is -- classes anticipated for the budget in the coming year. that saves as the cost of administering those classes, and it will result in some salary savings within the department, as we have retirement and attrition. of course, the flat side of this is that it means as officers retire, our ranks are thinning of the police department. but that is about $11 million worth of savings included in the budget. additionally, this figure includes a request that we have made to employees at the police department to defer or renegotiate a wage that is contemplated -- wage increases contemplated in the contract. that is about another $10 million that is assumed in the mayor's budget, and we're optimistic and working closely with our employee organizations to talk through how we can make that work. the human services agency, this is also a combination of revenues and expenditure reductions. i think there are a couple of pieces that are significant in this $14 million value that are noncontroversial and some that are tougher decisions to make. the departmen

gosset the mayor's budget director. as of yesterday, we have a tentative agreement, which is consistent with the mayor's budget submission. it still has to be ratified by the members of the police officers association, the firefighters' union. however, it is a very significant concession that we have agreed to. it tentatively. and it will keep our budget in balance. there'll be a few administrative changes we will need to make to implement it, but is absolutely manageable. i just want to thank the police officers association, the firefighters' union for their agreement. they stepped up again to provide a significant help to the city to help us balance our budget. i think we just need to be cognizant of the importance of that and what it has done for us to be able to protect services in this budget. supervisor chu: thank you. supervisor wiener: that is really good news. if i could just ask you -- is it -- i know that the 3% raise is going forward, compensated by a corresponding 3% increase by the firefighters and police t

the budget that has been proposed. it includes the opportunity for the controller to speak about their revenue letter. in addition to that, with four other items which comprise the interim budget. as you know, our fiscal year ends june and 30. we typically do not end our budget process and have it signed into effect until august. so we have one month, which is july. so these budgets are meant to be continuing documentation so we have a budget for that one month of july. with that, why don't i turn it over to the mayor's budget office for a brief overview of what has been proposed. >> good morning, supervisors. i am the budget director. sorry for the delay. we are working through the mechanics. i will just take you at a very high level through a summary of what is in the mayor's proposed budget. i think a lot of this, you are familiar with, from previous discussions at this committee but also from additional discussions that we have been having over the course of the last couple of weeks. as you know, the fiscal year 201

these will show up in the mayor's budget book. it is to try to give you sense of where we are now compared to where we have been over the last few years. one thing i will note on these charts, and it was no surprise, if you look at our city budget, we're still at about 50% of our budget in personnel costs. salaries and benefits. so almost half of government spending is in direct operating personnel expenditures. that is the reason that those costs for such a significant factor in our future financial planning. over the last couple of months, i know you guys are all aware and have been participating actively in this process, but we have spent a significant amount of time -- the mayor has spent a significant amount of time having public discussions about what is going to be included in this budget. we have had town halls with each of you at this committee and with your colleagues to hear from the public about the budget. we have gone through a two-month long process, working with our cbo service providers to discuss how we can minimi

so the budget before you proposes about $12.6 million in spending above and beyond the level required in that amendment. that continues a trend for many years now were the city has opted to spend more on these services than the voter initiative requires. it is driven heavily by about an $8 million allocation of the rainy day fund to the school district. and that $12 million, roughly $8 million of it is driven by the rainy day fund allocation to the schools. in terms of -- the the thing to note here is that the proposed budget that is before you is likely, over the course of the budget year, not to meet the required staffing level for police, required by prop d. currently, if the police chief or to authorize civilianization that has previously occurred and that the mayor and board have approved, the required number of officers to be funded in the budget is just under 1900. 1894 -- 1894, down from the p 1971 prop d. the budget before you funds 2100 officers, and adjusting for leeds and over * and other factors that go into the calculation, we're left with about 1874 funded officers -- s

the table. we have exceeded our budget expectations. we completely agree that the comptroller -- controller's desire to be accurate, at times conservative, because we would never want to be wrong in the other direction. this is why we are fighting for our planned. this is a plan that we believe will bring in the money for the city and we are defending accurately our assessments. almost all the commercial properties in the downtown area are coming before us. hundreds of millions of dollars for reassessment. we are trying to defend those numbers accurately. supervisor chu: thank you. with regard to the temp salaries, how are we in spending that down? >> we have managed to spend almost all events. we had an unprecedented level of the peer review, and that pretty much totally exhausted its. supervisor chu: thank you. ok, colleagues, and interested in hearing your point about. given that the budget does assume a certain level of revenue, having made investments in positions, i think that is something we should consider, if we were to look at

why don't we go to the budget analyst report? >> madam chair, members of the committee, i believe the department has stated that they concur with the $113,608, and i have no other comments. supervisor chu: thank you. before we move forward, i would like to take action on items 6 and 7, which are the fee updates. these would allow for the cpi adjustments. we do need to take public comment on items 6 and 7, so why don't we open these items up for public comment? are there any members of the public who wish to speak on items six, which pertains to administrative code at the updates, or items 7, planning code fee that date? seeing none, public comment is closed on these items. if we could move items 6 and 74 to the full board. it will join with the remaining budget on july 12. can we do that without objection? thank you. given that the department is in agreement with budget analyst recommendations, we can take those without objection. that will be the case. thank you very much to the planning department. our next department is the ass

we have this with the budget committee meeting. we have the director of finance and administration. >> good afternoon, we have the budget primarily through the use of additional revenues. millions of dollars in new revenue with approximately $700,000 in expenditures. and the focus of revenue has begun to reap the benefits that we will see in the current fiscal year. we have the permitting and the special events in the amount of $1 million. and we will increase the budget by next fiscal year by this amount. we have the recreation and a permit -- this is a result of increased attendance in the program, and increased use of the facilities. we're also including a new revenue in the coming year budget from police. we have a partner with the public utilities commission with a number of spaces in the garage. in the budget year this is worth $5.5 million. we see some good news in the stadium, with $900,000 in additional revenue for the park amenities, and other things including revenue from food carts, segues in golden gate park, and other

in the other part of the budget, the general fund is a portion of the budget that we are talking about when we say we have a $306 million deficit. that is where we have the services that are funded primarily by tax dollars. those services are the department of public health, the fire department, the police department, the sheriff. we don't have a source of money to generate from providing those services. in the general fund, it is 45% of the budget. have significant restrictions on what we can do. we have pension costs. there are obligations that we can't decide to reduce. even before we start making decisions about how to balance the budget, we have the voters approved restrictions, and at the end of the day of the 45% of the budget, only about $1.2 billion or $1.3 billion is truly flexible money. the $306 million budget deficit is approaching and about 25% of that flexible part. we have some big decisions to make about how we will address that deficit. one last point to reemphasize, these numbers at the bottom here are projections for what the deficit is going to look like for the ne

the budget analyst. we're just still identifying exactly what hot -- pot those additional cuts should come out of, but we do not have a problem with that whatsoever, and we have worked with them over the course of the last week. i would just like to highlight for you in addition to the cut that the budget analyst is proposing, note that you are seeing a level of general fund support that is decreasing in the city attorney's office in the amount of about $915,000 or so, which is a reduction of 12.5% of our general fund contribution from last fiscal year. so our general fiscal -- general fund support is going down to $6,305,643. the budget analyst is recommending an additional cut, which i said we do not have any problem with conceptually, and we will work out the details of the where that additional money -- exactly what pot it should come out of. i know there has been some discussion, and it has been desired that you would like some information with respect to what our five-year financial plan is. i will

supervisor chu: what is in the budget now? >> i did not believe we have put a finalize the number in the budget for the revenue projection for that program yet. i think it is rather a chicken and egg conversation of how fast we could staff at and how soon we get customers on board. supervisor chu: we have the expense in there, and we have not yet budgeted? >> i do not believe we have put a place holder in get -- in yet. >> you have a question about the interim recommendations, and we have recommended that they not be improved in the interim. this is across the board throughout the city unless there is some revenue-generating thing. we are not recommended disapproval of the positions. we're just stating that the position should start at a later time, not on july 1. that is our recommendation to you, and that applies to all departments throughout the city. supervisor chu: thank you. supervisor chiu: just to finish off the conversation on dark fiber, colleagues, you may remember that i had asked the part of technology to really lo

so we're in agreement with the budget analyst. they have flagged it as policy issue, the transition fund. i'm happy to have further discussions with you on that issue to the extent of your interest and one that's appropriate. >> thank you very much. just a quick question. with the remaining mayor's office of neighborhood services primarily most of those positions did go to the 311 call center to help with better integration there but there is, i believe, about $150,000 or so that's left in that area or that division. can you explain what that remaining person would do? >> sure. that person would actually have a very large portfolio work to do, but that would be essentially responding to a constituent inquiries that come directly to the mayor's office that would be working to community groups to respond with information, to set up public meetings, to respond to written e-mail phone inquiries of the mayor's office of various functions that are currently provide under the mayor's office and neighborhood services. a number of those fun

we have not funded that increase in the budget. the biggest impact of that, i would argue, the short term, is on our cbo, partners who will not receive an inflationary increase. i believe this is the fourth year that we have not provided that increase. again, that is discussed as part of the five-year financial plan. prop h trigger, a plan deferral of 25% of our obligations. also anticipated in the five- year financial plan. on the state budget reserve, i think this is something that is going to be an active discussion over the next couple of months. it looks like the state is moving down a path where we could start to get a little bit of certainty about what its budget is going to look like. we had originally anticipated in our deficit projection holding a $30 million general fund reserves against state reductions. in this budget submission, we reduced that to $15 million, leaving as $15 million worth of general fund that we can use to balance the budget. the rationale for doing that is that the mayor, along with several members of

in as much as the process for any of the budget adoption, the steps and budget adoption involve the superintendent making a recommendation to the board and then the board having discussions in your meetings based on information that we provide etc. that is -- this is a component, a notable component. it is part of the overall budget adoption process. if i understand the timing that led to this hearing taking place tonight, i think there was a request made or a concern raised by -- i think it was -- actually that last year the public hearing was held on the same evening it is a budget adoption and that raised a concern and so we were -- we received a request to try take the public hearing on a different evening, earlier than the budget adoption was scheduled for so that is why it is scheduled for tonight opposed to the -- >> one is just more of a basic question in terms of who makes decisions because there are funds from various departments. is each department making a recommendation how much is flex pay? or do we just look at all the categoricals and figure out a formula? there does create the que

we have a -- the largest total budget. also have the largest amount of discretionary general fund within our budget, so consequently we received the largest budget reduction target this year. our target is almost $70 million. we are very fortunate, though. in that in december of this past year, the state and federal government approved a new medi-cal plan that for public hospitals in particular, bringing us a significant apt of additional revenue this year and next year. as a canadiens, we've been able to close 60 million of our $70 million budget with revenues and other efficiencies. we were able to close most of the reduction target. we are still looking at some reductions as we go forward here. we have about $9 million of service reductions. with those reductions we've been working constantly with our stakeholders, with our community providers, and we've been obviously attending all of our town halls, working with the mayor's office and the board of supervisors to find the least harmful way, if we are required to make c

in the budget year this is worth $5.5 million. we see some good news in the stadium, with $900,000 in additional revenue for the park amenities, and other things including revenue from food carts, segues in golden gate park, and other initiatives that are coming -- and we will have a full year of revenue that will be allies in the coming fiscal year. and also, as we have changed the recreation model, this has continued to a ball and grow, and the day camps are enormously popular with the regular recreation program in becoming more popular as well. and i can budget another hundred thousand dollars next year. >> superviser weiner: so, as you know, on tuesday, several of my colleagues placed an ordinance on the ballots to limit parks and recreation in their ability to generate certain revenues. i know that one of the ways that they have been able to avoid layoffs and increases in fees -- they have the ability to generate revenue and as we look at the state parks shutting down, many of them, i really want to commend the department for

the mayor's budget director has to leave early. he will be replaced by another member of the mayor's budget office, rick, who will be here to listen. greg, if you want to share some of your insight. i have worked with him on the budget committee and has made some tough choices. >> thank you, very much. thank you all for being here. i am sorry i have to leave. i have a sick kid at home. i wanted to be here until i have to get back for child care. i just wanted to give you an overview of where things stand with the state budget. i think you are probably familiar with the challenges we are facing in the city and county of san francisco. for next year, we are projecting a general fund budget deficit of $306 million. over the next three months, we will have to close that deficit. the mayor's budget is due to the board of supervisors on june 1. then it will go through the committee process through chair chu's budget committee. so we will be working closely with supervisors chu and avalos to make some decisions on the budget. just to put t

we have the $6.5 billion budget. a large amount of this is flexible for us to make decisions, making policy choices about what we can change to close the deficit. $306 million in that perspective is almost 25% of the flexible budget. this is a great challenge and that is why we are here tonight. we will be working on this in the mayor's office. we have been working very closely with the board of supervisors to make those decisions. i will leave it at that and turn its back over, and i'll be happy to answer questions. >> thank you, very much. i am going to start to read a number of questions that we have here, and again, if people want to fill loudspeaker cards, we are more than happy to get through them. i will ask the palace here from the city to be as brief as they can and i will try to read through as many of these statements as they are handed to me. this can be applied to a number of people, multiple people. how can you make certain that the adjustment that the mayor referred to in allocating the budget will not

this is 2.4 in the budget year. this is provided in exchange for cash. >> this is $8.3 million. >> this is a question for the school district. >> i am joined with cathy fleming. >> is there anything that you would add to the presentation? >> thank you. this has been an incredible resource. you have saved hundreds and hundreds of jobs. this has made the children and the city a better place. we have the comptroller's office, and this is terrific. we very much appreciate this. >> just a question for you. you have with the school district considers with the process that you go to. >> this has been controversial, with the public education in richmond fund. one position and one thing that has been difficult to get around is that from the district side, on behalf of the people -- these should represent services to the district. the idea being that when the proposition was given to the voters, we will see what is in existence. this was meant to be new and above. what we have done is look at what came on line, and what has be

>> we are in agreement with the budget closeout. supervisor chu: can you articulate the items you're not in agreement with? >> sure. they relate to travel and training. we want to get more aggressive in the training area. supervisor chu: can you point out where in the budget analyst reports they are? >> on page, i believe, it is 80. the item of training. there is an item on there for training. it adds up to $12,000. another area we're not in agreement with the budget analyst john -- on is on page 81, the other current expenses for $495,000.200 $96. i missed one. supervisor chu: we just want to make sure we understand where they are. >> also on page 81, and i am sorry, the maintenance services- equipment. supervisor chu: $246.349 in total? >> and then on page 89, the travel expenses for a total of $10,000. 58,446. supervisor chu: ok, so far what i have got. page 80, $12,000.9050 on training -- $12,900 on training. maintenance. 82, $10,000 on air travel. >> madam chair, they disagree with the $495,296 on the bottom of page 81, also. su

. >> as chair of the budget i think it is my duty to ask about the cost of the move. it was not kicked to budget so i don't know. i'm just wondering what the cost of the move is and where we're getting the funds to actually move. thank you. >> i'm going to let our deputy superintendent speak to that. it is part of numerous campus moves. there are i believe four different relocations that are taking place. this is one of the four and there is a -- an estimate for the cost of all of them together. i don't believe that it is the numbers i've seen are move by move or -- although that could be done too. i think the total cost estimate and rita can help me too is about $480,000. is that correct? $485,000 for the four moves together. and the majority of those costs are funded by the unrestricted general fund and to the extent possible some of those costs are being paid for by capital facilities funds. if commissioners have other questions -- >> i just want to say that qeia is one of the things questioned in the budget. there is a possibility that it will be funded. bizarre as

$306 million budget deficit for next year. theity's total budget is $6.5 billion, $306 doesn't sound like a lot to tackle, but out of the $6.5 billion total city budget, only $3 billion of that is general fund. we're working with $3 billion in our general fund. in that $3 of general fund, once you take out our pension obligations, our voter-approved mandated spending on public education, the m.t.a., that really only leaves about $1.2 billion left that we have to work with. so $306 million out of a $1.2 billion available budget to work with, that's about 25% of our total city budget that we have to cut out of our general fund supported operations. so that is -- that's a pretty significant chunk of our budget. and what is -- what's in that $1.2 billion that we have to work with are our public safety departments, our police department, our sheriff's department, and our public health department, health and human services agency, department of children, youth and their families. these are the critical services that i think our resident

in the department's budget. where is the $3.5 million hole in the budget that we have heard exists? it was brought to my office his attention that there was a $3.5 billion old with an increase in the budget itself. >> right now there is a $9 million assumption because uniformed members of the fire department are due a wage increase on july 1. there has not been an agreement as of this state. with $9 million if the wage is taking it -- taken. that is something that we are monitoring closely. supervisor mirkarimi: if the consequence is not made whole, in the stand there are two stations for opposing the activation, correct? >> when we were talking about the budget in april, we wanted to be very candid. we did not look at the contingency at the time, as we were concerned it would have adverse impact. when the budget was presented, there was deferral from the members of 107.98. my feeling is that if that was not resolve their would have to be an operational decision made, including potential brown outs. supervisor mi

why don't we go to the budget analyst report? >> madam chair and members of the committee, our total recommended reductions in the department is $107,000 and that's 100% general fund and they are ongoing reductions. it would still allow an ip crease of $717,000 or 2.2% in the department's budget. and be glad to respond to any questions. >> thank you, mr. rose. it sounds like the department is in agreement. i have one question as it relates to log cabin ranch which has gone through a transformation from what it was even 10 years ago and i am wond wondering if you can speak about the work you are doing there. >> well, it begins with the almost 600% increase in the resident population at the ranch. beginning with about six when i arrived in 2005 and now up to 24. our hope is through the efforts that we have established in absolutely changing the way that the program sad ministered at -- the way the program is administered at the ranch and the modest improving in living conditions is being embraced as a positive and pronounced disposi