>> i think that the budget analyst is referring to provisions in the budget. then correct, the tax code is not before you. >> if we were to make an amendment on the budget analyst separating it, you would have to introduce that item? >> correct. supervisor chu: given that the item is not before us, i would suggest that we cannot make an amendment at this moment. the budget analyst report recommends that we move forward with these items and that exemptions to the authority will be coming before us department by department. do we have a motion to send these items forward to the full board of supervisors for this coming tuesday? without a motion, can we keep that without objection? kept without objection. thank you very much. please call items four through 12. >> item #4. hearing to include financial update and information on budget instructions and process for fy2012-2013. item #5. proposed budget and annual appropriation ordinance appropriating all estimated receipts and all estimated expenditures for departments of the city and county of san francisco as of ma

we have identified school based budgets and school based budgets are reflected in this overall budget for the district and i think that is the primary, not the only, but the primary part of the budget that is related to layoffs. there are layoffs that have been of limited and are moving forward to in central services departments as well. all those things -- the work in combination. we did have to reduce side budget allocations. we had a number of very consistent approaches to reducing expenditures in several centuries -- several departments as well. these are related to people as well for the most part. we also have layoffs that have not been recalled and some of our ascensions -- assumptions depend on the outcome of bargaining. we are planning to the extent that all the other assumptions come through that are in this budget. we would be able to recall some additional positions. some additional infant -- individuals. some of our assumptions have the been resolved yet. they are still unresolved. in some cases, we have had to hold off on recalling some of our positions even though if th

but nevertheless it did put the budgets -- the budget out of balance. i am here to report to you on how we are proposing to balance the budget again. moving on to the next slide, there have been changes in our favor. they did not all go in the other direction. there have been changes from city hall, changes we have initiated with departments. a few of them went the other way, about 1.5 million to our benefit. that is a little bit of good news. moving on to expenditure changes, one of the things that we found, you will recall, a theme of this budget was investing in the maintenance of the transportation department. particularly muni. what we have budgeted for, or intended to, was that these physicians would start in january of the first fiscal year and be the equivalent of half of the full-time equivalent of employees in the first fiscal year. we inadvertently budgeted them as full-time positions, though as much as we would like to there is no way we can get them hired in the next few weeks. correcting for that was about $6 million. however, we took this

walk through the budget with you had an overview level, talk about tax increment, the gsa budget impacts and the general fund impact. finally, talking about the general fund supported activities that will be and absorbed into the general fund in this budget, rather than in the redevelopment agency's budget. as you remember, earlier this year, the state legislature passed and the governor signed ab 26 and 27. 26 was found to be constitutional and dissolved the redevelopment agency throughout the state. in our case, the city and county became the successor agency to the redevelopment agency. the assets of the agency were transferred to the mayor's office of housing, port, and city a minister's office. you will recall also each successor agency is required to have an oversight board. our oversight board oversees the fighting to management of certain real development agency assets. at the highest level, the three major approved development projects and the house and work that was done by the former agency will continue. the oversight board has adopted what is called a recognized obligation p

the operational budget is static, but the fuel budget for the fleet is increasing by $1.8 million. we have an aging fleet, so the office of budget has agreed to replace a certain amount to minimize the increase on the department's budget. and we will submit the effort by july 1st the effort the city is an undertaking to repair replace its fleet. -- to replace its fleet. and finally, the contract my touring unit. the mayor's office is proposing to transfer the local business compliance unit and the domestic unit from the city administrator's office, hopefully with an effective date of july 1st, 2012. the goal for the function is to begin the process of creating the one-stop shop. as has been discussed over the past decade, there has been report after report over the past 10 to 12 years, whether the blue-ribbon report, georgia report, the reportrural report -- rural report or the federal grand jury, there has been a process of competing stakeholder interests inconsistent with stakeholder ownership. the city-wide outcome would be optimal. this is the extent of consolidating, starting

budget.nd for the other members of the board of supervisors that have engaged directly with us. supervisors avalos, kim, elsbernd, cohen. and the department heads that worked very hard with us. i see of they cisneros, who the police chief and our fire chief. barbara garcia and trent have worked extremely closely with us because of the tremendous pressure that we feel at the state level and the national of bochum, trying to get a really good conversation about how we can make sure that the community based organizations that provide invaluable service to us are taken care of and working in collaboration with us. hall of the a jar work that she does with all of us. i want to thank her for her tremendous leadership. again, i can say about about my good friend, someone who i got the chance to work with for many years. you have taken up so many complicated challenges this year, we're going to keep you busy. thank you for your wonderful team. our new city administrator that is no longer new, your di

i want to thank the budget analysts office.e'll come to an agreement to an additional 46,000 to one report dollars in budget cuts for this is a year in for the house of $427 for the next fiscal year. we are pleased to work closely and on that agreement. supervisor chu: think you. just be clear, the department isn't approval of all of the budget recommendations? >> yes. >> madam chair and members of the committee, and i have nothing to add. to the a motion to object? we will do that without objection. thank you to the department for your agreement. to the public library. >> good morning, city librarian. the key to the budget analyst for the support. we are in concurrence with the deficit reduction. the only outstanding issue remains the recommendation of the library openings additional flow hours there represents 2.5 fte for those facilities. i am happy to respond to any questions you may have. supervisor chu: would you be able to address the area where there is still the this agreement? >> madam chair, just to clarify these are

information in our budget materials. we will definitely give it a good faith look to explore what we need to do to incorporate some of that feedback. i will repeat part of what i said last time. there was some discussion about the city and county's budget document. we looked at it closely and like a said last week, -- i said last week, if there is a way for us to introduce some aspects of that, i think that would be a great thing. i do not disagree with that at all. i do not think any of my colleagues see that as lacking merit. we do have staff capacity issues that we have to contend with. that is going to need to be considered pretty carefully. for starters, i would be interested in talking about their process with folks in the mayor's budget office and the comptroller's office and perhaps commissioner mendoza can help me set up a meeting in that regard. to find out a little bit about what it takes to produce a document like that, what are the key conditions that have to be in place to get that done. with that, i will c

beginning of the budget process. for today, we want to make sure we get the most out of it, so we would appreciate if you could stay on a subject and be respectful of one another. let us remember that we all chose to come today. that shows that we care about our city and this place that we choose to live in and call home. let's move forward in that spirit. >> hi, everybody. i am the mayor's budget director. thanks for having us here. i thought i would do a brief overview of the budget. many of you know how the process works. you have a basic understanding of our budget. i do have a few diagrams to walk us through what we are talking about and we talk about the budget. that is really are a city's spending plan for our priorities, how we will spend money each month and each year, and for the first time, how we will spend money pour the first two years. the city budget is $6.8 billion a year, a big number. half of that is in the city's general fund. the other half is in the enterprise fund. the way i like to think about

your budget is like a breath of spring ♪ i know that your budget will take wing. ♪ budget lean, budgetudget lane, i'm begging you please keep it green. ♪ and your budget is going to make a good budget dream and i knew you would keep it green ♪ budget weaned. supervisor chu: thank you. are there other members of the public who wish to speak on item number two? we will send out four without objection. item #3. >> of rising the san francisco arts commission to accept an expanded ground -- accept and expand a grant in the amount of $300,000. supervisor chu: do we have a representative from the arts commission? >> i'm with the public arts commission. to give a brief introduction to the item, the arts commission was approached by arch stone and the planning department with a gift of $300,000 to commission a new public artwork for a new park located on the right of way running through a planned mixed use development in the showplace square neighborhood. this would be located between sixth street, 17th street and hubbell street in district 10. this will allow the arts commission to accept and

the mayor's budget does propose a number of those to be civilianized, as you have in the budget proposal. so in the areas where there was not a proposed civilian position to be funded, you did do an analysis with the department and it shows generally that in those positions that were not proposed to be funded by the mayor's budget office in terms of a civilianized position, there are currently assigned with a light duty is on a police officer. so we would not be able to hire a civilian, the mighty, and put that light duty officer back on the beat because there light duty. >> that is correct almost uniformly. i think there're five positions not being staffed by light duty officers. the vast majority are. supervisor chu: ok, thank you. any questions from the committee? ok. colleagues, we do have recommendations before us. i'd think in terms of the civilianization question, i do have some outstanding questions about options outside of these positions, whether there are any positions that are currently being done by uniformed officers where it might make sense for civilians to fit in those.

our of last year's adopted budget was $6.8 billion. half of that is what we talked about as being the general fund. half of that is what we call enterprise funds like the airport, the mta and some other smaller departments. those departments have their around dedicated revenue streams and are responsible for balancing themselves within their own budget and revenue streams. the other half is what we call the general funds. that is what we are talking about when we talk about the deficits the city has. we are really talking about the general fund deficit. that is about half of our budget. what do we spend the general fund money on? we spend it on a lot of services and priorities for the public. we spend it on the social services. we spent our public safety department. we spend it on streets and infrastructure and making sure we are meeting the priorities and values of our citizens and making sure our streets are safe and comfortable for all are residents. where do we get our general fund money? we get from our tax revenues, from property

it is a $400,000 budget. we did not see this a significant program to justify the higher level manager. since they are now saying they need someone with higher level technical skills, that is not information provided to was previously. supervisor wiener: would you have come to a different conclusion? >> i think it is new information. part of the reason for recommending the service is that we have no information on this program, so i think it might be worthwhile to talk about this program a little bit more so we understand it better. supervisor wiener: ok. maybe you can do that. we talked about the desire to accelerate, because, you know, we all know we have an enormous amount of work to do. given that new information is not a particularly huge amount of money. but if there is a legitimate amount of rationale, that would be good to know that. >> thank you, supervisor. to the budget analyst, with regard to the remains of your report -- are there areas agreement? >> madam chair, members of the committee, given t

year's budget and $5 million in the subsequent year's budget from the rainy day reserve and in fact the school district will deplete the reserve. don't think the city will have funding from that source. >> miss zmuda from the rainy day reserve for the school district to access the 25% of what's remaining in the fund, wasn't it tied to significant layoffs or there's some language, as i recall, so you sewed cola but is there some language that ties it to lay jotches in the -- layoffs in the school system? >> it does require that we measure what the per-pupil spending is, and we look at that for the future and it is based on a cost of living adjustment that is established by the state that is applicable only to schools. the school district does not have to have layoffs for the school to withdraw from the reserve, although i know there have been layoffs and certainly many pink slips over the years. so the total allocation to the schools over time, you see on the bottom line here, 44 million this year growing to 46 in the next two years. even though we have pulled the trigger, we're stil

i also believe that we have a budget that is a compromise budget, but a budget that really reflects all the different input that has come from this body. the quota would be a good part of it, from the administration, as well. i feel great about the budget and have district 11 has been treated in this budget. i think it we were able to compensate for my district not getting a lot of resources in past years, even my was the chair of the budget committee. those resources will be tremendous for open spaces, streets, and pedestrian safety work force development and agriculture, which could be a great boon for our neighborhoods. i want to thank my colleagues for the flexibility of looking at district 11 and how it could serve in a greater way that has been. we do not have a lot of development in my district that brings in a lot of other dollars and this is a way to compensate for that. thank you. of course, the comptroller, the budget analyst, victor young, cheryl adams, all of your work as well was tremendous. you brought a great attention to detail to help us in this committee. thank you. >

it is not in the budget. i am wondering if this would be the place where that would go. >> the -- that piece of legislation would impact the city's revenue. that comes into the budget and then gets distributed as general fund. if that legislation were to be approved, and if the programmer to be funded, we would effectively reduce our revenue by an estimated $2 million. supervisor chu: it gets reduced -- >> yes. supervisor chu: thank you. with regard to the budget analysts recommendation? this is an allowance under the initiative. and the budget is assumed before you. >> madam chair, eyes -- i fail to mention the control, which is $6,653, and that is ongoing savings that would allow an increase in the budgets department of the 6%. >> if there are no questions from the committee at this time, let's move on supervisor avalos. >> i'm not sure if my staff had contacted the control office about the small-business exemption that we preliminarily passed last tuesday. it does show a hole in the budget of two million d

want to see in the budget. we have done this one year before in the same spot and had a different format, one where our department had spent all of time what they talked about and we did not hear from you, the community. today, we want to flip that and hear from you. we're going to have very brief comments and we will introduce the department heads in the room today. then we will launch right into the neighbor's presentation. with that, why don't i introduce my co-conspirator in this budget town hall. supervisor elsbernd: welcome to beautiful district 7. we are technically in district 7, so welcome. we want to keep these introductory remarks brief because we want to hear from you. this is your opportunity, one of many. you are here today and we are here today, but from now through july, call us, e-mail us, we need to hear your input on what you want to see in this budget and don't think if you don't get it out today you will have more opportunities. carmen and i are excited we have the mayor here today. it is a

i also want to say at the outset this budget reflects countless hours of work. a lot of work behind the scenes. in addition to all the neighborhood budget meetings that we had, there were numerous, numerous staff meetings. kate howard's done a wonderful job with her staff. they've met with all of the different departments -- [applause] this is her first full year budget working with us and she's done a great job and her staff has done a great job. it isn't just putting numbers together, it's listening to each of the finance personnel from each department, it is engaging in the numerous meetings that we have with community, it's engaging with staff of the various supervisors, the non-profits. we had special meetings help, it was health and human services and housing and homeless advocates and others. she was there and her staff was there at every turn making sure that we listened and it reflected in both number-crunching and challenging what the priorities are and so forth. also want to give a shout-out to steve cava. steve, wonderful with all your work. [applaus

the budget analyst has a report.se was the result of data being polled before the june books had fully been closed, so the updated systems show that the average monthly spend was as we projected, about $2.30 million per month, and we have discussed this update with the budget analyst and have requested that the original not to exceed amount be $107.50 million. i am happy to answer any questions. chair chu: thank you very much. to the budget analyst. >> madam chair, members of the committee, as she just stated, we were advised this morning that based on the latest invoices received that the requested authorization of the not to exceed amount is justified. we concur with mr. brown, and we recommend that you approve this resolution. we are withdrawing our recommendation to reduce the amount. chair chu: thank you very much. why do we not open this up for public comment? are there any members of the public who wish to speak? seeing none, public comment is closed. without objection. and then finally, item 13. clerk young:

there was a time they needed the budget the time you drove the budget down to them.hey will remember you for that. the time they drove the budget down and all the bells were ringing >> are there any other members of the public that wish to comment? seeing none, public comment is closed. >> just a motion to except the recommendations and to move forward with recommendations. >> we have accepted the recommendation to move forward. please make copies of that this is timely scheduled for tuesday's board meeting. >> item number 80, resolution approving the food and beverage lease number03-0185. this is the city of san francisco acting through its airport commission. >> good afternoon. the airport is seeking your approval for the leases relating to our ongoing closure and mitigating financial effects that the closure has on tenants on or around the boarding area. in july of 2011, the board of supervisors approved the first amendment to these existing leases between the airport's and of the subway. c[unintelligible] and burger joint to partially waive their minimum guarante

if approved would be included in the 2014 budget. the current system does not demonstrate use of available technology and should, because it would allow for easy access and assures a would have paper. and i would like to note current successes. the first is our online tool to access legislations. it has been fully functional for several years, and this fall we expect to open it to the public so the public can access our legislation as well. and while we are talking about i t programs, supervisor kim, i know you are curious about this. we have had a positive impact of late. i was pleased to hear the director of i.t. states that the departments that have migrated to the consolidated e-mail system cannot migrate to -- can migrate to 365. this is what we have been advocating for. this will allow us to avoid duplication of potential disruption that we may incur, even though we are going to migrate one time. it is very successful, so i am hopeful it will be for us and the department. our major expenses and revenues. i am thinking probably

for budget. i think it makes sense to move forward with a lot of the new requests you have in place. i am not sure -- we can continue that dialogue offline as we continue the budget discussion for the next week and a half. thank you. thank you for the presentation. let's go to the budget analyst report. i am guessing that department is not yet in agreement. >> we're still working with the budget analyst. supervisor chu: thank you. >> the -- i agree with the city administrator with respect to the fact that there are -- much of this increase is due to transfers in the redevelopment agency. we're using these increases based on the controller's numbers. she is correct in pointing that out to you. i would reemphasize that. it does not change our recommendations. it is a fact. our recommended reductions to the proposed budget for 13-14, is ongoing savings and 1,500,000 is savings. we're still working with the department and we will report back next week. supervisor chu: thank you and thank you to the c

to the budget analyst with regard to the tax collector budget? >> no further comments unless the committee has any questions. supervisor chu: just to be clear, page 38, the department is agreement with the two and a $30,000 worth of cuts in addition to closing out projects, correct? >> correct. supervisor chu: any questions? supervisor kim? ? no questions, -- supervisor kim: no questions, but i have to walk out of your presentation last week. i think that is a great step, moving toward, for both the treasurer's office and for small business. i want to thank your office for making that a reality. >> thank you. we have been proud to take the lead on them but we have been working with a number of other city departments as well as supervisors. thank you for your leadership. supervisor chu: thank you, supervisors. given that there is agreement with the recommended cuts as well with the project closing out, do we have a motion to set the budget analyst recommendations and to close out those various projects? we have the motion. without objection. thank

i am happy to provide further details for the budget document that was used by the budget analyst in the documents for public use, and perhaps did not detail everything we are trying to account for in the next fiscal year. with regards to the disagreement on the attrition, this has changed significantly. not necessarily the dollars. i want you to be sure you know we've been working together, but this is a different field for us, because last week it was 1.3 and 1.4 was coming from overtime. my cfo did a terrific job and try to justify the need for overtime. we have conversed, it is just this is a different line item altogether. thus we were arguing over time. this week it is attrition. they actually change their recommendation. i just want to be clear that we have been communicating. there have been changes on both sides. >> when a tour -- department provides us with additional information with respect to overtime, of course we are born to change it. we have to be totally objective. we did, and we agree with the department. on further analysis of the attrition savings is why we came

this is specifically on the budget proposal. there are concerns during this time of cutbacks and austerity that austerity must be seen and felt everywhere. we are particularly concerned about some of the things we see in the budget. for instance, your recitals for proposition a lay out $23 million in cuts. 20 feet -- $23 million in expenditures. there are $25 million available and the others are not laid out there. you have six departments which altogether are asking for $600,000 in other outgo with the specification of what that money can or will be used for. it is referred to as a parking lot and other times as a slush fund. you have $1.30 million for support for dream schools. they were the product of the consent decree and the consent decree is gone. if you want the additional hour after the teachers work day, there needs to be some consultation with the union over adding that two peoples day. there has not been that consultation. we note with concern that despite the flawed reporting in the papers, central office has grown

those are likely to have a very significant impact on our budget. and finally, i think there continues to be uncertainty with respect to redevelopment. as late as last night, we were hearing the legislature was going to take action than this morning they said they weren't and then i heard that they have taken action. as you recall, we have $15 million in our state reserved. at this time, we think there are at least $10 million of the impacts and there are some uncertainties. supervisor chu: think you for the update. questions? to the comptroller's office, i think one of the questions is whether or not there are any changes or increases in revenues that we can anticipate. >> we are finishing up a review of for revenue changes that might have occurred since we submitted the budget and i expect to have written information within the next two hours. we have one final meeting to go through with final numbers, but i will have an update this afternoon. supervisor chu: if there is better than expected revenue, the mayor's budget does not propose any additio