Budget and Appropriations Committee Hearing on Federal Stimulus and City Finances - April 14, 2021
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Budget and Appropriations Committee Hearing on Federal Stimulus and City Finances - April 14, 2021
The Budget and Appropriations Committee, chaired by Supervisor Matt Haney, held a hearing on April 14, 2021, to receive updates on San Francisco's economic and financial conditions, focusing on the federal stimulus packages, primarily the American Rescue Plan Act (ARPA). The committee heard from the Controller's Office, discussed allocations and restrictions, and received public comments urging climate investment. The item was continued to the call of the chair.
Discussion Items
- Federal Stimulus Update (ARPA): Michelle Alarzma from the Controller's Office presented on the American Rescue Plan Act (ARPA), signed into law March 12, 2021. Key provisions include:
- $350 billion in state and local fiscal aid; San Francisco's estimated allocation from the Coronavirus Local Fiscal Recovery Fund is $636 million.
- Eligible uses: responding to the public health emergency and its negative economic impacts, premium pay for essential workers (excluding contractors), revenue replacement for documented revenue losses, and investments in water, sewer, or broadband infrastructure.
- Restrictions: funds cannot be used to offset tax cuts or deposit into pension funds; must be spent by December 31, 2024. Distribution: 50% by May 11, 2021 (upon certification), second 50% within 12 months.
- Additional estimated allocations: $300 million to SFMTA, $192 million to the airport, $112 million to SFUSD, $28.5 million to City College, and under $20 million for housing programs. Many pass-through programs (e.g., health, homelessness) are still pending federal and state guidance.
- Supervisor Questions: Committee members, including Chair Haney, Supervisor Safai, and President Walton, probed uncertainties around revenue replacement measurement, state pass-through funds, and coordination with other agencies (e.g., City College). The Mayor's Budget Office representative confirmed that the five-year financial plan assumes ARPA funds can close the projected deficit, based on the revenue replacement provision, though guidance is pending.
- Upcoming Item: The five-year financial plan update was postponed to the next committee meeting.
Public Comments & Testimony
- Six callers spoke, all urging the committee to invest a significant portion of the stimulus funds—specifically $136 million or 1% of the city's budget—into equitable climate change mitigation and resilience programs. Callers highlighted the Climate Emergency Declaration, the need to electrify housing, expand transit, and support frontline communities. Specific suggestions included waterfront contamination remediation, free public transit, and community safety alternatives to policing.
Key Outcomes
- Motion: Chair Haney moved to continue Item 1 (the hearing) to the call of the chair. Vice Chair Safai seconded. The motion passed unanimously (5-0).
- The committee will hear the five-year financial plan update at a subsequent meeting.
Meeting Transcript
The meeting will come to order. This is the April 14th, 2021 budget and appropriations committee meeting. I'm Matt Haney, Chair of the Budget and Appropriations Committee. I'm joined by committee members President Walton, Supervisor Ronin, and Marr, and uh we may be joined by uh Supervisor Safai. Uh our clerk is Ms. Linda Wong, and I would like to thank Colina Mendoza and Javier Barreto from SFGov TV for broadcasting the meeting. Madam Clerk, do you have any announcements? Yes, Mr. Chair, due to the COVID-19 health emergency and to protect 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 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 a meeting to the same extent as if they were physically present. Public comment will be available on each item on this agenda. Channel 267899 and SFGTV.org are streaming the number across the screen. Each speakers will be allowed two minutes to speak. Comments or opportunities to speak during public comment period available via phone call by calling 415 655 0001, meeting ID 187 6709592, then press pound twice. When connected, you will hear the meeting discussions, but you will be muted and in listening listening mode only. When your item of interest comes up, dial star three to be added to the speaker line. Best practices are to call from a quad location, speak clearly and slowly, and turn down your television. Alternatively, you may submit public comment in the following way. Email to myself, the budget and appropriations committee clerk at L I M D A dot W O N G N S F G O V Doc 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 item one? Yes, item number one hearing to receive updates on the city's economic, financial conditions, and other issues. Members of the public who wish to provide public comment on this item should call 415655 0001 meeting ID 187692, then press pound twice. If you have not already done so, please now start three tonight 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 comment. Thank you so much, uh, Madam Clerk. Uh Michelle Alerzma Alerzma from the controller's office will be here to present on the federal stimulus. I also want to note that we have planned on hearing from the mayor's budget office on the five-year financial plan update, but we will be hearing that next week instead, uh, since there is an encompassing accompanying resolution that will need to be heard on the same day. Uh, Miss Alerzma Thank you, Supervisor Haney. Um, Michelle Alarsma from the Controller's Office Budget and Analysis Division, and I'll share my screen and get started. Um, so on today's agenda, we just have a presentation about um an update on federal stimulus um packages that have been approved and what they mean for San Francisco. I'll start by mentioning that my focus today is really on the American Rescue Plan Act, um, which was signed into law by President Biden on March 12th of this year. Um, as you are likely aware, there is also a stimulus package that was approved on December 27th of 2020. Um, that was the Consolidated Appropriations Act or HR 133, which also had provisions um that will affect the city. Um since this time, um, the president President Biden has proposed an American jobs plan, which is uh largely infrastructure um exceeding two billion dollars. And Congress is currently in session and discussing the American jobs plan this week. Um, so for today, we will focus mostly on um the American Rescue Plan Act or ARPA, as we're coming to call it. Um at 1.9 billion dollars. This is a very um the scope of the bill is vast and it has many, many components. Um, which I've I've listed the largest ones here. Um so this uh round of stimulus spending um continues many of the components that um were first approved in early 2020, um, including in the CARES Act, um, extended in December and are being now continued with ARPA, including direct stimulus payments to individuals, um extended unemployment benefits, increases to food stamps, um, PPP loans, and etc. Um, this bill also includes um funding for FEMA to reimburse uh local governments for eligible expenses. Um I'm gonna spend most of my time today talking about this last point on on the slide here, which is the state and local fiscal aid. Um, in many ways, this is a continuation of and a building upon the coronavirus relief fund that was provided in the CARES Act about one year ago.
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