Good morning.

The meeting will come to order.

Welcome to the June 25th, 2026 meeting of the recess budget and appropriation committee from Wednesday, June 24, 2026.

I'm Supervisor Connie Chan, Chair of the Committee.

I am joined by Supervisor Danny Sauter and Shaman Water.

Sorry.

It was kind of long.

Thank you.

Our clerk is Brent Halipa.

I would like to thank Eugene Labadia and James Kawana from Essecuff D fee for broadcasting this meeting.

Mr.

Clark, do you have any announcement?

Thank you, Madam Chair.

Just a friendly reminder to those in attendance to please make sure to sound all cell phones and electronic devices to prevent interruptions to our proceedings.

And do you have any documents to be included as part of the file?

They should be submitted to my uh they should be submitted to myself, the clerk.

Members of the public may still 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.

A L I P A HED SFGOV.org.

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 to our office in City Hall at one Dr.

Carlton because the place room 244, San Francisco, California, 94102.

And thank you, Madam Chair.

That concludes my announcements.

Thank you, Mr.

Clerk.

I want to let the public know how we're going to proceed today.

This morning, we will be continuing conversations with administration to finalize items and issues from our deliberations over the past few weeks in order to forward a balanced budget package to the full board.

We will not have public comment today's and on today's agenda since we satisfied that requirement yesterday.

No, madam chair.

Thank you.

And so with that, please call items one, two, three, twenty-three, and twenty-four.

Yes, items one, two, three.

Our items as it relates to the committee's consideration of the mayor's proposed budget for the departments of the city and county for fiscal years 2026 to 2027 and 2027 to 2028.

Item number one is our hearing to consider the mayor's proposed budgets.

Item numbers or item number two is the proposed budget and appropriation ordinance, appropriating all estimated receipts and all estimated expenditures for the departments of the city and county as of May 30th, 2026.

Item number three is the proposed annual salary ordinance, enumerating positions in the AAO for fiscal years ending June 30th, 2027 and June 30th, 2028.

Continuing creating or establishing these positions, enumerating and including therein all positions created by the charter or state law for which compensations are paid from the city and county uh funds and appropriated in the AAO.

Authorizing appointments are continuation of our appointments there too, specifying and fixing compensations and work schedules thereof and authorizing appointments to temporary positions and fixing compensations.

And items 23 and 24 are the um the AEO and ASO respectively for the May Enterprise Departments as of May 1st 2026.

Thank you, Mr.

Clerk.

And first, colleagues, I would like to dispense with some outstanding issues from last week and some uh earlier this week.

Some of these items we discussed, but did not make um a decision or need to clarify our decisions.

In addition, the controller's office has requested an amendment to the administrative provisions, which we will adopt this morning.

First, I would like to read into the record that we have reached agreement with the Department of Public Works, and we'll be rejecting budget and legislative analyst recommendations.

One, two, six, seven, eight, nine, ten, fifteen, sixteen, and seventeen, and these are the ones that the department disagree with.

And then a partial rejection to recommendation three as requested by Supervisor Sauter.

Next is the Office of the Sheriff's Inspector General, where the committee is accepting a recommendation one, which means we are also accepting city administrators' office recommendations 12 and 13.

The budget and legislative analysts though separately will be providing specific information on what a on dollar amount of what for a projected uh budget should the sheriff's inspector general is fully funded.

Um, and so that's a separate information we this body will receive.

We also have reached agreement with the public defender where the committee will be rejecting recommendations one, two, three, and four.

For human services agency, the committee will also be rejecting recommendations seven, eight, and nine.

And the last department we're announcing agreements for this morning is the Department of Public Health, where we will be rejecting recommendations 18, 19, 21, and 22.

Finally, we need to make an amendment to the administrative provisions to the annual appropriation ordinance to ensure the city has legal authority to make a sheatment reserve deposits from all potential fiscal years, which could be both this and the next fiscal years.

So, um, colleagues, you should have this language already from uh Mr.

Clark.

And in the section 32.3, page 59, line nine, adding 2025 through 26, or uh before the 2026-27.

Uh, and that is the section on 32.3 federal and state revenue risk reserve.