that is basically my update on the state budget. the only other thing i would mention is that my sense is that at the state level, all parties are going back and reassessing what their next step will be. they are looking at whether a special election can be called, whether they might use the november election to put these measures on the ballot, and then, what can they do, as a legislative body, with a simple majority vote, and that maybe the next half forward in terms of moving forward with eager redevelopment and/or the tax extensions. -- either redevelopment and/or the tax extensions. happy to answer any questions. supervisor mirkarimi: thank you for the report. who from the city is representing us on the realignment discussions? >> chief still of the probation department has been very active in representing us as well as our lobbyists. we have been working with the probation officers and i believe the share has also been involved in those conversations through the sheriffs association. supervisor mirkarimi: i asked, and i'm not s

prop 22 was passed by the voters in november, basically prohibiting the state from taking local money in order to balance the state budget. prop 58 does not allow the state to issue debt in order to balance the budget. constitutional issues aside, it was made clear by the staff and the governor's office that even if those constitutional hurdles weren't there, they are philosophically opposed to issuing debt in order to balance the budget. those are the big issues thatsid the senate budget committees thamet, the language was introdd that goes along with the governor's proposal. i have passed around a summary that highlights the key components. just to hit the high points, what the bill basically does is is t makes good on a proposal to eliminate agencies by july 1. it also freezes activities after the signing of the bill. assuming that it goes through the legislature, it freezes redevelopment activity so that new commitments can't be made. it creates a successor entities that are designed to wind down the activities of redevelopment agencies that are already in place. what we have been working on a, it has been at our off

significant amount of uncertainty at that part of the year and the bigger piece of that was related to the state budget. i think steps the discussion at that time was largely about if the state budget came in worse than anticipated and we had to make major cuts. with the response to that be that we would have to consider whether or not the ad that was on the table -- whether or not you or your colleagues on the board, as you said, wanted to have some leverage to create a trade-off discussion in that event. based on where we are right now, state cuts came in at a lower level than budgeted. the budget is currently in balance. and we did do some made-year reductions in december. $19.8 million. notepad -- no adbacks were included, they were not candidates for the midyear reduction. i guess that my overall response would be that we are past the point in time where the uncertainty that we were concerned about has been resolved and the leverage that you mentioned, that is the case. although i think the idea was that we would be early enough in the fiscal year at that time to be able to respond and make policy

or on the update of the state budget? >> first, let me say that i am heartened by the questions coming from the chairperson of this committee. it shows a much better understanding of the budget process. i am optimistic about the future of this committee. i did not see any fred blackwell presentation. perhaps you see a nexus. i did not see anything abou this -- about his sales pitch. i would just say to mr. blackwell that if it is funding projects like yoshi's, perhaps there be a different position. thirdly, i would like to see the projected deficit by the mayor's office, i would like to know what assumptions he made regarding the june ballot initiatives. are they based on the initiatives passing? and we can have a clear understanding of the validity of the deficit. supervisor chu: next speaker, please. >> i'm a district 6 voter as well as the chapter organizer for californians for disability rights.

the state's shortfall. the governor's proposal and the potential impact on san francisco. key approaches to solving the state's budget shortfall for redevelopment and realignment proposal reductions in state funding. as well as the proposal to eliminate redevelopment. briefly, we can talk about the timeline. i am happy to take any questions you might have. as you probably know, but state has an 18 month budget shortfall of $25.4 billion. the governor's budget proposal is $84.6 billion. it is a very significant question of total general spending. that is comprised of $8.2 billion in the current year. the governor has proposed $12.5 billion in spending reductions, $12 billion in revenue extensions. $2.8 billion in other solutions. those numbers add up to slightly more than $25.4 billion. he is funding a $1 billion general reserve for space. the impact of these proposals is still being determined as the budget itself is being negotiated. i have done my best to outline those for you here today. in the governor's proposal on revenue, he proposes extending certain tax increases if they include sales tax, which would genera

kate howard from my office is going to talk to the state budget picture. just to kind of frame where we are right now in the process for the last several years it has been an ongoing process, balancing the budget in the budget year. where we are right now is the apartments have submitted their budgets and have been going through the submission process for the last couple of months. they have submitted their budgets to the mayor's office. i guess that this marks the official starting point of the process of digging into those department proposals and policy implications and what they mean for the budget. right now we are still looking at things at a very high end broad level. the chair had asked if we could summarize what we are receiving in submissions, although i think it is early for me to be able to paint an accurate picture of that for you. we will dig through that as we do our submissions. we will continue to share information on where we stand. i know that the supervisor has invited the departments to talk more in depth of their proposals. i will walk

the subcommittee for five minutes, mr. pitts. >> thank you, mr. chairman. right now, states across the nation are struggling to ounce budgets without sacrificing the quality of care for their current medicaid enrollees. many states have already made deep cuts trying to achieve balanced budgets, but under the meat and fat for provisions and obamacare, the state takes any action that makes eligibility for medicaid were restricted, then the standards in effect put the state's program as of march 23, 2010, that they could lose all federal funding. if states can change the eligibility criteria, governors are left with little flexibility and few choices but to cut payments to providers or cut other parts of the state budget, for instance education and transportation, in order to maintain federal medicaid spending. what does this look like for my home state of pennsylvania? in an op-ed on "usa today".com come pennsylvania governor tom corbett today wrote quote, pennsylvania's medicaid program, for example, has been steady and sustainable increases in the number of people cursing the cost of those services. the keystone state's med

the prop 1-a funds. these are all state funds. it is almost certain they will not be available. this us to do with the outgoing state budget. the state has to be able to issue bonds. the funds will be there, but the project may not be there in time. looking at a number of aspects, we're continuing to look at potential savings on bids, trying to manage the overall climate pretty well. reducing the overall projects, returning to the project. and inevitably, there is the restructuring of the financing plan. there is a potential swap that would replace some of our on programs state writ funds. commissioner campos: may i ask a follow-up? on page four of your report, you notice the mta has of financial mismanagement plan. when is that going to be executed by the ncaa? >> the program ends -- i believe it is in april. commissioner campos: ok. thank you. >> i might as well talk briefly about the authority's commitment to the project. $132 million is the current commitment. that is comprised of prop k funds, state traffic congestion relief funds. the prop k money is there. all that remains is the state funds that have not gone to the

if you really want to engage in the state budget, let's engage in the state budget.'s not just do the simple piece. so i'll be voting against this one and i'll be voting against all the others that come down the line unless they're a complete piece, and this to me is incomplete. president chiu: supervisor chu? supervisor chu: thank you, president chu. thank you to the sponsor for bringing this item forward. i did have a conversation with laurel about this item. i do not plan to support the resolution, but i do want to explain why. i think that none of us here would like to see any of the proposition 10 reserves being taken away. clearly for us it's a matter of being able to fund future budgets. one thing i do want to point out is that first five in one way really has been responsible in keeping some levels of reserve in anticipation of future revenue losses. i want to say that that's something that is commendable, it's something that we could look to doing in terms of the city and being responsible about our reserves as well. but the reason why i won't be supporting

the fiscal year. there is a host of other challenges that might make this a very challenging budget season. as we have heard today, the state budget picture is as dire as it has been. it appears there is the political current to make productions in a way that might bring the state budget in balance. it means much more significant reductions facing local governments than we have actually ended up at the close of recent state budgets. we did not talk about it much here today. it is worse versus the last couple of years in terms of states and local governments. labor contracts that we will be discussing in coming months are almost entirely closed for the coming fiscal year. it was a significant part of last year's budget solution. the savings will continue. additionally, we are working in a year where if a tax measure is part of the solution for the budget picture, those measures will be higher in the electorate. unless an emergency is declared by the city. this is the constitutional amendment that creates various new restrictions on the ability of the mayor and the board of supervisors to increase or adopt new fees. it should

the governor needs to cut money out of the state budget. he says he's doing his part. r instance, when the governor of the fifth largest economy in the world flies he does so on southwest, but does that actually help? vicky nguyen takes a look. >> reporter: governor jerry brown thrives on thriftiness, flying on southwest, even getting the senior discount. his travel costs are part of the governor's office budget, something governor brown has slashed. spending a total of $4.5 million by flying commercial, cutting staff and getting rid of field offices. >> it's a terrific gesture in order to convince californians you are serious about cutting the size of government, you start with your own staff. >> reporter: the governor also ordered state agencies to turn in a total of 48,000 government paid cell phones. the estimates savings is $20 million a year. >> we don't need that stuff. >> reporter: and governor brown banned state agencies from spending any more money on swag, the professional knickknacks like cups, pens and plastic bracelets. >> you don't need all the plastic st

to unrest in north africa and the middle east and political uncertainty inside of japan over the state budget for the coming fiscal year. >>> meanwhile, japan's corporate goods price index inched up from a year earlier. marking the fifth straight month of increases. prices in iron steel were a major factor. on thursday they said the index was 104.1. that's an increase of 1.7%. compared to the previous month it is a 0.2% rise. it is a measure of prices of goods traded among japanese firms. the rise is due to the advance in commodity price as tension continues in north africa and the middle east. higher demand from emerging economies is another factor. >>> the president of the largest carmaker, toyota announced the midterm strategies on saturday. he said they will focus on emerging markets and eco friendly vehicles. >>> translator: toyota wants to build up a well-balanced business structure by increasing our profits and emerging -- in emerging markets a as well as developed markets. >> reporter: toyota also said toyota aims to achieve worldwide sales of 9 million units by 2015. reaching that go

is it a slick public relations move, or is it really helping slash the state budget? here's nbc bay area's vicky nguyen. >> reporter: governor jerry brown thrives on thriftiness, flying on southwest, even getting the senior discount. his travel costs are part of the governor's office budget, something governor brown has slashed, cutting a total of $4.5 million by flying commercial, cutting staff, and getting rid of field offices. >> symbolically, it's a terrific gesture. in order to convince californians that you're serious about cutting the size of government, you start with your own staff. >> reporter: the governor also ordered state agencies to turn in a total of 48,000 government-paid cell phones. the estimated savings, $20 million a year. >> we don't need that stuff. >> reporter: and just a couple of weeks ago, governor brown banned state agencies from spending any more money on swag. you know, those promotional knickknacks like cups, pens, and plastic bracelets. >> having these kind of plast plastic -- all of rest of it, it adds up to millions of dollars. that's

the state level. i will go into more specifics. we have a matrix of the general policies that will guide us at the state level. mark watts, as the expert in the state budget, he will give you an overview of what is happening with a proposal on the redevelopment agencyc. . our most important issue, to name a few, are reaffirming the gas tax. this was approved in march 2010. this is a swap where the sales tax was decreased with a compensating increase in the exhise tax, and this was to allow the state to use these revenues to repay general obligations for bond debt service on transportation bonds, and the sales tax could not be used. it retained the sales tax for public transportation. the intent was to hold tra nsportation harmless. what this does is puts stronger protection -- on transportation with prop 26, prohibiting the increasing of the tax without two-thirds approval of the legislature. the swap needs to be codified by the legislature. it has general fund issues as well and this is a hot issue. one that will be addressed in the near term with solving the deficit for the budget year. to go through, again, advocating for new revenue at the state and f

. >>> there is movement tonight on the state budget battle. >> the lawmakers say they will vote on the governor's budget plan tomorrow, which includes massive cuts. why some say it is nothing but a drill. >>> and it looks like a video game. the unique view of a roadway you could soon be driving on. >>> right now, lawmakers are nearing a vote on the state budget. late today, senate president proteem darryl called for a vote on governor brown's government proposal. ken pritchett is in sacramento with the latest on whether this could happen. whether the plan has any chance of passing. ken. >> gasia, in the rain and underneath umbrellas here, you can see union workers on the capital protesting among other things pension cuts for state workers. pension cuts have been a major sticking point in their budget negotiations and despite that impact, lawmakers say they will vote on massive cuts tomorrow. >> governor jerry brown today said talks with republicans continue, but there's no deal to call a special election. >> the people in california have a right to decide on whether they want massive c

depending on what happens in the state and when the governor signs the budget, we may not be able to do so. i would have sold the bonds anyway, and probably around this time, but given what is going on in the state, i am trying to make sure we do our work before anything is signed by the governor. i do not know if you want me to speak quickly about what is happening in the state generally -- supervisor chu: i think that would be interesting to folks, but there specifically, in terms of the $70 million in tax incremental bonds, can you describe what it would be used for? the musher theory 20% would be used for housing. there will be a specific housing project on fourth street. that is for 150 units of rental. 25 units will be for formerly homeless families, and it will include 11,000 square feet of commercial space, and will be 50% ami. the remaining 80% would be to a developer for this infrastructure improvements that i spoke of earlier. i have the specific numbers. i can hold up right now for you. supervisor chu: we can come back to that. >> i have it right here. 150% of ami. the rem

medicaid is the second-biggest item in my budget after education which has been of 63% of the state budget on education and medicaid is the next biggest thing to recover medicaid's growth before i was governor has grown to 16.5% a year and we were cutting our community colleges and cutting our universities because of the money was having to be diverted to medicate. in my seven years as governor we've reduced medicaid expenditures to go to 4%. we have not changed eligibility with one exception. the people we used to give pharmaceuticals through the medicaid program who were dual eligibles now get their pharmaceuticals through part d. so in full disclosure want to say that. the reason i do is because of this, because we cut the flexibility to do we reduce the work pharmaceutical programs cost from $697 million annually to $279 million. a 60% reduction. a little bit of that came from part de but primarily, buy giving to generics which is 78% generics now and the meds are great for people that somebody cannot if they have to have brand names we do that. flexibility to do that kind of stuff is

budget the two year operating budget for the state of wisconsin is due to be completed june thirtieth and governor standard used it the other day what citizens from around the state have filed the last forty eight hours a recall petition so we have sixty days to collect roughly twenty thousand signatures a district court a lot of time lot of money but if we can get those signatures we're going to have an election in a six week period all this stuff going to come crashing down towards at the end. june right on top of each other at the same time now that's assuming that walker doesn't. somehow. basically throw those fourteen democrats out of office and change his his former car is up possible it's not he can't throw the fourteen democrats out of office the only way you can get tossed off the short of committing some sort of absurd felony is through recall election we've got to recall a statute in wisconsin it's a high you know high court or you've got to get twenty five percent of the voters and has a daughter told you i don't know about that i want

schools this week and next week are just taking wild guesses basically about the budget, the state budgetand that means they are taking worse-case snare joe, and they are issuing pink slips, layoff notices to thousands and thousands of teachers by the march 15th deadline. all of these numbers, talking about maybe 30,000 teachers across the state, hinge on whether the state is going to get tax extensions and increases with the june election. of course, everybody's waiting to see if those are even going to be put on the ballot. nobody knows if they will even make the ballot and even if they make the ballot whether voters will approve them. that means schools are completely in the dark about how much money they are going to get. and it's just -- you have teachers all across the state who have gone in to this profession, teaching children, many hard to teach children and they are going to get pink slips in their mailboxes, mostly because we have no idea how bad it's actually going to get. it's not going to be good under any scenario but they have no idea how bad it will get. it is a little sc

budget. at that point the committee and the board decided that they wanted to place some funding on reserve until we saw the outcome of the state budget decisions. so that the board would retain the options given the uncertain revenue. it did not come in and we had to make major adjustments. you have had the three month updates and six months updates from the comptroller's office that indicate uncertain revenues that have either been resolved or in some cases are not coming in. the budget is in balance for the current year. given that increased certainty, we are requesting another release of reserves so that the apartments can continue on their operations. supervisor mirkarimsupervisor c. mr. rose? >> the board was concerned as to whether the mayor would fully fund the restorations. so, this reserve was placed on here. we have contacted departments, although they were not able to give us specifics of expenditures. the funding of restorations has been fully funded. if you did not approve of the release at $44 million, of various cuts, if they were all on personnel there would have to be a lay off to lose the estimate of about 40

the capital. we introduced a budget repair bill that is the first of toward addressing the long-term challenges facing our state, while laying the foundation for economic growth. the biennial budget i introduce today is built on the savings supplied by our budget repair bill, legislation that we have already modified to address concerns expressed at the public hearing. we need the savings in the budget repair bill because wisconsin faces a $3.6 billion deficit. too many politicians have failed to tell the truth about our financial crisis. they left wisconsinites in the dark about the extent of our fiscal problem. the facts are clear -- wisconsin is broke and it is time to start paying our bills today so our kids are not stuck with even bigger bills tomorrow. this deficit did not appear overnight. wisconsin got here through a reliance on one-time fixes, accounting gimmicks, and tax increases. previous governors and legislators from both political parties took money from our tobacco settlement, raided more than a billion dollars from the transportation fund and $200 million from the patients compensation fund. th

the state's republican party chooses a bay area man as its chair. the challenges the party faces. >>> the state's budget crisis is having santa clara's effort to build a stadium for the 49ers. the move is city is expected to take tomorrow. >>> plus, the hearing for the barry bonds trial is expected to start tomorrow. the challenges facing the jury. coming up next. >>> trying to freshen the gop message. california republicans tonight have a fresh face leading their party. ktvu's john sasaki traveled to sacramento the to talk to the man trying to revive the party. >> reporter: california's grand old party has a brand new leader and he's from right here in the left leaning area. many republicans are still there tonight after the end of this weekend's state convention but mostly because bad weather cancelled their flights home to southern california. but that gave them extra time to spend with their new chairman. >> it gives us time to go out there and address the public and that's what we intend to do. >> reporter: the party is shrinking and just lost all statewide offices. he arguing the problem is connec