Million. And if we go over to the slice of the pie label general fund, which which, um, has also grown by about 13 million, most of that growth is, in fact, the ihs esmoa. So the ihs esmoa grew by 13. 3 million. We had 1. 9 million of additional realigned revenue. So the general fund has to make up the difference. Um, in addition, there is codb money for cbos outside of the dignity fund and a little bit of salad growth money in there as well. Um, 2011, we alignment grows a little bit but but less than we had hoped when we made last years budget. Um in dos 2011 realignment money supports the aps program. Um, and then in the Community Living fund, you can see theres also a very small increase, um, that is mainly made up of codb and cola. Um, so that thats the look at this from the sources or the funding side of things. And then, yes. Category. Um, so category three is the type of money or the type of things on which we spend money. And ill just mention two slices here for, um, the biggest growth, as you would expect, is in aid payment. So thats where we put the money for the ihs mou. So that goes up about 13. 5 million. And um, and then under cbo grants, youll see that we have growth of about 5 million. So 3 million of that is the dignity fund and, uh, 200,000 of that is clef. And the rest is pretty much codb for, um, for contracts. Okay there we go. So ihs mo, this is really, as i said before, im just calling this out because it represents two thirds of the change in the das budget. Um, the ihs says mo is projected. To reach 173, 179. 6 million this year. Were pretty good about projecting it. There is a true up process with with the state, um, so theyre often small disagreements. Sometimes theyre in our favor, sometimes in the states favor. Um, but but were pretty good at projecting it because its pretty much by formula. Um, so were. Projecting 13. 3 million in the budget year, and then in another 17 million in the second year of the biennium. And this is based on what we know about the wages we will pay, because theyre in the contract. And what we think Health Benefit costs will be. And we go through a process working, um, with with the San Francisco health plan and the department of Public Health at sort of resetting the Health Benefit budget and the Health Benefit premium that flows from that every year. And we have not yet done that. So that is a number we might have to adjust later in the process. Um okay. So then the last item i would like to talk about before turning this over to director dearman is dignity fund revenue. So as weve said, the dignity fund grows by 3 million a year. Um, unless we hit that trigger, at which point the growth can stop. Um the trigger grows over time. So. So the idea is the growth of the trigger is, is tied to the growth of revenue that are available in the city. Um, the trigger started out at 200 million a year. So if we had a, a deficit of 201 million in an upcoming year, that would cause the possible suspension of dignity fund growth over time, um, the trigger has grown and its now up to the, um, 252, 2. 5 million. So so the estimated deficit at this point is 244. 7 million. So about a 7 or 8 million difference. But as i so to the good by 7 or 8 million. But what what will happen in march is we will get a new forecast and since were so close to the line, theres a risk we will cross the line. So thats thats a risk thats out there. And as i said in the budget we have brought you today the dignity fund growth in in the first year of the biennium, um, is included because the gap in um, in revenues and expenditures in the second year of the budget is so much bigger. Um, we are not anticipating that theyll be dignity fund growth in the second year of the biennium at this point. Um, but for the first year, we are anticipate it. And i just want to keep mentioning the risk thats there. Um, so, so if there is growth, it obviously will, um, support growth of cbo program timings. Um, in the areas of access and empowerment, caregiver support and housing support. Um and so as i said, there will be more on that as this process lays out. So id like to turn over to the, um, to Kelly Dearman to talk about senate bill 43 and some more Community Service programs. And then and then kelly and i will both be available to answer questions. Great. Thank you. Excuse me. Went in the wrong okay. Uh. Thank you. Um, so i can you put up the that slide there it is. Thanks. Uh, all right, so i already mentioned senate bill 43 a while ago, which is the new law that went into effect january 1st. That that changed, expanded the Legal Definition of grave disability so that it not only includes, um , people with severe mental, um, health issues, but also includes severe Substance Use disorder and the inability to provide for their own safety or medical care. So since january 1st, we have seen an increase of referrals of 140, and which is a lot. Um, now, of course, not all of those will lead to conservatorships, but that does require a certain amount of work to figure out who will have to be conserved. Theres investigation. Theres all those things. So um, what you will see is that that, um, we have asked for staff to help us with all of these issues and those will be coming from vacancies within the agency. So, um, not it. So it shouldnt have a big effect on the budget. But dan can explain that better. So our plan is to add full time employees based on the new cases we are bringing on. So weve asked for one supervisor kaiser and up to three deputy conservators. But well only add these positions on a rolling basis. And weve also asked for one intake position for the hub, because the hub, um, also is doing a huge amount of this work. So theres also a reference to it costs that will be ongoing. And this is of course the for the rtc build out for intake to be able to continue to um, to manage the list. So a lot of work is going on there. Were doing what we can to, um, keep it all internal without adding additional costs. But, um, so thats, thats whats happening with us. Uh, senate bill 43. Next slide please. So in terms of our office of Community Partnerships, um, the rcf in district one were really excited for this project given the decline of smaller facilities that we have witnessed over the last few years, and that the funding will be for operational support. So, um, were excited about that. In terms of cal aim, the das hub is receiving referrals from San Francisco health plan for enhanced care. Care management, ecm for two specific populations of focus. So one is are those in nursing facilities who wish and are able to return to the community and to those who are in the community at risk of going into skilled nursing. These are populations we have served for many years through the Community Living fund program, who we will now serve as ecm enhanced Care Management and it frees up city dollars, which can be reinvested into other services charges. So for the Behavioral Health pilots, these pilots came out of a need expressed by the community. Um for a while now, this has been a need thats been expressed. And the idea is to put services for participant in Community Centers throughout the city. They will be groups, settings led by licensed individuals. And the idea is to offer services in a trusted setting, making it easier for our participants and dan, do you want to do the last slide . So just where we are in time . Um, obviously we are at the second dose budget meeting today, today, and well be asking for your approval to move forward with this submission on, um, the budget team will then have two weeks to finalize these. The Technical Details of this submission, and they will press end on february. 21st at and um, and then the Mayors Office will have that and we will go through a large number of discussions with the Mayors Office, some of them substantive, some of them technical. Um, on the way to the mayor, developing her, uh, final recommends action to the board for a budget, which she will deliver on june 1st. And then well go into the board phase of the process, and we will have a new budget. Um, hopefully by about the middle of july, so that thats the process from this point forward. Thank you both. Um, commissioners. Um questions for regarding the budget. Yes, please. Commissioner lum, uh, good morning. Its doing. The budget will make anybody gray i understand that and this is kind of a general question. More than anything else. What what is our contingency plan . What you know, if the proposed cuts by the state actually takes place. Seems to me were going backwards by saying that. Well, we assume its not going to happen. Therefore we can you know, we continue to budget our budgets the way we want to do it , rather than saying, okay, well, you know what to cut. Its already been been announced whether or not it takes place later on, you know, its immaterial. We should be budgeting ourselves based on what the actual money that we that we are going to realize at this particular point, rather than hoping that the cuts are not going to happen right. So, so thats a, um. A you made it as a statement, but i think its kind of a profound, um, tactic question that we face when were doing budget work. And and in most years, um, we, we have to project revenues. I mean, we, we always project revenues. We certainly projected revenues this year. Um what what we end up needing to do is two things. One is we are making judgments about about some revenues that just come in. Theyre not an explicit amount in the state budget like realignment revenue as an example of that, we try and get the number right because we try and build programing around it. Its always going to be at least a little bit high or low. Um, but we work to make a projection. Um, we also make judgments about the way state allocation actions will be handled. So this is something we dont talk about here. A great deal. But the state passes a budget. Lets take the ihss administer station budget as a good example. Um, it is right. About 370,000,380. Its about its about 380 million statewide. And we go through a process of figuring out how it gets allocated out to the 58 counties. There are discussions that actually happen at, um, at the 58 county level. Theres an Organization Called the county welfare directors organization that pulls together representatives of county Human Services agencies to discuss the, uh, the methodology by which those dollars are allocated. And and we have a certain amount of, say, say, um, jill nielsen represents us on the, uh, adult and aging group. Um, hsa director trent rhorer represents us on a sort of a centralized group. I represent us on a finance directors group. Um, and these are all groups that talk about these allocations and come up with methodologies that are ultimately put in place by the state. If the state accepts the recommendation of the california welfare directors association, which they generally do not, its not 100 of the time, um, but we go through discussions about whats the fair receipt or the best way to allocate that money. So if there are changes at this point, we dont know exactly what the allocations are going to look like. So we have a little bit of a, um, educated guesswork to do around that. Um, and then what happens during the course of the fiscal year is that not every county spends its allocation at the same rate. So in San Francisco, we tend to overspend our allocation oceans, and we put local money into into programs in ways that we dont technically have to. We do it to get a higher level of service. We also tend to pay our employees relatively well compared to most most counties us. Um, so we put local money in , um, but that results in us over spending the state allocations and in most cases, and in the middle of every fiscal year, um, counties get together and they say, whos overspending, whos underspending, who can give up some money this year knowing theyll get it back next year and next years allocation. But who can give it up now so that the overspend ending counties can have a little bit more of their costs met . Um, and we have to guess as or project or think through how much were likely to get in that process. So all of that goes into us making a revenue forecast in years where there are policy changes. Theres also a political aspect to, um, to making this forecast. There is, um, a set of questions around whos going to line up to , to, uh, oppose this, uh, proposal. So i think the big thing that we talked about in here is the 17 ish Million Dollars of cuts to the calworks program. Its already evidence to us that there will be substantial opposition to those, um, you know, as we said before, the governor has a has a big gap to close, but a lot of people will be pushing on this calworks cut and. So we tend to discount the size of the cut, um, in the calworks program, we are also one of the overspending counties. So we have the ability to influence the allocation process regardless of the amount of money that goes into that calworks bucket. And then because were one of the overspending counties at the midyear distribution, we may pick up some of the revenue thats on the table. So thats why, um, when i said we have not assumed that cut here, we have reasons to not assume that cut out. Um, some of them are political. Now, as i said, we might be wrong. The governors budget may stand firm. The Legislature May say, well, weve listened to all these concerns, but were not going to do it. Its a difficult situation. The cuts are going to stand. We still have the opportunity to pick up some of that money in the allocation process and in the redistribution process. So when we go through, because we build programing around the budget that we have, we dont want to make cuts that we dont think are going to happen in. And thats whats really behind our choice. Not not to put in reductions at this point, but a long answer to a very simply made statement. But, um, but that that is the kind of thinking we go through. But if it happens, but if it happens, then, i mean, thats the question from commissioner lum, if it happens is, well, some other place to close the gap. I think thats so if it happens, we have to do the sorts of things weve talked about. We have to look at where theres underspending we have to look at math, managing our personnel budget. Um, we have to then say, okay, if we havent made it all up, um, with those things, then what are the services that were going to stop . And well go through a process of figuring out which are the services that are least bad to stop. We wont internally be in absolute agreement about that. So that will be a process. So thats thats thats the sort of thing that well have to happen. Okay. But to be to be quite frank, commissioner lum, we havent gone through that discussion yet yet. And um, and its a, its a big and a complicated discussion and i want to get a little closer to certainty that were going to be dealing with those state cuts before doing that. Thank you. Other commissioners. Okay, so i have a couple questions. Im going to start with, um, the dignity fund and the 3 million. Thats in this budget and the 1. 7 inflationary number, i just want to make sure i understand this. Um, today its 3 million is in the budget. And of that 1. 7 will cover the inflationary costs as is that that is that correct. That is correct. Okay. Um and is there ever a case where just the inflationary cost would be covered and it wouldnt be 3 million flat, it would just be enough to cover the inflation . Like, is there anything in the legislation . I dont recall. So im just trying to is it 3 million or nothing. So its an all or nothing for the dignity fund. Yeah. So um, so obviously one of the things that we could do is we could go back and see if theres some other way to come up with the 1. 7 million. At this point, we dont have one, but okay, its again, it would be its a situation that we may have to deal with. We dont have it in front of us. Right. Okay. Just want im just trying to follow the all the numbers and then, um, we were talking about the growth in salaries and benefits would grow by the cpi. What is the cpi and when is it determined . Because once again, another number i dont know. So what will ultimately be the cpi now is three. Its 2. 5. Its come down a lot which is a good thing for the economy in general. Um, but but um, but the thing that will ultimately set the dollars in this budget will be labor negotiations. So um, and when are those. Because thats so theyre going on right now. I, i before i came here, i was talking to my hr director, and shes heading up to negotiations today. Okay. Um, they started in about the middle of january. Um theres a whole schedule lined out for them about you know, when we hit, uh, median asian and when we hit arbitration. But the bottom line here is that the contracts are all supposed to be signed and ready for approval by may 15th. Okay. And you know, as, as well probably be obvious, since the mayor is proposing her budget on june 15th, thats a major input, right . Right. Okay thank you. Um. And then i just saw one thing in kelly, this might be for you. Um, in the budget, it looks like apps. This is about sb 4343. So it seems like we have an increase in those numbers. Um back on slide nine, five, i guess an increase in pa, pc and pg and rp from, uh, 9. 4 to 9. 8. And im assuming thats where for the Additional Services will be for sb. 43 three. And then but i see that the aps numbers are going down. Do we have any concern about the aps Service Resources decreasing year over year, or do you have any concerns about that. So the growth in their is really our salary growth right. But the aps numbers are going down. So im just curious. Yes. So aps yes goes down because the whole time safe. Um money comes out for the budget year. And as i said before, were going to try and bridge it with one time money. One time money. Okay. Thank you, thank you. Thats it for me. Thats it. Any other questions . I feel like im describing something thats, um, more bandaged together than it really is. You know, the i mean, this is this is the sort of process we go through all the time. We work with revenues that we have. Sometimes we have holes. We look for ways to patch. So in that sense, this is this is not odd. Yeah its normal for you. To and different for us okay. I just want to make sure that there are no