the port. it moves them to a two-year fixed budget. it establishes triggers whereby if revenues or expenditures increase or decrease by more than 5% during the second year, the mayor would be required to bring forward an adjustment to that adopted two-year budget for the board's consideration. it maintains the board's policy- setting role as circumstances change without the need for a full budget review. that was a very quick run through these four pieces. i do have an amendment for your consideration today. they are largely clerical cleanup changes to the legislation for the nonrecurring revenue policy. it clarifies the interaction of nonrecurring revenue with the rainy day reserve in the budget stabilization reserve, so we do not end up in a funny circumstance where a budget was adopted that assume, for example, the use of the rainy day reserve, and after the budgets adoption we received a nonrecurring revenue source that suddenly makes us an eligible to withdraw from the rainy day reserve. it allows you to use that nonrecurring reven

finally, we have the budget deficit reduction committee. they have until thanksgiving to come up with 1.5 trillion dollars in cuts over the next 10 years. those are not clear it would have an immediate or direct impact on the general fund to the operation, but it will likely impact the redevelopment lot rep pending. housing programs and transportation. again, at this point we have obviously no clarity on what the cuts would be, but it is clear it will largely fall on these kinds of sectors of our services. before i go into the 12, 13, 14 preview, i thought i would review the five-year financial outlook, because obviously that will guide in shape are discussions going forward and how we craft the budget for the next two years. the five-year financial plan was required by proposition a, passed by the voters in 2009, by the mayor. it projected increase in general fund shortfalls, starting with $458 million in 2012-13 growing to 839 million in 15 and 16. it is not necessarily a revenue problem. the problem is expenditures are expected to grow fa

why don't we go to the budget analyst report? >> madam chair and members of the committee, attachment one on page 5 of our report provides details of the application for each of the 15 cbo's the totals 1,814,722. as you know, the requested amount was 1.9 million. the requested amounts would paid for an estimated, as you stated, 196 slots in early child care programs, and that would be an estimated average cost of $950,000 for each lot. on page four, our recommendation based on the budget details, we recommend you approve it to reduce the appropriation by 56,00875. -- by 560, 875. we recommend you approve the ordinance as amended. supervisor chu: thank you. are there members of the public that wish to speak on this item, item four? >> i am the new executive director of florence creed and services and whitney young development center. we have several hundred slots that we operate, and 700 families in the lowest economic strata and the city, and we serve five different string districts. with the support, we will be able to support th

that is more than the budget of any other states. if you look at the way city hall is, there is over 100 commissions, boards, advisory boards, so on and so forth that overlap. they can combine a lot of them and save a lot of money. >> in light of the fact that this tax has already been proposed, it recently expired. how can you see consequences as a result of increasing the sales tax just .5%. >> it takes money away from the people that needed them most. if you are an upper-middle-class person, it won't harm you. but on lower end, it does harm you. that is why we should not pass if. >> proponents say that we have to do this to offset the tax at the state level. how do you propose that the city deal with the extraordinary budget cuts that i've come from the state? >> proponent to are mostly public employees and employees of nonprofits will have you believe the sky is falling if they don't get this raised. if they go back to 0 base budgeting, do good budgeting, good management, they have plenty of money to run the city. >> we hope that

s foreign secretary says that the e.u. budget is now under control is that the truth and i think it's not the truth i have to challenge. the speech because he doesn't know. he thinks it's under control because he's asking for friess in the budget but while he was talking about the freeze there was somebody. the budget committee was trying to vote in favor of an increase of four percent so it's not under control and also. you know we don't know exactly where the money is cool and i think we should know it's basically for everybody you know as i told you why is it that greece hasn't grown its economy italy spain portugal what is what are all the structural reforms that we have been paying for the last take. so no it's not on that point members of parliament here in the u.k. now look set to hold a debate on whether there should be a referendum on britain's membership of the european union do you think britain is hooks on the e.u. despite talking about wanting to leave. while i think that the government might be hooked to the europea

however much the budget grows interview. i'm talking to mark to address and he's now a member of the european parliament for the u.k. independence party but she was formally the european commission's chief accountants while she was in that job she raised concerns about flaws in the commission's accounting system which seems that left it vulnerable to fraud bartram stress and thanks for talking to us today now where you were euro skeptic when you joined the commission as chief accountant no i was not the euro skeptic in fact i thought the euro project was a project of cooperation i thought they were sharing solutions among the different member states so i was quite onerous to be able to be part of the european union and also on or to be part of our ministry for reform that they were undergoing what happened or what did you find out to make you change your mind while i found out that he had no control on the payments they were making out of the european union budget basically you know they didn't ask if people qualified to get

they have been updated to reflect the budget. we expect the certification. we have also included updates on investments, the retirement peace, in new transactions. we expected the board will delegate authority to the comptroller to make amendments. so that authority will be delegated to the controller to make those changes and give the statement. we also concur with the budget analyst recommendation to limit the term of the availability to five years, and that will be open-ended. that is it. i will be happy to answer any questions you may have. supervisor chu: thank you very much. let's go to the budget analyst report. >> madam chair, members of the committee, as is pointed out on page 6 of our report, this first series will result in an interest rate savings will result2.08%. the debt service over an 19-year time span, the annual debt service will be about $25.4 million. as she indicated, we have made a recommendation to put a time limit of five years on the issuance on this refunding bonds. supervisors, that would be consistent with what the board of super

this has been an unfortunate story for the city's budget for the last 10 + years. we have faced projected deficits in all but one year within the last 13. this requires a pretty significant effort by the mayor and board of supervisors to bring the annual budget into balance. it requires an almost perpetual budget process in the city with impacts on all the folks that provide our services, whether city employees or nonprofit contractors. and most importantly, those that rely on city services. on this roller coaster during this last deadly -- sadecki, it is important that we end this decade with about the same size work force as we started with two we have grown enshrine fairly dramatically several times over the course of the decade. unfortunately, this chart also indicates that we're spending more as a city during this past decade. at moments in time where the demand for most of our services or less, because we tend to grow during times of economic prosperity and ensuring in harder economic times when demand and services for the city increases. we have errors align

these are difficult times with the budgets. i want you to know that you have the board of supervisors will support in trying to make this happen. we want to be a partner in help making this happen. you can use us as a resource and help you to figure out where you can find here funding. i do appreciate the difficulty you have in making budgetary decisions for the mta. i want you to know that you have our support to make this come about. chariman nolan: i'm sure i speak or all of us on the board when i say i appreciate the offer for cooperation in. thank you so much for joining us this afternoon. i understand you have another meeting to go to. secretary boomer: stella estevas. john brown. >> good afternoon. >> [speaking spanish] >> good afternoon, i am here because i want you to give fast passes for free to children. >> [speaking spanish] >> i asked her why she wanted this, and she said because my mom does not have enough money to buy fast passes. chariman nolan: thank you. [applause] good afternoon. >> [speaking spanish] >> my na

the budget committee was trying to. vote in favor of an increase of four percent so it's not under control and also. you know with or know exactly where the money is callie and i think we should know it's visible for everybody you know as i told you why is it that greece hasn't run its economy italy spain portugal what is what are all the structural reforms that we have been paying for the last take. so no it's not on that point members of parliament here in the u.k. now look set to hold a debate on whether there should be a referendum on britain's membership of the european union do you think person is hooks on the e.u. despite talking about wanting to leave. while i think that the government might be hooked to the european union i don't think that the country as a whole is called to the i think. the u.k. could really european union negotiate another type of relationship when there are people who are very critical about you know what would happen how would we trade. the u.k. trade they've done existed before the europea

at this point in time, we're projecting to end the year on budget. i want to go over the revenues and expenses. in terms of the revenues, as you know, the largest part is charging for service. we have 25% of the year already concluded as of the end end of september. right now, our revenues are 28.4% in terms of charges for service. so we're doing well in that area. as i mentioned before, the apartment and rental unit fees will come in starting in december. the deadline is december 10, before people start to have penalties. usually these get posted in december and january. so we will know better when we are actually in the budget process, when we submit the budget to you, exactly where we will be at that point in time. when you look year-over-year in terms of our revenues, it does show that we are -- we have 37.52% unless this fiscal year than last fiscal year at this point in time. the majority of that is due to the intergovernmental agreement, because we got a lot of money early in the year last year for the transbay project and for the exploratorium

the trigger threshold for reviewing the second year of the fixed two-year budget, the file has been proposed its budget costs or revenues are projected to change by more than 5% the second year and that we also consider approval of that 5% trigger to be a policy matter for the board of supervisors. let me emphasize that in general, we're fully supportive of the controllers financial policies. however, since there are different -- there are significant changes to the whole process, we consider approval of the three pros to ordinances as amended with our suggested recommendations to you. and the others and the proposed resolution as amended to be policy matters to the board of supervisors. supervisor chu: thank you. to clarify with the city attorney, with the amendment as a whole be substantive or not? it would not be substantive. ok, thank you. let's open this up for public comment. if there are members of the public who wish to speak on items nine, 10, 11, or 12. please come forward. >> right at the onset, for those or at home, on matters like this, we need three minutes. but as has been the

contracted and it is the family budget that has to pay for the federal budget. t is in order of magnitude we know the discretionary spending of our nation is roughly 40% and shrinking. are entitlement spending is roughly 60% of the budget and growing. we know outside of interest payments on our national debt that are mandatory spending is principally driven by our health care and retirement programs and are simultaneously starting to deserved their beneficiaries and driving the nation broke as they grow at five, six and 7% a year were unfortunately our nation over the last few years have actually seen they could have economic growth. to put this in an even larger context, under the budget control act, we collectively have a goal, goal of $1.5 trillion deficit reduction but we have a duty, a duty to provide recommendation and legislative language that will significantly improve the short-term and long-term fiscal imbalance of the federal government. thus, the challenge before us remains that we must find quality health care solutions, quality retirement security s

this sly gives you a breakdown of some of the major components of the project budget. we had to revise this slide so i will speak to the key points in this. the information has changed slightly since this slide was originally prepared. the brt improvements have would be made, depending on the options, it would range from $67 million to $210 million. in are a number of things the need to be implemented, including new bosses, the repaving of the street, the overhead system, in the 49 commission uses as well as upgrading the signaling system. when all of those elements are taking into nomination, the projects range from $162 million to $216 million. we have a variety of funding from many sources, federal, state, and local. totaling about $175 million. depending on the alternative that is chosen, we either have the funding or we have a small gap that we would need to make up as we move through the design process. this is a common level of funding support for a project that is completing its environmental review phase. quickly, i will walk the three alternatives that are bei

i think the issue that the budget analyst is bringing up is making sure those things happen. that the study happen and the administrative phebe continue to be charged after the -- administrative fee continue to be charged after the study. the issue is we would need to come back with a steady, with this agreement after the study is completed, and we can do that. the two years are already captured in the study. after that, which it captured in the agreement. after that there needs to be a study to determine whether the 5% continues to be the peak or whether it is something other than that or less than that. and-- continues to be the fee or whether it is something other than that or less than that. it is fine to except the budget analyst recommendation, but it makes sense to bring it back to after we of the study so we can tell you what the percentage is and what the administrative fee is. the do>> madam chair and memberf the committee, there is nothing in the agreement that legally fines of the study to be done. i understand miss williams stated that part agrees they will do the

and it is the family budget that has to pay for the federal budget. he discretionary spending of our nation is roughly 40% and shrinking, our entitlement spending is roughly 60% of the budget and growing. we have interest payments on our national debt that our mandatory spending is principally driven by our health care and retirement programs that are simultaneously starting to disserve their beneficiaries and driving the nation broke as they grow at five and six and seven percent a year where, unfortunately, our nation over the last few years has actually seen negative economic growth. so to put this in even a larger context, under the budget control act we collectively have a goal, a goal of $1.5 trillion in deficit reduction, but we have a duty, a duty to provide recommendations and legislative language that will significantly improve the short-term and long-term fiscal imbalance of the federal government. thus, the challenge before us remains that we must find quality health care solutions, quality retirement security solutions for our nation at a

the budget analyst to the rescue, again. >> good morning. we could take supervisor, president chiu's language and say something to the extent of, with respect to the recommendation, the board of supervisors will evaluate the need for additional staff, a senior personnel analyst, constraints of the budget and that requirement to the commission. supervisor campos: that sounds good. that is perfect. so we have a revised motion by supervisor farrell. can we take that motion without objection? thank you. madam clerk, please call the next item. >> we are going to item number 3. the hearing -- tabled here in number one. supervisor campos: we can table hearing never won without objection. with respect to item number two, we can repeat the motion, which is a motion to agree with the findings, and with respect to item number two, and this is something we already did as part of item number one, but if there is any member of the public who would like to provide an additional comment on item number two, which is the response from the board of supervisors

committee the two thousand. and twelve budget and they have what they are asking for over four percent increase i won't even asking for the creases but fundamentally saying we should at least reduce the allowances for the enemy please and they don't want to reduce them. i think we should show the example and the every piece themselves don't want any reduction and the council of ministers had decided they wouldn't give more than a two percent increase and here the parliament goes back and say no we want more than four percent increase so i don't think there is no will and i am a lonely voice really in the parliament in what we first reduction of the budget and ultimately it's your goal to as it were destroy the system from within ultimately my role or my goal is to make people in the u.k. but also around the rest of europe know the truth about the european union project know the truth about how their money is being spent this is my goal and then it's up to people to react to this new information or to this information even if it's

we have closing to do just to end the year within our budget. if that means cutting things so that we can and the fiscal year within our budget. what that does not address are the needs of the system that we have not adequately funded over the years such as maintenance of the vehicles, which leads to read about -- reliability issues, cleanliness of the issues. all of these things that make this not the preferred mode of transportation of choice. we have a level of funding to meet our basic service requirements if you don't count special events and work around where we have system failures. we have a number of electricians, mechanics, car cleaners that we need to operate a world class system. we maintain for basic safety. we don't have the funds right now to maintain for cleanliness and convenience. we have a structural problem and we will do what we need to do to bring the budget this year but this does not address the rest of the gap that we have underfunded for years if not decades. i put that as context because to the extent that we're able to

the issue, the biggest part of our budget, over 50% of the budget, 60% of our debt, it has gone from 25% of our budget in the 1960's. if we do not get that largest and fastest-growing part of the budget, we will not accomplish our goal. but having said that, let me give you some statistics on the discretionary side at this hearing today. i will give you some numbers from 1990 until today. non-defense discretionary has risen during that time by 95%, which, by the way, is nearly double the 52% growth in defense spending. 95% on non-defense. admittedly, the defense spending is not high because the increases we have seen have been more recent from 2001, reflecting an increase of the cuts in the 1990's on defense, so if you used just the last decade, the defense would be higher. but let's look to 2011. on the education side, discretionary spending up over 100%. international spending up 102%. community and regional development spending up. help research and regulation spending up 56% from, and so on, so i think we need to keep both of these things in mind. one, if we do not work on these i