San Francisco Budget and Appropriations Committee Hearing on Six-Month Budget Status and Performance Measures - March 1, 2023
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San Francisco Budget and Appropriations Committee Hearing on Six-Month Budget Status and Performance Measures - March 1, 2023
The San Francisco Board of Supervisors Budget and Appropriations Committee held a regular meeting on March 1, 2023, chaired by Supervisor Connie Chan, with members Supervisors Hillary Ronen, Shamann Walton, and Asha Safai. The committee heard two major items: a six-month budget status report for fiscal year 2022-2023 and the Controller's Annual Performance Report, with a focus on emergency response times and street cleaning. The committee voted to file the first hearing and continued the second to the call of the chair.
Public Comments & Testimony
- David Pilpel (on item 1) thanked the Controller's Office for the comprehensive report, noting the tough budget year and urging focus on needed programs and cost-effective services.
- A brief, unattended caller appeared on item 2 but did not speak.
Discussion Items
- Item 1: Hearing on Six-Month Budget Status Report (FY 2022-2023)
- Michelle Ellersma (Controller's Office) presented the report, projecting a $77 million increase in fund balance compared to the prior projection, reducing the two-year budget shortfall from $728 million to $652 million. Revenue is $30 million above budget, driven by stronger hotel tax, sales tax, property tax, and interest income, offset by weakness in business tax and a $156.7 million shortfall in property transfer tax. Departmental spending is largely at budget, but the Police Department is projected to overspend overtime by $28 million, prompting a proposed supplemental from the general reserve. Other shortfalls include Laguna Honda Hospital revenue at DPH and city planning permitting revenue. The general reserve balance is projected at $100.8 million, and any supplemental would need to be repaid in the next fiscal year.
- Supervisor Walton questioned the use of ending fund balance versus reserves for the police supplemental. Budget Director Anna Dennon explained that using the general reserve is more responsible due to uncertainty in projections, though it adds to the next year's deficit. Supervisor Safai noted that using ending balance would not require repayment, potentially reducing the deficit impact. Supervisor Walton expressed concern that the supplemental would increase the $728 million deficit.
- Item 2: Hearing on Performance Measures – Controller’s Annual Performance Report
- Controller's Office Overview (Natasha Mihal): Presented the FY 2021-22 annual performance report, highlighting 800+ measures. Key concerns: Vision Zero fatalities reached 37 in 2022 (highest since policy enactment), safety net program caseload changes, and 911 call response, ambulance response, and street cleaning response times all declined from FY21 to FY22.
- Department of Emergency Management (DEM) (Robert Smutz): 911 call response time (95% within 15 seconds standard) dropped significantly. Staffing fell from ~150 effective dispatchers to ~122, due to a hiring freeze, nine losses from vaccine non-compliance, and slow hiring (only 17 of 36 funded positions filled this year). A dedicated recruiter hired in October 2022 boosted applications from ~200 to 724 per two-month cycle. However, full staffing may not be reached until end of 2025, and service standard recovery is estimated for late 2024. Changes to drug use policy and typing requirements were made to widen the applicant pool.
- San Francisco Fire Department (Deputy Chief Tom O'Connor, Chief Sandy Tong, Chief Neils Tanglerini): Ambulance response time (90% within 10 minutes) fell to 87-88% after October 2022. A supplemental of 60 FTEs increased daily ambulances by 6-9 and reduced phantom medic calls from 6% to 3% of calls. However, call volume rose 6-9% since 2021, including 16,736 calls shifted from police to community paramedicine, and overdose calls up 25%, behavioral health up 38%, unknown medical up 56%. Ambulance patient offload time (APOT) increased by 19 minutes since 2019, averaging 51 minutes at the 90th percentile, driven by hospital staffing shortages. CPMC Van Ness had the longest APOT (52 minutes). SF General’s diversion rate fell to 45% in February 2023, but remains above the 30% target. Traffic congestion also slowed response times by 80-90 seconds over four years. Deputy Chief O'Connor noted the department needs additional firefighters, EMTs, and paramedics.
- Public Works - Bureau of Street and Environmental Services (BSES) (Superintendent Chris McDaniels): Street cleaning request response time (95% within 48 hours) fell to about 82% in 2023 due to a 25% vacancy rate (100 of 400 budgeted FTEs unfilled). Service requests increased from 147,000 in 2021 to a projected 161,000 in 2023. Proactive night cleaning on Mission Street, Civic Center, and Tenderloin is underway. Illegal dumping is a major issue, particularly in the Bayview, with construction debris from the South Bay. A new HR director is implementing aggressive hiring. The department is also pulled for special events, rain response (catch basins, sandbags), and the Tenderloin emergency declaration.
Key Outcomes
- Item 1: Motion to file the hearing passed unanimously (5-0).
- Item 2: Motion to continue the hearing to the call of the chair passed unanimously (5-0), allowing future hearings on additional departments.
- Next Steps: The committee will consider police and street cleaning budget supplementals in upcoming meetings. The Controller's Office will provide a five-year forecast update at the end of March and another quarterly update in May.
Meeting Transcript
This meeting will come to order. Welcome to the March 1st, in fact, also the first of the meeting season of the budget and appropriation committee. I am Supervisor Connie Chan, chair of the committee, and joined by Supervisor Hilly Ronin and Supervisor Shaman Walton, shortly hopefully joined by vice chairs, uh Rafa Rafael Mendelman and Supervisor Asha Safai. Our clerk, it's Brent Halipa. I would like to thank uh Kalina Mendoza for SF from SFGTV for broadcasting this meeting. Mr. Clark, do you have any announcement? Thank you, Madam Chair. Uh, just a friendly reminder for those in attendance to please make sure it's silence all cell phones and electronic devices. Uh the Board of Supervisors and its committees are now convening hybrid meetings that allow in-person attendance and public comment while still providing 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 will be taken on each item on this agenda. Uh those attending in person will be allowed to speak first, and then we will take those waiting on the telephone line. Uh, for those watching either channels 26. Oh, sorry. Uh what's I at 2678 99 or uh 2628, 78 or 99. Uh and SFgov TV.org, the public comment call-in number streaming across the screen. That number is 415 65501. Uh again, that's 415 65501. That entered the meeting ID of 249012076, then press pound twice. When connected, you'll hear the meeting discussions, but you'll 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, while 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 down your TV and all listening devices you may be using. Alternatively, you may submit public comment and writing in either of 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 Hat S F G O V dot O R G. If you submit public comment via email, it will be forwarded to supervisors and also included as part of the official file. You may also send your written comments via U.S. Postal Service to our office in City Hall. That's one Dr. Carlton B. Good look, room 244, San Francisco, California, 94102. And thank you, Madam Chair. That concludes my announcements. Thank you, Mr. Clerk. Today we have Michelle Alerzma from Controller's Office, uh, budget and analyst division. Uh Madam Chair, uh, can I call the item? Sorry, please call the item. Yes, item number one is a hearing to receive updates on the six-month budget status report for fiscal year 2022 and 2023. And again, members of the public who wish to provide comment on this hearing, please call 415-655-0001 with a meeting ID of 2490312076, not press pound twice. If you haven't already done so, uh dial star three lineup and assessment prompt will indicate that you have raised your hand. And please wait until the system indicates you have an unmuted and that'll begin your comments. Madam Chair. Thank you. I guess I don't need to repeat my introduction of yours, but for you, please go ahead. Members of the committee, um, Michelle Ellersma, controller's office, um, with an update on our six-month uh budget status report that was um published February 15th, I believe. Um, may I ask that my short deck of slides be presented. Um thank you very much. Um, next slide.
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