budgeted. the gray embarrass represent the revenue actual collected. you see in each of the last 3 years revenue was a level higher than what was collected. and so -- for fiscal 26. this has not happened what this set of bars is representing is what was in the budget for the second year of the important budget cycle. you see that was optimistic when now the base budget for fiscal 26 a 2 million dollars difference. there is uncertainty how the hotel tax will perform. you see the hospitality sector slowed down and not quite achieved the. hopes that were reflected in prior years. in the last couple of fiscal years we we are many of our grants are not sized until spring. there are application roeszs in the fall. they are assessd and awards recommended to the committee and the full commission in spring. in october they were revising down the hotel tax projection and ghaen january. january/february. another reduction to the annual revenue collection and again at the 9 month report in march. that's th

dph budget 3.2 billion. 7700 budgeted ft e split with the lion share of budget authority and ft e authority. and then followed after while laguna honda and behavioral healing divisions. in the pie chart you will see 1.3 billion for san francisco general represents 39% and the other divisions following thereafter. one question from the commissioners about the break down of cbo contracts by spending category. so specifically, roughly across the divisions there is throw 50 million dollars in general fund supports contract authority. may be lower then and there i'm giving credit. 2 thirds of that are bhs which draw down some medical. the remainder is spread through hiv health services and other communities health programs. >> so. an important part of our approach for all budget is that we are maximizing our revenue opportunity. we look to any opportunity we have to draw down revenue and maximize it. you can see we have i track record since 1920. the amount of our the dph budget grown near 32.5 to over 3.2 billion. at the same time our reliance of general fund support decrease said from 31% to 2

budget. so whenever the mayor's proposed budget comes out it'll say the ethics commission's budget is $15 million. it's not $50 million. we have the operating budget around about 7 million and then the election campaign fund will actually fluctuate quite wildly year to year because of how the city funds it and because of major expenditures out of that fund during an election year in this last election in 2024 i think it was around $9 million of expenditures out of that fund plant. >> imagine we can use that money for operating expenses, right? >> it's we we can in a very limited way in we're actually exploring that right now what is the the full extent of what we are allowed to do? there is a provision in the code that allows us to use i believe it's up to 15% of the balance of the fund for costs that are associated with administering the program. the balance of the fund is a moving target so i think we have to figure out what that means. what is 15% of the balance when that changes all the t

then we'll go over the budget instructions for this year's budget process and discuss briefly the budget climate. as you know, is challenging. and then we'll talk about the proposed revenues and expenses. >> both operating and capital with respect to the budget process, we're currently at the department phase of the process. our agency is required to assess our needs and develop our proposed budget in this phase. we are required to submit our budget through the budget system by february 21st. so this is the first of two public meetings that will be holding. and the second will be the full commission after we submit our budget in february. >> the mayors phase begins and the mayor's office can make further changes based on mayor laurie's policy priorities for the arts sector. before he introduces his budget by june 1st, the board will then conduct their hearings in june and the final budget will be signed by the mayor around july late july or early august. typically with regard to the budget climate. as you have likely read in the news, the city is projected to have approximately $876 mill

this really are a reflection of our budget is that it's a flat budget. we're basically asking for no cuts. no we want to keep and maintain what we have right now without the 15%. so we did that 15% is not added into here at all. >> thank you, vice president carter oberstar thank you, president ask sir so can you just clarify i just want to pick up on something commissioner benedicto asked so can you just clarify when you say the work that you do for the sheriff's is just based on the actual work performed that that means you don't get up for an allocation that you get you get refunded after the fact based on your hourly rates for the employees who worked on the sheriff's department. >> that's correct. so basically we make an estimate of what the work order is going to be and then we perform that work. that work is hourly. it's tracked just like you were doing working at a law firm where your billing hours we take that calculated in and then every quarter we get those funds back based on the actual work we do. >> it's not a set fund but then the individua

the governor spoke about a lot of risks to the state budget from the federal budget but at this point at least we're not looking at big cuts from the state level. federal level is of course trickier. we we have a new and very different administration coming in. >> there are lots of statements being made but you know, we don't have anything that feels like concrete proposals of any sort from the the incoming administrator version yet. so so we will see how that develops. okay. so that that's the point we're at now we have an $8 million target to deal with and we have some other budget needs at the local level we have had within hsa within days debriefs and admin we've had relatively low staffing through the early part of the pandemic period over the last two years we have been building back staffing within our approved positions. we are now at the point where we will have to be adding dollars to the personnel budget if we're going to keep hiring which we'd like to do. we think that makes sense to do but that that becomes a sort of a new need for us in our budget development process and

i want to also know we want to get on to the budget and this is somewhat related to the budget. i want to thank our staff for an amazing first neighborhood beautification event. >> it happened over mlk weekend half of this past weekend and so many people were looking for and found an amazing opportunity to volunteer. but i'd like to make sure director shaw i've got three things that i observe correct as we get ready to prepare for our budget. one, i was very surprised by the folks who were there as a part of community service. that is our our system here allows for folks to perform community service in lieu of fees and things of that nature. that's really important as we talk about sixth street, we talk about homelessness but we should also talk about homeless prevention. that is imagine if your car gets impounded. you have no way of paying that fee. that also means you no longer have a way of getting to your job. think about all the number of things that can happen to a person that this gives them an opportunity to stay gainfully employed. but most importantly they get to engag

we just have the proposed flat budget. so the 200,000 is not in this budget. so this is what was agreed upon last year with the mayor's budget office with the base budget of 1,000,417 530 with the fte. but as you guys are aware there's only two positions that are available for filling at this time and that is the ig or one positive filling and then dan is in the other position as the 8173 clerk of the board. >> so the impact of the current budget is it's going to reduce the ability of the department to really function. it's going to extend the resources of the oig to be dependent on dpa to continue doing the work, the investigations policy, not having the ig you know will reduce the impact ability to do a lot of the additional things right now and will prevent the usda from adding services to the community. it's really going to focus focus only on those core functions that the dpa provides at this time to be able to meet the charter mandates. next slide please. overall, as you guys can tell from just the budget, you know we're the major majority of the budget

budget in june and july. what has changed? >> we have seen revenue projections that have needed to be revised downward. >> we've had continued inflationary pressure on contracts and leases and materials and supplies. the voters approved a number of ballot initiatives in november of 2024 that increase the city's costs particularly related to education and children's services housing retirement benefits for certain city employees and some staffing costs that collectively adds up to a projected cost of around $50 million a year. >> and then because of the particular a concerning third year budget deficit of over $1 billion in just one year spreading fund balance over a three year period to to give us a lighter glide around downward toward that meeting that target this looks mostly retro respectively and as a reminder that for the last few budget cycles the city has really relied on one time sources in particular federal disaster relief and general fund reserves and fund balance those one time sources are are bei

preparing the budget for fiscal year 2526 and 2627 and just in broad strokes the budget is proposed by the mayor and then modified and approved by the board of supervisors and ultimately then signed by the mayor and the timeline is, you know, about eight months and the city has already kicked off its budget process in december or when the mayor actually issues the budget instructions to all city departments and really what that means is based on all of the financial projections based on sort of revenue is projected to come in for the city as well as any projected expenditures the city sort of determines what's the gap between revenue and expenditures and the most updated projection of that is roughly $800 million over the next two years. >> so the city is facing that big of a deficit in the general fund based on that deficit amount. the mayor issues instructions on sort of how departments can go about sort of helping bridge that gap. so what are things that are important to keep intact that's usually service levels and sort of making sure that programs are able to reach the people m

budget. that's almost entirely due to the pacing of the draw on housing subsidy funds from tax in order to support our new affordable housing developments . other things are tracking fairly fairly close to last year's established budget by category we have $14.7 million in the authority cost budget 6.4 in the city cost budget and 6.1 in the subsidy budget and again the the the budgets establish a ceiling for our expenditure authority generally we we fall well beneath those by 15 to 25% but that that is the authority that is established and then we'll trying to hit those revenue targets and contain our costs overall authority costs revenues are projected to decline slightly this year and be flat next year. that's largely an acknowledgment of the number of market rate households that have either moved off of the island or moved into new permanent housing. so we have some $600,000 lower projected revenues on the house house residential leasing revenues. there are certain expenses notably tied of

budget. this will be presented by kelly dearman and hsa deputy director of finance and administration dan kaplan. thank you president spears commissioners a month ago i was here and we talked about the budget situation we're in just to review that as most key points in november the comptroller's office forecasts what the five year fiscal outlook for the city is and those forecasts are used to establish a funding gap or a funding surplus for the upcoming biennium in this november's forecast they established an $876 million biennial funding gap. the mayor based on that gap asked directed departments to propose budgets that included 15% cuts in discretionary general funds when i was here last month we talked a little bit about what was discretionary and what was not discretionary. so for hsa that is does the rfs and hsa administration a relatively small portion of local funds are in fact discretionary but if we multiply through our 15% of our discretionary general funds we get to a reduction tar

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and an annual operating budget. the about request is what we deliver to the mayor's office on februar 21st and it represents the new funding being requested by the department. the operating budget is more comprehensive. >> it's a more comprehensive representation of the department's spending plan and takes into consideration the department's entire current projections for revenues and expenditures in a given fiscal year. >> so while the annual budget proposal that will submit to the mayor's office on the 21st of february will be approximately 37.7 million for fiscal 2026 we anticipate actually utilizing approximately $52 million in the same fiscal year. for this reason that we usually focus on our operating budgets in these presentations we feel it's the best way to provide the most comprehensive view of our budget process and spending plan for for fiscal year. so every department is required to submit a two year budget but because of the nature of our funding and our heavy reliance on grants, it's it's incredibly d

compared to the budgets for the upcoming years. >> what is our base budget? what does that actually mean? just kind of an overview of our structure both on revenues and expenditures. challenges we face both citywide but also uniquely as a department and the way our budget is structured, our budget priorities and the next steps we have and then again answer any questions that may come up. >> so at a very, very high level we're looking at a slight increase from what we were approved for in the current year so that f y 2425 budget that is what we were that was approved at the board level last year and the current budgets approximately the proposed budget for next year is about $16.5 million which represents about a 3.1% increase that is mainly due to previously agreed upon wage increases previously or kind of reconsidered and re analyzed health and benefit mandatory fringe benefit rates. it doesn't represent for us it doesn't represent any operational changes, no new programs being added that was consistent with our budget last year. we were essentially able to

dollars operating budget. capitol is puc learningest driver 35% comprising 23% going toward debt service and 12 toward pay go funded capitol. distribution is next at 26%. and personnel and nonpersonnel costs that support daily operations at 14 and 19%. and reminder of the 11. 8 billion dollars 10 year plan adopted last year. it was halfway with major projects the completion of the. digestive facility, [inaudible] flood resilience and main repair and water major projects the yard improve ams to marin projects and replacement of water mains and empower this include public pure. clean steam and moccasin replacement. this is a hearing on priorities. here san over view of the priorities we establish in the the developing the 2 year budget they have not changed since last year and as we go in the second year. we are making minimal changes to numbers adopted left year. throw priorities continue to be affordability, responsible management and investing where it matters. and urngd each i will give an example of how we

considering trump's budget requests. i must say my deepest concern about the reconciliation bills they will be working americans. working americans who president trump appealed to in his chairman pain. working americans who listened to the strategies he laid out and proposed. certainly, the actual plan isn't to help working people. the actual plan is to help the wealthy get wealthier with massive tax give aways. with working families paying the bill. now, how are these massive give aways to the wealthiest families paid for, well, by slashing services to working families and struggling families trying to get on their feet so they can thrive and get to the middle-class. this is great betrayal. today, we will consider president-elect nomination of russell vought to lead the office of management and the budget, which is really the place where this campaign is coordinated. we will hear very different ideas about how to take our country forward. from my friends across the island mr. vought we will hear we need to continue to g

i do have a budget proposal that i want to get your feedback on and then i also have a budget request that i suggest we make to the mayor's office that would not involve a cut to the ethics commission. so i'd be eager to hear your feedback on that. i think it's always good to make both kinds of proposals to the mayor's office that they can evaluate that. >> this slide just reiterates what the strategic priorities are right now for the commission. i think these are things that we've talked about together at many meetings. i think they're in alignment with our basic charter mandates . they align with our program areas and the basic programs that we do. so this would be kind of a flavor of what will go into the proposal, how will be portraying the work that we do at the commission? and again this just gives a snapshot of what our current fy 25 budget is and what our baseline would be if that were carried forward into the next two fiscal years. and again you can see at the bottom that we are about 87% salary and benefits. we are primarily a organization of people. we are not an organizati

so for the budget process city departments are required to provide an annual budget for the next two years and the supervisors and mayors will take the departments budget submission and make they're changes and finally approve late in the summertime. so mayor london breed instructed auto departments to reduce the fund by 20 percent in 2026-2027 and mayor-elect daniel lurie is coming in the middle of budget process and soon before our budget presentation is due well working closely trying to determine they're priority and changes they're looking to make and we will implement those into the budget submission. >> so our budget is a reflection of the values and our budget has two preliminary goals one is cost recovery to make sure we have enough staffing hours more the program obligations and two investing in new technology to modernize our agency and complete the digital transformation and the complies role to evaluate the proposal and vote whether or not to perhaps the adoption to the mayor and board and to answer vice president shaddix question again, the department will be involved a

that budget?d 12,000 licenses for ameera and 100 students used it is that a good use of our resources? we you know we already pay for aftercare but we're not executing to use those minutes. we want collaboration between teachers on the same grade level but what are we doing to ensure that we actually have teachers staffed in the same grade level who have different levels of experience? and so i think that is where some of these questions are is what can we do better with the resources we are already expending to get better student outcomes for sorry before we move on i just wanted to make sure because i think we allowed dr. kim to speak and then we sort of started asking a lot more questions and you all nicely organized your answers to respond to the 20 minutes of questions we had. so i feel bad if we just move on to the second thing without providing ample space if there's anything else we may have missed in this conversation that still had to be answered and you all took the time to think figure

where's your budget proposal? what we've seen from republicans in terms of the budget is they want to end medicaid as we know it, are considering eliminating the mortgage interest deduction and want to take away veterans' benefits and nutritional benefits from children and families. is that something democrats will support? no. we will also not support massive tax breaks for republican billionaire donors and wealthy corporations while doing nothing to lower the high cost of living for every day americans and sticking working-class americans with the bill. it is hypothetical because we have been waiting day after day, week after week, month after month for the republican budget proposal. where is it? what's the problem? you have lectured america that you have a big mandate. where is it? reporter: speaker mike johnson that democrats have been been unresponsive over the last couple of days with respect to negotiations. can you update us where things stand? what's your response? mr. jeffries: projection. reporter: can

is a terrified, the budget we we saw tariff cuts r on case there is a terrified, the budget we we sawe high—end motorcycles which would davidson would include harley davidson as well. the message many would include harley davidson as well. and message many would include harley davidson as well. and messag say my would include harley davidson as well. and messag say to the a nalystsand experts say. to the from india, analystsandexpextssay. to the from india, they for a confrontation and looking for a confrontation and they look for a way forward to and this amicable try and make this as amicable as possible, all are as possible, but all eyes are on the and developments over next few days. thanks for the next few days. thanks for kee - in: the next few days. thanks for keeping a _ the next few days. thanks for keeping a close _ the next few days. thanks for keeping a close eye _ the next few days. thanks for keeping a close eye on - the next few days. thanks for i keeping a close eye on - for the us senate has confirmed president trump's executive chris wright. he previously led the oil

it is 1% of the budget and if you eliminate it you won't balance the budget. think soft power is a critical component of defending america and our values. i look forward to working with you to make that count better, but the concept of soft power it a lot to me and that is coming from a pretty hawkish guy. senator merkley? sen. merkle: thank you very much, mr. chairman. on day one, president trump issued an executive order that requires agencies to cause a disbursement of funds that were authorized, the inflation reduction act and the infrastructure investment in jobs act. there is a legal mechanism for changing passed law called the rescission. it is an illegal way. will you send a rescission message to congress, or use the illegal impoundment strategy? mr. vought: thanks for the question. those were pauses to ensure that the funding that is in place is consistent and moves in a direction along the lines of what the president ran on, unleashing american energy away from the green new deal. sen. merkle: which strategy will you use? that is a simple question. m

budget.we will have that information soon and we will be back in a couple of weeks as well so we can talk about that more in detail if you'd like. >> but at this point in time like the last few years we are thinking that we can make our reductions using vacancies and and that's the way we're going to get there. >> you might see that the projects number goes up. that is because that's where we budget our grants. we don't know until we get the award letter what exactly they're going to fund. so we put it into that category which is more flexible and then equipment is something that we don't do most years there's a piece of it equipment that has been out of maintenance warranty, whatever you want to call it since 2018. so with them we're putting that in for for next year because it's really one of those you know like when your cell phone gets to be a little bit older that sometimes just doesn't work as well and we expect our work orders the entire departmental services to be approximately the sa

the truth is whether one bill or two bills on the budget committee and the senate. got to get this done regarding of the president money to make sure we secure the border and get the criminals and terrorists and narco traffic out of our country. we have to spend more money to make sure the military is prepared for issues that we might be dealing with especially communist china. number three we have to get the tax cuts done and there's other things we have to do we have to balance our budget and do all these things whether one bill or two bills we gotta get this done and we gotta bring fiscal sanity back of optimistic the house and set it will move forward in lockstep and get something done. on another topic were learning marco rubio is going to be heading to the middle east next week this is after israeli prime minister benjamin netanyahu met with republican leaders on capitol hill he back bold new vision for gaza the president wrote on true social gaza strip at the israel conclusion fighting and they would've been resettled in far safer and beautiful communities. y