting of the year under your leadership. and the new committee membership, chair haney, so thanks for letting me hold this hearing. i'm really excited to be here

today. this is the first public hearing we've held on the right to recover program which i created together with the latino task force on covid-19 and my legislative aide in april of last year. this program arose out of the ground breaking study that was performed by ucsf, the program together with the latino task force. and when their findings showed the unbelievable disparity in who was getting sick with covid-19 and that it was primarily the latinx community, primarily people working outside of the home in low-wage jobs, we knew we had to do something to intervene quickly.

and that's when we came up with the right to recover tt program. we knew comparatively little about the virus at that point and how much it would change our city and our lives, but what we did know was that there was a disproportionate impact because of that study on the latinx and immigrant populations in the mission. at the time, 50% of all the cases in the city were latinx and were living in the 9411 zip code which i represent. as we all know, many of our immigrant populations and low-income essential workers have no access to basic worker protections like sick time, paid family leave, or have bank accounts with savings to make it through emergencies. and so a positive covid-19 diagnosis equals financial ruin, despair above and beyond what

families were already facing and are continuing to face. oftentimes for families that live paycheque to paycheque, taking sick leave is not an option. this is a program where the city pays two weeks of wages to anyone who tests positive for covid-19 and does not have the financial resources to quarantine and to recover from the virus. the program is initially funded by a $2 million allocation from the give to sf program. however, when we saw how quickly those funds were exhausted, we worked -- i worked, together with the former director of the economic workforce development to replenish those funds through additional philanthropic

donations. at that point, the frequency of people getting infected by the virus continued to rise. and over new year's weekend alone, we had over 400 -- one weekend -- 460 referrals to the right to recover program. so the need for the program is clear. this is a high-demand program with real impact on people's lives, that for the cost is an unbelievable public health measure to control the spread of the virus. you're going to hear from many people today that are going to talk about the success of the program and why we must continue to keep it funded fully and not allow the program to pause again. i have called this hearing today so we can hear about the program, hear the statistics,

hear its impact, but also hear from the public that have at times had trouble accessing the program because of four times in which we had to pause the program for lack of funds. i am really excited to say that after we called this hearing and started preparing a budget supplemental, that mayor breed was able to find $6 million additional that we're able to keep this program going with that. we have started up the program and there should be no delays again. what i want this hearing to do is to have my colleagues and the public understand the importance of the program. and to make sure that going forward we're monitoring the $6 million we currently have that is available for right to recover, to make sure we never run out again and we have the support in the board of supervisors and mayor's office to use general funds in the

future if we exhaust the current $6 million of funding we have for the program. i want to thank -- a huge thank you to santiago of my office who has been working nonstop on the program since we all came up with the idea together at the latino task force on covid-19 meeting. i want to thank the latino task force and their incredible work throughout this crisis and their championship and co-creation, authorship of this program. i want to thank the ucsf research team that was the first to discover and document the impact on the latinx community of this virus. and i also want to thank so many members of the public, including the many members of faith and action that have been waiting a long time to give public

testimony. so we will try to move through the hearing, so we can hear the testimony and the direct stories. we have three presenters today. the first is joshua from the office of economic and workforce development. i want to give a thanks to the director as well as his staff for really doing a phenomenal job in implementing this program. next we'll hear from ucsf about the impact they see on public health. and d.p.h., who again, has been doing a tremendous job working with us to implement this program. with that, if there is no other comments from my colleagues, i'll turn it over to joshua or say. >> i need to make a quick comment. our budget and appropriations committee will begin after this budget and finance committee is

adjourned. it was supposed to begin at 1:00, but we'll begin after this and we may take a brief recess in between. so we can now turn it over to mr. arsay. >> thank you, supervisor ronen, chair haney, thank you for the opportunity to share what is absolutely correct and essential about the program that supervisor ronen created that we've been proud to support and implement together at the mayor's office. madame clerk, if i can have sharing capabilities? thank you. i'll share brief slides and information that supervisor ronen asked us to share. on behalf of our director and our previous director who was

supportive -- [indiscernible] -- work is with us here today. if there is any additional information that is requested, but i'll share these slides. i just have five. but i think they get to the heart of the program. the success and the importance. so i'm going to thank you again for the policy and planning director for helping to prepare the information today. the right to recover program, i won't do more than highlight the origins and reiterate the importance and i think just to reinforce what supervisor ronen shared, how the program came about with the findings of the ucsf study about the positivity rate in the mission district was illuminated in findings in april and may. and i happen to live in the

census track. the fact is that what we saw after this study was more and more attention to the testing and the increased positivity in the mission district, particularly among low-income predominantly latino workers. then we saw supervisor ronen in the april and may highlighting of this work and the study findings in partnership with the latino task force indicate her desire to create legislation to create a fund that would support these workers, provide what we have identified and supervisor ronen highlighted, this is what is called a qualified disaster relief payment. it's reimbursement or payment for necessary living expenses to supplement the lost income. as we rolled out the program together in the first end days of june, effective july 1st, the

program started with a $2 million investment that supervisor ronen highlighted from the give to s.f. fund. we'll talk about how the program works, but this led up to the announcement of mayor breed, supervisor ronen, with an additional $6 million of investment which is where we stand today with respect to the resources. we'll give a sense of the outcomes of the $4.8 million that has been deployed to date. and where we see the funds that are currently available stretching into the future. so just a little bit of background how the right to recover program works. it's starts with community members who might come into a covid testing site and use our testing sites around the city where we see the department of public health is coordinating these testing sites in the mission and other neighborhoods. we see the collaborative that supervisor ronen mentioned that is a partnership with ucsf.

the doctors and other leaders partnering with members of the latino task force to have testing at bart stations and plazas. so together when these tests are administered, if an individual community member comes back with a positive test, there are a series of phone calls that get made. the phone calls come from the department of public health staff, or the team with sloughed and those are happening at the site because they're using a rapid test. the conversations are intake around resources. what is necessary? does the individual need shelter? does the individual need food? the other resources necessary to support the quarantine health resources in the preferred language of the individual community member. there is a question in there we crafted together in the early days in this work together -- and thank you just for the collaboration with your office,

supervisor and santiago, on your team. financial assistance. do you need financial assistance to safely quarantine? when the answer is yes, then that individual is referred over to our office. at that point we work with the department of public health, the doctor we'll hear from in a moment, around the case investigation, contact tracing team provides the information to us, maintaining the hipaa privacy and confidentiality which is essential to safeguarding the rights and protections for the individuals who are vulnerable san franciscans and workers. we get the information and we're very blessed, fortunate to have two amazing community partners working very closely with us. mission economic development agency and youth community

developers. but meda and ycd are working solely on this program helping make sure when we send the referrals from our office after setting up the intake through our system, then the cdos make call again in the preferred language of the community member over to have a more -- a deeper conversation about financial necessity. so that conversation then becomes, are you currently receiving unemployment or paid sick leave? second, are you currently employed and able to work from home? and then third, do you have savings to assist with your quarantine? those three answers get us to the crux and the importance of the program, which is necessity. meaning without this resource, we expect to hear from the public today as supervisor ronen said that, we've heard directly from folks that without this fund, they're back working or

looking for work instead of quarantining. that's what is so powerful about this intervention and relief program. it's not just a financial support, but it's a health intervention to help stop the spread of the coronavirus. so once the determination there yes, financial need. we partnered with mastercard and their provider to get cards set up in the amount of $1285.60. now we partner up with the treasurer's office and tax collector and her team. so that card and that amount representing those two weeks of pay. this is a reimbursement or payment for necessary living expenses. that card gets sent over to the individual to help and assist and support them through quarantine. here's some of the data. it's very important that supervisor ronen said. the funds have been investments

and challenges and then the larger investment most recently last month around the $6 million, but you see here in this week, we look at different rounds when the funding has come in to make the resources available through the intake process. there has been five rounds, including the most current that began last friday when the additional flexible dollars became available to use health care security ordinance fund and other flexible dollars for a total of $6 million. which was announced last month. so you can see here the day running through the different rounds. you can see the total referrals. average referrals per day. and then the numbers of individuals served who after we did the intake determined need and then issued cards. you can see how many money was allocated during the different phases. the program has been available approximately two-thirds of all the days during that time frame since july 1st, but there was

gaps, most notably august 20 and september 29. it's difficult to say how many individuals we missed during that time frame. positivity was lower than it was then or even certainly the uptick around the holidays and new year's eve weekend that supervisor ronen described. the case count was 85 that day. it dropped to approximately 40 to 45 on september 29. that is city-wide. so it's a little bit of a daily count there, but we know we did miss individuals at that time. the gap since that time have been smaller. we had a 21-day gap here. we were able to pick back up when resources came in from the funders to be available during the holidays. picked back up with additional funds and the transition to the city partnership and these

additional funds have meant we're on solid footing for a time period described which is one of the questions you had, supervisor. supervisor, if you would like, i can go through the last few data points before turning it back to you for specific questions, or would you like me to pause? >> supervisor ronen: keep going. >> so here's the total. we've reached nearly 4,000 individuals through the program. at this point, you can see of late, we've been serving an average of 42 individuals a day. again, there is dedicated support through the community resource hub for staff at meda, staff at ycd. that was one of the gaps early. a quick shoutout to the help for the elderly and the hospitality house that helped staff reach the program. you can see 40 referrals a day. not the same as last month, but there is definitely still a need out there. we expect to hear from our

health leaders here on that shortly. with respect to neighborhoods, these are seven zip codes that make up approximately 80% of all participants. 94112, 745, mission, 623, 94110, bayview. you can see the other neighborhoods represented that make up as we mentioned largest share of participants to date. how are funds used? we see that cash withdrawals make up 55% of the use of the cards. and then 45% of the cards are used for purchase transaction. then within the 45%, this rolls up into the purchase of all transactions. you see a third is grocery store, restaurants. clothing 8%. discount stores 5%. there is no information with

respect to individuals to the information. it's just aggregate that we get through the use of the card. 55% of participants indicated their preferred language to be spanish. last point we know is important to you, the funders. you referenced them in your work with former director torres and engaging philanthropy and give s.f. frank stark foundation a $2 million. baker street foundation around the holidays and who'sk fund. and then lastly, of course, the january 19 announcement, $6 million. funding for individuals who work for employers that paid into the deactivated fund and flexible dollars for those who are not but we need to serve. >> the last question we know is

important. if we reach 3566 individuals from july 1 to february 11, there is additional capacity to serve 4734 with the balance of this $10.9 million fund. if we look at the recent average of 42 individuals served per day, that's what we saw through the beginning of february, that means current funding at that pace will last until june 10, 2021. i know you had questions around what we see in terms of the road ahead for the pandemic. the need for the resource, where we stand as vaccinations start to move into the equation and start to open up the opportunities during our safe reopening. i can't say with specificity, just being a nondoctor, but i think you've got experts here that can help illuminate. but we crunched this last night and this morning to get the best projections as far as resources today how long those resources

will last. with that, i will stop sharing my screen and turn it back to you. >> supervisor ronen: thank you so much, director. i want to just appreciate the transparent and specific data. i've just been so impressed with your team the entire time. chad, thank you, if you're listening. you just worked so hard on this and have been so accessible and so on top of this the whole time. i want to recognize the tremendous work. also, i failed to thank ycd and meda and hospitality house in the early days who has been so dedicated to the program. thanks to everyone involved. i really appreciate how you did the projection because i know it's not -- we can't get an exact estimation, but having

that sense i felt was really important for the budget committee to see because we're going to potentially run out of the money right around when we finally pass the new budget. so i just want this budget committee to know and to state clearly from the get-go, that we're going to be watching this money like a hawk. the second that our teams see that we're not going to make it through the next budget cycle, we will be bringing budget supplemental ahead of time so we never have to pause through this program again. so i just wanted to make that a clear point of my intention from the get-go. and with that, your presentation was so clear and straightforward, i don't have any questions, but i wanted to see if any of my colleagues do before we move on in the presentation.

>> supervisor haney: i don't. >> supervisor ronen: no? thank you so much, director. next, we're going to hear from dr. halve leer, as well as dr. rubio from ucsf who has just been two of my biggest heroes throughout the pandemic, together with d.m. jones. thank you so much for your tremendous work and focus on the community that has been most hard-hit by the crisis. doctor, are you here? >> yes, i am. can you hear me? >> okay. >> and i think can you share my slide so they could be brought up. that would be terrific. as mentioned, i'm the physician in infectious disease specialist and head of the infectious disease and h.i.v. division at zuckerberg san francisco general. i'm a cofounder of needles and

i'm going to share a perspective about rapid testing response, why it matters, what is needed, right to recover fund. and i just want to the thank supervisor ronen for your championing the right to recovery. the director for following through and my dear friends and partners at the latino task force. next slide. it's an academic community that is data driven. so, we do covid testing to figure out who is infected so we

can treat them when treatment is needed, but we also do covid testing to break the chain of covid transmission. but in order to break the chains of covid transmission, our testing needs to be accessible to high risk populations. secondly, provide rapid results in reporting and third link with supportive services for isolation. and number three is the right to recover comes in. so, there is a window of opportunity when we can break chains of transmission with covid and that period for people who don't end up in the hospital is short. it's like 10-14 days. after somebody is inaffected, the -- infected, the level of the virus rises quickly, but they can transmit the virus to other people. this happens for about a period of 10 days. so, in order for us to have an

effect, we as early as possible in the 10-day period, need to find individuals who are infected and offer isolation services for them. and let me just say that for those of you trying to access testing throughout the pandemic be, you can understand if it takes you two days to get an appointment, two or three days to get the results and another day to figure out isolation, as we say, the train has left the station. so speed is of paramount importance. >> is that the right slide?

>> yes, perfect. let's go back to the three things i talked about. we optimize the test and respond model. so testing needs to be accessible. this is what happens. it's walkup, free to those without symptoms. check. number two, needs to be rapid. as mentioned we're now using rapid, you can see it here, binax now. then you push into the cash, the developer and 15 minutes later we get the results. so we validate this in the field setting and folks can get results on their phone in less than an hour. check for number 2. so this is what the hearing is about. so we can refer and provide isolation for hotels for home services.

the replacement for some individuals is absolutely essential as part of that number three supportive response. >> i think there is a delay for you. >> why do we need the supported services needed? they can continue to work on their computer. it's not feasible for persons with no sick leave, whose only source of income is their job and they have a household to support. many people with high levels of the virus, they feel fine and see no need to isolate. and the city can provide cleaning supplies, but that is not enough for individuals and

wage replacement is essential for many individuals as you heard from director or tsai. >> i see it before you see it. >> okay. okay. so this is the question that you might be thinking. how do we know rapid testing response with financial support works? we recently were testing during the surge in january, 600 people a day, and this is the setting

where there was extremely an alarmingly very high covid positivity rate. somewhere around the 10% range. we were able to, with using this model, have approximately 9 days of effective isolation. that is fantastic. early in the pandemic, because of all the delays, because we were doing assés -- this means we can break the train of transmission. and we estimate that 98% of persons who were supposed to isolate participating in the program did. and we know this because we have frequent visits to their house. we call them up. this is how we estimated weather they were doing effective isolation. and hopefully for people who call in, you'll hear about the power of having these right to recover wage replacement funds. then the final slide, i can just

start talking. one of the questions is, do we really still need rapid testing respond in the vaccine era? yes, with exclamation mark. community immunity is going to take time. and to prevent or mitigate another surge and stamp out the new strain, and as vaccinations ramp up, we must be able to break chains of transmission. we must support the most highly effected communities in these efforts and data show the importance of financial support and wage replacement. so those are my remarks. and i wanted to share with you and will be happy to answer any questions. >> supervisor ronen: thank you so much, doctor. and for the tremendous work and innovation you've done. you and your team and the latino task force. it's been extraordinary process to witness. and definitely a model for the

country. i, again, don't have any questions, because the clarity of the presentation just really appreciate showing how important it is to keep this program going. any questions, colleagues? nope? okay. last but not least, we're going to hear from d.p.h. >> hi, everyone. thank you so much for the opportunity to present alongside our collaborators. thank you, supervisor ronen and santiago for your partnership and all the back and forth in terms of getting the program off the ground and then ongoing partnership with ucsf and being allies and really trying to figure out how to get the money to people as quickly as

possible. with that, i'm an infectious disease physician with the san francisco department of public health. and since our first cases last march in san francisco, i've been leading our contact tracing team. we receive all of the positive results from anyone diagnosed with covid-19 in san francisco. and reach out to them to educate them, provide them resources in order to safely isolate for the 10 days as described by the doctor. in doing so, we found that up to 40% of san franciscans need some kind of support in isolation quarantine and this can vary from grocery deliveries, medication, support, cleaning supplies, access to hotel rooms and financial compensation related to lost wages as offered through right to recover. we have estimate that about 60% of people requesting resources are latinx. and so to the heart of what has

already been described, this program has been important to -- especially for people who are undocumented, those who are immigrants. and we've also seen many people who are residing in private s.r.o.s really benefit from the resources offered through this program. i think we all know that covid-19 has unveiled a lot of systemic challenges. and highlighted the disproportionate effect of covid on our essential workers. while this program is not a panacea, it has offered what we think is a lifeline for people to make it through their isolation period, keep their coworkers safe, and really take the time they need in order to safely recover and decrease the onward transmission of covid. and so, what we have been

finding in our observations is that people are able to use this funding in order to take that time off of work and get back into the workforce as quickly as possible. so that they -- their job is not at risk. i think that we really want to continue to see people supported over the long-term and being able to keep their jobs. and this funding really supports them as they described to us time and time again. and so, while we don't have any data related to how people are more able to safely isolate, we hear anecdotally all the time, this is the funding they need in order to be able to stay at home and keep their children at home

and take the time in order to prevent any of their household members from transmitting as well. so, with that, again, i'm happy to take any questions. >> supervisor ronen: thank you so much. i think we're going to hear from public comment, meda and ycd, who do interview every participant about the impact the financial assistance has had on their ability to quarantine and their ability to have their basic needs met during the recovery process. so -- i'm sorry. so we will be getting some of that information which is

fantastic. that data combined with what the doctor presented, which is that we went from -- with these programs being able to have a 9-day quarantine period opposed to a two to three-day quarantine period. i wanted to combine and point out. i'm getting information that dr. rubio also had a presentation. was that separate from yours? >> yes, it was. own >> supervisor ronen: i do want to give dr. rubio a chance to present and one more chance to colleagues to ask questions before we open up to public comment. thanks, again.

to d.p.h. for all your work. thank you. >> thank you. can you hear me okay? >> supervisor ronen: hi. >> good afternoon, supervisor and members. i'm here to provide a perspective on the right to recover. so again i'm an infectious disease specialist at ucsf, san francisco. i was in san francisco general during the early days of covid-19. i got the process and -- the station firsthand, but also saw the disproportionate impact covid-19 had on the community as nearly all of the patients were latinx. many were essential workers, living in crowded households and the majority had never seen a doctor until they came into the hospital with covid-19. i saw the damage that covid-19 did to people's bodies, their lungs, hearts and other organ systems within the hospital, but outside the hospital, i saw how

covid-19 impacted people' lives. since july of last year, i've been on site at bart plaza, under the mentorship of the doctors. our main goal was to connect them to resources as best we could. from the july testing event, 81 others of those who tested positive had less annual income of $50,000. and loss of wages was one of their highest concerns. how do i pay for food? many of them contemplated putting their health and the health of others at risk so they could get by. no one should have to make that decision especially when dealing a deadly disease. played a huge role to stop the spread, but allowed the

community to focus on the health rather than finances. 338 of our patients from san francisco could not receive unemployment or paid sick leave. could not work from home and do not have a savings account to help with expenses during isolation. of these 338 patients, 312 were interested in the referral to programs like right to recover, demonstrating the need as presented by everybody else as well. in my experience, when wage replacement is available, my patients can breathe a sigh of relief and get on the path to recovery. i'll take questions as well. >> supervisor ronen: that perspective as well is really grounding. and really providing an image of what we've been dealing with. so thank you. chair haney, any questions? any of my colleagues? no. so now is the most exciting part of the hearing where we get to

hear from the public and people who have received the right to recover funds and those who have tried to receive it unsuccessfully. both are very necessary testimonies that we want to hear so we can fix any glitches in the program and keep it going without future pauses. if it's okay to open up for public comment. chair haney? yes. okay. >> operations is checking to see if there are callers in the queue. operations please tell us if there are callers ready. if you have not done so, press star 3 to be added to the queue. wait on hold until the service indicates you've been unmuted. are there any callers that wish to comment on item number 9? >> yes, there are currently eight callers in the queue.

>> hi. can you hear me? >> yes. hi, welcome luiz. >> hi, thank you, supervisor, for holding this hearing. i'm the c.e.o. for the mission and economic development agency. we're very pleased to be working with the mayor's office, with the supervisor ronen office and developers in the right to recover fund. i have seen latinos disproportionately affected by covid-19. the positivity rate has ranged from between 42 and 51%. while we only make up 15% of the population. we know some of the reasons for this. latinos are disproportionate percentage of frontline

essential workers. they're disproportionate percentage of those in -- conditions allow for people working outside the home working in the same household. as we work with folks who have been affected by covid, we know the benefits of the fund is to make sure that people who test positive keeps them from going to work outside the home where they'll be contagious. also for some of them, allows them to leave out of the house to quarantine to keep them from infecting those living in their household. one of the things we know, these are basic needs they're using to buy food because people have a difficult time even feeding their families during that time. some of the data we see, 91% of the fund through meda are

latino. 51% were women. nearly two-thirds had two children or more living in the home. 61% of recipients noted they would not have been able to stay at home for two weeks without the fund. 100% of the recipients stated they were unable to work from the home and did not emergency funds. >> supervisor ronen: if i could ask a question, i would love to hear the rest of that data. if you can just finish the data, luiz, and then move on? >> yes. just to complete, 84% of recipients noted they would not be able to quarantine without the resources. and so on. so the proof is there. the right people are accessing the funds. it's creating benefits for them. again, i want to thank the

mayor's office, your office, supervisor. i also want to thank the director arsay for his detail to the work. and my only request is that this fund be included in the budget and permanently re-funded so we don't run out of funds, because the fund is keeping people -- it's keeping people fed, housed and safe. thank you for that. >> thank you for your comment. next speaker, please. >> hello, caller, are you with us?

should we circle back to this caller? >> yes, supervisor. >> hello? >> there we go. >> hi, welcome. >> hi. thank you. my name is valerie and i'm the convener to the latino task force. and i just want to say briefly, first, i want to thank supervisor ronen for having this brilliant innovative idea of right to recover. it came out of the first study with ucsf and the latino task force back in april. but since then, it's the execution that creates -- that created barriers for families to access those funds who are testing positive clients or patients. so i think that i agree with the former speaker, luiz, there has to be adequate funding because there would be funding, then it would run out, a little more funding, then it runs out and

that defeats the purpose to help stop the spread of covid. particularly in the latino community. so i would just suggest that you work closely with ucsf because they just had this recent study where they were issuing a $500 gift card within 24 hours to someone who tested positive. i think that for the community, we need to get those funds in the hands of the test-positive families in 24-48 hours maximum. and i would say 24 hours because the issue here is that when we test, sometimes it takes 2-3 days before the -- we at the mission, can actually get the results from someone or they get 24 hours to 48 hours, which gives them another day or two without having to isolate or quarantine. i also would suggest we go to

the binex testing so we can have rapid expense. i think having adequate funding resourced inside the budget so they're never running out. some people get it, some don't, some get it retroactive. it's not on efficient way to execute the vision of supervisor ronen when she created this program. [bell ringing] i do say -- >> thank you for your comment. next speaker, please. welcome, caller. >> good afternoon, supervisors, this is health committee chair for the latino task force. supervisor ronen, want to thank you for the hearing.

want to note some of our callers are having a hard time getting in, but hopefully they'll be able to get in after this. the right to recover, to be candid, is probably the most important program that we have helped innovate and develop at and are so fortunate to have a strong partner like supervisor ronen make it a reality. what we know from our small testing site here, 500 tests a day, we know we're capturing between 45% of the test positivity every day. we know that these folks, 88% of them make under $50,000 a year and 90% of them are essential workers. we also know that when we help support the individuals, we're able to ensure they're able to quarantine and isolate with dignity. and that's not just important because it's the right thing to do morally, but it's the crucial thing to do to help reduce the

spread of covid-19. so this program has been a pillar in ensuring that people don't have to make the choice between being a good member of society and staying home, or a good parent and feeding their kids. if we want to get into the orange tier, open up schools and get back to normalcy, what we're going to have to do is invest in the community hit the hardest. here in san francisco and the 58 counties across the state, that is the latino community. the right to recover needs to be fully funded to ensure if we have more aggressive strains, we can capture all the individuals that will be needed to be helped. again, supervisor ronen, i thank you and santiago for your advocacy, the oe.w.d. we need to stop depending on the whims of the rich. we need to take monies from the

city and put it into a program that is absolutely -- [bell ringing] -- a covid -- >> thank you for your comments. next speaker, please. >> good afternoon, everyone. i'm with the latino task force. i would like to thank the board of supervisors and supervisor ronen for your support to the latino community. and for me, what i would like to express here and to really put emphasis on, when you're investing in our essential workers, you're investing in the city. the essential workers have been the ones that have continued to keep the city going. now as we continue to try to create some type of normalcy and some type of economic recovery, we cannot have economic recovery while essential workers are dying. the right to recover allows us to support those who have

supported us through the pandemic, help them put food on the table and have continued it take care of us. it's time for us to take care of them. so i support wholeheartedly the ask for the essential workers and the people who deserve it most. thank you. >> thank you for your comments. those who are listening, if you would like to comment on the item, the phone number is 1-415-655-0001. meeting i.d., 187 479 4354. then press pound twice. and then dial star 3 to speak. please unmute the next caller.

welcome, caller. i'm calling to thank supervisor ronen for the program. this is a much needed program and i am elated that this program actually came to existence. about a year ago, when we first went into this mode, the shutdown mode, everybody -- most everybody was busy in acquiring toilet paper and loading up, we had the essential workers, who are the people making minimum wage, who showed up day after day and took care of our needs. this is the least we can do to

pay them back. even now when a big chunk of the working population that have concerns about their safety and they do not want to come back to work in person, or the highly paid professionals, the white collar workers that have the luxury to stay at home and work. but the people that are on minimum wage, essential workers who are working in these mom and pop shops, they don't have the luxury. this is the least we could do to thank them and to pay them for their services. and to protect them. so, please, make this one permanent and add more. the people that are showing up day after day to meet our needs and check the register, they deserve a fund so that when they feel sick, they can stay at home. most people that are working in these minimum wage jobs do not

have this luxury. further more, i would urge us to give san francisco to up the priority for the essential workers to get the vaccine instead of just setting the priority at the age level. we need to look at the income and we need to look at the essential workers and their job that they're performing to uptheir priority for getting vaccines. we cannot afford to live without them, so let's do something to ensure their safety. [bell ringing] >> thank you for your comments. currently, there are 11 callers listening and four in the queue. if you have not done so, please press star 3 to be added to the queue. wait until you have been unmuted. would you unmute the next caller? >> hi. good morning. i'm calling on behalf of the latino and latino task force.

i want to state thank you so much for having the hearing. i think one of the big issues we've seen is that currently as we call for navigate conversations with supporting essential workers, we also need to realize that providing economic support is essential to the recovery of the community. the impacts of covid have exacerbated inequality. we cannot turn away and not support our communities with the needs they need right now, including the medications that come with the covid expenses. we also know that generally speaking in terms of access to health care, people are undocumented, lack the ability to access a primary care provider that is needed to measure covid. we want to support the community with the needs they're expressing. one of them is providing economic support. as many have expressed, we know

that the migrant community is one of the communities that propels the economy forward. it's our time to show up for them and support them with the needs they need. we also have experience from the beginning of the pandemic, the resources were not allocated to this particular community. this included language and kalgs of resources. so, again, i urge that we allocate and support the right to recover so we may ensure the health and well-being of the community as we move forward together. thank you. >> thank you for your comments. next speaker, please. >> [speaking spanish] i am coordinator -- in collaboration with the latino -- [indiscernible] -- with our team. we've been able to help 25 people of which 98% -- isolation

protocols. this -- -- we're able to provide their practical needs such as food, cleaning supplies and a small isolation gift card. needless to say, with our support, we're able to ensure that the most vulnerable in the community are able to isolate safely. not only for themselves but also for the community and for the -- [indiscernible] . thank you very much. [please stand by] [please stand by]

the right to recover $200,000 economic relief and the ball was dropped twice in his anxiety he's been unable to pay his rent since march 2020.

he is extremely vulnerable in fear of losing his house and that same day we have community elder find out the incentive express prohibition of asking for help on her legal status and not having anywhere else to talk to as herhusband had also caught transport meeting they had no source of income . they still have a pile of bills to pay so nicely the great work we've done but also we can only accomplish withyour support and this budget that's being requested . thank you. >> thank you foryour comments, missed speaker please . >>caller: i'm calling on behalf of the latino task force and i want to be very critical of what we are discussing today. [inaudible] age encompasses

everyone. [inaudible] it is no secret we live in one of the most expensive positions in the world. [inaudible] there is no doubt that it is needed. we have to be conscious that there is no action like the right to recover. people are desperate and you need to show up and continue to show up. i hope we include theright to recover adequately and it should be a standard not only statewide but for all our communities . this bill protects our community". >> currently there are 15 callers listening and 4q . i willunmute the next caller .

hello? >>caller: [inaudible] >> hello? caller, you want to begin your comments? ... i believe thecaller has been disconnected . can we please have the next caller? >>caller: hello supervisors ronen, mar and haney. i'm a pastor at a church in sa francisco and i live in district 9 and i'm a leader in

the bay area . sc four states we are demanding the right to recovery funds prioritize and wounded to $15 million. this support is vital for many san francisco residents, most of whom are essential workers and many who areundocumented and do not have financial safety . these funds are needed so they can carefor themselves and their families and stay home safely as they recover from transport . running the right to recovery protects all of us and is key in keeping the numberof infections down in san francisco . finding the right to recovery is not only the morally correct choice but also fiscally responsible choiceand inherited for our public health .thank you . >> thank you foryour comments . [inaudible] ...

>>caller: [inaudible] >> can we get the mix turned up? ... are there any othercolors in the queue ? >> mister chair,that completes

the queue . >> i wanted to thank all the callers. itsounded like there were some issues getting , being able to access and get in. if that's the case we will make sure that we collect testimony and share it with the committee at a later date and i know that santiago is working on that right now i want to thank everyone for joining us today . i hope colleagues that we were able to make our case, that this model is a cost effective and moral imperative to both meet the needs of people that are struggling tremendously during this pandemic. as well as making it possible for people to quarantine and protect othersfrom this virus . the evidence is overwhelming.

84 percent of the purse recipients of the right to recover payment said they would not have been able toquarantine without . the data is able to show that folks who do get the quick testing plus the right to recover assistance and sometimes hotels when they needed are quarantining successfully nine days whereas before it was on average 2 to 3 days. this is a tremendous achievement and it's one that we collectively can be proud of as the city with all our community partners.again, this is one of those situations where i know there's been bumps along the way our city departments don't just an incredible job taking this program, designing, making sure

it's functioning the best i can. the biggest impediments of this program has been lack of stable funding and from this point forward i certainly am committed to making sure that is not an independent going forward. so with that i think this hearing can be filed and that's what i would ask the motion going forward. if you share with us again you're going to be having a budget supplemental in front of you or are going to be talking about thisprogram during the regular budget process . so if there are no other questions, again, thank you to everyone at present today and called in and i would ask one of my motion, colleagues to make a motion to file the hearing. >> before we do that i think there's comments from

colleagues and we will make a motion to file this hearing area supervisor safai. >>ahsha safai: thank you supervisor ronen for your great work on this and all the differentcommunity-based organizations . as someone who represents the highest number of recipients of this program this has been such a tremendous help for so many of the working families that don't have the option to work remotely. these are our front-line essential workers and i think director arce, his presentation laid that information out very clearly and in a very cogent and precise manner. for us and it's something that i said on the record recently, one of my top priorities moving

forward in these conversations along with supervisor ronen and others is because it's such an important aspect of people being able to recover and not suppress the disease and do so with dignity, not having the extra anxiety of not being able to put food on the table, pay rent or worry about eviction . so i know that as weaccelerate vaccines , we will get to a point where the suppression of the disease will get to herd immunity so the goal should certainly be to ensure that this has funding to carry us through that period when vaccines are more widespread. i did have a strong commitment from the mayor's office and you have this as well that they believe that there will be additional funding in this and they are committed to seeing this havethe right support for the families that needed . so this is such a tremendous, tremendous aspect of what san francisco has been able to do to help our families so i have

an absolute support to ensuring this has the rightfunding mechanisms so people can continue to access that . i have committed that we will have this carryforward going forward. through the budget process so it sounds like we will be talking more about this in the larger budget discussions and hopefully as we accelerate vaccines there will be less of a need but i'm sure they will definitely need to have a transition period so i wanted to say that one of my top priorities on my district as absolutely benefited, so many of the families and workers that have needed so this has been such a tremendous resource and accessing very similar to the mission community hubs for vaccines and testing, these are all tremendous assets and part and parcel to the work that's being done in san francisco. thank you chair.

>>hillary ronen: thank you so much and i wanted to mention i'm getting calls that people who have tested positive for covid have been waiting since 1030 to give public testimony and they were on the line but not called andi'm wondering if we could attempt to reopen public comment and try again . they are sending pictureswhich i want to show you of them waiting all day totestify so i really want to give them a chance . but maybe after comments from colleagues ? >> supervisor ronen. >>gordon mar: i will keep it brief but i just wanted to also thank everyone involved in envisioning creating and implementing this incredibly important public health and economic justice program that's

providing direct financial support to it sounds like 4000 of our most vulnerable essential workers including many undocumented immigrants who otherwise don't qualify for basic programs like regular paid sickleave or even the public health emergency leave that we've created in the city . thank you so much to revise or ronen for your leadershipon this and santiago , to our community euros at a latino task force and the team. thanks to matt reed, awg, director arce and former director torres and all the private donors and especially to the right to return community partners including especially young community developers so thanks everyone and this is a very timely hearing so this is definitely high on my list as we go through the budget process. >>hillary ronen: thank you so much.

>> madam clerk,can you see if there's anybody still waiting in the queue ? >> i wanted to my remind those who want to comment on item number nine to call in at 415655euros 001 . after that, press #and dialáthree to speak area to indicate you have raised your hand waits until the system indicates you havebeen muted and youmay begin your comments . are there any other speakers in the line ? >> you have nine callers in th queue . >> go ahead and start.

>> i wonder what's going wrong here. these are all spanish speakers. i wonder ... >>caller: hola. [speaking spanish] >> excuse me ma'am, if you're next to a television or radio can you turn it down? we'rehearing a lot of feedback . please begin. >>caller: [speaking spanish]

>>caller: hola. [speaking spanish] >>caller: [speaking spanish] ...

>>caller: [speaking spanish] >>caller: [speaking spanish]

>>caller: [speaking spanish] >>caller: [speaking spanish]

... [speaking spanish] >>. [speaking spanish] >>caller: my name is melissa raman, i'm an organizer with faith in action and my whole family was positive with covid in september.i live in district9 . for us the main instrument of

investigation was the community was to really know that their stories and realities. we don't need a lot of science to know that the viruses are propagated if there's not enough prevention to public health. we need this program to do what is morally correct and to provide us the economic resources so that the people can do theirquarantine in their house . that is the moral and at the epic thing for our city to do. it's a right and we must respect the dignity of the people. if our people in our community are not able to quarantine, then the whole community needs to get sick and people will do

what they need to do in order to feed their family to go out and work . when my family got sick, we did not receive support. we did not receive food, we did not receive ppe. it was difficult but we had a communitythat supported them . we need you to do what is morally correct and our city really step up to what is called to be a sanctuary. thankyou very much and god bless . >> thank you for your comments, nextspeaker please . >>caller: [inaudible] >>caller: [speaking spanish]

>>caller: [speaking spanish] >> and i live in district 9.

>>caller: [speaking spanish ] i do not qualify for any benefit . i qualify six months agonobody has told me . [speaking spanish] unfortunately i feel positive with covid. [inaudible] ... all the documents wereincluded .

[speaking spanish] and another thing is the many benefits i have to registerfor our online . [inaudible] [speaking spanish] [inaudible] i'm asking you to do what is morallyright .

... we need you tolisten to and here are demands . iq. >> thank you for your comments. yes, i just wanted to remind callers to please speak in a quiet location and turn down your television or radio to the members of the committee can hear you clearlyarea and we appreciate it . next collar please.>>caller: [speaking spanish] my name is ines marie and i'ma faith in

action leader in district 9 . this program of comparison satisfied the community marginally. the program for recovery is a vital program for communities, especially for the most vulnerable . [speaking spanish] these would getguarantees of people in quarantine safely in their home . public health must be a priority forthis city . [speaking spanish] the way that we budget the money for the city must reflect this priority as a moral, traffic and as a

respect fordignity . [speaking spanish] thank you supervisor for thinking about theworking class people . >> thank you for your comments, i believeyou are 11 callers in the queue . >>caller: hello. [speaking spanish] my name is doris tanya, i'm a leaderin faith in action and i live in district 5 . a program ... [speaking

spanish] again, we want to emphasize that this program, the right to recovery is a vital for our most vulnerable communities . [speaking spanish] >> this will guarantee we can stay in our houses during the quarantine . our health must be a priority for thecity . [speaking spanish] and the budget has to reflect this priority. [speaking spanish] we see it as

a moral right todignity that our people have . thank you and bless you. >> next speaker please. >>caller: [inaudible] [inaudible] >>caller: hola. >> welcome, collar.

>>caller: [inaudible] [speaking spanish] >> i think i was just on muted. do you hear me? >> we can hear you but you can't testify again. was that a mistake? can we have the next caller? >> john jacoby here to translate forhugo . hugo.

hello, hugo. sorry guys, let me try this again. hewas having a hard time getting off . [speaking spanish] my name is hugo lopez and unfortunately about two months ago myself, my daughterand my family were diagnosed with covid . [speaking spanish] it was a very difficult time for me that time when i communicated with

the city after being told i was covid positive i was told there would be no funding to support me. [speaking spanish] it was a very frustrating time for me because as a working-class community that have to get up every day to go to work to provide for our families . [speaking spanish] at this time we were facing difficulty in addition to being sick with covid and it's those moments youwish you could reach out to

somebody for help .[speaking spanish] and it was through organizations like faith in action we were able toconnect with a latino task force in the city . [speaking spanish] faith in action was able to help with things like food and things that were needed in addition to the money to help me say at home and not have to go to work for 2 weeks. [speaking spanish] i would ask

those in decision-making power to put their hand on their heart and ensure thatyour funding these programs which are so vital to communities . [speaking spanish] and unfortunately it's thousands upon thousands of latinos who are in the same kind of situation that are hoping for help. [speaking spanish] thank you for theopportunity and we hope we can count on your support . >> mister coombs, next collar please.

>> that completes the queue. >>. >>hillary ronen: public comment is closed and i want to apologize to thepublic for the complications with translation . [speaking spanish] next time they will be sure to provide official translation from the city and john jacobyfrom the community thank you for stepping up to translate . [speaking spanish] thanks again colleagues for your patience and prioritization and your support. thank you so much. it's so meaningful to all of

us, thank you. >> thank you supervisor ronen and thank you for your partnership with the community on this. i want to have knowledge the work of our city departments and josh arce and the latino task force. i absolutely agree with all of the folks who called in that this was such a critical, essential safety net for so many people over the last number ofmonths. and that we have to do everything we can to ensure its available and funded . and consistent for the community. i know that we often pay a lot of attention to the business closures and some of the things that are more visible but in reality the way that we protect people from covid is we allow them to effectively quarantine, to protect themselves and also to be able to assist us sustain

economically so they don't put themselves or anyone at risk. that takes putting funding up and that takes supporting people and it takes protecting people and it takes both partnership with trusted community organizations and leaders and thank you again for your leadership supervisor ronen and i know this is something that all of our residents have taken advantage of . we have relied on and it's a citywide program and it's something we as a budget committee as you've heard from the other members of the budget committee here we all take it at thetop priority moving forward over the next few months . so thank you again to the community and we apologize for the challenges with public comment. we are always willing to hear and makeavailable a comment though there was no problem for us . and thank you supervisor ronen. i assume you want to take this vote on a motion to file this

hearing .so madame, if we could just take a roll call vote on the motion to filethis very important hearing . >> on the motion to file, vice chair safai. [roll call vote] >> thank you, this hearing is filed . is there any other business before ustoday ? >> there is no further busines . >> i would like to make a quick announcement that we are going to take a 20 minute recess though ifpeople can come back here at 3:00 , i would appreciate that. we will beginour budget and appropriation committee meeting .i see supervisor safai ready to run to get some lunch. this meeting isadjourned and we will be back in 20minutes . to all .>>.

>> first it's always the hardest and when they look back they really won't see you, but it's the path that you're paving forward for the next one behind you that counts. (♪♪♪) hi, my name is jajaida durden and i'm the acting superintendent for the bureau of forestry and i work for public works operations. and i'm over the landscaping, the shop and also the arborist crew. and some tree inspectors as well. i have been with the city and

county of san francisco for 17 years. and i was a cement mason, that was my first job. when i got here i thought that it was too easy. so i said one day i'll be a supervisor. and when i run this place it will be ran different. and i didn't think that it would happen as fast as it did, but it did. and i came in 2002 and became a supervisor in 2006. and six months later i became the permanent supervisor over the shop. >> with all of those responsibilities and the staff you're also dealing with different attitudes and you have to take off one hat and put on another hat and put on another hat. and she's able -- she's displayed that she can carry the weight with all of these different hats and still maintain the respect of the director, the deputy director and all of the other people that she has to come in contact with. >> she's a natural leader. i mean with her staff, her staff

thinks highly of her. and the most important thing is when we have things that happen, a lot of emergencies, she's right by me and helps me out every time that i have asked. >> my inspiration is when i was a young adult was to become a fire woman. well, i made some wrong decisions and i ended up being incarcerated, starting young and all the way up to an adult. when i was in jail they had a little program called suppers program and i -- supers program, and i met strong women in there and they introduced me to construction. i thought that the fire department would turn me down because i had a criminal history. so i looked into options of what kind of construction i could do. while i was in jail. and the program that i was in, they re-trained us on living and how to make the right decisions and i chose construction. and cement mason didn't require

a high school diploma at that time so i figured i could do that. when i got out of jail they had a program in the philmore area and i went there. my first day out i signed up and four days later i started to work and i never looked back. i was an apprentice pouring concrete. and my first job was mount zion emergency hospital which is now ucsf. and every day that i drive by ucsf and i look at the old mount zion emergency, i have a sense of pride knowing that i had a part of building that place. yeah, i did. i graduated as an apprentice and worked on a retrofit for city hall. i loved looking at that building and i take big pride in knowing that i was a part of that retrofit. my first formen job was a 40

story building from the ground up. and it's a predominantly male industry and most of the times people underestimate women. i'm used to it though, it's a challenge for me. >> as a female you're working with a lot of guys. so when they see a woman, first they don't think that the woman is in charge and to know that she's a person that is in charge with operations, i think that it's great, because it's different. it's not something -- i mean, not only a female but the only female of color. >> i was the first female finisher in the cement shop and i was the first crew supervisor, in the shop as a woman. when i became a two, the supervisors would not help me. in the middle, they'd call me a rookie, an apprentice and a female trying to get somewhere that she don't belong.

oh, it was terrible. it was terrible. i didn't have any support from the shop. the ones who said they supported me, they didn't, they talked about me behind my back. sometimes i had some crying, a lot of crying behind doors, not in public. but i had a lot of mentors. my mentor i will call and would pick up the phone and just talk, talk, talk, please help me. what am i going to do? hang in there. it was frustrating and disheartening, it really was. but what they didn't understand is that because they didn't help me i had to learn it. and then probably about a year later, that's when i started to lay down the rules because i had studied them and i learned them and it made me a good supervisor and i started to run the ship the way that i wanted to. it was scary. but the more i saw women coming through the shop, i saw change

coming. i knew that it was going to come, but i didn't know how long it would take. it was coming. in the beginning when i first came here and i was the first woman here as a finisher, to see the change as it progressed and for me to become a permanent assistant superintendent over the cement shop right now, that's my highlight. i can look down at my staff and see the diversity from the women to the different coaches in here and know that no one has to ever go through what i went through coming up. and i foster and help everyone instead of pushing them away. i'll talk to women and tell them they can make it and if they need any help, come talk to me. and they knock on my door and ask how i move up and how i get training. i'm always encouraging to go to school and encourage them to take up some of the training with d.p.w. and i would tell them to hold

strong and understand that things that we go through today that are tough makes you stronger for tomorrow. although we don't like hearing it at the time that we're going through all of this stuff, it helps you in the long run to become a better woman and a person >> ♪♪ ♪♪ we are definitely pioneers in airport concession world a world of nationally if not entirely or internationally >> everybody is cop us right now. >> the people that were in charge of the retail this is where that began. >> i didn't think we would have a location at the airport. >> we've set the bar higher

with the customer commerce. >> telling me about the operator and how you go about finding them and they get from being in the city to being in the airport. >> so first, we actually find a table and once we know what we want a sit-down we go to the neighborhoods in san francisco and other people seminary of the retail let us know about the rain water and are excited to have the local operators in the airport. >> we have to go going through the conceive selective process and they award a lease to the restaurant. >> they are planning on extending. >> we that you could out the

china and the length evens and the travel serve and fourth your minds and it's all good. >> how long for a vendor to move through the process. >> i would say it could take 80 up to a year from the time we go out to bid until they actually open a restaurant. >> i don't know what we signed up for but the airport is happy to have us here. and, you know, even taking out the track simple things there's a learning curve >> with once we're here they are helpful. >> it's an award-winning program. >> we're prude of your awards we have won 11 awards the latest for the best overall food address beverage program and . >> like the oscars

(laughter). >> the professional world. >> tell me about the future food. >> all the sb national leases are xooirz and we're hoping to bring newer concepts out in san francisco and what your passengers want. >> well, i look forward to the future (laughter) air are we look fo >> candlestick park known also as the stick was an outdoor stadium for sports and entertainment. built between 1958 to 1960, it was located in the bayview hunters point where it was home to the san francisco giants and 49ers. the last event held was a concert in late 2014. it was demolished in 2015. mlb team the san francisco giants played at candlestick from 1960-1999. fans came to see players such a

willie mays and barry bonds, over 38 seasons in the open ballpark. an upper deck expansion was added in the 1970s. there are two world series played at the stick in 1962 and in 198 9. during the 1989 world series against the oakland as they were shook by an earthquake. candlestick's enclosure had minor damages from the quake but its design saved thousands of lives. nfl team the san francisco 49ers played at candlestick from feign 71-2013. it was home to five-time super bowl champion teams and hall of fame players by joe montana, jerry rice and steve jones. in 1982, the game-winning touchdown pass from joe montana to dwight clark was known as "the catch." leading the niners to their

first super bowl. the 49ers hosted eight n.f.c. championship games including the 2001 season that ended with a loss to the new york giants. in 201, the last event held at candlestick park was a concert by paul mccartney who played with the beatles in 1966, the stadium's first concert. demolition of the stick began in late 2014 and it was completed in september 2015. the giants had moved to pacific rail park in 2000 while the 49ers moved to santa clara in 2014. with structural claims and numerous name changes, many have passed through and will remember candlestick park as home to the legendary athletes and entertainment. these memorable moments will live on in a place called the stick. (♪♪♪)

>> if you submit public comments viaemail will be forwarded to supervisors and included . items acted upon today are expected to appear on the boar of supervisors agenda of february 24 unless otherwise stated . >> thank you, madam clerk i want to make a motion to excuse

improviser walton attending today's budget and appropriations committee meeting .can i have asecond please ? >> second. >> seconded,roll call vote . >> here on the motion by commissioner safai. member mar. member ronen. [roll call vote] >>matt haney: thank you madam clerk, supervisor walton will be excused and he will be joining us at the next meeting. we have a very full agenda today so i'm going to save some of my comments for another meeting. i do want to just say the start that i am very much looking forward to working with all of you, the committee members and our guest today supervisor chan

as well as all our other colleagues on the budget this year . this meeting really kicks off the beginning of our part of the budget process at the board of supervisors and i am honored to serve as the new chair of the budget and appropriations committee and i also want to thank supervisor safai for serving as vice chair of us i know are going to be working very closely together on what will be, on what is one of i think the most important budget cycles in perhaps in san francisco history. we are coming out of what was really a devastating yearfor our city and its residents . san francisco spent much of the last year and still in full or partial shutdown. a result of this was that tens of thousands of people were

infected by covid-19. hundreds of people lost their lives. our city lost hundreds of millions of dollars in tax revenue. as we heard earlier during our budget and finance committee this took a devastating tollon our workers , on our small businesses. 40 percent of our small businesses spent some period of the last year in shutdown and the result was thousands of businesses were left with unsustainable levels of debt with hundreds closing and we know that this and thiscrisis weighed most heavily on communities of color , latinx residents were much more likely to contract the virus and asian residents were more likely to die ofthe virus and impacts were not equally spread across

our city economically . attendance taken on tens of millions of dollars of debt as a result of covid related losses. small businesses are still reeling and our budget has been impacted inthe short-term and long-term . nothing is the same residents. the challenges they are facing are in many ways unprecedented and for that reasonthis will not be a normal budget cycle . the decisions we make in this budget will have huge consequences for the future of our city and we have an opportunity to shape the future for san francisco in a way that i think is in many ways unprecedented. our responsibility and i know you all agree will be to the laser focused on theneeds of our residents right out to help them recover immediately and urgently but also help build a

city even better . we don't want to go back to a city that puts so many of our residents in avulnerable position . we don't want to go back and simply go to february 2020 . we want to rebuild in a way that addresses the challenges and inequities that we face as a city. i released a letter this morning, it's up on our website which lays out of our principles and guiding questions that i hope our departments come forward to address and that we hope as a committee can commit to as we are determining the budget for the city and county in the coming months. some of the key questions i hope we do address are how we as a city as i said are coming back better post covid, how we're identifying gaps in services and meeting the needs of our residents.

we also need to innovate away from policies that have not been working and create the system of change so that we are truly focused on impacts to ou residents. because of the long-term financial challenges we face we can't continue to afford the phone . the spending for our residents. lastly we. we saw really a devastating and shocking corruption scandal over the last year in our city. those allegations and charges and resignations related to corruption were all closely connected to how we use our funds as a city. whether or not our money and the public's money is being spent in a way that is ethical and entirely for the public interest so we would need to

focus as well on restoring the trust from the public and ensuring there areadequate levels of oversight, accountability and transparency . these are the principles and questions that i hope can guide us as a committee and will guide us as we begin our work today and learning about the forecast both the short-term and long-term and making some significant decisions in the coming weeks about how to approach a budget surplus that was recently announced. i'll have some closing comments after we hear the presentation about how i hope that we can approach the surplus specifically as a committee but again, i want to thank you all for your service on this committee and you have my commitment to work very closely with each of you and with all our colleagues with the mayor, the mayor's budget office, the comptroller, bla and all our colleagues to put together a budget that truly meets the

moment that we are in. so with that i'm going to move into the presentations. they're going to take things a little bit out of order. i want to thank at the outset vice chair safai for providing a lot of input into this next hearing that we're going to hear and it's sort of a combination of the hearing that he recently called and one that we had called previously so i want to thank him for his partnership on this hearing specifically so madam clerk, can we please start withitem 5 . >> item number five , updates on the city's economy financial conditions and other issues area members of the public who wish toprovide comment should call 415-655-0001 . press pound twice if you have notalready done so, dial á3 to speak .

to indicate you have raised a handindicate you have been muted . >>matt haney: before we turn to teddy this is going to encompass a hearing that supervisor safai call on the snapshot of the city and county of san francisco so i want to give him an opportunity to provide opening comments as well. >>ahsha safai: i think you said itbest that there's a lot to tackle in these coming months . so i really look forward to working with you as a chair and my vice chair capacity and member mar and other members of the committee. i think we are faced with real challenging times but thankfully the city of san francisco is always createdin addressing those challenges in the best way possible .now, the reason i had called for the hearing as it relates to the current status of our economy

is that there's a lot of anecdotal evidence out there. there's a lot ofconversations about businesses leaving or businesses downsizing or office space contracting or office space still being built in the face of the downturn . thehousing market remaining to be robust in terms of property and transfer tax . job losses or job gains and i think one of the items that we heard today as it relates to the business fee and licenses will really give us a good snapshot as well about how many businesses are remaining in san francisco based on the ones that are paying their taxes versus the one thing close and didn't but my request to the controller and the city's economist to talk about all these things that were put in context and frame our conversation moving forward as we come into the city's budget

and how we intend to tackle that and as you stated chair haney we now have a current surplus. i'm glad for going to be having some targeted conversations about that surplus in the coming weeks in a very accelerated fashion so that's an important piece of the puzzle and i think that as you stated, there are priorities in terms of what we intend to do and how we intended to help people now so that was the reason i called for the hearing and thank you for accommodating and moving it as quickly as you could. whatever's not fully addressed in terms of my original reques , we can have some follow-up conversations as this is one outstanding item but i thought it was important to start the conversation todayto set the context of where we are in terms of the city's economy and how it's impacting every day san franciscans interms of jobs, in terms of real estate and our commercial sector , in

terms of helping us to map a roadmap . so thank you all and i'll send it back over to you chair and thank you mister egan for moving so quickly to accommodate the request and being prepared to talk about this today we can also find other spaces to make sure we are presented in committee. with that i will turn it over to you, mister egan. >> thank you very much chair haney and members of the committee, ted egan from the comptroller's office, can you hear me now? if we could see the slides i provided to the committee cler . i'm going to speak today pursuant to vice chair safai's request to high level issues related to theperformance of the san francisco economy and in particular real estate market indicators , apartment housing and offices. i'm also going to touch on what we know about migration related

to san francisco because that's very important forunderstanding the housing market andalso the city's recovery prospects . if we could go to the first slide, please . this is a chart that shows the airline the last 12 months of high-level labor market outcomes for the city to the yellow bars aretotal employment in san francisco . we lost about 170,000 jobs and we have recovered about 90,000 of those jobs and 80,000 are still outstanding. we also had a major spike in unemployment toover 12 percent. down in elevated levels . it is about six percent in the city. it was two percent a year ago . of the reasons unemployment has come down is that jobs have

come back to some extent. another reason is there are fewerpeople in the labor force . a pattern locally is the same thing we're seeing nationally as some people are droppingout of the labor force given the extended economic shutdown . we go on to the next slide please. there are many ways to illustrate the growing disparities in the city's economy during the pandemic. this is one i think simple weight that shows it looking at how two different industries fair in terms of total employment numbers in san francisco over the past 12 months . the professional scientific and technical services industry which is our largest in san francisco and the restaurant industrywhich is also a large industry in the city . benchmarking both of them to where they were last january and you can see that by december of 20, the professional services and full

recovered. it had a lively recession, less than five percent of the jobs were lost and by december it was more than 100 percent of where it was the year before . restaurants like a number of service related industries as a completely different experience area jobs have turned down since october we are still down more than 40 percent of our free covid level of employment. next slide please. if there are any questions feel free to interrupt me atany time . >> it looks like it'salmost 60 percent today . go ahead. >>ted egan: in decemberthe employment was 60 percent of what it was the previous january . that means we are still on. i want to switch now and i know that there are manyinteresting things that i am not preparing slidesabout . you'll free to ask me about things i'm not talking about .

i just didn't want to have 1 million slides for you today but before i switched to talkingabout housing in the real estate market i wanted to share a little about what we know about migration this is we've been tracking for a few months with the united states postal service . people when they move will typically file a change of address and they have data which you can then file a request to read today this morning the san francisco chronicle published information and i got a chance to look at their raw data yesterday that is an up-to-date request of what we've been looking at and it's showing i think a more up-to-date version of what we already knew which is in 2020 he saw the outmigration of people from san francisco, roughly the same number of people moving in, 35,000 people moving out of san francisco and thisis not directly observing people .

this is the number of requests filed we don't know how many people in each household making a request so it's atleast an extra 35,000 and i think the number could well be in excess of that . this is the requests filed through november . we know as i'll show you in a second rents were filed in december so there may havebeen additionalpeople moving out in december so this is an important context . we don't know anything about the demographics of the people moving out . usps doesn't ask that question. the census will eventually tell us but it will be another year before we have a census survey result that tells us more about who moved out of san francisco. the information aboutwhere we are seeing big drops in rents across california , they tend to happen in places where a lot of tech workers live and that's the most indication we have that this is more driven by that sector is losing jobs and not being driven by the low-wage sector that people are

losing jobs and in other words it doesn't seem to be a phenomenon ofpeople losing their jobs, getting laid off and moving out of san francisco . it seems to be people employed choosing to live move out of san francisco possibly temporarily and that tends to be office workers whohave remote work opportunities . weknow little about that because the chronicle asked the usps where people moved to . there's a lot of talk about a tech exodus, san francisco and other cities that come in to the capital of tech and everyone moving to those places. the data doesn't really bear that out so the chronicle asked the usps to compel compile where people are moving to and for the most part people are moving to the places people generally traditionally moved out of san francisco which is hereby suburban counties.

contra costa county and so forth. very few people moving to austin, very few meat people moving to portland or other smaller tech sectors. i think is meaningful because if you really have people moving out of the city into the suburbs, in the first place they might move back when the public health risk is lower. on the other hand even if they don't move back they may commute into san francisco when offices reopened and how they all moved to other metropolitan areas i think it wouldhave been a more difficult economic recovery then this data suggests it is not that they were going to have a quick economic recovery but this is not the worst case scenario . >> before you go, this column that you show one through 15 adds up to around 33,000. on the previousslide you said it could be an additional 35 that adds up to 80 . missing about 50,000 people from this so where do you think is 50,000 went.

>>ted egan: what the showing is 53,000 people moving out. and the top 15 are accounting for 35,000 if used do the math there. we don't know where the other people aremoving out and again, these are addresses . so it could be there are more people associatedwith the 53,000 address request, we just don't know how many . >> 35,000 additional, right? it's over 85,000, 95,000 people left. >>ted egan: from what the chronicle has published today the estimates look lower than that but also if we're talking about thisyear versus last year , what they're showing here is 80,000 about this here and also 27,000 move in so i think the simplest takeaway number is we've got 53,000 more outbound requests, people requesting to

change their address out of san francisco and inand in terms of the other ones, if we could go back to the next line . they are all going to be less than 286 so they could go to any other county in the united states. we called out boston for example that's less than the number of people of moving to santa cruz. >> i guess i was just looking forthe delta so if you add that column up and around 33,000, is that addresses ?>>ted egan: that's right there's another 20,000 if you're looking at those pure 53,000 so that's still a significant number.it might be less than the 286 but cumulatively it'sanother 20,000 people that may or may not be in the state of california . >>ted egan: that.

they're not going into any particular place, not seeking out any city that would rank them in the top 15. >>ahsha safai: but your point was and i think it's a good point that it's a good chunk of the people stayed within the region, it provides the opportunity for a quicker recovery or a different type o recovery versus if they are moving completely out ofstate to a whole new location . >>ted egan: that's right . >>matt haney: ted, you said there weretrends in terms of where they were moving from in san francisco . what did that look like? i recognize maybe the chronicle didn't do a map of that what you're saying they moved disproportionately from areas where tech workers are. how do you identify those? did you look at particular zip codes or where were people

moving from? what were the tops it goes, do you have that? >>ted egan: i don't have it by zip code, what i was referring to is not usps data exchanges in rent data. third-party rent trackers put out and when you look across california at the cities including san francisco that haveseen large drops in rent, it correlates closely with the cities where tech workers live . and i'll show you in a couple of slides when you look within the bay area about where rents are falling . it's san francisco, sanmateo . that's about all we know about who's moving out at this point and it's very indirect . >>ahsha safai: but there should be data if there is data where they're going what their previous address was. it doesn't seem like that's recorded here but they should have information on the zip

codes of the neighborhoods or whatever, where they moved fro . >>ted egan: that information is known and i know that from an original foia request, i just haven't crunched that data and that would be within san francisco, i don't have a zip code level data set of where everyone who's left san francisco is leading from. i would also say that the reason i put this data in here in a discussionabout real estate is it seems to closely correlate with what the rent data is telling us so there are , there is some city neighborhood rent indicators and i'm also not sharing them here but we could get those for you and providethose in another way at another time . >>ahsha safai: that's why we

appreciated you moving as quickly as we could with a modicum of direction but we definitely would want to follow up. >>ted egan: could we go on to the next slide please? given this fairly large, much larger outmigration then we saw in 2019 for example, we've see a major drop of rents in san francisco . rents are down basically 27 percent, 25 to 30 percent year-over-year, by january 2021. this is data from apartment list which is an apartment searchwebsite that produces rentstatistics for cities across the country . san francisco has the biggest rent drop of any large city in the united states . this is 27 percent here. really only new york city is close to san francisco. the silver lining in this data is they seem to have slowed down . january rents were flat

relative to december and we will be watching closely tosee if this is a leveling off and whether we start to see a recovery in the spring which is traditionally a stronger season for rentals and the winter in any case . next slide please. this is looking at the change in rentsyear-over-year january to january in san francisco versus other bay area counties . you can see the 27 percent figure there and also the decline in rents in san mateo and santa clara counties. in general and this is a national trend , rents are down as people have sought to escape those areas that they could. rents are up in outer ring suburbs and rural areas and we are seeing a similar pattern within the bay area, within northern california so rents are up over five percent in

solano county but down in surrounding areas. next slide please. the owner occupied housing market is a different story because the trends have not nearly been as strong. this is a chart for san francisco specifically and this is zillow data. i'm benchmarking homes and condos back to their december 2019 level so that's 100 and you can see how much we are down bylooking at where we are by december 2020 . condos are down six percent, almost six percent, that 94 means we lost percent of that value in condos. much less than the dropping apartment rents but still a bigger drop in we've seen since the great recession and an accelerating drop. single-family homes we've seen a much more modest drop, one percent drop in single-family homes. when we look at some of the inventory statistics on condos, they are growing and that's a sign that we may be in for more

drops to come in the months that come in terms of condos of san francisco so we goon to the next slide please. just looking at this in the regional context , across the region and really across the country, owner occupied housing, housing prices have beenmuch stronger than apartment rents . when you average condos and single-family homes san francisco down around three percent. every other bay area county has seen rising housing prices and in the case of santa clara being falling rents and extraordinary gains in housing. this could be due in the area kind of a welcome respect. the stock market had a one-month recession and his trader trading higher than it was before the pandemic. it's likely responsible for a lot of growth inreal estate prices are seeing in most of the area . next slide please. i wanted to close my last data

slide informationon the office market . been changing a lot in the past few months. this is a chart showingoffice vacancy and this is information from cdr our research . office, the orange line and net absorption which is essentially the change of the number of people giving up space versus tenants taking space is the green bar. so we're seeing in terms of the green bar a net decline in net absorption. in other words tenants giving up office space. through thethree quarters of the pandemic but particularly accelerating in october and november and december . where about 7 million square feet of office space wasgiven a . and that led to a large increase in the overall office vacancy rate north of 16 percent. this is the most in particular

sublease space which is what happens when businesses essentially have leased space and then choose not to occupy it or choose to give up that and look for another tenant for it. those numbers are as high as theyever been an overall vacancy numbers are along the lines of the.com session . so this is a signnot just of office workers working from home . this is a sign of office employers saying we don't need as much office space in san francisco as we thought we did a year ago or 2 years ago. even after the pandemic. this is reflecting a change in sentiment on behalf of office employers in san francisco about their shall we say near to medium-term need for office space in san francisco. i don't think you can divorce a discussion of data like this from the discussion in the

media about the number of companies using to extend work from home flexibility to their workers even after the pandemic is over and offices are open. i think the companies are moving from a situation in which everyone is coming in five days a week to one in which people are in the office two days a week and then it makes sense or office space needs are not going to be the same and there are some companies that have chosen to move out of san francisco entirely and that is also contributing to some of the change.>>ahsha safai: that's one of thequestions i was hoping we would have an idea on in terms of number of businesses . that's one of the things we are hearing in a draft headline company leaves for if you have a minute maybe that's not something you're prepared a slide for, maybe it's reflected inside these numbers but if you could talk for a second about

youropinion about companies that might have left , how that relates to previous downturns in the economy and what that particular trend has on impacting future requests for office space. >>ted egan: certainly. i would say as i mentioned these office vacancy numbers are typical or not typical but have only been seen in very severe recessions in the past but other than that, i don't see a lot of similarities between this recession and ones in the past. the.com crash for example was a situation in which virtually all those companies that filled up the city's officespace, the tech companies in the late 1990s were gone by 2005 . and in the great recession, we had a lot of layoffs. not so much in tech but in other industries.

here we don't have layoffs. this sector is an extremely healthy sector. what they're doing is reevaluating their need for officespace and in a number of cities but it seems particularly strong in san francisco . his soft issue related to those conditions at least for office tenants. there's a whole different conversation we could have about businesses closing in other sectors of the city's economy but in terms of office tech sectors, it's a very healthy sector and the indications we have is not that they're abandoning san francisco as a whole. i'll give you a couple of examples. we track on a monthly basis the number of job listings for tech companies that the 10 largest tech companies in san francisc . the jobs they are looking to fill out their san francisco offices and that hiring by large tech companies in the city are back to pre- covid

levels. the issue is all of those are work at home jobs even though they're looking to hire people out of theirsan francisco offices and likely most of the people who work there live in the bay area . another sign of the health of the techsector in the bay area's venture capital . the three quarters of the pandemic had higher levels of venture capital investment in san francisco companies than the previous three quarters before the pandemic so the money is flowing to businesses in san francisco and their growing and looking to hire people . the real question is how are they trading off working from home versus working in san francisco offices? this seems to be a dimension even though businesses worked at home in the past they seem to be reconsidering downtown offices ina way we haven't seen in the past and that's what

makes it very unpredictable . >> have you seen a fluctuation in calories related to the option to workfrom home versus work in the office ? >> are funding levels looking the same as they were before and the request is strong. dc money is coming in but part of this trend of not having people work in their offices related to salary? >> we don't have great data on salary yet from during the pandemic so i really only know what i'm reading in the paper on an anecdote by anecdote basis and some companies are saying we won't cut your salaries, some places are saying we will adjust your salary.honestly, i think the issue at least in the near term is more about our people going to be living in the bay area for the most part, notwithstanding the missing folks that you alluded to but

are they goingto be largely living in the area, coming into the office one or two days a week . as opposed to five days in the past? if that's a phenomenon and you're talking about maybe 60 percent drop in office occupancy on a given day is going to haveprofound effects on the rest of the downtown economy and the city's economy . it doesn't look like from the data i've seen that there is a wholesale shift of everyone saying you're free to work at home so moved to the cheapest place that's got the nicest weather or whatever it is that you want and we will pay you the same salary and you will be much better off. i don't thinkthat's happening on a large scale at least the data doesn't suggest that yet . but even the first alternative that i mentioned, the sort of people stayingin the region and coming into the office less,

important economic and fiscal impact on the city . >>ahsha safai: i thought based on what i read in terms of your initial analysis you were saying it might be an average of one day lastweek for employees, not one or two days in office and 3 to 4 days left in the office . >>ted egan: we are making an estimate for business tax projection purposes of how many peoplewill be working at home prominently after the pandemic is over . that assumption is constantly being looked at as we get more information, that number may change. >>ahsha safai: can you talk about how that impacts your business tax projections? >>ted egan: the city, apportions businesses total gross receipts based in san francisco to san francisco based on a number of factors . one in which in the case of office industries is a percentage of the company's total payroll expense as incurred in san francisco so if

a company moves from a situation in which all of their workers are coming into an office in san francisco during the day and the business is incurring the panel role expense within san francisco and an office, then switches to a situation in which they are only in a san francisco office a couple days a week and they're working at home and in alameda county the other three days of the week, effectively lowers the amount of a businesses gross receipts and get a portion to san francisco and what that means is even if the business is exactly as successful afterwards as it was before, they oh san francisco less tax because essentially they are less of a san francisco company. if that's an easy way to explain. >> that makes sense so as far as the formula for office industry payroll expenses or based on the number percentage of employees in anoffice .

>> is the percentage of the total expense. their wages in san francisco as a share of their total companywidewages . it's the same thing. we onlycount it as san francisco wages if they're in san francisco whilethey're earning . >> so an employee there five days a week . percentage of the total expense based on $.10 wages is house particularmultipliers. if there there onlyone or two days a week , drops . >> at least the way the gross receipts alkylated now. >> okay. i know you were about to conclude,i just wanted to . >> i have a question about tha , this is connected to it. so in terms of people who are working from home but in san

francisco based jobs and san francisco-based companies, it sounds like you're saying ted that the companies are hiring people now at three pandemic levels in san francisco-based rules. they just are not working right now from san franciscoin many cases . not from offices. >> and do you and maybe this is a little bit more of a judgment or analysis but in projection do you expect that will continue? what are the reasons why if someone is not in san francisco based in terms of their actual office, that there's still being hired for a san francisco-based role. it would you project that companies that have multiple

officesthey hire somebody up another office ?what brings them to hire that person in the office that here. >>. >>ted egan: is a great question and i don't think we know the answer. i look at that as a fairly, let's just say it's better news than if we thought about completely not hiring out of san francisco and suddenly there in county or boston offices all the hiring we don't really ... there seems to be an ambiguity there to say our san francisco office wants to hire a lot. san francisco roles as you put it but at the same time where not wanting them implemented in san francisco office. i would just say that themoment there's a lot of flux . your hearing companies having different takes on this all the time. i think this is something that companies and workers will be

considering and reconsidering over the next few years area it doesn'tseem like there's going to be more working at home than there was in the past . i think there's some reasons and it's worth saying them that work at home wasn't something that just had been invented in the past year. there had been companies that tried to do fully remote work and most of them have decided not to do that. please always have the option not to you know, incur the expense of a san francisco office space after their workers to incur that time calls and cost of commuting and bay area housing prices and yet we had the experience that we had over the past decade or two with that industry. i kind of think the value hasn't completely evaporated just because of the pandemic. it may take a while but i think that this is less of a troubling long-term story for the city's economy and having really seen everybody moving to austin or somewhere else. it seemed that the likely way

to understand this is that these companies are predicting that there is a decent possibility that these folks will at some point need to be in person in the bay area or in san francisco or at least kind of reorganize their structures to hire elsewhere. got it, please continue. >>tedegan: i have one more slide but i saw one in tandem . >> no problem, sorry. my stock is working so i'll just put myhand up . just fyi. i don't know how to articulate this question for fully understand. i think it's fantastic that

rent prices have come down. that is the great thing for our city that's been suffering from an affordability crisis because of our housing prices and the fact that i know so many people who have moved including our chair because rents have come down to spaces where they have a little bit more space for themselves and their families, there's even people that have left you are not in high paid tech jobs who now feel like there might be a possibility of them coming back. so as we are rebuilding, how do i put this? the way you present this material, there's this underlying feeling or assumption that this is all ba

news for the city .and that's the way it sort of is presented . and that's because the way you're looking at it, it's the amount of taxes that we're going toget for the general fund. is that correct ? >>ted egan: i don't think that the only thing i'm considering and i don't disagree with you that there are going to be winners for people who remain in the city. particularly people who are employed and running in the city as a result of these changes so i don't want to give the impressioneverything is bad .there are a lot of things that are bad. >>hillary ronen: wi-fi together or what i'm trying to understand is how much we want to keep this change and how much is it not bad news that there are workers that are higher paid, that are deciding

to move out and how much of it is problematic ? if i'm looking at this from a working-class perspective, if i'm looking at this as a restaurant worker or a teacher or you know, someone who doesn't have a bigger salary, then how do i want things to turn out?and i guess i just want some clarity on you know, when these figures are presented who benefits and who loses out because we remember how the biggest inequality gap in the united states that rivals developing countries in africa. so that was really bad. and perhaps some of these radical changes to our economy could have good news in the inequality realm of the world.

and i get that it's all linked, right? if people work from home there are less people dining out. there are lots of jobs i guess i just want to say that when we're looking at this budget and when we're talking in these economic forecasts. it would be helpful to me if we could draw some of that. but here are the people who win in this scenario, here are some of the people who lose in this scenario because i think that's important . that's important information to address as we're making judgment call on how we reveal. >> let me say a few things about this supervisor that i do know and hopefully he will do some of your concerns. i think the chart that i illustrated about is the way that tech industry as they are for employment fared for six

restaurants is i think to me the clearest indication that our inequality problems have gotten worse during the past year and lower rents are kind of a consolation prize for some. it is the case that the rent economies are being driven by tech workers and not unemployed workers, and we still have accumulated problem that someone is going to have to deal with of an industry whose workers 40 percent of whom are unemployed and are dipping into savings and areborrowing money for families and friends and in some cases are not paying rent , there's humility that below the surface on the balance sheets of low income housing is very difficultto draw data on this date. it's going to be a major , major state and federal and local policy concern. which is i think ultimately and

much the same way the stimulus discussions are given their side is going to basically be the thing rather than anything is happening in the private sector determines the fate, the post-áuntran4á fate working-class folks . within and francisco in terms of theeconomy , if we're in a situation in which let's say it's declared the pandemic is over and the federal government is no longer in stimulus load or emergency mode, and housing debt, has been taken care of a it's going to be taking care of . if we're still in this station where downtown is half empty because tech workers are working at home, they were not going to get back to full employment in the downtown industries a lot of working-class people work in the area in other words they're going to be worse off than they were before hand .

and i don't think they're going to necessarily be leaving on a market rate housing is still $2000 on average, area i'm not, there will be beneficiaries of that area i don't think we're talkingabout the lowest paid workers in thecity will be the beneficiaries of that . there's another element here , i'm sorry. >>hillary ronen: i want to highlight that point which i think i agree with your analysis and that's why i think sometimes the simplistic chance coming out of nimbys and others just building more is going to help san francisco is not truly the case. this is why so many of us are still focused on building or market rate housing, never helps the working class but what we need is more affordable housing because whether prices are up or down, if you're in the working class you're screwed. that's why so many of us cannot just depend on the market.

in order to meet the needs of working-class people. because no matter what the situation is , if there is not government support, in subsidized rents, in basic income, in food support and in wonderful public schools, then you know, it's always a working-class that doesn't benefit from any economic scenario that we're in. in san francisco so i just want to underscore that point the cause i think it's so important and is why so many of us on this board of supervisors are constantly saying that just building market rate housing doesn't bring down rent to the point. we're workingclass folks can

ever afford so i just wanted to highlight that . at this moment. >> supervisor mar. >>gordon mar: i just wanted to follow up on supervisor mar questions but also to retake that. i think obviously the tech sector has grown in the tech sector has been the main economic engine is forest city economy over the past decade and in a lot of that, a lot of this growth and success really is due to policy decisions made by the board of supervisors or the city to really over the lastrecession . as the primary strategy including handing out a lot of tax breaks and to do that. but at the same time, this growth in the tech sector while

being very successful from an economic development perspective for our city has been alsothe cause of many of the biggest problems we had to grapple with during this time . and in growing income inequality as supervisor spoke to and even homelessness so thank you ted justfor your presentation . that helps, it's starting to help us understand the significant changes in our economy that are starting to play out as a result of this pandemic and helping to inform our discussions and decisions as a board and especially around the budget but other policy decisions on how we can shape our economy and in our recovery in a way that is going to be in the best interests of the residents and really to try and avoid a lot of the problems

that we had to grapple with and we are still grappling with from policy decisions the last recession to i think one of the main points from your presentation is team to be that the a lot of the hype around tech exit is from san francisco may not be real and at least faith on looking atthe data right now , but at least from an employment perspective a lot of the tech employers are have maintained or even increased hiring at the same time, there is this shift in where the employees are living and what, where they would like to live and so i think that is significant in looking at the relationship between jobs. and tech jobs that may still be concentrated in our city through the tech employers. and the residency where the

workers live. again as supervisor ronen listed where it seems like is this shift because of the pandemic, maybe it's almost a significant sort of cultural shift in preference on helping where people want to live and how they want to live and it's a shift away from the type of housing that we built overwhelmingly during this tech boom, luxury condos shift away from that to wanting to live in single-family homes and even communities that have more space. so maybe just one follow-up questionhere , around the impact of this trend of these trends on impact on housing demand in our city. do you see this trend continuing where with the

employers, especially the tech employers allowing and maybe increasingly allowing workers towork at home and work remotely ? as continued to push the trend of tech workers and other similar high-intensityworkers in san francisco wanting to live outside of the city weather in the bay area or beyond . >> supervisor, i thinkthere's a couple of dimensions to your question . i don't have great insight into at the moment but i'm tracking closely . as closely as i can read the first is the question we were talking about about what employers are requiring in terms of being in the office and the second is employees changing residential dates.

i think that what we saw in terms of the exodus from san francisco, the outmigration from san francisco is essentially a natural reaction to people wholiving in a dense urban environment , the choices that they made are required to come to the office, in other words are not essential workers. partly to do their work elsewhere so there's, nation of ability to do that remotely and argue that temporarily san francisco is not the best place to live. the pandemic so that decision so i wouldn't necessarily conclude this is a permanent shift in where workers would like to live.it's entirely possible that we could wind up in a situation or two from now in which employers are okay saying you only have to come in two days a week but workers

cisco, the same way they liked san francisco a year ago. so evidently from the standpoint of our business tax it doesn't matter whether or notthere in san francisco office for san francisco housing, they're still in san francisco . because it would change where it's spending happens in san francisco butthat's a foreseeable outcome. anotheroutcome is people wherever they moved to the suburbs , they don't move . the decline in rates that we are seeing out induces other people who couldn't afford to live in san francisco or tomove into the city and it changes the composition of the city's population .vis-@-vis where it was a year ago. that's another possibility. and then the other possibility is perhaps employers decide this remote work from home thing two years from now isn't

as relevant as it was during the pandemic. it's just not a concern so people start having to come back to the office the way they did during the pandemic. there's a lot of unknowns but it's important to keep track what employers are saying about where they want people to work and what theemployees are saying in terms of where they want to live . those are two different questions and how those questions resolve will be ultimately i think have a lot to shape what the future housing market is. >>ahsha safai: thanks for that ted and chair, i'll leave it at this. this is just the start of our discussion about these important issues and thank you. >> supervisor. >> thank you everyone for all your quick questions and i'm glad kind offraming this conversation right now and i want to add a little more context . i appreciate what supervisor mar said and it's always a

struggle to balance as before i assumed my office here, on board i worked with the janitors union and this was during the last recession, the great recession and a lot of the office buildings that their workers worked in were empty. a lot of the people that were working in the service sector were not able to provide services because office workers were not there and and another piece of that is when it wasn't reflected in your presentation and i do want to ask you when we do have some follow-up is where spending a lot of time on the trends of people that were predominantly employed in the employment rates in restaurants and you defined it as the professional services and the professional services and so on but the most significant part of our economy is the insurance industry and how it impacts hotels, convention centers and all of the other restaurants

and all the other small businesses that are built around the tourist industry. that would be another good follow-up conversation because i know just like the janitors are hurting today more than they ever have and that servers at our downtown office buildings are hotel industry is acompletely decimated and that's important for so many different reasons .to our economy but also to the people that supervisor ronan and all of us care about serving because the hotel sees so many of the programs that we care deeply about so i know you didn't present a slide on it. but it would be good if you want to just talk about for a moment and then we have the opportunity to bring you back to speak a little bit more about tourism because that is despite what everyone always believes, that is still our number one part of our economy

and what everyone feeds off of first and foremost. >> i certainly agree with you supervisor that this is an industry that's been hit very hard. and it is a major force of jobs particularly for low-wage workersand a major revenue generator for the city . i'm happy to come back with more information . what we know about the industry is that tourism is has been hit globally. the problem we have in san francisco is our tourism industry requires people to fly. it generally requires people to go a long distance to get here you and is expensive. hotels are an expensive place to stay and trend during covid has been fear of flying, not wanting to travel a long distance and no international travel and its recession and people are looking for less expensive alternatives.

we also seen a complete drying up of business which are a major part of our tourism activity. business tourism and what's calledtransient business tourism where people go to san francisco to go tobusiness meetings in downtown offices is a big? because downtown offices are a big question so there's a lot of challenges there too . i don't , the only reason i didn't focus on isi wanted to provide background for the real estate story i wanted to focus oni'm happy to come back to talk more about tourism . >> i will say in some sense arguments, i don't , i also don't want to brush the wrong. demand has brought dramatically demand dropping dramatically , rents have dropped dramatically more than any other part of the united states and i can tell you from anecdotal evidencefrom a number of people that i know , i could not live in san francisco that are working in

middle-class families did make the decision because of the opportunity to provide in the rental market to come back , say we're going to take advantage of that opportunity that was not there before because i could not afford to live in the city. so it might not becompletely extremely low income , minimum-wage workers which of course we all care deeply about and we have to continue to think about using this opportunity to expand those housing options. but i wouldn't certainly say completely that increasing supply have an impact on if it outstrips demand and i think your slide to show their not to just say it's completely black and white but certainly it has an impact on the market and in some ways it's almost an argument to build more opportunities so that we are

increasing supply. because it does impact the overall, can you talk about that for a second? >>ted egan: i think the underlying economics of supply are really affected by the pandemic. and i think that the arguments for building marketrate housing are going to be the same after the pandemic as before.the arguments for building affordable housing will be the same . the problem now i think from the construction point of view, it'sanother industry that's important is when you have this much vacancy and office market and this must decline in rents , nothing is going to ...that seriously dense availability of business and do anything on the market . but on your point about middle income folks supervisor, one thing that's interesting from the chronicle status is many people moved within san francisco in the past to hear.

you will correct me if i don't remember the numbers. something like 58,000 people movedwithin san francisco that's double or something when it was lastyear. that's a sign of people saying i was paid too much for rent in san francisco before and now that rents are dropping i'm going to move around . those people if that's what's happening those people are going to be winners . from a decline in rent. that's probably not going to cause rents to rise again because when you move into that they can apartment you create a vacant apartment when you leave but that's anexample of folks ofthe borderline able to take advantage of falling rents . >>ahsha safai: that's to my point of somewhat anecdotal evidence . if supply increases it does open up opportunities so to supervisor ronen point, we are the most extreme in terms of wealth. the most high income extremely low income but that working

middle-class families have bee squeezed out historically , this provide that opportunity so it's almost an argument we could argue that there's an opportunity there to expand those options for that cadre of people. it would be and then you did remind me that we are going to have these conversations, we did talk to the controller aboutreconvening a technical advisorycommittee . to talk about our inclusionary housing rates . because i know that construction costs have remained high.wages have remained high. and the ability to build more housing and the demand for housing has dropped. at least in the rental market as if shown here. we are going to convey that that probably would be a good opportunity also to greet this committee going forward. that's another aspect we didn't really get into how the

construction industry both commercial and residential is impacted by the current state of the economy. >> supervisor. >>. >> thank you carefully. i think my question really is trying to understand you know, the impact of office space vacancy to our economy and i for one really thought that always it's to a healthy economy, a local healthy economy is really having actually sectors of the workforce and it seems to me that you know, i think we should have learned our lesson for the.com boom it seems like we did not and that now that our downtown or just the san franciscolocal economy seems to have really dependent on the

tech industry once again . and withthis change is the way that they conduct their business and operate their business , creates this negative impact. and fromwhat i understand , from our five year finance pla , from our financial preference we are actually doing really well in terms of how fast we bounce back. i shouldn't say we do it well we did much better than projected in terms of our unemployment rate. is that correct western mark. >> i think when unemployment ratespiked in april of last year there were a lot of projections out there . and nobody really knew what the course of the virus was going to be. i think let's answer your question, i do think that having six percent unemployment by the end of the year is better you i would have expected something around eight. and generally the us economic

projections have gotten better and as the pandemic has gone on. and people are talkingabout a ged recovery by the end of this year and a labor market recovery by the end of next year . >> what got us at this point is we can see specifically this is about the office vacancy and the impact of it is that we see a detrimental impact on sales tax and again from the five-year financial plan that we know that downtown really is has the highest percentage of loss on the back. and we see again, we need to which i assume your presentation main point is that we've got to figure out how to build back up these office vacancies and that is the way that will happen is to build back our economy and i want to

make sure i understand that is your main themehere for your presentation . >>ted egan: if i can go to my last slide i will explain. it's a very timely question. this goes on to the last slide, thanks iwill answer your question at the end . just toreiterate , the evidence i think it suggests san francisco has done poorly compared to other large cities. i think this is mainly due to three things one thing we had talked about a lot but i think is very real is san francisco's are safety conscious and stay-at-home area we have data saying and franciscans are not going out as much as people are going out in other places . that is reflected in consumer spending, businesses being open and also a low death. i think that is part of our economic story. secondly we talked about the absence of commuters in the downtown spending.

when that's not there, not just in public but largely downtown. that's that other places don't fair and we talk a lot about it. we talk about the disparity, i really think that unemployment rate is going to remain elevated , maybe not above 10 percent but certainly full employment until the hotels return and office workers return and it's really decisions that office employers not just in that tech sector above they been the biggest leader of office space in the last decade and their employers make about how prevalent office work will be is going to have a lot to do with the shape of the office and how the markets look but to take your point supervisor, let's say all the tech workers, we don't need to come back to san francisco and thetech companies are fine with one or two days a week . we're still goingto have a lot of the office space and question is how exactly to get bills . the owners of those office

buildings are going to be one of the reasons i didn't show an office rent chart was because when we had this much vacant space, and this much negative absorption there's going to be a price shock that's going on and you can expect office rents to decline in this year until that vacancy comes back down. the critical question is who are the office said it's going to be better going to fill that space. the owners don't want it vacant, they're going to cut prices until they can build in the city of courseas i mentioned as an interest in being downtown to be reoccupied as well but i think that's a major question . is it going to be other tech companies that have not decided to do work at home? is it going to be tech startups or some industry that hasn't grown in san francisco because it's been too expensive but is

going to grow and that's going to diverse or change the city economic trajectory. all those things are possible and i think it's way too early to say what is going to be at this point. >> charity, if i might my last, this is really more of a comment than a question. i think that exactly where i am lending at this moment as i'm looking for your presentation on our five year financial plan is i think the one lesson that we should have learned in the last two decades and moving forward is that with these downtown office space too dependent on one industry is challenging. during the hard times but most importantly it industry how hard it gets hit or impacted by whatever the circumstance would be in our economy and i think that it is for the elected body to start to consider about having policy goals and having policy solutions to best diversify the downtown situation and that will attract

whatever kind of industry are utilizing office space and i think for one, i look forward to still seeing tech companies no doubt that could be one of the sectors but i think there are many obstacles. like biotech and the like and again, divers diversify emotionally occupy our downtown office space will truly build some honest on foundation and a healthy foundationfor our economy , be it for pandemic or recession or any other kind. that's my statement and i thank you director egan for your work and thank you chair haney. >>ted egan: thank you for those comments. mister egan, you address one of thequestions i had about office rent .i do think that one of the things and you said all you were going to say about this

but just how when you look at the city's economy, office vacancy rates in the sense that pre-pandemic i know in many cases we were asked thelowest vacancy rates we . the result of course is also that rents are veryhigh. and when rents are really high , only certain types of businesses can even access those buildings and especially with the vacancy rates so i do want to track closely and if you can help keep an eye on it and come back and present to us when we have a better sense of what this means for rents because you know, if vacancy rates clearly have a relationship torent . so as a healthy balance, we want to vacancy rates relatively low because we want people who want to come here

and go here but what does that mean in terms of who can acces those spaces ? my sense was they were in many cases only accessible to very large companies in many cases who could pay very high rent. and one of the things of course we're going to keep tracking is the number of office developments that are under construction or will soon be under construction and how that affects and impacts some of these vacancy rates and rents. >>ted egan: unhappy to work look intothat more supervisor . >>ahsha safai: >>matt haney:let's see where we are, i know we have a number of items here . are there other comments for mister egan? madam clerk, can we see if there are any members ofthe

public who want to speak on this particular hearing ? >> checking to seeif there are any callers in the queue . tell us if there are anycallers that already . please press á3 to be added to the queue.these weight if you have been muted. please see if there are any callers to comment on item 5. >> we have no callers in the queue. >> public comment is closed and thank you mister egan for this report and i'm sure we will have more conversations moving forward will you call item 1 . >> can we please with action on item? >>matt haney: i want to move to keep this item openand continue to the chair, can i have a second on that please ? second from safai.

[roll call vote] >>ahsha safai: this hearing will stay open and see the call from the chair. madam clerk, can you please call item number one. >> item number one, tears can receive updates on the five-year financial plan for 2021 through 2022 and 2025 through 2026, members of the public who wish to provide comment should call 655001, meeting id 107, 407-9354 and press pound twice if you have not already done so s á3 to speak. please wait until the system

indicates you have been muted and you may begin commenting. >>matt haney: can you call item 2 as well? we wantto hear these two together . >> updates on the mayor's budget request for fiscal year 2021 through 2022 and 2022 through 2023. >>matt haney: first we have been rosenfield from the controller's office controller himself.>> good afternoon chair haney. i believe the mayor's budget director was going to kick off with a walk-through of the forecast, the five-year financial plan forecast and i willjoin to provide an update on the six month report which is our related news . >>matt haney: i take that back, wehave ashley from the mayor's budget office .

>> hello chair haney, ashley groffand berger, mayor's budget director . i'm here today to talk to you all about our five year financial plan which is a joint report that we put together with the controller's office and budget legislative analyst then the mayor's budget instruction for the upcoming two-year budget cycle so i want to preface this by saying this presentation and the information is really reflective of the world as we knew it in december. so i wanted to make sure you all saw the details in our plan which was published in january and understood the basis of budget instruction the mayor issued departments in september. as you know this is an extremely dynamichere . we get new information every day, every week. so we will be updating these projections for our updates will come out in mid-march and we will incorporate any new

information that we received and the controller noted he will bepresenting after me to talk about the current year. so with that i will pull up some slides . okay. so as i said, i'll walk you through the five-year financial plan today and our fiscal outlook and provided anoverview of the mayor's instruction to departments . to start i want to briefly reflect on where we were when covid hit us versus where we are today nearly a year later. the effects of covid were stark and immediate on the city and we went from having a projected $420 million shortfall in december 2019 to a $1.7 billion shortfall right in the middle

of our budget process. the whole city pivoted, put our heads together and overcame this historically high shortfall all while preserving job services and making progress on key priorities but the budget we adopted just in october 2020 relied heavily on one-time sources preserves and other one-time revenues and what i'm calling the easier citywide departments or reductions to extend those dramatic impacts from covid. however there are three sources going into this budgetprocess . we still need to focus on recovery, smallbusiness , programs that produce meaningful outcomes, equity and ofcourse continuing to respond to covid . for the upcoming two-year budget cycle we are currently projecting a two-year shortfall of $653 million over the two years. you cansee how this compares to prior deficits .

this is a course significant because essentially we were dealing with last budget cycle. and the key drivers behind that sort of how we went from having a balanced two-year budget in october two now being out of balance by 653 million projected is really three things. first of all, the revenue recovery that we had expected at the time that we adopted the budget is just hunting later work more slowly than we expected so our revenues reflect that delay and recovery. the adopted two-year budget funded our labor costs for the current fiscal year that we were in but last, the second year of the budget unfunded. so we are now assuming that we will need to pay those ou obligated wage increases and

the next fiscal year. and lastly, the previously adopted budget assumed we would have no local costs to respond to covid. but now for planning purposes you are assuming that local costs will be happy equal to what we had assumed in the current year budget. and this is one of those areas that will probably be right for an update when we do themarch update will be working on. over the coming months . to address the projected shortfall and to make progress towards addressing our structural deficit, we are the mayor has asked all departments to submit budget proposals that provide an ongoing reduction of 7 and a half percent of adjusted generalfund support and because we know things can change quickly in this current environment , we're asking the

department to provide an additional 2 and a half percent contingency proposal just so until conditions worsen. the mayor has also asked departments to prioritize more services and programs and present very clear trade-offs to our office when making proposed reductions. andthere budget submission . and of course, continuing to emphasize the mayor's priorities around recovery and equity . so i'll go into a little bit more detail of the five-year financial plan and the fiscal within that. so the five-year financial plan presents a base case projection and what that means is we sort of take the world as we know it today with all the known and adopted policy provisions and project back out over the course of five years. the projection assume that general fund growth will be slower in the previously adopted budget in the short term but will accelerate starting in fiscal 22.

it also includes revenues related to the november 2020 ballot measures for propositions whichis the transfer and l which is the cbo tax . as i mentioned the previously adopted budget assumed a two-year wage deferral for miscellaneous employee unions and this projection assumes that we will pay those previously agreed to and ou increases starting july 4 and cpi in the house years and it also does not make an assumption for what is known as the recession trigger which would delay those mou wage increases by six months area that triggers based on the market update which i mentioned .the projectionalso assumes changes to a variety of citywide costs . as i said including costs to respond to covid as well as the cost for and capital payments and other nonpersonnel costs in the city. and again, another kind of key

item that we will hopefully be able to update in the march update, the current projection makes no assumptions for federal relief and another reminder of merits is a balanced budget by june 1. i won't spend a ton of time here because there's a lot of members on the slide but wewill go into the detail in the following slides stable) are five-year financial projection and illustrates what we call the structural deficit . so the very highest level take away is out our revenues are the source at the very top of this table are projected to grow over the period, our expenditures or uses are growing much faster rate which result in a projected shortfall you see on the bottom line and the deficit for the first two years fiscal 22 and 23 is what we need to solve over the

following months. comparedto prior years i think the shape of this shortfall is a little different . you will notice we have a big projected shortfall in the coming years. and the shortfall in the second part of the year and we know, no longer expect to incur significant role local costs. but by fiscal 24 you see many of ourone-time sources that we've relied on start to go away . and our costs continue to grow even as our revenues recover and you see those projected short calls pop back up. this graph is meant to illustrate for you all how the city's main localtax revenues have been impacted and how they are projected to grow over time . unsurprisingly are very economically sensitive revenues like hotel and business tax have been most impacted by

covid while property tax remains our most stable revenue source and as i mentioned it's important to note that the five year projections assume that a new local tax revenues from november 2020 ballot are included as general fund revenues so if those general fund revenues are required to pick up new spending or adding that has previously been supported by anon-general fund source , the shortfall as i showed you on the previous slide would be larger . as i've mentioned the previously adopted budget included significant one-time solutions and the five-year projected are things that we continue to see some level of one-time sources inthe short-term which increases our shortfall in the out years as those one-time source in the previouslyadopted budget , our one-time sources exceeded the number of one-time uses . by fiscal 23, you will have utilized $1.3 billion of one-time sources. the main ones are outlined below.

you will have fully drawn on our economicstabilization reserves . we've utilized a significant, well, we totally exhausted any prior your fund balance we had accumulatedfrom prior year budgets . we if the budget assumed $300 billion of one-time payments related to product tax as well as other one-time public health revenues. >> this is meant to show the balance of the city's main economic reserves .the rainy day reserve and budget stabilization reserves which invite one-timefunding from the best revenues and balanced the budget. over the last decade , unfortunate, and through responsible budgeting practices have built up a significant value in those reservesso in the previously , werelied heavily on drawing down the balance needs . and we established the projection assumes we will draw

down $100 million in each of the next two fiscal years which will leave this reserve completely depleted by fiscal 24. due to continuing fiscal pressures, we don't anticipate we will be contributing to these reserves until fiscal 25. so this leaves us only with the general reserve and the impact reserve which i think someof you are familiar with . to serve as our only source of reserves for one-time balance exclusion in years ahead of we continue to confront the fallout from covid. this is kind of a classical representation of our large expenditures categories that are assumed in the five-year financial plan so the plan predicts that total expenditures will grow by 1.5 billion over the period area and salary and benefit costs are our largest cost driver.

as our revenues recover our required contributions to baseline also increase. and in addition, to continuing to respond, are citywide costs inflation on citywide grant and nonpersonnel costs as well as the rebuilding of our capital program and lastly the production assumed from departmentcosts which include the cost of ihss , are permanent and affordable housing portfolio. and rising costs in public health area just to note here that the five-year financial plan is related to the city's general fund. and it speaks to the general fund but we know that the city's enterprise and non-general fund department are facing similar budget challenges .and then have used many of the same solution to balance their shortfall as the general fund has . a bit of an outdated bullet

here again, reflecting the world as we knew it in december but we remember the mta was projecting a significant current budget year shortfall which they are projecting luckily will be solved through federal aid but they are facing a similar structuralshortfall as those one-time revenues go away similar to the general fund . of course, with some uncertainties is the name of the game in thisenvironment . with some is a very dynamic world and things change weekly so we need to be prepared to respondto these changes both good and bad. and in the upcoming year , we're constantly tracking recovery of our economic activity and its effect on our local revenues.the possibility of federal support in whatever form that takes and then perhaps the controller will this in his piece but there was outstanding guidance

we were expecting from the state controller around ssd that could have a significant impact in the current year and going forward. so how does this all underpin the mayor's budgetinstruction ? as i mentioned, the mayor's top priorities for this upcoming budget will be supporting recovery and small business. making every dollar countsand prioritizing events and services with real equitable outcomes . continuing to focus on our vulnerable population through continued work on homelessness and mental health and of course continuing to respond to covid in whatever form is needed. to close the shortfall and of course the mayor's priorities we have the mayor has directed all departments to proposed budgets that include ongoing reductions of 7 and a half percent of adjusted general fund support with an additional 2 and a half percentcontingency should conditions worsen .the

mayor has also asked the department toprioritize core services and present clear trade-offs to our office when presenting the reduction . as for what reductions are on the table, it's really everything. but keeping asking the departments keep the mayor's priorities in line when making proposed changes and needing to know very clearly what the trade-offs would be making those reductions should we need to. and then of coursenon-general fund departments are expected to balance within their own revenue projections . additionally this year the mayor is placing a large emphasis on how our budget decisions impact equity. and so departments are being asked very clearly in the forms in our office and the controller's office on their proposed budget will impact equity both positively or

negatively and howthe departments will measure positive impacts and mitigate negative impacts . departments have also and working to submit their racial equity action plan and in accordance with the legislation for the office of racial equity. and we're asking that if departments identify a need for new resources within those plans that they be prioritized within theirexisting budget given the lack of resources we are projecting . we are also engaging departments at the moment around planning for what the covid budget would look like for nextfiscal year and then this is the technical instruction that is left over from when i was meeting with cfos , making sure we communicate any interdepartmental services and changes to those service levels. the mayor also gave clear guidance to departments to meet the requirements of the budget transparency legislation so all

departments have held at least one hearing in order to get public input. and then the controller's office will be posting budget documents on their website and i will be submitting to you all in a few months time the merit budget priorities. again, this is a relic from december when we had a three month month budget shortfalls i won't spend time here and i will then update you all or let thecontroller update you all on the current situation .so to wrap up i know i've been rambling for a while but if you take nothing away from this presentation, it should be that we are still projecting a significant budget shortfall for the upcoming two years and that the loss of one-time sources highlights the needto constrain our spending in the short term . we ask every department to present reduction of general

fund support with an additional contingency be responsive to changing conditions and lastly we must do this all while focusing on recovery and other top policy priorities in the upcoming budget . with that i am happy to take questions. >>matt haney: my colleagues are getting ready to put their names on the roster and we discussed this many times so i'm not going to have a lot of questions or comments because i've seen it. you mentioned in there there's going to bepension savings. and that those were going to offset some of the other growth and salaries and benefits . just related to the way we do pension contributions but if you could speak a little bit moreto that, i know that that for many years including years

before i was on this board . this was a huge concern of the way that the growth in pensions and contributions of pensions were going to place a huge pressure on our budget overall. can you where that stands and maybe it's at some point something that we want to bring to this board more directly or this committee to have a longer conversation but it was interesting to see that sort of flack in a positive way, not a negative way to reedit. >> is a great question, thank you reedit soin the current year at the very least , we are the retirement board is actually projecting really good returns in our pension funds in the market area we assume for planning purposes that he will meet our rate of our adopted rate of return which is 7.4 percent . i think the latest year-to-date projection is that our current

your returns are somewhere around 15 percent so we are exceeding our assumed rate of return. so what that means is as we are of course getting better returns in the market there's less city contribution required to contribute to those pension requirements. so we will update and reflect those better than expected returns in our market update. and so again, it's just the practical effect as been getting more money from our investments in the market, the city has to contribute less general funds to employee pensions. reduce other costs in that area. it's really interesting. interesting dynamic happening in the pension fund right now. >> supervisor somebody who i believe is representative of the retirement board. that is really good news to hear that. colleagues, questions for miss

groffenberger, or supervisor safai. >> can give the whole presentation again.i'm just getting. i'm glad you highlighted that. we are actually trying to finalize what the overall discount rate will be so we are continuing to haveconversations with the mayor's office , not exactly sure where we are on the final number for our current number is 7.4 percent but we're trying to finalize that number and that will determine how much assumption the general fund willhave to contribute . regardless of our projected returns but the stock market is doing exceedingly well as we've heard in the last presentation as well as this one. i appreciate miss groffenberger

the point that one of the mayor is emphasizing, the lens through which a lot of the departments are being asked to look at their hiring plans and looking at their office in terms of the equity lens. i think that's something we had a hearing last year regarding our first responders,deputy sheriffs. we're going to continue that conversation . to ensure that there's a continued plan to look at that but the fact that the mayor has asked all the departments, can you speak just a little bit more about that particular emphasis that you all highlighted. >> happy to. so i think equity is has long been a priority for the mayor and or making sure that that becomes a formalized part of our process that we're asking those questions and getting those answers up frontrather than an afterthought .

so we have asked and this is new and if you will see the department proposals that will be posted online on the controllers put in march 1, we're very explicitly asking departments to tell us whatever proposed change in their budget, what is the impact on equity? is it going to bepositive or negative and if it's positive how are you going tomeasure and track and make sure it's positive and if it's negative , how are you proposing to mitigate it we're asking those questions up front so that we can have that , apply that lens to the process from the very beginning and have that she the discussion. >> does that extend out to i know last year we had a lot of conversations about really prioritizing funding for black led organizations and black lead tos and kind of building off the conversation of

shifting some of the budget away from criminal justice and more into social justice. if that also going to be an emphasis again for the mayor in terms of a priority? >> absolutely and it's going to be afocus of implementation and how are we deploying these dollars and making sure they're having the impact that we expected . so that will be a huge focus for next year as well. >> thankyou chair, that's all. i appreciate the presentation. he had a lot of conversations . and so we will continue those conversations as we go forward. particularly and i know that chair haney had emphasized this earlier but we're also going to havea kind of a targeted conversation around budget

surplus . idon't know if you want to say something about that chair , but i think that's something that obviously we have to do in conjunction with the mayor's budget chair but i knowthat that's something we are committed to in this context . so i just wanted to give you the opportunity to say something about that as well . >> absolutely and we are going to have a full presentation on that from the controller and item 3. so i'll save my comments on which comes as a result of the six-month budget status report but i appreciate you flanking that. are there any other questions or comments from miss groffenbergerbefore i bring on controller rosenfield i think is going to add to this item ? seeing not, controller, are you still with us. >> of course, terry. >> i'm here today to provide an

update on the six-month budget status report which our office issued last week. >> that is the next item so we will wrap this item in. vice chair was actually teaming up to move on. so i don't think director groffenberger, isee any other questions or comments for you . can we madam clerk see if there's any public comment on items one or two? one and two? >> checking to see if there are any colors in the queue. if there are colors already, if you have not already done so please are three. continue to wait until it indicates you have been muted. let us know ifthere are any callers who wish to comment on items one and two .

>> i have one color in the queue. >> supervisors, we are interested in how you're going to be spending the money . the least you can do is as you have the presentation, the presentation should be clear. imean the print . the font is so light that somebody's talkingand you know what they're talking about . their anti-communist, makes sense but some of you are rambling. and in this pandemic, we have to show leadership. and let me make it very clear. our mayor is showing no leadership .

so all this stuff you know where you're talking about racial equity and every department has to set aside so much money and you all want to do this, that and the other. today, that's today. then you have this talk about the small businesses and the homelessness. the quality of life issues in san francisco have gone to the hogs. and supervisor, it's not business as usual. it's notbusiness as usual .so we have a situation today and is connected with the ethics commission doesn'thave any money for resources . and then we have some other people saying let's spend $100 million on the homeless.

the ethics commission plays an important role and some of you are having to do with what happenedwith sf pd . >>