in the budget. generally speaking, they're consistent with our projections of continued economic growth here in the city and the country, but of slowing, so you'll see that as i talk through the tax revenue assumptions. for the most part, they're continued growth but with -- at a slower rate. miss kirkpatrick mentioned it. the budget does have a halfy draw on fund balance, meaning the balance that's available from the current fiscal year. what that means is while the coming two years is balanced using that prior year source, that will create challenges in just beyond the budget view, and i think the last budget estimate that the three financial offices prepared estimated approximately a 500 million structural gap in year through just outside of the two year window, so worth highlighting. reserve requirements are met in the proposed budget. you've established a number of different financial policies, and those are being met, and i'll talk through the status of some of these reserves a little bit late

the budget is a balanced budget. to responsibly balance in nine years, our budget calls for thoughtful reforms and government-wide savings, and we achieve surpluses by fiscal year 2027. the largest looming shadow of doubt on america's future is quite simply the extent of the nation's debt. in response, our budget significantly addresses the single greatest driver of that debt, mandatory spending. more than two-thirds of federal dollars are spent on mandatory programs, including safety net programs like medicare and social security. because these programs are not reviewed on an annual basis, they grow unsustainably. to be clear, there is a critical need for mandatory programs. the benefits they provide for our most vulnerable americans. but absent reform, reality will be harsh. in fact, it's not a matter of if but when programs will be unable to fulfill their promise. according to cbo, insolvency for some could come as early as 2026. our budget calls for reforms to save those programs upon which many vulnerable americ

budget. that relates to a couple -- i mean, there's a lot going on in our budget, of course. the most significant changes that drive the increase and the decrease is a couple of one time investments proposed in the budget regarding our systems in the controller's office in year one. it increases and those are completed into year two. the two biggest one time projects we have for the year ahead are it's time for us to replace the hardware on which we run all of our systems in the city. so that the infrastructure in which it exists, the machines, are at their end of life. we plan to complete that work in the year ahead. and then we have a few requests from departments for enhancements to the new financial system. >>> perhaps you or the budget director could provide this committee with a list of the projects. that seems to be a theme that's coming up from many departments. so we can just know where projects are in the queue. thanks, kelly. >>> i have that list, i'm happy to distribute it to the

the budget projects 2.6% annual average growth that is the projection under the budget.. since 3.6% growth that there be any difference. i could have that assumption you're making your assumption. the rule of thumb have a link between the amount of economic growth that you get in deficit reduction. that flows from that. essentially for each .1 percent of higher economic growth you receive a fiscal dividend of about that much. 22.6 percent. that produces macroeconomic and fiscal benefits of $1.67 trillion over ten years. the only thing that has ever grown at the american economy and the has been the investment in the middle class. i think there is a false inflation of economic science. republican administrations run it up with false growth rates. and i left with cleaning up those deficitsp and yet you get to have full economic growth assumptions again and again. i think it's important for people to understand that these are just totally made up assumptions and that the only thing that is actually ever grown this american economy is he the humannt in capital and the middle

and i was proud of the last budget. and shamefully i believe the house of representatives was derelict in our duty when we accepted the senate budget to continue to pave the way for more reckless deficit spending. i encourage my colleagues to vote for this budget and i hope this time we will show more guts when dealing with the senate. i yield back. >> the gentleman from texas. >> thank you for your leadership it has been a pleasure to serve on this committee and it's nice to know there is a group of legislators that will heed the call of the american people to do our job and get a budget that works that we can live with in our means like every other american. household, business, community, federal government the only thing that spends like there is a money tree at the treasury and there isn't. this is a deferred tax. when a saw mom -- when a sovereign debt crisis occurs and it will, it will be cap next on our country and our country's economy and it will be a black one -- bleak and abysmal set of circumstances for kid

the budget was 11.4 million. >> supervisor cohen: i'm sorry, how much grief. >> the total budget was 11.4 million. as we look at details that they provided in the original budget that they gave us, we think there's an opportunity to save about $375,000 from that budget. >> supervisor cohen: to save 375,000 of the 11.4 dot -- 11.4 million? >> right. i want to emphasize there is not agreement on these things. >> supervisor cohen: i understand. >> those numbers together add up to 6 million. i believe all of those are one time. it would be one time. >> supervisor cohen: ok. thank you. i wanted to see if the police department wanted to, particularly ms. miss mcguire, no? chief? ok. the mac good morning supervisors. this is the first that we've heard of these cuts. >> supervisor cohen: yes, i know it's been not just on the surface, we don't agree with any of them. and some of them are tied to our reform efforts. there needs to be some discussion on many of them. but on the surface we don't agree. i know catherine asked for the details on it. >> supervisor cohen: bright. >> supervisors, we

recommendations concerning the port budget and the budget recommendations concerning the library budget. >> item 4 is the library -- >> this is items 1, 2, and -- >> supervisor cohen: i see what you are saying. we have, i don't think we took action on that, correct me if i'm wrong. >> that's my understanding that you did accept the recommendations regarding the airport budget. >> supervisor cohen: but did not take a vote. >> you did on the airport. >> clerk: the vote was rescinded. no actions at this time. >> my question was, the same thing on the library and the -- >> supervisor cohen: no, that was not done for the library and the port. that's incorrect. ok. all right. department of the environment, welcome. >> thank you, good afternoon. supervisors and madam chair. thank you harvey rose and kerry tam from the board budget legislative analyst office, kelly and chris from the mayor's budget analyst, and pleased to say we accept the recommendation and have no challenges. >> supervisor cohen: thank you very much for being here. colleagues, do you have any other questions for the departmen

budget. particularly paying close and careful attention to particularly the revenue arm of the m.s.a. and the contributions that it makes to the city. so, i want to talk a little about item six now. item 6 authorizes five-year, $100 million a year credit for capital financing. b.l.a. report, 12% increase, 12% interest rate on this commercial paper. is that -- is that standard, or is that high? oh, hello, is that standard, or high, and what's driving this interest rate? >> good morning, supervisors, thank you for asking the question. 12% is the standard rate in all the city and all the commercial payment programs, p.u.c., a max rate that all the agreements use as a standard max rate. we have never been close to that, but we, all city departments include that. >> who sets that standard max rate? >> the office of public finance is the one that helped us determine that rate, and i think it's based on, and maybe ben can answer that question. >> we'll defer to the controller. who sets that rate? >>

in this budget. thank you. >> supervisor furor? >> i just wanted to emphasize and thank you supervisor stefani, that is not a work plan for the whole police department. that is not a whole staffing plan for the whole police department. but the workload analysis isn't just for what they're proposing. the workload analysis is for all the patrol, the whole police department. it isn't just for this. and we're not saying i think here that we don't want them to get up to the 250 officers. what i'm saying, quite frankly, is that i think there is a way to get there using internal mechanisms and things that can be cost effective which, as a member of the budget committee, i feel like i have to look a. and so anyway, i just wanted to re-emphasize that and for clarification. >> thank you. supervisor sheehy? >> i just want to echo what supervisor stefani said. and it's really -- you know, for me, and i think making policy by anecdote isn't necessarily the best thing, but i was at a community meeting a week ago.

yes, this budget resolution slows growth of the federal budget. but perhaps it's time for us to make minor sacrifices now to ensure our children and grandchildren doesn't have to make major ones in the future. today i hope members from both sides will take seriously the potential consequences of failing to limit spending growth as we pursue our goal of pros expert. mr. chairman, with that i yield back. >> i thank the gentlemen from alaska and let the record reflect majority side has eight minutes remaining. while change the minority side to top that t as i yield for purposes of opening statements to my friend from kentucky, mr. yarmuth. >> thank you, mr. chairman, and i'd like to yield to the gentleman from massachusetts mr. molten. >> i want to thank my colleagues. and thank you, mr. chairman h first, the republicans passed a tax bill without a single hearing for the american people or an opportunity for democrats to engage in drafting it. second, cbo latest budget in economic outlook estimated this tax bill will increase deficits by $1.9 trillio

budget total 53,357 in 18-19. all of these are ongoing saves. this would still allow an increase of 278,000 or 1.8% in the department's 18-19 budget. in addition, the b.l.a. recommended closing out prior year unextended encumbrances. in 19-20, we recommend reductions that total $23,636, all of the recommended reductions are ongoing savings. this would still allow an increase of about 23,000 or.1% of the department's budget. and the last one we're going to go over at this moment is the department of police accountability. for the department of police accountability, the b.l.a.'s recommended reductions to the proposed budget total 225,000 in 18-19, all of which are one time savetions. this would still allow an increase in 1.1 million or 16.2% in the department's 18-19 budget, and we do not have any proposed reductions in 19-20 in the department of police accountability. i believe i got them all. >> supervisor cohen: all right. thank you very much. appreciate your due diligence. okay. so to the department heads, are

operating budget. broken down into our enterprises, wastewater enterprise, hetch hetchy water and power, and cleanpowersf, such a big driver over the next two years. what you can see our existing budget is about a billion dollars, $53 million, going up for fiscal year, 1,000,000,299 0illion and for , 1,000,000,499 million, increase of 348 million over the two-year share by cleanpowersf and theer oth big drivers are debt service on water bonds, on wastewater bonds, and then revenue funded capital on water and wastewater infrastructure assets. >> bring to your attention the presentation was -- >> long? >> yes, long, but supposed to be ten minutes and you are already like seven minutes over. i need you to wrap it up to get to the questions. >> sorry about that. operating budgets highlights are here. highlighted them, cleanpowersf, capital funding, slide 19, this is a picture of the

rose. >> thank the budget committee as well. >> and the budget committee as well. i was going to save that are inform last and our analyst. thank you so much. >> so, where do i begin? you are accepting baseline cuts and you will take the policy recommendation to place $787,24. >> correct. >> b. l.a., remarks? >> we recommended reductions to the budge he have of $3,379,000. of those reductions $20,000 are on going savings and 283,799 are one-time savings. the reductions were still allow increase of 2.7% in the department's 18-19 budget. we recommended placing $787,245 on budget in finance committee reserve in 18-19. in addition we recommend closing out $333,782 for total general fund savings of $635,582 and in year two, 19-20 we recommend reduction to the budget of 20,000 in 19-20 and those are all on going savings. >> thank you, very much. since we're in agreement there's nothing to talk about. >> thank you so much. >> we're going to take -- was that applause? i thought i heard applause. i was like whoa. so i'll make a motion that we accept the baseline cuts. take

his budget, we did not keep in line with mayor lee's budget instructions. however, the mayor's office did approve that we would be able to acquire resources to fully implement our esg, and the we're hoping that the committee and the board would be permanent resources as a signal that we're not just focused on foss fuel, we're also focused on executive pay, diversity on boards, a long listsoci, nmen nd governance issues, so w thae're hopin you'd be supportive of that. as requested we've shown the fte growth relatively flat over the last few years, including the last two years and future budget. and this is how we spend our budget. and you can see that two thirds of all of our expenses are paid towards investment. that is not staff salaries, those are hiring managers, they're travel, they're research, and so the last majority of our budget is spent on investment. we have roughly 23% of our budget is spent on personnel. and then, we have work orders for administration and retirement is the next piece. so i'd be happy at this time to answer any questions that a

line, so the nonpersonnel services budget, we've transferred funds into that line -- budget line for the last three years to the tune of about $1 million each year because we don't have enough funding in that line. >> supervisor cohen: so you can take the money, and you can charge back -- >> and you'll see us back here asking for more money. >> supervisor cohen: what exactly is professional services? how does that manifest? >> professional services are services that generally require a specialized license. so a lot of our d.n.a. contracting work, you know, when we need to send something out because it's a highly specialized analysis that our crime lab can't perform, we send that out to a vendor and pay them to do that work. it's a highly specialized work. >> supervisor cohen: okay. all right. thank you. i have a -- i'll recognize you when i'm -- okay. i have a -- actually, a question, i think, also for you, catherine. there is $125,000 that's allocated for the workload study, and if i'm not mistaken, i think the task force has been assembled, and you guys are scheduled to meet in aug

budget we request that you fund the 14.8 million that we are requesting for our budget. it is really important to support the homeless families. thank you so much. >> thank you. >> good morning board of supervisors. we are from district six and we want to thank you for having us here this morning. we want to thank you for the $5.6 million you have funded towards our ask so far. we are also here to request that you please cut the eight% budget to increase the police force department. idepartment.in order to fully fd the remaining acts. our city desperately needs the remaining $9.3 million in order to support the san franciscans that have been left out of this budget. the current budget proposal includes 100 new officers to the police force, yet leaves out support for the most vulnerable people in our city. please find the $14.9 million house but ask in full so we can include hotel vouchers for families, critically needed mental health services for all of our communities facing poverty and homelessness. thank you. >> supervisor cohen: thank yo you. >> hello. i'm here with

, 23 million that goes to public works saving budget --gin budget and another 10 million budget in state repair funds. and other categories of funding that we can compete for. that is a risk that we need to watch. there are other risks that we share with all the other departments. we have all of our labour contracts, that are in place for the first fiscal year but to be negotiated beyond that. so uncertainty there as well as what ever might happen with the economy, we obviously receivea significant amount of money from the general fund. that the only downturn would directly impact us as well. in terms of the capital budget, at a very high level, it's about a 1.1 billion-dollar budget over the two years. you can see from this chart how it is allocated among the different categories. a lot of fundthat we get are ed to specific categories of expenditure. so we don't have full ndabily of these funds, but still a pretty robust capital program. you can see it is a fair bit lower from where we were two years ago and that is largely because of some large expenditures that were somewhat over the

the homeless budget is only three% of our city budget. this mare's budget shows a one% increase in new funding. this budget has a massive increase for police, including new weapons, tasers and meanwhile, the police are doing 6,000 homeless response calls a month. this would be not be needed if we had housing and shelter for folks. they do 6,000 mental health calls and this calls for cuts to core mental health services. it calls for 40 more street cleaners. if we did not have thousands and thousands of people on our streets, it would go a long way. it is time to turn this around. you have the opportunity to do just that. >> supervisor cohen: thank you. next speaker. >> good afternoon. i'm the director of shelters for the episcopal community services, also a member of has spot. as such, we are calling on the board of supervisors to find -- fund an additional 300,000 subsidies for homeless families, youth, elders, people with disabilities, and two knew shelters including one for families, and another in the bayview. we also need emergency vo

and you would make that choice during the budget season, the budget cycle. >> mm-hmm. we could do that during next year's budget. so maintaining the money in the budget gives you the flexibility to make the choice next year. >> supervisor cohen: i think i'm interested in doing that and just maintaining the money in the budget so that there's two choices available next year. that's probably more easier to accomplish than cutting it out of the budget and then trying to scramble to find it. it's $11 million. it's not a hard scramble, but it's just putting it together. so -- so -- so supervisor -- supervisor sheehy? >> supervisor sheehy: i just had a point of clarification. we're talking about classes, but we really mean our positions, so when we talk about year one, continuing with the additional class, we're actually talking about keeping 50 positions in year one. so everyone's clear that that's what we're talking about. and then, year two, if we do deo e ther put on rerve or go ahead and fund that with the option of defunding that, that's 50 positions? okay. thank you.

what is the budget ask? >> $5 million increase make the program permanent and cover the summer semester for city college. thank you. >> supervisor cohen: thank you. next speaker. >> good afternoon, supervisors. my name is bridget davila, and i'm president of the board of trustees of city college. as you probably know, city college has undergone an unfortunate number of problems in the last ten years, but we are now back on track, we are accredited, we are moving forward. this free city program, which the board of supervisors overwhelmingly supported, it's been incredible. we have so many students now that want to take classes, and so what we are asking is for the proper amount to be reimbursed for those classes, and also for summer, the summer program. i was just registering in a summer program myself, and a lot of students were asking how come it's not available for summer. thank you for your time. >> thank you, trustee davi 4r54r5la. good to see you. [inaudible] >> -- to ensure that education is free, and

the lease budgets are actually already placed within our operating budget. this is the other side of the one time cost. >> thank you. bla? >> my understanding is it's appropriations. when we did the lease review for the police evidence lease and the adult probation lease the tenant improvements for those leases were from prior year appropriatio appropriations. this is an additional appropriation for these purposes. i don't have the specific numbers but i believe that 1$15 million has been appropriated and these were additional moneys in the capital plan to continue that project. the reason we are recommending a reserve on these funds is that we have looked at these leases and as they have come forward the plans and the tenant improvements there's no detail behind it. they are very, very early planning stages. we were concerned as we looked at the adult probation lease that the estimate cost of the tenant improvements because we didn't have any way to know what was behind it. the same is true with the police evidence lease. those are prior year funds that wer

year to budget year? i would imagine it's an estimatation. if the department doesn't have a demand, then you can't bill them. >> correct. it really would depend on the department's requesting that service and generally remain the same over the last couple of years. >> ok. all right. thank you. >> great. thank you for your presentation. next up we have the fire department. good morning, chief. the fire department has a total budget of $398 million. they have a request for $17 million more. they have 1,665 personnel and they're looking to bring on an additional 20. thank you, chief. good to see you. good morning. >> good morning. >> when you are ready you may start. >> chair cohen, members of the budget and finance committee, i will also be able to get threw h this in seven minutes. i he to thank the mayor's budget office as well as our continued work with the budget and legislative analyst. mr. rose's office. thank you for your consideration of our budget. this is for a brief overview. the first slide, i h

budget. thank you. >> thank you. two things. first of all, we've submitted a statement. i will submit a written copy for you today, which should be in your packet, where we're asking you to reject the m.t.a. budget and send it back for further work. today you will hear a report from the budget analyst on every department other than the m.t.a. i understand the m.t.a. decision you have to make is to vote for it or to reject it. but that does not excuse the fact that you need information that can appropriate i will be given by a budget analysis. we call upon you to not take action on the m.t.a. budget today but to ask the budget analyst to do a thorough analysis, focusing specifically on the additional personnel, additional budget, that is being asked for by the m.t.a. and whether those services cannot be provided within the existing budget as it is few constituted. so we think that the m.t.a. budget should be rejected. we think it needs more work. and we think that the process by which it was a

accept budget analyst recommendation for the budget. >> supervisor cohen: also accept the b.l.a.'s base recommendations. is there a second for that? seconded by supervisor sheehy. planning. >> i sent an email asking to be moved to friday. >> supervisor cohen: no problem, that it fine. we'll see you tomorrow. >> item number six is related to the planning department. >> supervisor cohen: sir, are you prepared to talk on item six? >> yes, i am. >> supervisor cohen: thank you. this is the planning code fees for certain permit transportational. >> clerk: amending planning code and fees set forth in ordinance to clarify the fees applicable to projects with no very little construction cost and to change the fees for transportation analysis. >> supervisor cohen: okay, so, i understand that this item -- is it ready to be heard? >> there are few steps that we need to do to complete the item. take it back to planning commission. like to request that it be continued to a day to call the chair. >> supervisor cohen: not a problem. i still need to take public comment on item six. i will open up

a budget is a moral document. restore and expand funding for mental health services for transitional aged youth, families, and low threshold services for homeless people in neighborhoods like the tenderloin. help vulnerable san franciscans get the support they need, mental health services, save money, and save lives. thank you. >> supervisor cohen: thank you. next speaker, please. >> good afternoon, supervisors. my name is alan sampson minello. i'm the development director at hospital ill house, and i stand before you on my 23rd wedding anniversary on behalf of me and my wife with because we feel the issues are very important. i am urging you to please fully fund the hspa budget of 14.8 million. please restore the funding for mental health services for transitional families and in high need neighborhoods like the tenderloin that is 250,000 over the course of two years. also, i'm asking if you can please restore the cuts to workforce and employment services for the vulnerable folks of our neighborhoods. that's 280,

today marks the first hearing of what we will call the may 1 budget, which is 12 departments whose budgets are released in may, many of which are revenue generating and rely less on the general fund than do -- less on the general fund than the may -- excuse me, than the june 1st budget. so in these hearings, i hope to shed some light on wha ntsde are money on, both from a policy , l king at capital improvements and how many people -- how many people they are hiring. today, we have a -- today -- today, we will have first round presentations frome departments. next week, we will hear reports on these same departments from the budget and legislative analysts who may recommend changes to their budget, so again, just to recap, we're going to hear from departments today, next week, we'll hear from the bla, so we're not going to hear back from the bla reporting back to us this week. there will be a public comment at the end of the department hearings. i've asked each department to keep focused on strategic remit, service changes and to focus on significant changes from last year's budgets. again,

cost in this budget cycle? however, if everyone who is eligible were to get these weapons, this would be the cost. >> supervisor cohen: is everyone -- is the long-term goal that everyone that is eligible would get a device? >> long-term, yes. it would be a standard piece of equipment, baton, pepper spray. >> supervisor cohen: okay. and you can kind of understand what kind of position that we're in. i mean -- the unit cost is higher than what you guys are proposing, so how do we reconcile the difference? >> supervisor, when i originally saw this, a couple things. first off, the sheriff's are using -- they've had theirs, i think since the early 2000's, so newer devices are out. we're a larger department than the sheriff's. our equipment, just on the basis of drive, we will be able to have a lower cost per unit. i think the unit that i saw in the b.l.a. was somewhere in the $2200 range perunit. correct me if i am wrong, but the actual unit price, if you even went retail, if we were not the san francisco, is roughl

the operating budget is $16.3 million only 2% ocii budget. that's it. >> i don't any names on the roster. i guess this might be the benefit of being last. colleagues you have any q uestions for nadya? >> i have a dozen of them. >> you'll be back again. this is for bond issuance right? no. >> the budget that includes bond issuance. >> i'm sorry. maybe i misread. i thought it was bond issuance not to exceed $140 million. that's what item four is right? >> item four is the resolution approving the budget of ocii. >> okay. thank you. thank you very much for your presentation. since the bla does not have a report for us, i'm happy to take a motion to move this item. madam clerk do we need to take public comment? any member of the public like to comment on item four. public comment is closed. make a motion to move the recommendation for the j uly 17th board meeting. second supervisor sheehy. thank you. any other business before the body? ladies and gentlemen we're adjourned. thank you. [adjourned] [laughter] >> get in there. >> mayor farrell: all r

budget. >> supervisor cohen: i see. >> that is correct. this is just a general fund allocation. it is the investment by the treasurer very short-term because many of the city treasurer to be very liquid. unlike the pension fund for example, which is investing after a long time, it will be invested -- interest in this account, like all general fund accounts accrues back to the general fund and you make choices regarding that. it is part of the revenues that make up the general fund revenue base. >> supervisor cohen: ok. thank you. you can continue. >> supervisor kim: thank you. >> supervisor cohen: or is that it? speech and that is my highest priority. i want to express support for several citywide offices that other colleagues have seated. but to go, i think i have a few more that is specific to our office. they are also on my citywide list. it is a project that is temporally activation of a site that is dedicated for 100% affordable housing. but because of several projects in the pipeline, i