everybody is happy today it is money day! [laughter] well, thank you for being here i'm mayor breed and i'm here to talk a little bit about the next 2 fiscal years in our budget. let me just first start by thanking anna dun and my budget team who worked tierls leech [applause] >> can the budget team stand up? >> we sent them through a lot thank you for your work, patience and thank you to our controller ben rosenfield, for all of your work.

y appreciate the board of supervisors joining us especially the budget chair connie chan who worked tirelessly with us. to get us to this point thank you very much, supervisorism seat imfamous harvey rose joining us today. so, harvey for the love of god don't eliminate my position. but thank you to the department heads to community members to people who represent the city, far and wide. you know, this was a very, very difficult budget for us. because as you know. we have been forced to make really challenging changes to our budget. for the past several year when is i was on the board of supervisors, we did not see a deficit at all.

we were fortunate and in this case, we were able to cut a 780 million dollars, two year budget deficit while still making the investment that we know are important to the people san francisco. that we know are important to what we need to do to come out of a once in i generation global pandemic. and i truly believe that the work this we have done together throughout this budget process will leave us in a better place. make us stronger. but more important, it will provide the change we need to move san francisco in a completely different direction. i'm grateful to be here with our department heads leaders and others because it is important to talk about it as we then turn this budget over to the board of

supervisors to go through the process of combing through every thing and trying to squeeze every dollar out of the budget for what i know are their priority bunkham when my hope that when they seat budget they realize this things they have asked for are also a part of what we are proposing in order to build a collaborative budget. where we had to make hard choices. so, i want to put thing in a perspective now, when i first became mayor, our budget was just arounded 10 billion dollars. and now our budget that i'm introducing for this year and next year is both years 14.6 billion dollars. and here is the thing, at the same time we are dealing with a

deficit. faster than revenues we understands there are layers of challenges to that, one of the things i said to my budget team and staff in moving forward with this budget. i want to make sure that people are our priorities. we need to focus on safety and our economic recovery and development and we need to make sure we get to a better place with our workforce. i'm proud in balancing we were able to deliver for our nonprofit workers and ihss workers, public safety officials and other thingseen though again, we are facing a budget defy state. i wanted get more resources in the hands of people so they make their own decisions about how they spend their money. part whf we are looking at to put this in perspective, you know, for those of you who

remember san francisco back in the 70s and 80s, you remember what our city used to look like. neighborhoods issue downtown locations and let's talk about that. downtown where moscoi was parking lots. west field there were few single stores on the block along with emporium and woolworths across the street. there was a change and a shift to think about the future and the downtown region different low at that time and when some of the proposals came inform many of those proposals were not things this people wanted to see happen. they did not want their park to go away. could not imagine how you get all the people here for

conventions under ground in the way and how they build mosconi and the central subway and the link of china town and downtown and the southeast community area. when we proposed the big ideas and changes that will change the fabric of our city. une times there is opposition. uncertainty and sometimes fear. what is happening in san francisco now. is a lot of fear. and alegality of narrative and things that are trying to paint a tishth of san francisco and trying to write and talk about our city in ways where it is passing a cloud a negative narrative about what san francisco is. with all the work do you in your

neighborhoods in the city and all over any major staechl you also know that there are possibilities. there are great things happening. there are buildings opening. there is work done. will we be what we were before a global pandemic, no. but if i had told you in 2019 that wield be experiencing the global pan dem and i can have to shut the city down, and we would still be able to set up testing cites and vaccination sites and food pant row and it is stuff we were able to do not in years but in weeks and months. you would have told me i was crazy. in san francisco when we accomplished emstraights what we do when we come together.

what is possible and how we think different low about things we never thought about before am what is this budget about? this budget is about change. this budget is about thinking different low. . doing the same thing and expecting a different result is insanity. we have to think differently. everything can't be a tax on the ballot. everybody is trying to say retail is going, way because of safety but they also are because of the lars of taxes that are contributing to destroying the retail and online shopping and delivers there are layers of things contribute to that is help nothing stores i don't think most in the room step foot in. what does that mean.

look at retail commoninging these could be places for new lab space or education or something instagram moments like the kids like. could be anything for with this new soccer team that was purchased a women's soccer team coming to the bay area. planting that in the middle of mosconi, who knows. these things may not happen but this is how we will have to think. my hope by the incentives and the change in our budget that it will help us get there yes, we have to deal with the challenges. we have to take care of workforce. we have to save laguna handa and support nonprofits. we have to provide food security, take care of kids and fight for state and federal

resources for our public transportation. we have to build 82,000 unit in next 8 years. we have to do all of this. and think about the future and moving forward. because as much as people are saying, that they hear only me talking about downtown, well the ability to pay for this come from somewhere. it come from a lot of those tax. and how we get people and businesses back on their feet is had that budget is proposing to do. first, changes to our taxes. i want to appreciate supervisor ronen for coming up with a creative idea around first year free. first year free provided the small businesses and brick and mortar businesses to open their doors special not pay the fees from the city. office of of economic and

workforce invest in the build out costs and neighborhoods like bayview and third and newcome is another place, supervisor walton, because of the work we do together to invest in small businesses because they don't have angel investors beating down their door. and when we make those investments not only the business owners have an opportunity but the community they have an opportunity to shop, dine in their neighborhoods and communities. so first year free is a program we will continue to support and build upon. we also plan to provide a delay in taxes for some existing businesses. now to be clear, 14 new tax since 2018 we know well are businesses that can afford to pay those taxes. but there are others that may want we don't want the

unintended consequences of destroying our manufacturing businesses and other things we know we need in san francisco. to develop and grow. we want things made in san francisco and what i hear time and time again is you know we will create it in san francisco but manufacture it in nebraska. because of the costs. of doing business in san francisco and the state of california. we are proposing some delay in our taxes. we are also offering new tax breaks for new businesses because we know that there are a lot of vacancies every where in san francisco. and we want to again, do our part we can't control what the landlords charge. we are trying to work with them to work with us. we can control what we do to respond to that and provide support and incentives. the other thing is we want to get rid of the double dipping

and the things around fees and tax structures that may not make complete sense and could be a potential barrier. these things by themselves do one thing they combine demonstrate that san francisco is going to be a business friendly city. because even though we may not be happy about the millions and billions of dollars that the coe's makes in the businesses. we are happy about the j.w. they provide for the jan tors and the human resource folks the people employed as a result and the tax they pay to our city to help us pifor homeless and childcare services and public transportation and the things we need the most. they go hand in hand. we can't take down business and expect to not have an increasing deficit. we'll be making investments in

that area. the other thing in this budget is public safety. now, i want to be clear i know there has been a lot of talk about account at. we can have a safe city. and we can have a just city. we can make sure that when the lines are crossed that people are accountable but as we hold them account believe we lift them up and provide opportunity for a second chance. incredible promise like positive direction and accomplices to provide with a second chance and programs that support opportunity to help people get clean and the right path and a safe place to live. [applause]. we are investing in our wellness

hums to make sure people have a place to go. changing the department of public health. we will not keep doing the same thing, we mead people to have the ability to get treatment on demand upon easier. the medicine team and it is things that we'll do to help those struggling. at the end of the day, the open air drug dealing, the violence where i have had friends lose their lives just trying to protect their block so appeal are not distributing and selling drugos their block and better in the tenderloin. the accountability is coming. and this is why we are make investment in our police department. to make sure that our rates are competitive. to make sure what we have

incentives to not only attract officers and people who want to work in the police department but to retain them. and what i say to those who may want to criticize law enforcement. and the police department in san francisco, don't talk about it be about it. join the san francisco police department! be the change you want to see. be that community mrfrs everyone asking for. be the fortunate step and up sayil be a different time police officer if that's what you want to see. that's when we need in san francisco. when somebody is shot ambassador is not the person who will show up because we have to protect them, too. so our upon police department will be invested in.

supported. and will be held accountable, too. we are invest nothing alternative to policing. we know mental health is a change. we know that the there are hard work people of san francisco who work in our city departments who are showing up and dealing with this and we need to show them respect and love, too, for all the work they are trying to do to help people. and i want to appreciate urban al kemp for amazing advocacy and the work they done as premayor community ambassadors. same people who were out there once. may be using the drugs and dealing the drugs and arresting and involved in the criminal justice system are now a part of the solutions with exactly what

should be happening. and ambassadors for and by the community. tell be a billions. invest nothing alternates. in programs, investing in treatment, investing in law enforcement. making sure resources are there and fair and balanced. and making sure that we turn things around for our city. yesterday, i talked about some investments in homelessness. now, of course, not everyone is going to be happy about the decisions that i made to take resources that are not being used and spends them on people this we know need help and support now. i don't really chairman because at the end of the day, at the end of the day, we need to take

the money we have and use it for the people we need to help now. we can't wait for the people we need to help in the future. investments and trying to get to a 50% reduction unsheltered homelessness meaned decision and hard changes you know what it means, people like mama t who i met yesterday at the cabin community, it means people like mama t sleeping on the street who is a senior in our community who deserves to live in dignity -- she gets a roof over her head i'm ready to take on that fight any day, any time. [applause]. despite our budget cuts this budget includes resources. to ensure that we have bed this is we can open now. shelter beds, housing.

permanent housing solutions and resources to ensure that people who are struggling don't bottom homeings in the first place all of the things we mode to do to make significant change. i want to talk about our fentanyl response. because you know i wanted to push back on the myth that we north coordinated. we are not doing anything. nothing is happening. and i want to be clear that we can't tell you everything not because i don't want to but because there are layers to all of this. special what i don't want are the people that we are going after to know what we are doing. so, the same thing we did during the pandemic i did not know everything sometimes and i did not tell you things that were not true. i waited until i have the facts. i waited until it was

appropriate to share i did not want to cause panic i think that the same will happen with this thing we are dealings with fentanyl. what i ask is patience. and understanding. because we are coordinating, we are working with the department of emergency management, department of public health, police department, our state, federal officials and others to make an impact on not just behind the scenes and what is happening on a larger scale with the various drug cartels but also to deal with the challenges on the ground. it is a really very hard issue. and not as simple as a treatment program or a second chance or a job opportunity. it is in the that simple. it is very complex as we continue. and so what that means is, yes,

we have our treatment programs and the investments we are making. yes we are going to use law enforcement in a creative way to get drugs off the streets and weapons off the streets to do what we can to hold people accountability and also wellingness to give them a second chance. we are not going to keep doing the same thing we gotta change it and get aggressive and do what it takes to get our streets under control so they are safe for everyone who lives, breathes, works and does business in the tenderloin. and i know i know some of decision are not going to be popular but again i don't care. i did not become mayor to be afraid to do this job the way it need says to be done of the

[applause] i didn't become mayor to stroke the egoes of the most active and loudest voices. i became mayor because those people in the tenderloin are my people i grew up with baby sat me. looked out for me, took care of community they need our help, respect and support. [applause]. let me tell you when we doll around of fentanyl. expanding our law enforcement staffing to shut down open air drug market and it is already started. [applause]. as i said, launching new programs to make sure that people can access service and we bring them to care and i want to put the people who are doing the

service on notice that we are doing a deeper dive and if you are delivering you get fundd and then smchl if you are not delivering we are taking away dollars. because enough is enough. accountability heads to be a part of that, too. we will be expanding our health services to provide more support for those struggling with addiction. and this is going to be the hardest part we know. and we have to address the neighborhood impact by providing nonlaw enforcement support to keep the streets safe and clean like we are with folks who are like a part of urban alchemy. those are a few things around this issue where we are making budget investments. and i want to also say what we will make the investments to keep our streets cleanful

investing resource in graf fittee and road repaving. invest nothing park and do so. we have the best parks in the world. our limp everlibraries those are place of sanctuary. children and family investments will condition with pay and vouch and investment in facilities. our climate action plan is on track to get us to a 100% e mission free in the city before the state by 2040. goal to keep our transportation system running. in the case of a massive fiscal cliff. and we are trying to appeal to our state partners and others to support us so we can ensure that

our transportation system is robust so we get people back to the office as we began to push for transformtive change. so. there is a budget book you with read. everything we do for all different departments i want to really thank the department heads because i squeezed as much money as i could out of most of them and many of them would not provide cuts. even when i asked but this time they d. and made a world of difference and beens the budget. it seemed like it was seamless but it wasn't. i want to say they know there was a lot said here that needed to be said but -- at the end of

the day again i want to go back to reminding us who we are. because -- we can't keep letting other people write the story. we can't let other people talk about san francisco the way that they want to talk about san francisco when we know what san francisco is. so i challenge all of you tell the store. talk about the experience you have innior neighborhoods. not just bad butt good. the beautiful places that just opened the new businesses and the new opportunity tell the story of the goodness of our city. because -- upon even though

there are challenges that exist when i appreciate is when the time come to invest in the shelter we come together. when the time come to help member in need we come together. when the time come to support a business from closing we come together. yes, hard decisions had to be made. in this budget, sacrifice in this budget that 19~ means every dollar cannot be wasted. it has to be used. to change san francisco for the better. not just the narrative of what people write. how people feel. what we are delivering. what we are changing. you hear all the stories but san francisco is on the top 10 places to visit. [applause] you hear all the stories but our airport is the number one in the country.

you hear all these stories but between 2019 and 2022, no other bay area county saw a reduction in unsheltered home and reduced by 15%. [applause]. as we think about moving through this budget process. as we think about the work that we need to do. let's not do it the same way. let's not advocate for the same thing. advocate for change. advocate for something different. think bigger. who would have thought that mission bay which was where people went to play golf in a range and a railroad would become the home of the national champions of golden state warriors and concerts and efforts and university of california san francisco that area is buzzing.

withhold have thought that pier 70 empty and vaccand. and no one not there closed off to the beautiful waterfront shipps were built and repaird and now it is open to the public and satellite company is developing and building. who would have thought? the freeway that blocked the beautiful views and a cloud on the ferry building area. withhold have thought that after the 89 quake when everyone thought the city was destroyed things were over the waterfront is the most sought after death of the nations of san franciscans and people who visit who would have thought. san francisco, san franciscans we would have thought. we know what we are capable of. we know what we can do. we than when we come together anything is possible.

so let's transform san francisco and let's make magic happen! [applause] thank you. [applause]

>> hello i'm city attorney david chiu. first i would like to everyone to understand how we got here. in the 1970s, certain pharmaceutical companies created powerful description opioids and manufactured a crisis of undiagnosed pain. extremely dangerous and addictive opioids were marketed to patients as safe, we now that was a lie. prescription includes normally reserved for end of life care were given to people with headaches and back pain. this resulted in millions of american and entire generation

becoming dependent on opioids. every aspect from manufacturing manufactures to retailers to distributing played a part in exacerbating this crisis. five years ago, san francisco brought a lawsuit against every part of the supply chain distributing distributors and dispensers like walgreens who pushed out these drugs to patients without regard obligation to flag suspicious orders. they were more concerned than profit than following their legal obligations. they did not give their pharmacist time to conduct due diligence pressuring their pharmacist to philadelphia. --fill, fill, fill. walgreens received over 1,200,000 red flag prescriptions yet they performed due diligence before

dispensing. this opioid 'em dem epidemic has affected many. and there is been a direct correlation between the prescription opioids these companies pushed years ago and addiction crisis on our streets again. again quoting judge brier, there was evidence showing how abusive prescription opioid lead to elicit opioid including heroin and fentanyl as addiction becomes more severe, opioid users create stronger and cheaper opioids. the cycle of addiction is foreseeable and from the trial noted that 70% of heroin users today start withed prescription opioids. for so many of us, it has been frustrated to witness the tragedies every day.

it's easy to blame those struggling, but we must remember that some of the most profitable companies in the world, engineered this public health crisis. now before the settlement itself, let me say this, there is no amount of money that will bring back the lives that we lost due to the epidemic. we mourn our brothers and sisters, our mothers and fathers but the one thing that we can do as lawyers is to fight for justice, to ensure that those who cause harm are held accountable, with they it case we took on opioid manufacturers and distributors and pharmacies. one by one we secured settlement and until today our law enforcement has brought in 130 million dollars to the city. the last remaining dpept --department by the end of the trial was walgreens. walgreens gave short trip for

15 years , its pharmacies failed due diligence many written by suspicious prescribers. evidence presented a trial made it clear that walgreens chain in san francisco which had a history of failing to comply with federal regulations, filled a significant volume of illegitimate prescriptions and contribute today opioid distribution and made the situation worse in san francisco than it would have otherwise been. today we have secured a 230 million dollars settlement with walgreens coming out of this lawsuit which is the largest award to a local jurisdiction against a local department in the country. we will receive 57 million dollars by next june of 2024 and then the vas majority of

the settlement over the next 8 years, over 175 million by 2030. as points of comparison, if we had not brought this lawsuit, we would only be receiving our allocated share of national litigation which would have been about 15 million dollars. this settlement is over 15 times what we would have otherwise received. twice the value of 83 million dollars received bitten tire state of west virginia, a state ravaged by opioid. today brings total to over 350 million dollars. which is the largest amount in the history of our office. this is money our city will have over the next 15 years to alleviate the crisis to get people the help they need and to address the tragic suffering. now in this trial, we have sought to lift up the voices in our city with witnesses toiling on the frontlines of the cries.

the judge relied on their stories and its findings, we are grateful to our city partners for their incredible work. and i want to thank the department of public health, lead by cole facts, to our library, to our fire department and i want to thank chief nickel son, to our department of public works and recreation and parks department and our medical examiner office, our sheriff's office and so many more. let me conclude by thanking the legal warriors who fought on the frontlines of the fight for justicement i am so proud to head up the best municipal law office in the country. we would not have achieved this significant verdict, at the moment the first bench to rule against the opioid industry and the first bench trial to find walgreens liable without the

brilliant minds in our office. newer opioid team, we have ivan, sa ra, mckayla, george, sarah gutierrez, julie, owen and others. i want to also acknowledge my predecessor dennis herrera and his chief deputy attorney ron flynn. we also would not have been able to litigate this case against some of the most profitable companies in the world without our outside counsel, include hyme an and bernstein, roder and dawn, simmons, hanley conroy, levin papentoya, whites lex underer bergh and take a moment and welcome our former city attorney, louis renney and the renney public law group. on behalf of our city and the people who will benefit, i want

to thank each and everyone who are here today who share in the credit for today's announcement. and with that, we have 3 speakers today. it's my honor to bring up somebody who has for his entire life but particularly in resent years as been grappling crisis after crisis and i'm of course i'm referring to dr. colfax. [applause] >> well thank you city attorney too. i really want to thank you for giving you the perspective on what pharmaceutical distributors did to create this crisis. i trained during the period of time that you talked about including at zuckerberg san francisco hospital and i witnessed firsthand the pharmaceutical and distributor abuse of