Public comment will be available on each item on this agenda. Sfgovtv are streaming the number across the screen. Each will be allowed two minutes to speak. Opportunities to speaker is available by calling 408 4189388. Access code, 1461315200. Then press pound twice. Then connected, you will hear the meeting discussion, but you will be muted an in listening mode only. Best practices are to call from a quiet location. Speak clearly and slowly and turn down our television or radio. Alternatively, you may submit Public Comment in either of the following ways. When you submit Public Comment via email, it will be forwarded to the supervisors and be included as part of the official file. Finally, spanish and chinese interpretation are available for those who need services during Public Comment period. Im pass on to the interpreters to provide a summary of this announcement. Speaking in spanish. [speaking spanish]. [speaking spanish]. Thank you, madame clerk. [speaking chinese] [speaking chinese] [speaking chinese] thank you. Clerk madame chair, this completes our announcements. Supervisor fewer oh. I thought we had another interpreter. Okay. I just want to also mention weve secured interpretation for all the budget appropriations meeting moving forward. I want to thank them for assisting us. Madame clerk, can you call item number 1. Item number 1, budget process and updates related to fiscal years 20202021 and 20212022 and requesting the Controllers Office, Mayors Office of Public Policy and finance and budget and legislative analyst to report. People wanting to comment please call the number on your screen, enter the i. D. Number. Then dial star 3 to speak. Please wait until the system indicates you have been unmuted and you may begin your comments. Supervisor fewer thank you very much. Today, we have ashley from the mayors Budget Office. Hi, supervisors. Thank you, chair fewer. Today, im going to walk you through a few brief slides on the state budget. We have a lot to get to today in committee, so ill be brief. Ill share my screen. Okay. So excuse me. Too far. So the govern assigned over 2 billion budget at the end of last month with a couple of highlights here and ill talk through notable local impacts. In his may revise, the governor had proposed cuts to education. So the final budget did not include those reductions, but rather deferred 12 billion worth of funding which means that School Districts can borrow against future funding. It identified 11 billion of other reductions and deferrals that would be restored if the state were to receive additional federal revenue, like the revenue proposed. And so the state has a plan how those cuts and deferrals would be restored, but notably, it would restore half of the 12 billion of education deferrals. It would restore about 3 billion of reduction to state employees wages and it would also backfill additional state realignment funding. The budget was 54 billion shortfall. In addition to the reductions, it balances through the use of reserves, other revenues and borrowing. So for us locally, couple notable things here. The governors budget had included reduced realignment revenue and these are revenue that we get as a result of sales tax collection. As sales Tax Collections go down, our realignment revenue was reduced as well. This is revenue that we use for health and Human Services and some Public Safety services. So the final state budget restores 750 million of that lost revenue, but locally for us, that means 28 million impact compared to what we were expecting as part of the governors may revise. It also increases funding for homelessness by 300 million. And also includes the funding for project room key that helps cities and counties secure hotel rooms for Homeless Individuals as part of covid. The local impact of those two programs is t. B. D. And well report back as we get confirmation. And then lastly, i think as i noted in my last update related to the governorss budget, it distributes money to cities and counties and here in San Francisco, were expecting 20 million. Cares act money is eligible to be used for covid response. And this will help offset some of the costs were incurring and will continue to incur in the next fiscal year as it relates to covid. Lastly, dont believe the controller is with us today, but i would be remiss if i didnt provide an update on eraf. There is a lot of discussion over excess eraf. I wanted to provide an update of where things stand. So the final state budget does not include an immediate clawback of eraf. You recall the issue, they had been proposing to clawback two years of prior year eraf. The process gets kind of kicked to the state controller to come up with an appropriate allocation or calculation by the end of this calendar year. So what that means to us, you know, there is still some risk that they could claw back 1920 money, but that second year of retroactivetivity was dropped in the final budget deal. The process that will be led by the state controller will resolve about 60 million of excess eraf that is tied to Charter Schools and redevelopment. So well hopefully have resolution by the end of the year. But what that means ultimately, the bottom line is that leaves 150 million of excess eraf we feel is not in question. The Controller Office is working on those final calculations and well know what those are in the coming weeks. That is my update on the state budget. Happy to answer questions you might have. Supervisor fewer thank you very much. Colleagues, any questions or comments . Supervisor ronen . Supervisor ronen thank you. Thank you so much for this. Its very helpful. A couple questions. One, with all of the state budget updates that you just gave us, does that in any way shape or form alter or most recent 1. 7 billion deficit projection . So the 1. 7 billion was created before we had the govern put it out maybe a day before the governors may revise. So, no. Not in any meaningful way. There might be some tinkering to a couple of sources, but we still were still facing that 1. 5 billion shortfall for the upcoming two years. Supervisor ronen and then the 150 million in excess eraf annually Going Forward that you say is no longer in question, meaning they can count on it from this point forward Going Forward . That is the hope. I think the thinking around excess eraf, were facing the largest budget shortfall. We had an opportunity to claw back the whole thing and there was discussion around the margins, calculationsnd and a few key issues. They didnt eliminate it as part of the state budget, so we believe its a safe reliable source. At least for next year. Of course, anything can change, but we believe at this stage its a safe source. Supervisor ronen has that 150 million been calculated as part of our projected deficit. Sure, yeah. As you know, were working on closing that now. Its all were gathering all of our sources, all of the uses that we are anticipating. As you know, the mayor and the board has signed an ordinance back last year how that would be allocated, so its all part of the budgetbalancing exercise. Supervisor ronen in terms of the protected deficit, youve given that so far it hasnt been assumed in that . No. Supervisor ronen okay, thank you. Supervisor fewer thank you. President yee . President yee thank you, chair fewer. So ill start with the eraf. 150 million annually in question and does that take into consideration there might be a clawback on the fiscal year 1920. Yes, yes. Thats a great question. Like i said, the Controllers Office is finalizing the calculation, but i think it would be a choice for us to assume that we hold kind of hold back on that 30 million should the state claw it back. So that will be part of well have clarity on that as we release our budget. President yee so its a possibility it might be only 120 . I think the soo 150, the 150 could be taking into account that piece being held back, so yes. Its like the minimum. President yee it could be 180 . Thats right. President yee okay. I had a question, maybe i just dont understand the terminology. Deferral . Yeah. President yee the top, the beginning. So i just want to get clarification, make sure i dont misinterpret. Yeah, its an interesting concept. So the way i understand it is that the state is proposing to defer its payments to the School District for the upcoming year of i think i said 12 billion. So in the absence of state funding, schools are able to dip into reserves or borrow against the receipt of that future state funding. President yee and borrow borrow where . Where do they borrow the money . Take out i dont know the exact debt instrument, but it would be some sort of loan that the School District would take out pending, you know, against future state funding. I dont know the exact mechanism. President yee okay. It doesnt sound like a shell game. District doesnt really have the money. Yeah, its a risky assumption. And there is a lot of assumption in the state budget around the receipt of state revenue. If they refuse federal revenue, they cut that deferral in half. And so they would backfill that state funding that theyve deferred, but, yes, its definitely a risky assumption. President yee i assume if the School District wants to take the risk based on assumptions and borrow the money and the money doesnt come in, that the School District itself would be liable for paying it back. Yeah. President yee okay, well. Thank you, governor newsome. [laughter]. Supervisor walton thank you, chair fewer. Just a quick question. On slide 3, when we talk about the increased the funding for the 750 million for project room key. Are any of those resources able to be used for purchase of hotels or any type of building . Yes, i believe its able to be used for purchase of hotels. Supervisor walton thank you. Supervisor fewer okay. Any other questions or comments from my colleagues . Seeing none, could we have the b. L. A. Report, please . Chair fewer, this is dan with the budget legislative and analyst office. We do not have a report on this item. Supervisor fewer thank you very much. So lets open up for Public Comment. Id like to remind people, callers, that this is not Public Comment for the Police Department budget hearing. That will be the next item. We are now on the budget process and updates and this is on the state budget. Madame clerk, can you please open up Public Comment. Yes, madame chair. Operation is checking to see if there are any calls in the queue. Operation, please let us know if there are calls ready. If you have not already done so, please press star 3 to be added to the queue. For those already on hold, the system indicates youve been unmuted. If you wish to comment on the Police Department hearing, please press star 3 to lower your hand now. This is on item number 1. There are currently 10 callers in the queue. I will queue the first caller. Supervisor fewer thank you. Hello, caller . Hello, caller . Caller, go ahead. Could we please come back to this caller . Hello . Clerk we can skip this caller for now and come back to this caller. Caller, go ahead. Caller, go ahead. Its for the defunding of the police. This is Public Comment for item number 1. We have not called Public Comment for item number 2 yet. Just press star 3 to lower your hand and wait in the queue. [please stand by] [please stand by]. Caller, go ahead. Caller hello . Yes, you can speak. Caller yes, i have a question about the School District and the loan they would be getting. I know everyone said that was risky but it doesnt really make sense on how they would pay that back. Thank you for your comment. Next speaker please. Caller, go ahead. Hello, caller . Please begin your comments. Caller supervisors, you can see that you are not stating that during the Public Comment you are not supposed to ask a question. There is to be no back and forth. You are just wasting our time and you dont understand that this 408 number that you are using now, we have to pay for it. And you just waste our time because nobody is paying any attention to the process. So this item number one basically is not allowing us to say much. Public comment is Public Comment. There is not going to be a question and answer so theres clarity. I know there is experience in what you are doing, but again and again, somebody with more experience has to point this out to you. Thank you very much. Thank you for your comments. Next speaker . Hello, caller. Caller hi. Excuse me. Hello . Are we on item two yet . We are on item number one. Caller sorry. Okay. Madam chair, that completes the queue. Thank you very much. Anymore comments or questions on the state budget from my colleagues . If not, i would like to make a motion to continue this item to the call of the chair. Could i have a second please . Second. Could i have a roll call vote please . [roll call vote] that is five ayes. Superviser fewer madam clerk, please call item number two. Hearing on the budget for the Police Department including analysis of changes over the last decade, structure if the department, and covid19 related impacts on services, revenues and expenditures and requesting the Police Department and the budget and legislative analyst to prort. Call 4084189388, meeting i. D. 146 131, 5200, press pound twice. And you have been unmuted. This is the the third of the budgets prior to budget process in the process. The Police Department has been of interest to the boards Budget Committee and this year the third year on the budget i push to find reductions and efficiencies and removing funding for tazeers. This has obviously heightened interest this year given the moment that we are in. This moment has pushed the public conversation about Police Departments, Police Unions and the role of policing and the desire to explore alternative model of public safe for our community. Public safety is defined by more than Law Enforcement. Law enforcement is one part of Public Safety. Police respond to crime and in order to prevent crimes, we must look at the root cause of the crime and what we as a society are doing to invest in strategies while working to strengthen communities, family, people, and to close gaps. In San Francisco we know that the work to address Racial Disparities and the use of force is ongoing for years and that will continue after this budget process. That said, this years budget is an opportunity to explore the implementation of key changes and align wment this public conversation in an effort that must extend beyond the budget crisis. We are investing so that we are investing and reimagining a Public Safety beyond simply Law Enforcement in creating systemic change toward that goal. However, to have full conversation about policing it is imperative to deeply understand the system of policing and its budget, and that brings us to our hearing today. My office worked to include questions in the report that would give this committee as much insent insight as possible into the Police Department inned a vance of the process in august. I anticipate there may be questions asked today that there arent immediate answers to. My staff will be tracking the inquiries and work on the followup report and that the board has the information it needs. I would like to remind the committee that the Police Department budget would come before this committee again and come before us two more times and in august and engaged in the full budget process. I want to turn over to the presentation today nick menard from the budget analyst and chief William Scott from the Police Department. The San FranciscoAirport Authority is also here to answer questions specific to the Airport Bureau. You have the floor. Thank you, chair fewer. I am going to start my presentation. Make sure everyone can see. Can you see my presentation, chair fewer . Superviser fewer yes, i can. Thank you. Great. I am nick menard and i am here to provide a brief summary of the budget analysis report on the Police Department. As you may remember from the prior presentations for each of the reports we were asked to provide the breakdown of divisions within the department and changes to the organizational structure and to look back at changes to the budget and number of positions in the total amount contracted out. And in addition we were asked to include the fiscal impact to report on specific policy questions. As you can see here t Police Department is made up of six bureaus. These include the Airport Bureau, which is responsible for security and Law Enforcement at the airport. The Administration Bureau which includes the property and the training decisions. Field operations that includes the district station including car and foot patro