Budget and Appropriations Committee Meeting - March 17, 2021: Surplus Spending Plan for Rent Relief, Small Business, Arts, and Youth
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Budget and Appropriations Committee Meeting - March 17, 2021: Surplus Spending Plan for Rent Relief, Small Business, Arts, and Youth
Chair Matt Haney opened the meeting, noting a projected $125 million surplus in the current fiscal year. He outlined a collaborative spending plan with the Mayor's Office, focusing on small businesses, families, tenants, artists, and vulnerable residents. The committee considered five agenda items, with extensive discussion and amendments consolidating many allocations into a single package.
Public Comments & Testimony
- Item 1 (Prop I rent relief/social housing): Over twenty callers expressed strong support, including representatives from the San Francisco Tenants Union, DSA, and community organizations. Speakers emphasized the urgent need for rent relief to prevent evictions and for social housing to decommodify housing. Many thanked Supervisor Preston and urged approval of the amendment shifting funding from general reserve to property tax.
- Item 5 (business fee extension): Two callers from the taxi industry (Chris Sweiss of Yellow Cab, Mark Gruberg of Breed Cab) and a driver (Barry Toronto) supported the extension, citing severe pandemic impacts. They requested the fee waiver or further relief, but appreciated the extension.
- Items 2-4 (arts, small business, youth): Numerous callers supported full funding for cultural districts (e.g., Japantown, Leather & LGBTQ, American Indian, Castro, African American, Soma Pilipinas) and arts organizations (San Francisco Opera, Chinese Culture Center). Others endorsed the summer youth program and high school internships. One caller criticized the process as a violation of the Brown Act but still urged support for cultural districts.
Discussion Items
Item 1 – Appropriation from General Reserve for Rent Relief and Social Housing ($20.1M) Supervisor Preston presented the ordinance, allocating $10.05M to the Rent Resolution and Relief Fund and $10.05M to the Housing Stability Fund, using Prop I transfer tax revenue. He noted a February controller update increased projections to $20.1M. An amendment changed the revenue source from general reserve to property tax (at controller's suggestion). Committee members (Safai, Melgar, Marr, Ronin, Walton, Haney) expressed strong support, highlighting the need to fill gaps in federal/state rent relief and to launch innovative social housing models. Supervisor Safai asked about debt forgiveness criteria; Preston left open tweaks. BLA recommended approval with a report-back on rent relief rules. Public comment was overwhelmingly supportive. The committee voted 5-0 to accept the amendment and continued the item to a special meeting on March 23.
Item 5 – Business Registration Fee Extension and Fee Penalty Suspension Amanda Freed (Treasurer's Office) explained the ordinance would extend the business registration fee deadline to November 1, 2021 for most businesses, and suspend late penalties for certain fees. BLA noted a one-time $32M revenue loss. Chair Haney proposed an amendment limiting the full extension to businesses with 2020 gross receipts ≤$25M; larger businesses would get an extension only to June 30. Supervisor Safai supported targeting smaller businesses. The committee voted 5-0 to accept the amendment, then voted 5-0 to send the item to the full board with a positive recommendation.
Items 2, 3, 4 (combined discussion) – Arts Backfill, Small Business Relief, Summer Youth Programming
- Item 2 (Arts backfill): Ashley Groffenberger (Mayor's Budget Director) presented a $11.2M+ appropriation to backfill hotel tax shortfalls for Grants for the Arts, Arts Impact Endowment, Cultural Centers, and Cultural Equity Endowment. Supervisor Ronin questioned why cultural districts were initially left out; Groffenberger acknowledged a miscommunication and supported adding $1.1M for cultural districts. Deputy City Attorney Pearson clarified Prop E's legal limits.
- Item 3 (Small business relief): Diana Ponce de Leon (OEWD) presented a $20M proposal for grants ($12.4M) and loans ($7.3M) targeting storefront businesses, with a survey to pre-qualify applicants. Supervisor Safai asked about a restriction excluding businesses that received >$5,000 grants or >$20,000 loans; OEWD indicated flexibility. Supervisor Marr introduced an amendment for a $1M fund for small businesses victimized by crime. Supervisor Ronin praised OEWD's work.
- Item 4 (Summer youth programming): Director Maria Sue (DCYF) presented the "Summer Together" initiative, a free summer learning program for all SFUSD students, with $15M from the city plus private donations. Supervisors Chan, Ronin, Melgar, Marr, and Safai spoke in support, emphasizing equity, learning loss, and high school internships. Supervisor Marr proposed a $2.7M amendment for a high school internship program with City College credit, funded by expiring ERAF money. BLA noted the $15M would fund about 10,000 slots.
After discussion, the committee consolidated all amendments (arts, small business, youth, plus new items for shared spaces, music venues, crime victims, overdose prevention, family relief, and a reserve) into a single amendment to Item 3. Chair Haney listed additions: $2.25M for shared spaces, $3M for music/entertainment venues, $1M for crime victims, $1.6M for overdose prevention (fentanyl outreach/treatment in SROs), $2M for family relief fund, $1.1M cultural districts, $1M hotel tax contingency, $5M for next year's arts shortfall, $15M summer learning, $2.7M high school internships, and a $6.52M reserve. The controller confirmed the total aligns with the $125M surplus minus Item 1.
Key Outcomes
- Item 1: Amendment (funding source change) approved 5-0. Item continued to special meeting March 23.
- Item 5: Amendment (targeted extension) approved 5-0. Item sent to full board with positive recommendation.
- Items 2 and 4: Tabled 5-0 after their contents were folded into Item 3.
- Item 3: Consolidated amendments approved 5-0. Item continued to special meeting March 23, where the full package will receive a final committee vote before going to the full board.
- Reserve: $6,520,705 held in reserve (approximately 5% of total surplus) for contingency and pending priorities.
- Next Steps: The committee will reconvene as a special meeting on Tuesday, March 23, 2021, to vote on the amended items and recommend them to the full Board of Supervisors.
Meeting Transcript
The meeting will come to order. This is March. This is the March 17th, 2021 Budget and Appropriations Committee meeting. I am Matt Haney, Chair of the Budget and Appropriations Committee. I'm joined by committee members President Walton, Supervisors Ronin, Safai, and Marr. Our clerk is Ms. Linda Wong. I want to thank Colina Mendoza from SFGov TV for broadcasting this meeting. Madam Clerk, do you have any announcements? Yes, Mr. Chair, due to the COVID-19th health emergency and to protect port members, city employees, and the public, the Board of Supervisors, Legislative Chamber, and Committee Room are closed. However, members will be participating in the meeting remotely. This precaution is taken pursuant to the various local, state and federal orders, declarations and directives. Committee members will attend the meeting through a video conference and participate in the meeting to the same extent as if they're physically present. Public comment will be available on each item on this agenda. Both Channel 26 and SFGTV.org are streaming the number across the screen. Each speaker will be allowed one minute to speak. Comments or opportunity to speak during public comment period are available via phone call by calling 415-655-0001. Meeting ID 187-251-8978, then press pound twice. When connected, you will hear the meeting discussion, but you will be muted and in listening mode only. When your item of interest comes up, DAO 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 appropriation committee clerk at LINDA.wng NSFOV Docorg. If you submit public comment via email, it will be forwarded to the supervisors and will be included as part of the official file. Items acted upon today are expected to appear on the Board of Supervisors Agenda of March 23rd, unless otherwise stay stated. Finally, Supervisors Melgar and Preston are also participating in this remote meeting. We are now convened as a special meeting of the Board of Supervisors. Mr. Chair, this concludes my announcements. Thank you so much, Madam Clerk. Before we call item one, I just again want to thank all of my colleagues for the work that they've done to prepare for today's meeting. We are going to hear a number of uh incredibly important items uh that relate to uh how we are going to uh spend the uh projected 125 million dollar surplus in the current year. Um, I again want to thank uh all of the committee members and the supervisors who are here. Every supervisor had some input into what is in front of us, and I want to thank the mayor's office uh for their partnership and the mayor for her leadership. I'm proud to say that this spending plan that is in front of us will direct resources and support to the people most impacted during this crisis, including small businesses, families, tenants, artists, and our most vulnerable residents. It is a package that will keep small businesses open, fight the opioid epidemic, support our kids and families, and ensure tenants can stay in their homes. It is crucial that the surplus funds that we have and unexpected uh set of money uh in the current year be put directly into the pockets of our residents and small businesses that are suffering and address our most urgent priorities for recovery. Our city's residents need us all to work together collaboratively and deliver real solutions, and that's what we've done here today. Again, thank you to to Mayor Breed and her staff to President Walton and all of the supervisors and committee members. Uh, I know that uh we are already getting started on our uh full budget process, which I believe will be one of the most important uh budget decisions uh we will make uh in the history of the city. And I think that our work together on this surplus spending plan is a very good sign of our thing of things to come, including our will uh ability to work together and address the most urgent priorities facing our city for recovery. Uh so with that, madam clerk, will you please call item one? Yes, item number one ordinance appropriating approximately 10 million from the General Reserve to the Mayor's Office of Housing and Community Development for Rent Relief under the rent resolution and relief fund and approximately 10 million for the acquisition, creation, and operation of affordable social housing under the housing stabilist stable stability fund in fiscal year 2020 to 2021. Members of the public who wish to provide public comment on this item should call for one five six five five zero zero zero one meeting ID 1872518978. Then press pound twice. If you have not already done so, please dial star three to line up to speak. Assistant prompt will indicate you have raised your hand. Please wait until the system indicates you have been unmuted and you may begin your comments. Thank you so much, Madam Clerk.
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