San Francisco Budget and Appropriations Committee Meeting - May 19, 2021
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BOS Budget and Appropriations Committee - Regular Meeting - May 19, 2021
The Budget and Appropriations Committee met remotely on May 19, 2021, chaired by Matt Haney, with President Walton and Supervisors Ronen, Safai, and Marr. The committee considered a free Muni pilot program, the FY2020-2021 nine-month budget status report, and food insecurity in San Francisco. All items received positive recommendations or were filed, with a 4-1 vote on the Muni items and unanimous 5-0 votes on the hearing items.
Discussion Items
Free Muni Pilot Program (Items 1 & 2) - Ordinance appropriating $12,500,000 from the COVID Contingency Reserve to SFMTA to support a free Muni pilot program in July, August, and September 2021, and a companion ordinance creating a special fund for the program. Supervisor Preston, the lead co-sponsor, urged advancement, citing low ridership, low fare revenues, a need to return to transit, and rising congestion. Supervisor Ronen supported the pilot, noting the success of free Muni for youth. President Walton emphasized fiscal responsibility and the importance of reducing cost barriers to get people back on buses and rail. Chair Haney noted Muni ridership is at 30% of pre-pandemic levels while congestion is already near 100%. Budget Analyst Seven Campbell reported the appropriation was increased to $12.5 million to cover the estimated reduction in fare revenues and provide equity with paratransit riders; if approved, the reserve balance would be $492 million. There were no public commenters on these items. Vote: 4 ayes (Haney, Walton, Ronen, Mar) and 1 no (Safai). The items were moved to the full board with a positive recommendation.
FY2020-2021 Nine-Month Budget Status Report (Item 3) - Controller Ben Rosenfield and Michelle Allersmith presented. The report projects a net improvement of $157 million since the six-month report, driven primarily by property transfer taxes, excess ERAF revenue ($83 million change), and $30 million in net improvement in department operations. Continued weakness was noted in sales, business, and hotel taxes. COVID emergency response spending authority remaining is $53 million, down $23 million from the six-month report. Transfer tax remains volatile, with 3% of transactions accounting for 75% of year-to-date revenue. SFO employment is down just under 80% from the prior year. The city expects to incur $462 million in FEMA-eligible expenses, with only $23 million in obligations received to date, creating cash flow challenges. Federal stimulus is now estimated at about $630 million, with the first half expected shortly. The projected two-year budget gap was $26 million before accounting for the current-year surplus. Business tax remains uncertain due to delayed filing deadlines. The hearing was filed on a 5-0 vote.
Food Insecurity and Hunger (Item 4) - Supervisors Ronen and Safai called this hearing to discuss food insecurity and hunger, hear about current programs, coordination, gaps, lessons learned from COVID, and opportunities for leveraging resources. Ronen stated that one in four San Franciscans is at risk of hunger. Safai noted that his district contains 17% of HSA public benefits clients, with nearly 11,000 residents on CalFresh. Presentations were made by Paula Jones (Food Security Task Force, DPH), Shakira Simley (Office of Racial Equity, Human Rights Commission), Susie Smith (Human Services Agency), and Jennifer Labar and Orla O'Keefe (SFUSD). Key statistics cited: California food insecurity rose from 10% (2017-19) to 21%; 44% of San Francisco's adult labor force has filed for unemployment; HSA CalFresh caseload doubled from 32,000 to 62,000; monthly CalFresh benefits rose from $165 to $270; HSA projects 947,000 people will receive grocery bags by the end of the fiscal year; Great Plates Delivered provided 2.7 million meals; and SFUSD provided nearly 7 million meals during the pandemic. Presenters emphasized the need to move from food security to food sovereignty, sustain community-led food hubs, reauthorize and resource the Food Security Task Force, and address structural racism in food systems.
Public Comments & Testimony
Public comment on Item 4 included representatives from the SF-Marin Food Bank, Safe and Sound's Family Resource Center Alliance, Healthy Cornerstore Coalition, Children's Council, SF Market, DISH, La Cocina, Off the Grid, MLVS, Mission Food Hub, Mission Meals Coalition, EatSF, and Bayview residents. Commenters expressed support for continued and expanded food security funding, community-driven and culturally appropriate food distribution models, increased support for urban agriculture, and a shift from emergency food response to long-term food sovereignty. Several commenters requested specific investments, including $350,000 for culturally appropriate food support for the Muslim community, $1 million for Mission Meals Coalition, and sustained funding for programs like EatSF vouchers and community food hubs. No public commenters spoke on Items 1, 2, or 3.
Key Outcomes
- Items 1 and 2 were passed out of committee by a 4-1 vote (Safai dissenting) and forwarded to the full Board of Supervisors with a positive recommendation.
- Item 3 (Nine-Month Budget Status Report) hearing was filed on a 5-0 vote.
- Item 4 (Food Insecurity and Hunger) hearing was filed on a 5-0 vote.
- The committee will continue, during budget deliberations, to consider how to allocate surplus funds, support food security programs, and reauthorize the Food Security Task Force.
Meeting Transcript
Meeting will come to order. This is the May 19th, 2021 budget and appropriations committee meeting. I'm Matt Haney, Chair of the Budget and Appropriations Committee, joined by committee members President Walton, Supervisors Ronan, Safai and Marr. Our clerk is Ms. Minda Wong. I want to thank Colina Mendoza and Shivila Reniga from SFGov TV for broadcasting this meeting. Madam Clerk, do you have any announcements? Yes, Mr. Chair. Due to the COVID-19th HALT 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 a meeting through 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, channels 26, 7899 and sfgtv.org are streaming the number across the screen. Each speaker 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 187217002, then press pound twice. When connected, you will hear the meeting discussions, but you will be muted and in 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 N D A dot W O N G at SF 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. Finally, items acted up upon today are expected to appear on the Board of Supervisors Agenda of May 25th, unless otherwise stated. Thank you, Mr. Chair. Thank you, Madam Clerk. Um can you please call items one and two together? Yes, item number one ordinance appropriating 12.5 million from the COVID contingency reserve to the San Francisco Municipal Transportation Agency to support a free muni pilot program in July, August, and September 2021 and fiscal years 2020 to 2021. Item number two is an ordinance amending the administrative code to create a special fund for a free muni pilot program ending September 30, 2021 and setting conditions for use of the fund. Members of the public who wish to provide public comment on these items should call 415 65501 meeting ID 187-9217002, then press pound twice. If you have not already done so, please start three to runov to speak. Assistant prompt will indicate you have raised your hand. Please wait until the system indicates you have been unmuted and you'll make any comment. Great. Thank you, Madam Clerk. I believe we have Supervisor Preston who's here who's going to make some comments. Supervisor Preston. Thank you, Chair Haney. Um, and uh thank you to you and the committee for the robust uh discussion on this item um and the amendments uh to these uh two companion ordinances last week. Um really want to reiterate my thanks to you, uh Chair Haney, for introducing this uh with me as the original uh co-sponsor uh and also to our our additional early co-sponsors, uh President Walton uh and and supervisor uh supervisor Ronan and Chan. Um, and and also wanted to thank Supervisor Maher for his supportive statements uh regarding free muni uh at the last hearing. Um, the ordinances before you would appropriate 12.5 million dollars for a three-month free muni pilot to begin July 1, as we discussed in more detail uh last week. Um, and my office is continued to engage with MTA leadership and other stakeholders about the pilot, and we will continue doing that uh as this item uh moves forward. As I've said before, I think we have a unique opportunity here with low ridership, low fare revenues coming in anyway, um, a need for people to return to transit, rising congestion, um, and a budget uh that allows us uh to fund this pilot if it's a priority. Um, and I think this is a direct way to get money into the pockets of San Franciscans during this recovery uh period and while trying out a fare-free uh period of time in it to welcome Muni riders uh back on buses and trains. So I urge the committee to advance uh the proposal to the full board with recommendation and just want to thank you again uh for your time and consideration during what I know is a very busy budget season. Thank you. Thank you so much, Supervisor Preston. I I do want to is SOMTA here. Is there a representative from SAMTA? In the meantime, Supervisor Ronin.
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