San Francisco Budget and Appropriations Committee Hearing on DPH and OEWD Budgets - March 10, 2021
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San Francisco Budget and Appropriations Committee Hearing on DPH and OEWD Budgets - March 10, 2021
The Budget and Appropriations Committee, chaired by Supervisor Matt Haney, held a hearing on March 10, 2021, to review the Fiscal Years 2021-2022 and 2022-2023 budgets for the Department of Public Health (DPH) and the Office of Economic and Workforce Development (OEWD). The committee heard detailed presentations from department leaders, discussed key priorities including racial equity, behavioral health, COVID-19 response, workforce development, and small business support, and filed both hearings unanimously.
DPH Budget Hearing
The Department of Public Health, led by Dr. Colfax, presented a base budget of $2.6 billion with over 7,000 FTEs. The department's strategic priorities include racial equity, implementation of CalAIM (a state Medi-Cal program), COVID-19 response, and expanding behavioral health services. DPH met its $59 million general fund reduction target through revenue initiatives, including a $51.6 million release of deferred disproportionate share hospital funds and $24 million from CalAIM changes in year one. No service reductions were proposed. Key discussion points included:
- Racial Equity: DPH outlined its racial equity action plan, with $726,000 allocated in the proposed budget for training and workforce policy. President Walton questioned whether this amount was sufficient to affect 7,000 employees, noting it represented a very small fraction of the budget. DPH acknowledged the challenge and committed to providing more detail.
- Behavioral Health: Supervisor Ronan inquired about Mental Health SF implementation, noting that $34.4 million was appropriated for FY2021 but spending lagged due to slow rollout. DPH confirmed unspent Prop C funds carry forward. Supervisor Safai raised concerns about the lack of abstinence-based substance abuse treatment options in DPH's RFP process, and DPH agreed to engage with community advocates.
- Overdose Crisis: Chair Haney highlighted that 2020 saw over 500 fentanyl deaths, three times the COVID-19 death toll, and called for a comprehensive strategy. DPH committed to returning with specific proposals, citing their new behavioral health director and ongoing naloxone distribution (4,000 reversals in 2020).
- COVID-19 Response: DPH reported that vaccine distribution is focused on equity, with higher proportions going to southeastern neighborhoods and Latinx and Black communities among those 65+. However, supply constraints limit current efforts. The department is developing a sustainable COVID-19 infrastructure.
- Contracting Oversight: DPH provided an update on reforms following the controller and city attorney's integrity assessment, including updated MOUs with foundations, ethics training, and a new compliance newsletter.
OEWD Budget Hearing
The Office of Economic and Workforce Development, presented by Acting Director Anne Taupier, CFO Merrick Pasqual, and Workforce Director Joshua Arce, proposed a total budget of $91 million for FY2021-22, a decrease of $4.9 million from the current year. The budget reflects a $3.26 million general fund reduction achieved primarily through the expiration of one-time additions. Key initiatives include:
- Workforce Development: A $28.1 million "Building Back Stronger" RFP focusing on equity pilots, neighborhood job centers, and the Dreamkeeper Initiative ($6 million) to address the Black unemployment gap, which stands at 10.7% (2.5 times the city average). The RFP includes multi-year grants and a focus on job readiness collaboratives.
- Small Business Support: $24 million in COVID relief delivered to over 1,230 businesses through various funds. An additional $20 million supplemental appropriation is pending Board approval. Supervisor Marr asked about the ongoing loan and grant programs in the base budget; OEWD clarified that most COVID-related programs were temporary.
- Economic Recovery: OEWD is pivoting from hospitality training to supporting displaced workers and pilots for emerging industries. The department also highlighted the City EMT pilot program, a partnership with the fire department and City College.
- Neighborhood Investment: Supervisor Safai stressed the need for a robust Invest in Neighborhoods strategy to combat storefront vacancies and support business retention. OEWD acknowledged staff redeployment due to COVID and committed to prioritizing neighborhood corridors as part of the recovery.
Key Outcomes
- Both hearings were filed unanimously by the committee (5-0 votes).
- No formal decisions were made, but the committee directed DPH to provide detailed spending data on Mental Health SF and a comprehensive plan to address fentanyl overdoses.
- OEWD was asked to provide a full accounting of small business grant and loan programs and to strengthen its neighborhood investment strategy.
- The budget process will continue with the mayor's proposed budget expected in the coming months.
Meeting Transcript
This meeting will come to order. This is the March 10th, 2021 budget and appropriations committee meeting. I'm Matt Haney, Chair of the Budget and Appropriations Committee. I am joined by committee members, President Walton, Supervisors Ronan, Safai, and Marr. Our clerk is Ms. Linda Wong. I would like to thank Galina Mendoza from SFGov TV for broadcasting our meeting. Madam Clerk, do you have any announcements? Yes, Mr. Chair. Due to the COVID-19 health emergency and support chat board members, city employees and the public, the Board of Supervisors, Legislative Chamber, and Committee Room are closed. However, members will be participating in the meetings remotely. This precaution is taken pursuant to the various local, state, and federal orders, declarations and directives. Committee members will attend the meetings of videos conference and participate in the meeting to the same extent as if they're physically present. Public comments will be available on each item on this agenda. Both Channel 26 and SSGTV.org are streaming the number across the screen. Each speaker will be allowed two minutes to speak. Comments or opportunity to speak during public comment period are available via phone call by calling 415 655 001 meeting ID 1875 3464, then press pound twice. When connected, you will hear the meeting discussions, but you will be muted and in listening in listening only. When your item of interest comes up, star three to be added to the speaker line. Best practices are to call from a quiet location, speak clearly and slowly, and turn down your television or radio. Alternatively, you may submit public comment in the following way. Email to myself, the budget and appropriations committee clerk at L I N V A dot W O N G N S F G O V dot O R G. If you submit public comment via email, it will be forwarded to the supervisors and will be included as part of the official file. Mr. Chair, this concludes my announcement. Thank you so much. Madam Clerk, can you please call the first item? Yes, item number one hearing on the overview of the Department of Public Health budget for fiscal years 2021 to 2022 and 2022 to 2023. Members of the public who wish to provide public comment on this item should call 415 655 0001 meeting ID 1875 3464, then press down twice. If you have not already done so, please tell star three to line up to speak. Assistant prompt will indicate you have raised your hand. Please wait. And so the system indicates you have been unmuted and you may begin your comments. Thank you so much, Madam Clerk. And I know we are joined by the DPH team. And I believe I will turn it over, I think, to Director Colfax. Thank you, Chair Haney, and uh thank you. Other members of the board. Uh, appreciate the opportunity to present um our our budget uh to the budget and appropriations committee. And just to thank you for your support during this unprecedented year. It's been a full year since we've been uh managing this COVID-19 pandemic, and to acknowledge uh the many hundreds of people at DPH on the front lines addressing this and other competing health needs. Um, I will dive right into this and then um be available for questions as well as uh other members of the DPH team. Um I will also we also have several other speakers during this slide presentation who will rotate in. So our mission at the Department of Public Health is to protect and promote the health and well-being of all San Franciscans. Our vision is a uh is an ambitious one to make San Francisco the healthiest place on earth. Um, and you can see what we do on in terms of the other bullets on this slide. We do a lot. Um we assess and research the health of the community, develop and enforced health policy, work to prevent disease and injury, educate the public and train health care providers, provide quality, comprehensive health care, and ensure uh equitable access for all to health care in San Francisco. Next slide, please.
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