I am the Deputy Director of the Human Services agency for administration. And i guess id like to start off by talking about our process and where we are in the process and then we will go into the substance of this presentation. So, the department of aging and Adult Services is of course part of the Human Services agency. And the Human Services agency has within it a sort of a large support staff area. It does a number of things, but one of the things we do is we develop the budget for the agency, of course, we do that in cooperation with Shireen Mcspadden and Deputy Directors like cindy and joe, and Program Directors throughout the agency. And we do it with a budget staff and emily gibb and tiffany wong are two of the members who have worked on the daa is budget this year. We reach out to the Program Offices throughout the agency to ask them to identify areas of new need, changing regulation, changing law. Changes in the patterns of consumption of services. And then potentially innovations to make in program areas. And we collect all of that. We begin to analyze it, we begin to cost things out. And then we do this in the late autumn typically. We start then. And then in december, right at the beginning of december typically, the Mayors Office provides budget instructions and the mayors budget instructions typically are based on forecasts of city revenues and city expenses. And they are sometimes based on special areas of focus that the mayor wants agencies to take. Those agencies, those areas of focus often tend to be at the instruction phase, very broad. And you know, in the Mayors Office gets to specific things that the mayor is actually interested in him or herself as we move through the process. And then at the beginning of january, what happens is the governor issues a budget. And the governors budget is very important to us, because of course, a great deal of our funding is federal, a great deal is state and the rest is local. So the state budget that comes out in the second week of january typically helps us refine our notion of the revenues well be working on. And because the hsa is an agency that comprises three operating departments, our budget and the money availability is really affected by what is happening in a whole bunch of different areas. I will come back to the one that is the largest impact on daas during this presentation, which is changes in the ihhs program at the state level. But you know what happens in the cal works program, in the cal fresh program, what happens in the medical program have influence on the amount of money that hsa has to work with, which effects the budgets in each of the operating departments. At this point, weve seen the governors budget and were really at the point in the process where we are trying internally to fit together a Budget Proposal. And so, this is the first of two meetings were going to have. This one is one that we hope to set the context and talk about some of the things that are affecting the budget and then when we come back in several weeks, we will be sharing with you what our actual proposal to you is for the daas budget. And then well make that proposal sometime after that. Probably a week after that. And then we will go into a long period of discussion, with the Mayors Office, about what the shape of the hsa budget and its operating departments budget are for the next year. And then the mayor will propose a budget herself on june 1st. So then well go into the board phase. So, if we can just to describe the daas budget. Were going to describe it three ways. The first way we typically describe the budget is we call it sources. That seems to be the San Francisco term, but its really where does the revenue come from . And as you can see, the daas budge is comprised of a number of slices. Working our way around the pie chart there can you repeat that, the last point . To the federal revenue is primarily associated with, or what is in this slice of federal revenue is primarily associated with the ihhs program or the Adult Services program. There is another little pot of federal money ill talk about in a little bit. Sure. Thanks. The state money, the 60. 5 million dollars, is money that also supports ihhs program, primarily. And that is, you know, parts of the ihhs program so the Health Benefits, contract mode costs, and daas staff and Public Authority administration. We call realignment too. This is a little bit perplexing in the context of daas alone. The realignment Revenue Source at the state level, refers to a series of revenues and Program Responsibilities that were realigned from the state to count these. It happened on two occasions, one in 1991. And in our descriptions of the budget, we call that realignment one. And then the second one is realignment two. Which is what appears here in the amount of 4 million. That occurred in 2011. And what realignment does, it says to counties, you are responsible for a set of costs. But were going to create a revenue stream for you. And that revenue stream for both realignment one and two, is largely sales tax money but to a smaller extent Vehicle Licensing fee money. And those two streams of money are combined and then they are allocated out to counties on a formula. And the formula for realignment two, 2011, was set at the time of realignment based on state revenues, allocated to each county. And what happened over time, is the amount of sales tax that flows into the realignment pots and Vehicle Licensing, these are grown. So our revenue from that source has grown over time. But we get the same percentage that we did from the beginning. So, the 2011 Realignment Program that is in daas is Adult Protective Services. And so we have what is in essence sales tax and Vehicle Licensing fee money that would offset what would have in the past been the state share of Adult Protective Services costs. So at this point or in the current fiscal year thats about 4 million. Ok, then we get to federal, state and local grants. This is mainly area agency on aging federal money. So under the Older Americans act, there are a set of programs that in this county or this city are administered through the office of aging. The city of San Francisco has added a great deal of local money to sort of the standard list of Older Americans act programs, but those older american act programs exist in every county. And every county gets allocation for there is a pot of money we call general fund aid. That is money that funds the ihhsmoe. Ill come back to that later. There is general Fund Operating money which is fund staff and professional Services Within the department and then there is what is called work order recovery and the term work order recovery in San Francisco means money that is paid to an agency. In this case daas or hsa, by another agency. In this case the department of Public Health. And this amount represents the historical general fund share of the ihss benefit program. One of the things that we do, just to sort of take a side step about the ihss program, the ihss program has a number of major components. We pay wages to ihss workers. And we have in our budget an amount of money that approximates the general fund share of that. We pay for the staff that administers the program. We also pay for the contract Mode Services and we pay for Health Benefits for independent providers. And any given time we pay 12,000ish independent providers Health Benefits. And we pay that through a contract that we have with the ihss Public Authority who then buys services through a provider of health care. So what the department of Public Health does, they work order to us the amount of money that is equal to the general fund share of the cost of the Health Benefits. This is a second view of the budget. This is sort of the cost side of the program. So if we start at the top, you can see again, we have the office of aging at 53 million. These are for the most part, there is a small amount of staff in the office of aging, which is whose costs are here too, but the lions share of this slice of the pie is made to Community Organizations that provide services to elderly or disabled within city of San Francisco under daass various programs. Then we have lots of other slices of the pie. So again, i think youre familiar with all of these, but we have a Program Support group which is staff and intake, and ir, within the daas program we have the Community Living fund program. We have the Adult Protective Services program, which as you know, investigates and intervenes in cases of abuse or neglect for elders and people with disabilities. And then we have sort of going in the other direction, we have the representative payee. And then the bottom i dont know twothirds to three quarters of the pie is ihss in one form or another. So we have the ihss consortium, we call it here. Which is really a contract we have with an Organization Called home bridge. Weve called it that for a long time. There actually used to be an entity called the ihss consortium, but now its home bridge. This is contract mode ihss services. We have independent provider wages or the ihssmoe. This is a payment that we make to the state of california which then covers the cost of wages to ihss workers and pays for them through its payroll system. We have the Public Authority which administers the health Program Health benefit program for independent providers and then maintains the registry. Handles collective bargaining for ihssi providers and advocacy services. And then we have the ihss county staff. So these are the major components of the daas budget. And you know, as you can see, a great deal of it is associated with the ihss program, which is a program that serves 20,000 clients. And has 18,000ish independent providers and the home Bridge Program in it. I. O. C. This is a focus of a what categories we spend to. Character is a category of expenditure. And you can see some of the major categories on the sheet. A big piece of what weve got here are called aid payments and these are payments that support again the ihss program, its our moe payment, Public Authority payment, our benefits. To ip workers in the contract mode. Then there are Contract Services which are cbo services. This is mainly what comes through the office of aging and the clf program. There is a small materials and supply budget. There are some work Order Services where we buy services from another agency. There is the salaries and benefits of the staff of daas. And then there are some professional services that we buy, which you know, clf falls some Services Fall under there. Some computer programs that we buy. Some dignity Fund Consulting services. So thats a mix of services that are not direct Client Services, but they are services that support the operations of the agency. So those are three angles on what the daas budget looks like. Maybe before you continue with the 1819, i wonder if any of the commissioners have questions . On 1718, that was then just presented, any questions . I do. Just one minor question. On the sources portion of the presentation. The state money. Do you have a sense of where that is coming from, the source of it . Just taxes . So, yes, i mean their federal taxes, state taxes and on the local level, they are property, business, hotel taxes. So its really those basic sources. Very good, thats it. Thank you. Any comment from the public . Hearing none, we continue. Ok. So changing our focus to 1819. So as i said at the beginning of this, the city does a forecast and its actually part of the fiveyear forecasting process that gets updated on a regular basis. And you know, we do that as a city for purposes of being financially responsible. We say in essence what is happening with our costs . We have a bunch of labor agreements. We pay for employee benefits. We make pension contributions. Weer looking at we are looking at increases, or some cases not increases, in social Services Benefits costs. We are looking at the operations of our Public Health system. We are looking at the operations of our parks, et cetera, et cetera. And so we look to the future. And we say, so what is happening on the cost side . And then we make an Economic Forecast on the revenue side. And you know, one of the purposes of that is to allow us to say, are we likely to be able to cover our costs Going Forward . And so, what happened this year and happened in many years in fact, we say, ok, we are a little bit out of balance. Weve added a lot of staff over the time since the last recession. We have labor agreements that, i dont know if you call them generous, but theyre what they are. So we know what our cost growth is going to be Going Forward. And you know, we have information about the economy and we can make a look at what our revenues are. And we can estimate a gap. So, to this work this work is done in cooperation between the mayors budget office, the Controllers Office and the budget and legislative analysts offices. And basically what they have estimated at this point is that we will see a revenue increase in the upcoming year of 190 million. And we will see an expenditure increase in the upcoming year of 278 million. For a gap of 88 million. And then if we dont do anything about that, that gap will grow in the budget year plus one, and i didnt include the budget year plus two and the budget year plus three, but the gaps grow even more. I think we get up to about 700 million four years out. And so what will happen obviously, is we will collectively do things to eliminate that gap, because we need to put together what with high probability will be a balanced budget. There are things that could happen on the tax side and there are things that could happen on the expense side, there are things that could happen in terms of maximizing revenues. So, agencies are asked to look at all those things and some of those things are done centrally as well. So, the Mayors Office typically then says, ok, so if were going to close the gap, how much of this do we want to come from agencies . And what theyve said this year is, we basically want about 2. 5 to come out of every agencys discretionary general fund budget. So for hsa, it comes to 1. 3 million. Thats a relatively low number and the reason its relatively low, there are a few fairly big pots of local money at the hsa that are in setaside fund. So theyre not discretionary in the sense they cant be used for anything but those particular setaside fund purposes. The large one in daas is the dignity fund, which as i said, this year, was 44 million and that has to be used on a set of services that are in the legislation for it. And the amount is fixed by the legislation as well. And then we have a Childcare Fund which is a setaside in the office of early care and education and typically we dont include aid money or entitlement money in the calculation. So its really the remaining general fund money within the hsa budget that is subject to the calculation. So in summary on that, as i said, revenues are growing slower than expenses. And an important thing to think about, too, there are some cost areas that are growing relatively rapidly. And one of the cost areas that is growing relatively rapidly in the city is the ihss program. So i will come back to that as well. So for now, we have a target to reduce general fund costs by 1. 3 million in the upcoming budget year. And by a further 1. 3 million or a total of 2. 6 million in the budget year plus one. Weve also been directed by the Mayors Office not to grow our head count. As i said before, head count has grown a lot since the end of the recession. Now, for good reasons. But it has grown a lot. And part of balancing the budget, or part of the strategy for balancing the budget that the Mayors Office has directed is not to grow city staff more. So what that means for us, in essence, when were building the budget, we have to look at our agency head count and say are they in the right place . Do we have not enough in some place and can we shift people from other places . Are they in the right classifications . Can we take a position that we dont need as much in one area and shift it to another area . Thats part of the process that we are going through right now. But we are working very