OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Francisco Budget and Appropriations Committee Meeting - June 15, 2022

Budget and Appropriations Committee — Wednesday, June 15, 2022
BodySan Francisco, California
SessionBudget and Appropriations Committee
DateWednesday, June 15, 2022
StatusFILED
Video Record
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0:15

Good morning, everyone.

0:16

This meeting will come to order.

0:18

This is the June 15th, 2022 budget and appropriations committee meeting.

0:23

My name is Hilary Ronan.

0:25

I'm chair of the Budget and Appropriations Committee.

0:27

I am joined by committee members Gordon Marr, Connie Chan, President Walton, and we will be joined shortly, I'm assuming by Vice Chair Asha Safey.

0:40

Our clerk is Brent Halipa, and I would like to thank Michael Jason Goldhammer.

0:46

Sorry, Michael, or sorry, Jason.

0:48

Jason Goldhammer from SFGov TV for broadcasting this meeting.

0:52

Mr.

0:53

Clerk, do you have any announcements?

0:55

Thank you, Madam Chair.

0:56

With our return to the chamber, just a friendly reminder for those in attendance to please make sure to silence all cell phones and electronic devices.

1:03

The Board of Supervisors and its committees are now convening hybrid meetings that allow in-person attendance and public comment while still providing public remote access and public comment via telephone.

1:14

The board recognizes that equitable public access is essential, and we'll be taking public comment as follows.

1:19

First public comment we'll be taking on uh on each item on this agenda.

1:23

Uh those attending in personal will be allowed to speak first, and then we will take those who are waiting on the telephone line.

1:29

For those watching either channels 26, 78 or 99, hencefgovtv.org.

1:36

The public call-in number is streaming across the screen.

1:39

That number is 415-655-0001.

1:43

Again, that's 415-655-0001.

1:47

Hinter the meeting ID of 248854-3976, then pound twice.

1:53

Uh, when connected, you will hear the meeting discussions, but you will be muted and in listening mode only.

1:58

When your item of interest comes up and public comment is called, those joining us in person should line up to speak.

2:04

And those on the telephone should dial star three to be added to the speaker line.

2:08

If you're on your telephone, please remember to turn on your TV and all listening devices you may be using.

2:12

Uh as previously mentioned, uh, public comment will be taken will be taken from those attending in person first.

2:19

Uh and then we'll go to our telephone line.

2:21

Alternatively, you may submit public comment in writing in either the following ways.

2:25

Email them to myself, the budget and appropriations committee clerk at B R E N T dot J A L I P A at S F G O V dot O R G.

2:36

If you're if you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file.

2:42

Uh you may also send your written comments via U.S.

2:45

Postal Service to our office at City Hall One, Dr.

2:48

Carlton, B.

2:49

Goodlick Place, Room 244, San Francisco, California, 94102.

2:53

And Madam Chair, that concludes my announcements.

2:56

Thank you so much, uh, Mr.

2:58

Clerk.

2:59

Colleagues, um, I want to make a few opening remarks that are mainly directed at our department heads.

3:07

And because of that, I'm gonna make these remarks every day before we start the hearing to ground us and remind us what we're doing here.

3:15

Um, there are some wonderful things about this budget, not least of all being the two-year labor contract with all the city's incredible workers, giving them a 10.25% raise over two years that came at a cost of 170 million dollars to the city.

3:33

This was an important investment, and I understand that it put strain on what else we can fund in this budget.

3:40

I also want to thank you all and the mayor over the last two years as we weathered a devastating global pandemic and now fight for an equitable recovery.

3:51

Having said that, there is a lot left out of this budget as well.

3:56

This committee has an unprecedented 1.5 billion dollar ad back list.

4:02

I have combed through the list time and time again, and there is very little fluff in it.

4:08

It mostly consists of requests for the basics like food.

4:13

I drove past the Latino Resource Hub on my way to work today.

4:17

This is the day that the hub distributes food.

4:21

There was already a line of people with their carts, those little pushcarts, going for at least eight blocks.

4:29

I couldn't even see where the line ended, doubly wrapped around buildings and and blocks.

4:37

The distribution of food at that site doesn't start for another two hours, and this was already the line.

4:44

Then I drove down Van S Street, and on both sides of the street, there was a whole new line of tents that I have never seen at this site before.

5:00

Is this because of the depressing hearings that we held last night for hours on end at the Board of Supervisors meeting, where our most important providers of housing and treatment to the poor mentally ill and disabled, Positive Resource Center, Baker Place, and Laguna Honda Hospital are in absolute crisis and on the brink of closure.

5:16

The basic needs of San Francisco's poor communities are not being met.

5:22

Also missing from this budget is support for homeless women and their children, survivors of domestic violence, the health and resource subs that I that I just talked about that have been instrumental in our fight against COVID-19.

5:35

There is no cost of business increase for the nonprofit service providers in the time of high inflation.

5:42

Are positive resource centers and baker just the first to come to the city for a bailout because they literally can't make in and will close their doors without additional support.

5:51

That's my fear.

5:53

For all of these reasons, I have instructed the budget and legislative analysts to be aggressive this year so that we can cut as much inefficiency and sometimes waste out of the budget and use that money to meet the basic needs of the people of San Francisco.

Discussion Breakdown — Share of Meeting
Budget and Finance████████████████████20%
Procedural████████████12%
Public Works████████████12%
Economic Development████████8%
Affordable Housing████████8%
Public Comment████4%
Public Health████4%
Staffing████4%
Personnel Matters████4%
Summary of Proceedings

San Francisco Budget and Appropriations Committee Meeting - June 15, 2022

The San Francisco Budget and Appropriations Committee met on June 15, 2022, to review the Mayor's proposed FY2022-2023 and FY2023-2024 budgets. Chair Hillary Ronan opened with remarks highlighting a $1.5 billion ad-back list and the need to redirect funds from inefficiencies to basic needs like food, housing, and nonprofit services. The committee heard presentations from multiple departments, discussed revenue estimates, and voted on several legislative items. Public comment focused on elevator repairs in SROs and support for senior housing subsidies.

Consent Calendar

  • Item 9: Resolution accepting a $11,790,072 state grant for the Opportunities for All youth jobs program was recommended to the full board with a positive recommendation.
  • Item 6: Ordinance rescinding a $50 surcharge on Superior Court filings (trial courthouse construction fund) was recommended to the full board with a positive recommendation.
  • Items 7 and 8: Ordinances updating amplified sound permit fees and reproduction/notary fees were recommended to the full board with a positive recommendation.
  • Items 10 and 11: OCII interim budget and bond issuance (up to $99.68 million) were recommended to the full board.

Public Comments & Testimony

  • Denise Dory and Reginald Meadows (public) advocated for using city revenue to repair or install elevators in SROs, citing safety and accessibility concerns for seniors and people with disabilities.
  • David Pilpel commented on the controller's revenue letter, suggesting a reserve for uncertain new tax sources, and appreciated the trial court surcharge rescission.
  • Public comment on department budgets was deferred to June 24, a dedicated day for public testimony.

Discussion Items

  • Controller's Revenue Letter (Item 3): Ben Rosenfield presented the controller's analysis, finding revenue assumptions reasonable but noting risks from telecommute rates (33% assumed for office workers) and potential structural imbalance in year three. The budget relies on $1 billion in one-time sources and draws down 40% of pre-pandemic reserves. Property tax growth is projected at 4% annually, but business tax and hotel tax recovery remain uncertain.
  • Office of Economic and Workforce Development (OEWD): Director Kate Sofis presented a $150 million budget (net $4 million increase). The budget includes $10 million for small business grants, $25.4 million for tenderloin/mid-market safety ambassadors, and $8 million for downtown street vibrancy. Workforce programs saw a $13.4 million decrease, drawing concern from supervisors about prioritization of downtown over neighborhoods. 22 positions are vacant; OEWD committed to working with the BLA on vacancy savings.
  • Planning Department: Director Rich Hillis reported a $62 million budget with 35 vacancies (20 held for attrition/revenue uncertainty). Permit volume declined sharply post-pandemic, with only 2,000 units authorized for construction in 2021 (down from 4,500 in prior years). $4 million is allocated for tenderloin community action plan implementation. Supervisor Safai urged repurposing a vacant position for a chief customer officer to streamline permitting.
  • Assessor-Recorder's Office: Director Joaquin Torres presented a $36.2 million budget with 8 of 9 vacancies being filled. The office emphasized racial equity work, including AB 1466 implementation to remove discriminatory covenants. The property tax assessment system (SMART) is nearing completion. Supervisor Safai raised concerns about ADU property tax reassessment disincentives.
  • Treasurer's Office: Director Jose Cisneros presented a $55.4 million budget with 22% vacancy rate. Key initiatives include implementing new taxes (commercial vacancy, overpaid executive, cannabis) and a guaranteed income pilot. Supervisor Safai suggested repurposing a vacant position for a centralized guaranteed income unit; Cisneros was open to discussion.
  • Controller's Office: Director Ben Rosenfield presented an $82.5 million budget (up $5.8 million, mostly from labor costs and R Administrative Fund). 14 vacancies remain, down from 20. The office is launching a Government Operations Recovery Project to address backlogs in hiring and contracting.
  • City Attorney's Office: Director David Chiu presented a $103.5 million budget (4.9% increase). He requested $1.1 million for a worker protection team (3 attorneys) and $600,000 for a gun violence restraining order team (2 attorneys), noting these were not funded by the mayor. The office has reduced vacancies to 4. Chair Ronan suggested funding these through 17200 fee recoveries rather than general fund.
  • Health Service System: CFO presented a $13.5 million budget with 1 vacancy. The department sought $440,000 for enhanced employee assistance for first responders, which was not funded. Supervisor Safai noted this was included in MOUs and asked the controller to explore MOU reserve funding.
  • City Administrator's Office: Director Carmen Chu presented a budget with significant increases for debt service, labor costs, and Muscone operations. Capital planning is underfunded: $621 million deferred maintenance, $51 million general fund contribution (down from $144 million average). 31 general fund vacancies exist, with 11 in 311 call center. Prop B implementation adds 73 FTE for new Sanitation and Streets Department.
  • Department of Technology: Director Linda Gerull presented a budget with 32 vacancies (12% of workforce), citing difficulty competing with private sector for IT talent. Key initiatives include fiber-to-housing (6,500 units connected), cybersecurity, and a software-defined network. 72% of DT staff are people of color.
  • Public Works (DPW): Interim Director Carla Short presented a $288.5 million budget for PW and $158.2 million for the new Sanitation and Streets Department (SAS). Vacancy rate is 21.7% (364 vacancies, 75 general fund). Enhanced cleaning adds 9 FTE for downtown and 45 seasonal corridor workers. The budget uses $30 million in certificates of participation for street resurfacing, a practice criticized by Supervisor Safai as fiscally inappropriate. Supervisors expressed frustration over neighborhood cleanliness and understaffing.
  • Ethics Commission: Deputy Director presented a $7.1 million budget (9% increase). 9 of 33 positions are vacant, with new ethics outreach program being staffed.
  • Department of Elections: Director John Arntz presented a budget driven by election schedule: 1 election in FY22-23, 2 in FY23-24. 3 of 39 positions are vacant. The office is reducing precincts to improve poll worker recruitment.
  • Office of Community Investment and Infrastructure (OCII): Director presented a $700 million budget, 80% pass-through for bonds and tax increment. 55 staff with vacancies attributed to pandemic delays and project slowdowns.
  • Board of Supervisors: Clerk Angela Calvillo presented a $21 million budget with 2 vacancies. She requested restoration of two clerk positions, which the mayor agreed to via technical adjustment.
  • Mayor's Office of Housing and Community Development (MOHCD): Director Eric Shaw presented a $205 million budget (down from $258 million), with decreases due to one-time funding expiration. 13 vacancies. $4 million for senior operating subsidies (SOS) will support ~28 units over 15 years. $64 million remains unspent from a previous $74 million small sites acquisition fund, which MOHCD is reforming. Supervisor Preston questioned the lack of Prop I funds use for affordable housing.

Key Outcomes

  • Items 1-2 (administrative provisions) continued to June 22, 2022.
  • Items 4-5 (budget and salary ordinances) continued to June 16, 2022.
  • Items 6, 7, 8, 9, 10, 11 recommended to full board with positive recommendations.
  • Chair Ronan directed the BLA to aggressively identify inefficiencies and redirect funds to basic needs.
  • Supervisor Safai requested an administrative provision requiring departments to report on inclusion of board-added items in future budgets.

Meeting Transcript

Good morning, everyone. This meeting will come to order. This is the June 15th, 2022 budget and appropriations committee meeting. My name is Hilary Ronan. I'm chair of the Budget and Appropriations Committee. I am joined by committee members Gordon Marr, Connie Chan, President Walton, and we will be joined shortly, I'm assuming by Vice Chair Asha Safey. Our clerk is Brent Halipa, and I would like to thank Michael Jason Goldhammer. Sorry, Michael, or sorry, Jason. Jason Goldhammer from SFGov TV for broadcasting this meeting. Mr. Clerk, do you have any announcements? Thank you, Madam Chair. With our return to the chamber, just a friendly reminder for those in attendance to please make sure to silence all cell phones and electronic devices. The Board of Supervisors and its committees are now convening hybrid meetings that allow in-person attendance and public comment while still providing public remote access and public comment via telephone. The board recognizes that equitable public access is essential, and we'll be taking public comment as follows. First public comment we'll be taking on uh on each item on this agenda. Uh those attending in personal will be allowed to speak first, and then we will take those who are waiting on the telephone line. For those watching either channels 26, 78 or 99, hencefgovtv.org. The public call-in number is streaming across the screen. That number is 415-655-0001. Again, that's 415-655-0001. Hinter the meeting ID of 248854-3976, then pound twice. Uh, 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 and public comment is called, those joining us in person should line up to speak. And those on the telephone should dial star three to be added to the speaker line. If you're on your telephone, please remember to turn on your TV and all listening devices you may be using. Uh as previously mentioned, uh, public comment will be taken will be taken from those attending in person first. Uh and then we'll go to our telephone line. Alternatively, you may submit public comment in writing in either the following ways. Email them to myself, the budget and appropriations committee clerk at B R E N T dot J A L I P A at S F G O V dot O R G. If you're if you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. Uh you may also send your written comments via U.S. Postal Service to our office at City Hall One, Dr. Carlton, B. Goodlick Place, Room 244, San Francisco, California, 94102. And Madam Chair, that concludes my announcements. Thank you so much, uh, Mr. Clerk. Colleagues, um, I want to make a few opening remarks that are mainly directed at our department heads. And because of that, I'm gonna make these remarks every day before we start the hearing to ground us and remind us what we're doing here. Um, there are some wonderful things about this budget, not least of all being the two-year labor contract with all the city's incredible workers, giving them a 10.25% raise over two years that came at a cost of 170 million dollars to the city. This was an important investment, and I understand that it put strain on what else we can fund in this budget. I also want to thank you all and the mayor over the last two years as we weathered a devastating global pandemic and now fight for an equitable recovery. Having said that, there is a lot left out of this budget as well. This committee has an unprecedented 1.5 billion dollar ad back list. I have combed through the list time and time again, and there is very little fluff in it. It mostly consists of requests for the basics like food. I drove past the Latino Resource Hub on my way to work today. This is the day that the hub distributes food. There was already a line of people with their carts, those little pushcarts, going for at least eight blocks.

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