Budget and Appropriations Committee Recessed Meeting - June 22, 2023
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Budget and Appropriations Committee Recessed Meeting - June 22, 2023
The San Francisco Board of Supervisors Budget and Appropriations Committee, chaired by Supervisor Connie Chan, met on June 22, 2023, to review departmental budgets, policy recommendations, and several legislative items tied to the FY 2023-24 and FY 2024-25 budget. The committee heard from department heads, the Budget and Legislative Analyst (BLA), and the public. Many departments accepted BLA-recommended reductions, but several policy disagreements emerged, particularly around park rangers, homelessness funding, ambassador programs, and child care tax policies. The meeting recessed to continue on June 23, 2023, with final action expected on June 26, 2023, after public comment.
Consent Calendar
- Multiple departments (Asian Art Museum, Fine Arts Museums, War Memorial, DCYF, Status of Women, Human Rights Commission, Arts Commission, DPH, OEWD) accepted BLA-recommended budget reductions. Specific savings included:
- Asian Art Museum: $69,839 in FY 23-24 (one-time) plus $36,450 from encumbrances.
- Fine Arts Museums: $48,980 in FY 23-24 (one-time) plus $92,531 from encumbrances.
- War Memorial: $95,870 in FY 23-24 (one-time) plus $76,024 from encumbrances.
- Status of Women: $110,000 in FY 23-24 ($10,000 ongoing, $100,000 one-time) plus $13,122 from encumbrances.
- Human Rights Commission: $154,958 in FY 23-24 (ongoing) plus $1,046 from encumbrances.
- Arts Commission: $39,335 in FY 23-24 (ongoing) and $36,705 in FY 24-25 (ongoing).
- Department of Public Health: $4,508,461 in FY 23-24 ($1,796,603 ongoing, $2,711,858 one-time) plus $785,140 from encumbrances.
- OEWD: $1,959,753 in FY 23-24 plus $210,914 from encumbrances.
Public Comments & Testimony
- Item 6 (Our City, Our Home reallocation): Many speakers opposed the mayor's proposal to reallocate $60 million from transitional age youth (TAY) and family homelessness programs to adult shelter beds. Speakers argued this would increase youth and family homelessness, undermine prevention, and violate the will of voters who passed Proposition C. Over a dozen individuals testified, including representatives from Larkin Street Youth Services, Compass Family Services, Homeless Prenatal Program, and Coalition on Homelessness.
- Items 8 & 9 (Ambassador programs): Several speakers supported the downtown welcome and mid-market/Tenderloin safety ambassador programs, citing improved safety, tourism support, and workforce development for formerly incarcerated individuals. A few speakers raised concerns about inconsistent treatment and accountability.
- Items 11 & 12 (Child care tax policies): Many early childhood educators and parents urged the committee to reject the sublessor deduction (Item 11) and protect the Prop C baseline (Item 12). They argued that cutting child care funding would harm families and long-term economic recovery.
Discussion Items
- Department of Children, Youth and Their Families (DCYF): Director Sue requested $2 million from the Free City College reserve to pay off outstanding student fees for up to 13,500 students. BLA considered this a policy matter. Committee members expressed support, noting the program's success in reducing barriers. Supervisor Safai raised concerns about declining enrollment and future reserves. The item was continued.
- Recreation and Park Department: The department proposed adding 8 new park rangers and upgrading two manager positions. BLA flagged these as policy matters due to citywide growth in managerial roles. Committee members debated the need, with Supervisor Chan noting other public safety investments. The item was continued.
- Department of Public Health (DPH): DPH agreed to BLA reductions but flagged four new manager positions (Office of Victims and Witness Rights, behavioral health coordination, Laguna Honda recertification, equity deputy director) as policy choices. Supervisors Safai and Mandelman supported funding the victim services office per Prop D. Chair Chan requested more detail on sustainability. Continued.
- Human Services Agency (HSA): Director Rohr disagreed with six of 21 BLA recommendations, including positions for a stationary engineer, bilingual clerk, HR analysts, and $9.6 million for relocating from 170 Otis Street. The committee agreed to place relocation funds on reserve and to reduce funding for unfilled positions to 0.75 FTE to account for hiring delays. Three manager upward substitutions (chief IT security officer, foster parent recruitment manager, outreach manager for benefits) were supported by the committee. The BLA's revenue recommendation (HSA-21) to increase fee revenue was accepted, pending a technical adjustment.
- Treasurer and Tax Collector: The department accepted all BLA reductions but disagreed with policy flags on two upward substitutions (Bureau of Delinquent Revenue director and compliance director). Committee supported the department, citing increased tax complexity.
- Department of Building Inspection (DBI): The department accepted BLA reductions but sought an upward substitution for a permit technician to manager. Committee approved, noting the union issue if unfilled.
- Department of Homelessness and Supportive Housing (HSH): BLA recommended a $2 million reduction to a $3 million program for transgender and gender non-conforming homelessness prevention. Director Whitley argued funds were needed for capacity building and safety. Supervisor Ronin supported restoration. Committee continued the item.
- Department of Early Childhood: Director Mesquit disagreed with most BLA recommendations, arguing that cuts to public information officers, evaluation contracts, and facility cost transfers would hinder the new department. Committee expressed skepticism about the need for additional communications spending and continued the conversation.
- Office of Economic and Workforce Development (OEWD): The department presented downtown recovery spending ($6.3 million) and ambassador programs. Chair Chan questioned the return on investment for activations and business attraction, noting the city's deficit. Supervisor Safai supported the concept but questioned specific spending. Supervisor Mandelman expressed ambivalence about public dollars for private market activation. The ambassador program contracts (Items 8 & 9) were discussed extensively, with Supervisor Walton and Preston strongly supporting the Tenderloin/mid-market safety ambassadors. Chair Chan proposed a timeline for DEM to develop a citywide plan and consider transitioning contracts to a sustainable model.
- Item 10 (Gross receipts tax postponement and credit): OEWD presented the mayor's proposal to delay rate increases for certain sectors and offer a tax credit for new office-based businesses. Chair Chan proposed limiting the credit to downtown zip codes and possibly expanding eligibility to existing businesses opening a new location downtown. The committee discussed the need to balance incentives with budget constraints. Continued.
- Items 11 & 12 (Child care tax policies): Supervisor Melgar proposed an amendment to Item 12 to use interest earned on Prop C funds (up to $20 million in FY 23-24 and $10 million in FY 24-25) instead of reducing the baseline. The amendment also included a provision to restore the baseline if the deficit is less than $200 million in March 2024. The committee approved the amendment. Item 11 (sublessor deduction) was not supported by the chair due to minimal economic impact and negative effects on child care funding.
Key Outcomes
- Department budgets: The committee recessed with most departments' technical reductions accepted, but many policy disagreements continued to Wednesday, June 26, 2023.
- Recreation and Park rangers: Committee did not reach consensus; item continued.
- HSH transgender program: $2 million reduction not accepted; item continued.
- OEWD ambassador contracts: Committee did not vote; Chair Chan proposed a plan for DEM to develop a citywide ambassador strategy by early 2024, with quarterly updates. The contracts were continued.
- Item 10 (Gross receipts tax): Amendment to limit tax credit to downtown zip codes was introduced but not finalized; item continued to Wednesday.
- Item 12 (Prop C baseline): Amendment to use interest earnings (up to $30 million over two years) passed unanimously (4-0, with Vice Chair Mandelman absent). The baseline for future years remains protected, with a provision to restore if deficit conditions improve.
- Item 11 (Sublessor deduction): No motion made; effectively rejected. The committee signaled opposition.
- All remaining legislation (Items 3, 5, 6, 7, 8, 9, 10, 11, 12) were continued to the recessed meeting on June 23, 2023, for final action after public comment on June 26, 2023.
Meeting Transcript
Good morning. This meeting will come to order. Welcome to the June 2nd 2023 meeting of the budget and appropriation committee. I'm Supervisor Connie Chan, Chair of the Committee. I'm joined by Vice Chair Rafael Mendelman and Supervisor Safai, Hillary Ronin, and Shaman Walton. Our clerk, it's Brent Halipa. Um, and I would like to thank uh the staff at SFGov TV uh for broadcasting this meeting. Mr. Clerk, do you have any announcement? Thank you, Madam Chair. Just a friendly reminder for those in attendance to please make sure the sounds all cell phones and electronic devices so as not to interrupt our proceedings here in the chamber. Uh the Board of Supervisors and its committees are convening hybrid meetings that allow in-person attendance and public comment while still providing remote access and public comment via telephone. Public comment on the proposed budget as items one and two will be taken on Monday, June 26th, starting at 10 a.m. And public comment on the balance of the items on the agenda will be taken before committee action. Uh those attending in person will be allowed to speak first. And then we will take those who are waiting on the telephone line. Uh for those watching remotely and streaming through sfgovtv.org, the public comment call in number his streaming across the screen and when connected, you will hear meaning discussions, but you'll be muted and in listening mode only. Uh, if 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, uh, 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 Hat S F G-O-V dot or G. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. You may also send your written comments via U.S. Postal Service tourist office in City Hall at one Dr. Carlton B. Goodlock Place, room 244, San Francisco, California, night for one on two. And uh, Madam Chair, that completes my announcements. Thank you, Mr. Clerk, uh, colleagues, and uh just uh explanation uh to the general public before we call any of the items um uh about just uh continue to reiterate how uh this week will proceed since yesterday. Last week, with how our first round of hearing about departmental budgets this week, departments will be returning with their responses to our questions and their responses to the budget and legislative legislative analyst recommendation for further department reductions. Today uh we'll proceed slightly though different uh differently than yesterday, uh, since we have a few items uh legislation that are before us for the first time, and we have some items uh continue from last week. We will take those item, all the legislation at the end of the agenda. We will hear from all the departments that will be public commons uh for those items three through twelve when they come up. Um department representatives. We hope that your presentation focused on answering any questions the committee members proposed to you uh last week and you respond and your responses to the BLA proposal for reduction only. Uh, if there were no question for you last week and you accept the reduction proposed by the budget and legislative analyst and members and members do not have any additional questions, then we will get to you up quickly and accept those reductions, and you can be on your way. Um with that also for all the items that we have before us today. Uh we will limit to public comments to one minute uh for everyone. Uh and I also just want to be clear uh the way that I view all these legislations to today that uh again they're part of this uh budget agenda because I see them uh really collectively as how they are policy decisions that this body has to make. Um, but they really are not just policy decisions. They actually are policy decisions also come with somewhat significant impact to our uh to our budget and um especially during this process and also the mayor's proposed budget. Uh even though I would like to call them together, all in one setting, um, but I just want to clarify that it is with the advice from our uh deputy city attorney and Pearson that we should um colleagues, you know, take them either individually and even if we were to couple some of the conversations together, we will still have to take the public comment uh on each legislation uh individually. Can I have that confirmation from our deputy city attorney? Deputy City Attorney Anne Pearson, yes, that's correct. Thank you. And uh so with that, so please be patient with us today because of that procedural requirement for public comment. And uh with that, uh Mr. Clerk, please call item one and two together. Yes, madam chair, items one and two are the proposed budget and appropriation and salary ordinance for the fiscal years ending June 30th, 2024 and June 30th, 2025.
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