Budget and Appropriations Committee Special Meeting – June 15, 2023
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Budget and Appropriations Committee Special Meeting – June 15, 2023
The San Francisco Board of Supervisors Budget and Appropriations Committee held a special meeting on June 15, 2023, to consider the proposed two-year budget for fiscal years 2023-2024 and 2024-2025, along with several trailing ordinances. Chair Connie Chan presided, joined by Supervisors Hillary Ronen, Shamann Walton, Rafael Mandelman, and Ahsha Safaï. The meeting included presentations from multiple city departments, public testimony, and votes on various items.
Consent Calendar
- Items 1 & 2 (Budget and Appropriation Ordinance & Annual Salary Ordinance): Heard together with department presentations. No separate vote; public comment taken later.
Public Comments & Testimony
- Minimum Compensation Ordinance (Item 3): Multiple speakers, including Debbie Lerman (Human Services Network), supported raising non-profit wages but urged the city to fully fund the mandate. Aliana Bender (Glide) emphasized the need for expanded food funding. One speaker called for more training on pandemic issues.
- Film Fees & Sublessor Deduction (Items 4 & 5): Over 30 speakers, mostly from early childhood education advocacy groups, urged rejection of the sublessor tax deduction, arguing it would divert $17 million annually from early care and education programs. Many speakers noted the ordinance would undermine voter-approved Proposition C. Film industry representative Joanne Desmond supported the film fee increases.
- OCO Fund Reallocation (Items 12 & 13): A large number of speakers, including families, service providers, and coalition members, opposed the mayor's proposal to reallocate $60 million from the Our City, Our Home fund away from transitional age youth and family housing to adult shelter and prevention. They argued it contradicts voter intent and would harm vulnerable populations.
- Early Childhood Baseline Reduction (Item 14): Many speakers, including parents and educators, opposed reducing the general fund baseline for early care and education, stating it would set back progress toward universal child care.
- General Budget (Items 1 & 2): Sean Brooks (SF-Marin Food Bank) warned that cuts to food programs would force service reductions. MCCLA supporters urged continued funding for the Mission Cultural Center.
Discussion Items
- Human Services Agency (HSA) Presentation: Director Trent Rhorer and staff reviewed HSA’s $350 million general fund budget, highlighting challenges from federal debt ceiling changes (CalFresh work requirements) and state budget uncertainty. Supervisor Ronen expressed frustration with the policy changes and asked about local food aid reductions. The agency reported no service cuts and planned to use attrition savings.
- Minimum Compensation Ordinance (Item 3): The committee approved the ordinance to incrementally raise minimum pay for non-profit and public entity contractors, with a goal of $23/hour by 2026 and $25.50/hour by 2027. The motion passed 4-0 (Safaï absent).
- Human Rights Commission: Director Dr. Sheryl Davis presented the $34 million budget, emphasizing equity-focused programs. Key challenges included staffing (18 vacancies) and pay equity.
- Fine Arts Museums: Jason Sefer (CFO) reported a city-funded budget of $27 million, with 75% for payroll and benefits. No service cuts; the museums saw 1.5 million visitors in FY23.
- Academy of Sciences: Matthew Lao (interim CFO) presented a $7.46 million city budget, slightly higher than FY23. Two additional building engineer positions were requested to improve maintenance and morale.
- Arts Commission: Director Ralph Remington highlighted $16.5 million in grants to 94 organizations, with 70% awarded to BIPOC-led groups. The department is fully staffed after filling 12 positions.
- War Memorial: Donna De Cruz reported a $37.7 million FY24 budget, with 12 vacancies. The department plans to hold 5 positions in attrition.
- Department of Children, Youth and Their Families (DCYF): Director Maria Su presented a $224 million operating budget, with no service cuts in FY24. A new five-year services allocation plan was outlined.
- Child Support Services: Karen Roy noted the department relies solely on federal/state funds and has no service cuts. Caseload declined 21% since 2017.
- Department on Status of Women: Kimberly Ellis presented a $15 million budget, with 83% for grants. The department is shifting from grant-making to advocacy and accountability roles.
- Recreation and Parks: Antonio Guerra presented a $267 million budget, with challenges including escalating utility costs (projected to hit $24 million by 2030) and staffing at new facilities.
- Office of Economic and Workforce Development (OEWD): New director Sarah Dennis Phillips and staff presented the budget and two ordinances (Items 4 & 5). Debate centered on the sublessor tax deduction, with City Economist Ted Egan estimating minimal economic benefit ($3.8 million in new rent) compared to $17 million annual revenue loss. Supervisor Ronen and others opposed the measure. The committee voted to advance the film fee ordinance and continue the sublessor item.
- Department of Public Health (DPH): Director Dr. Grant Colfax presented a $3.2 billion budget with no service cuts. Key investments included $14 million for wellness hubs and $5 million for naloxone distribution. Supervisors Mendelman and Ronen pressed for more acute mental health beds and faster progress on the crisis diversion facility.
- Homelessness and Supportive Housing (HSH): Director Shireen McSpadden presented a $690 million budget, with a proposed reallocation of $60 million from OCO fund. The BLA noted $478 million in unspent OCO funds. Public comment was strongly opposed to the reallocation. The committee continued both items to June 21.
- Department of Early Childhood (DEC): Director Ingrid Mejía presented the budget and a proposed ordinance to reduce the general fund baseline by $30 million over two years to fund food programs. The BLA reported the savings would transfer to HSA food programs. Supervisor Safaï questioned the sustainability of using child care reserves for food aid. The item was continued.
Key Outcomes
- Item 3 – Minimum Compensation Ordinance: Approved (4-0) to advance to the full board.
- Item 4 – Film Commission Fees: Approved to forward to the full board.
- Item 5 – Sublessor Tax Deduction: Continued to June 21.
- Items 6, 8, 9, 10, 11 – DPH Managed Care, Patient Rates, Grants, MOUs: Approved to forward to full board (4-0) after a minor amendment to Item 7 (added interactive complexity and sign language rates). Item 7 was continued.
- Items 12 & 13 – OCO Fund Reallocation & HSH Expenditure Plan: Continued to June 21.
- Item 14 – Early Childhood Baseline Reduction: Continued to June 21.
- General Budget (Items 1 & 2): Public comment taken; no vote on these items at this meeting.
Meeting Transcript
You're unmuted. The meeting will come to order. Welcome to the June 15 meeting of the budget and appropriation committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Supervisors Hillary Ronan and Shaman Walton. Uh, hopefully shortly by our Vice Chair Rafael Mendelman and Supervisors Asha Safayi. Uh I would like to our clerk at Brent Haliba. I would like to thank uh Kalina Mendoza Mendoza uh for from SFGov TV for broadcasting this meeting. Mr. Clerk, do you have any announcements? Thank you, Madam Chair. Just a friendly reminder for those in attendance to please make sure the sound call cell phones and electronic devices so as not to interrupt our proceedings here in the chamber. The Board of Supervisors and its committees are convening hybrid meetings at low in person attendance and public comment while still providing a remote access and public comment via telephone. Public comment will be taken on uh each item on this agenda. Those attending in person will be allowed to speak first, and then we will take those who are waiting on the telephone line for those watching remotely and streaming through SFGov TV.org. The public comment call-in number is streaming across the screen. And when connected, you will hear the meeting discussions, but you'll be muted and in listening mode only. When your item of interest comes up in public comment is called. Those joining us in person should line up to speak, and those on the telephone should dial star three to also 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, and each speaker will be allowed up to two minutes to speak unless otherwise stated. Alternatively, you may submit public comment in 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 at SFGO V dot O R G. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. For our hearings this week, we're working with intergraphics to provide interpretive services during public comment in uh Spanish and Chinese. Today we're working with Flora Wang and Carlos Radio, as well as Raymond Burroughs from uh our office of civic engagement and immigrant affairs to provide services in Filipino. Uh, starting with Flora and Carlos, if you could kindly provide our public comment instructions on language, please. Thank you. This is Flora. Let me start with Chinese. Thank you. Mr. Rodio or Mr. Burris. Oh, sorry, Jose Fernandez. Uh Mr. Boris, we can barely hear you. Thank you. Uh Jose, have you joined us today? I do see you logged on. Yes, hi, I'm here. Uh if you could provide our uh public comment instructions on the language, please. Of course. Those members of the public proportional punto del agenda, then Yamara 15 65501. ID the reunion 2597 037398. Luego presionar a single number of those businesses. And uh thank you again for joining us today, providing uh and helping us out with the interpretive services, and Madam Chair, that concludes my announcements. Thank you so much, Mr. Clerk. And uh with that, um, before we call item number one uh and two, um, I would like to just uh again uh reiterate what we discussed yesterday in terms of how the sequence of the meeting will go. We will have uh we will call item one and two together, and which then we have city departments for those that actually have trailing legislation uh will be um that actually impact their uh department's budget.
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