Next questions are for chief scott. This is a question from maygan cassidy. How many officers or sworn staffers have tested positive and how many have been exposed or quarantined on your staff . We have had two officers test positive. We have had 53 quarantined. Some of those are back at work. We have been very fortunate working with the department of Public Health and the mayor and others who provided leadership early on. We hope we can continue to see this good fortune. We have not been severely impacted at this point. At this point only two. Follow up from sf gate. Do you have plans in plate for the a significant number of First Responders become ill. We do. We have seen other places around the country with this. We started with modifying our protocols, administrative units and officers that work those units were rotating in patrol to supplement. We modified the patrol schedule and have several models in the event we have significant short sage ages of personal. We have several models to go to. Depending on the shortages there are different models. We have modified deployment greatly included limited activity in terms of in Service Training is canceled. We shifted investigators to patrol duties, some supervisors that work investigative units are shifted to patrol duties to supplement patrol. We want to keep social distancing and not over crowd police stations. Yes we have models in event of shortages. Thank you. That concludes our press costs as a result of the economic downturn. 600,000 of the tax collectors to administer individual loans for Small Businesses impactedded by sarscov2. Members of the public who wish to speak should be dialing to be added to the speakers list. You might recall we continued this item from last weeks meeting. Today we have with us supervisor ronen. Would you like to make some comments . We also heard the report last week, too. Supervisor ronen . I want to thank you for the question you posed last week. My intention with this ordinance is to get assistance to Small Businesses who are suffering enormous losses at this moment and do it quickly. Sorry. Let me shut the window. Sorry. Hard to work from home. Basically, what has happened between then and now is i have been working with the Mayors Office and with the director of the office of economic and Work Force Development, and with the enormous leadership of my chief of staff, and we have reached an agreement that will make this legislation not necessary. My main goal has to get assistance to businesses if they dont get financial help will close forever in the city. We are a city of Small Businesses. It is what makes San FranciscoSan Francisco. We are not a city of chain stores that sell the exact same thing that look exactly alike. We have a special neighborhood that specialize in certain ethnic foods and art. My worry this time is that these businesses just like so many of our residents operate monthtomonth, that if we dont provide help at a time where they are not bringing in any revenue that we will lose them forever. Therefore, we will lose the character that makes San Francisco so special. Rather than having a protracted political fight about this that would take at least a month to get money available on the street to the businesses, we have reached an agreement with the mayor and director torres to do the following. We have a plan to release this week to the public 10 million that will help Small Businesses. Up to 1 million of philanthropic money will replenish the grants up to 10,000 to Small Businesses. If you will recall, this fund has already had 1 million into it and the up take and the applications for the fund were enormous and way more than the fund can handle. This doubles the amount of the fund, making this available to businesses all throughout San Francisco. Then an additional 9 million from the general fund reserve to launch a Small Business survival loan program. The beginning details of the program to be worked out in the remainder of the week and launched within the next few days would provide up to 50,000 of no interest loans that can be paid back up to six years, and will be administered by the office of economic and Work Force Development working with Community Development institutions like mainstream launch, working solutions to ensure that there is enough outreach and support to get these funds to the most vulnerable communities and especially those businesses that will not be eligible for the fba federal loans. We are going to target first businesses that for whatever reason they dont have enough capital, dont have access to the type of proof that is needed to make loan repayment, that this is filling the gap for that population of businesses. Finally, we will have the flexibility to offer these loans in differing amounts to businesses that we believe with some assistance could survive this crisis and this pandemic. Oewd and their partners have the ability in a very low barrier way to figure out and prioritize the use of that money. In addition to this program oewd will continue to help businesses apply for the sba loans that are eligible for them, and with that i am happy to take any questions. I want to really thank amy from my office for incredible work to get this done. Now is the time to be unified and get money working for Small Businesses on the streets as soon as possible. With that i will take any questions. Also, director torres is here and available for questions as well. Thank you very much. President yee. I want to thank supervisor ronen for focusing on the Small Businesses and for her ability to work with the mayor and come up with this quicker solution to helping the Small Businesses. I think not only myself, i think all our colleagues on the board of supervisors whose businesses in the district are being hit would appreciate this, too, thank you very much, supervisor ronen. I want to make one correction quickly. This 9 million will not come from the general fund reserve. It will come from the current general fund. I also wanted to ask would you like to continue this item to next week or would you like to file this item . As we are working the final details out, which i am very certain we will, i want to continue this item for one week before filing it just to have it going as an insurance policy that we will get this money out to the Small Businesses on the street this week. If i could ask to continue this. I make the motion to continue this item. I think i can make that motion because i am on the budget and finance committee. You would like to continue items one and two to next week. Thats correct. Supervisor walton. I want to say thank you to my colleagues on budget and finance for thoughtful questions and making sure we did everything we can to find a viable solution to provide opportunity for Small Businesses and i want to thank supervisor ronen for being willing to work closely with mayor and coming back with a solution to get us the results you want and as president yee said this will make it happen faster. Thank you all for your Due Diligence on this. Mr. Torres. Yes, i want to thank you, madam chair, and supervisors for all of the work in getting this done together with the Mayors Office and ms. Kittler to help us get here. This fund of 10 million is supported with a combination of funds general fund and philanthropic dollars to get us to the 10 million mark. Confirming what supervisor ronen said thank you so much in terms of us being able to double the resilient see grant and moving forward with zero interest loans for the folks in the Small Business community. We are excited to get this moving. Would you tell people how they can donate to the fund . Certainly. People can go to the sfgov and search forgive. There will be directions to make contributions to help us in these efforts to support our Small Business community, workers, those with housing, Food Security issues. We are happy that Small Businesses and workers are part of the pillars of giving that we are pursuing. The individuals may do note as well as corporations . Yes, individuals may donate as well. We have seen a large up take in individual donations on the site. A huge thank you to those in San Francisco who are reaching out directly. Thank you. That is part of the San Francisco spirit. I see on the roster is supervisor mar. Thank you, chair fewer. I want to thank supervisor ronen and director torres for working on this really important Additional Support for Small Businesses who are suffering in the city. I had a question around the allocation of the 10 million, 1 million of it would go to Small BusinessResiliency Fund which is more direct grant to Small Businesses and 9 million would be more loans to be paid back by the Small Businesses. To my question, what was the thinking about having only 10 of the 10 million im sorry. 10 of the 10 million going as direct Economic Relief versus loans. Again, i have heard loud and clear from Small Businesses in the sunset district suffering and struggling right now that there is plenty of lopes available to them, particularly from the sba and now through the federal government through the relief package. That is the direct grant that is needed right now. That is what is the gap that we could fill on a local level. That doesnt really exist at the federal level in terms of Small Business support. Certainly. Thank you, supervisor. It is my understanding and my staff and i are reviewing the details related to the federal programs provided in terms of a 10,000 grant available through the federal program. In addition to low interest loans. We also have triggers for forgiveness within those programs. We focused here on trying to provide a middle ground up to 50,000 that would be beneficial to the Small Business community. As another line of credit they would be able to take advantage of with the favorable term every payment over six years. Again, through a zero Interest Program to be administered. We saw there was great value there, in addition to doubling the resilient see fund process. We want to move forward with those small 10,000 grants to comment what the federal government was doing for larger businesses and businesses that wouldnt have the capacity to access that fund and support the folks in the midrange who expressed that is a product that would be worthwhile and beneficial to them. Thank you. A followup question. Can you share an update on the Small BusinessResiliency Fund. It is great we are able to double the amount of resources allocated to that through the plan you worked out with supervisor ronen, but it is my understanding there are still many times more Small Businesses that applied to get that support that that we are not going to be able to support. That is the reality right now that not all of those who are applying for the funding are going to receive it. There are over 2000 folks that have reached out to us citywide looking for relief of this kind. Just a note on that that not all of them are going to be compliant with the criteria necessary to gain those funds. Some of the businesses are larger in nature and are more suited for the loan products and potentially the grant and loan products out of the sba. That is one of the reasons we are working with the Neighborhood Economic Development organizations to provide technical oneonone assistance to connect them to the sba loan and grant applications. That is the work we will do right away and have begun in conversation with them. There are 24 checks that have gone out for those who have been approved. There are more happening right now, and that distribution will continue. As part of this next round of funding, what was important for us and for supervisor fewer and you and supervisor ronen, including supervisor walton was making sure there was a geographic equity in terms of distribution of the grants. One of the next steps will be working with you, madam chair and supervisor ronen to make sure the process for the next allocation can move forward in that geographically equitable way. Could i add in a few comments to that, chair fewer . Yes, please. The truth is we need a lot more of everything for everyone right now, whether it is pp for our caregivers, direct assistance to families, programs for Small Businesses, and the 2 million which is fully funded by philanthropic dollars is not enough. We need more. This is the appeal that i want to make, especially to larger businesses that are going to survive and be just fine during this crisis that we need you to support our Small Businesses to keep the economy thriving in the city. We have been able to put 2 million into that fund. We need a lot more money, and the more big businesses can contribute t to the fund, the better. We felt it was necessary to provide assistance to those medium sized businesses that might not be eligible for sba funding and dont want to take on debt, that includes not anin significant amount of interest we wanted help they had a long time to pay back without interest so they would return when they reach help over a six year period the money given to them during this time but nothing more. It fills that gap. Quite frankly, 9 million is not enough for that pot. That will be taken in two seconds. While we look at the overall budget, we can increase that amount of money. I have absolutely no doubt we will have more applications than we can fund be. That is something that we can continue to look at as a board, but getting this money out the door and working for the Small Businesses now is the main objective. I just want to say i also agree. I think this fund, this relief fund is not only about Small Business, it is about people getting housing and feeding people, also, for the most vulnerable. This is Small Business is one part of the relief. Food and also housing is another issue. Definitely not enough money, but as supervisors we should work to fill that potted of money through our connections reaching out to people and our own communities that people want to do something during the crisis to help Small Businesses. This is something they can do. They can donate to the fund and this is where the resources will go to. I want to ensure, also, that supervisor ronen there is in your legislation a sentence or so about geographic balance. I think that it is or in your agreement that it is really, i think, important as Small Businesses actually are all of our city and every neighborhood are the backbone of every neighborhood. Absolutely. To that point i have heard a lot from the latino community, which i represent in the mission, that they feel completely left alone, the businesses during this crisis and have not been able to access help through micro loan fund. We need to help every community and their Small Business hub that keeps us together as a Community Healthy as much as we can. Just remember that the Chinese Community in chinatown has taken a hit a month or two before the Small Businesses, as this is going on very, very early. Thank you so of an again. Any more comments, director torres, would you like to say any closing words . Yes, we know that in addition to all of the value these grants and loans can provide there are workers wanting to know what resources are available to them. I will ask people to visit our website oewd. Org and click on covid19. We have people standing by on the hot lines to call. If there are issues please do share those with us. Our teams are working hard to respond to individuals as quickly as they can. Thank you very much. Can i Say Something real quick . This is osha. Can you please introduce yourself . Thank you, chair. This is supervisor safai. I hope director torres is available and listening. I want to overemphasize and i appreciate the comment about geographic balance. That is really important. Thank you supervisor ronen for leading on this. I might have missed this. I wanted to just quickly say one of the things that has caused us to be a little bit cumbersome is the process people have to go through to get the money. I want to ensure that once this fund is available and it is available that we are ensuring we are getting the money to the business hands as quickly as possible that there is not a tremendous amount of paperwork or delays. The quicker the money is in the business hands the quicker they can pay workers and survive and pay rent. I wanted you to spend a little moment about that today how quickly the money will get to the businesses hands. It will usually take, once the application is complete, for that to take place is what our providers told us as it relates to the loan program. As it relates to the grant program, i am hopeful that can happen around the same timeframe as we built up the partnership with the northeast federal credit union. We will get more realtime information to you, supervisors, i will ask staff and providers and come back with the information. The intent is the reason we are working with partners. How quickly can this happen . How easy can the process be to be sure people have a relatable process of getting paperwork done and making sure those cash opportunities, that capital can be made available as quickly as possible. Thank you. Thank you. I just want to say i commend you on the hot line that you all have in multiple languages seven days each week. We have referred a lot of our businesses and people with questions with unemployment or accessing federal programs. Really appreciate you guys moving toward that. I know you now are moving toward a more aggressive joint number with the office of hsa so you have created a new seven day a week number. I know you are trying to combine Energy Resources and information in one location. That is right so people can get the most information all at once. So people have an understanding of the programs and resources they can provide. I want to give a huge shout out to the Work Force Team and to the office of Small Business where the support has been that they provided. Thank you very much. We have a motion on the table. Chair fewer. I want be to Say Something about in terms of as a supervisor safai was saying, time is of the essence, but we also have to consider that certain businesses or certain individuals that own businesses may not be able to get their applications together quickly for the grant program, which means that if you dont wait for a certain period that it is first come and first serve. I dont know how you balance that out with geographical equity there. Thank you very much, president yee. We will be back with you to outline what that process should look like so we can deal with that issue directly with all of you as well. Thank you very much. Seeing no more comments on the roster, i would like to open up for public comment. Is there anybody that would like to comment on items one and two and if you would like to comment, dont forget to press 10. Operation is checking to see if there are callers. Please let us know if there are any callers that are ready. Thank you, madam clerk. There are no callers wishing to speak. Sorry. One caller just called in. Allow me to take this question. Thank you very much. My name is francisco decosta. Hello. First and foremost, i think we have to get a sense of how this pandemic is affecting the entire city. I said first and foremost. Ookay. What i was going to say is we need to get a sense of this pandemic that is affecting our whole city, and i would like you as supervisors to Pay Attention more to the hospital, the nurses and the testing all over the city. Then, you know, get involved in what is said in item 2. Thank you very much. Any other speakers . Public comment is now closed. I would like to make a motion to continue this item for one week. Items 1 and 2 for one week. Roll call vote, please. On the motion as stated. [roll call]. There are three eyes. We are now adjourning the meeting of budget and finance committee. Now we are opening up the meeting of the budget and appropriation committee. Madam clerk, can you please call item 1. Item one hearing to review budget process and related updates for fiscal year 20202021 and 20212022 and the budget and legislative analyst to report. Members of the public should dial 10 to be added to the speaker line for this matter. Thank you, madam clerk. We heard from city controller yesterday about the revenue picture facing San Francisco. For todays discussion i am asking mr. Rosenfield to review the slides and we have the mayors budget director to discuss the existing reliever and changing to the process anything she can share regarding the city spending and the covid19 impact on spending. A couple of things to note prior to the presentation. These are unprecedented times. Last year San Francisco had the largest budget ever at 12. 9 billion with a growing budget and demand and set of challenging decisions. With those decisions were about which new priority the board wanted to invest in. This year unfortunately this will be my last year as you cant chair and supervisor, a hard one to end on. It will be difficult. As a city we will have a hard and perhaps painful decision how to Prioritize Services and ensure we are providing critical support to residents and Small Businesses. Because of these entirely new circumstances, my office in the next week will release budget principals to guide work and make sure we are all on the same page moving forward. Toward the end of todays meeting i would like to hear from you what issues you think the budget and Appropriations Committee should time on in the coming weeks and months and the lingering questions to come back to. I have cancelled all hearings because of the major shift in the landscape and want to spend a few days reassessing the calendar once i hear input today. I will update the budget calendar shortly along with releasing budget principles. I will convene an Economic Relief work group to include mayor and key departments and office and Work Force Development and two members of the budget and Appropriations Committee to ensure development of relief packagena leverages state, local and private funding. I will release more information in the coming weeks. The expectation would be regular meeting and weekly updates in the committee meeting. With that i will turn it over to the presenters mr. Rosenfeld and ms. Kirkpatrick. Thank you. Good morning, chair fewer, members of the committee and members of the board. As the chair indicated. I was going to start with a brief recap of the slides from our meeting yesterday. Our three offices controller, budget and board budget and legislative analyst yesterday issued updated projections of current year and next two years. This is the joint report. A lot of the numbers i am talking through here today are drawn from that report, which is available on our website and the boards website. Just to start with a bit of snapshot on economic dangthat has already occurred in San Francisco and around the state. We know we have approximately 14,000 businesses in the city that are either fully or partially impacted by the shelterinplace order. Those 14,000 businesses about about 166,000 employees. Statewide, we know that we began the month of march with 4 unemployment in the state of california. Even with the data through marca remarkable runup in claims 1 million in that period alone. As of today the states Unemployment Rate is at or above 10 . We expect to see similar surges in claims through the end of april i it is an uncertain momet for our offices and economists and forecasters. We know a recession is near certain and has likely begun. Given the differing forecasts about the severity of the recession, we are using two scenarios for our modeling at this point. One a more severe but lighter recession that really with severe losses in coming three months and quicker recovery by the end of 2020. Secondly we are modeling more extended impact scenario with more significant losses for six months then recovery that is much slower. Beginning in 2021 and beyond. To give a brief sense how dynamic this month has been, for not just our economy but for the u. S. I would briefly recap. Forecasts from moodys and how their view of the future has changed in the last month. Began with a forecast of g. D. P. Growth for the u. S. Of modest but continuing strength through the year. With g. D. P. Growth in each quarter. By march 23rd they revised that forecast, given early signs from the Public Health emergency and impact on the economy and had predicted a significant loss of almost 5 of u. S. G. D. P. And then recovery continuing to 2021. Four days later on march 27, mood des significantly downgraded the expectations. In the most resent projection, they are expecting g. D. P. Growth in u. S. To decline by almost 20 in the quarter we just started with much slower recovery after that. They have an upside and downside scenario in the forecast looking ahead. The u. S. Wouldnt reach full employment until 2022. In a more pessimistic model we wouldnt get down to full employment in the u. S. Until 2025. Translating that economic picture to how it hits us financially as a city, we expect to see sharp and immediate losses of more sensitive and monthly paid taxes beginning in the current fiscal year with delayed losses for some of our larger taxes, property and business tax that are paid on an annual basis. We wont see losses occurring today until folks file and pay taxes next fiscal year and beyond. Current year general fund losses looking at our expectations for the remaining three months of the fiscal year. At the six month mark we had good news and reported 98 million improvement. Since then you can see the revenue losses associated with the Public Health emergency. 300 million in a more optimistic scenario. Over 450 million in pessimistic scenario led by hotel taxes. We now expect to end the current year with 167 million problem or up to 207 million problem. The impacts arent limited to the general fund. Most of the city Enterprise Funds half of the budget are suffering losses. These are three of the largest ones we are tracking. Airport and m. T. A. And port, they are all impacted given their different lines of businesses in severe ways. There are other enterprises suffering losses, Public Utilities and department of building inspection we do expect to see losses there as well and will include that in the next update. Some of the lags tax impacts that i talked about earlier begin to play out more significantly not in the current year but in years ahead. There is more detail os each of these tax projections in our report with assumptions underlying them, but we expect tax revenue losses next fiscal year between 330 million and 580 million. Then with some recovery beginning the year after, given the shape of each of these scenarios economically. When we take this news and layer on top of the previous projections from january we are left with a larger cumulative shortfall through 202122. In january we projected a two year shortfall of 224 million the year after next year. When we account for this that number grows. 1. 1 million up to as much as 1. 7 billion in a more pessimistic scenario. It is also important to know what is not include understand the projections at this time, and whale our normal while our normal practice is to provide this two times each year in march and falling. We are working towards an update in april to incorporate the following. These projections do not include any covid19 expenses the city is incurring nor information which we are greening from the state bills regarding revenue for those expenses. Our retirement system will take losses in the current fiscal year in terms of returns that translates to higher pension contributions in 2122 for the city and employees. We anticipate in april updating our projections not just for covid19 revenues but for all revenue trends. As is the case with our joint report, it is status quo projection. Continuity of policies and spending by the level does not include steps to take to reduce spending or draw reserves to cover part of the shortfall. Very briefly, obviously, i think if there is good news is it that the city is in better financial shape than we have been prior to the last two recessions we entered. We have 590 million available in the rainy day and stabilization reserves. Those will get drawn in this hour eye don. They are guilt for this horizon. We have 150 million general reserve. There are a number of other reserves the city maintains detailed in our reports to use to offset pieces of the bad news, including reserves for onetime purposes to help carry onetime capital and other programs through this time without the need for new general fund support for them. I think it is important for me to stress that while reserves are at a high level, they will soften but not eliminate the losses we face ahead. There will be a challenge after the reserves are used. With that i am going to hand it over to mr. Kirkpatrick from the mayors Budget Office t to talk through the stimulus and other things the Mayors Office is working on. Thank you. Confirmation you can all hear me. Yes. Excellent. I will review i am getting feedback. I dont know if it is because your mic phone is still on. Apologies for the technical difficulties. They are trying to get the screen share back on. Thanks, ben. As the controller shared there is so much information coming at us all of the time. Time feels very abstract at this time. A couple days ago on march 27th the federal government passed a significant stimulus package of 2 trilliondollars. They also passed smaller magnitude acts to help both individuals as well as local governments respond and deem with the impacts of covid19. The state has also passed a 500 million stimulus bill. I will walk through the details there. There is a lot of information and a lot of details that still need to be sorted out. I think the bills are very helpful in helping us understand we will have support from our state and federal partners in both supporting residents and addressing city costs as relates to covid19 response. As i noted, the federal government has made significant expansions related to sick leave, expanding emergency sick leave for employees for fulltime employees up to 8 hours of sick leave including leave due to school closures. They have expanded unemployment both extended it and extended it to selfemployed and gig workers and waved the waiting period so people can receive those benefits more quickly. On the federal level there is 350 billion for low interest loans with companies. Additionally a part of the relief is direct tax rebates to individuals. Nationwide that is 560 billion, which is 1,200 per person with various caveats for those that make less than 75,000 per year. For relief for local government. On march 13th, the federal government did declare a National Emergency which will allow the provision of direct assistance and reimbursement for local government for emergency response. This is for medical response and ppe and logistics. In the cares act there is 45 billion. This is uncertainty how they will divide that up among jurisdictions but it is helpful to know for very specific covid19 related responses there will be up to 75 local reimbursement match under fema. We are still digging into the details what this means for San Francisco. Additional federal covid19 stimulus bill enhancements to City Operations one of the biggest is controller noted yesterday 150 billion relief fund distributed to states based on population. It will be direct aid which each jurisdiction will get a percentage for necessary expenditures incurred due to the Public Health emergency related to covid19. We are working with our state and federal partners to understand the allocation model. This will be helpful to offset additional costs that might not be covered by fema for San Francisco. Additionally, there is aid included in the cares act for transit agencies. 25 billion for transportation to help within from structure, operating costs and aid for airports. There is 1. 5 billion included in hospital and Healthcare Systems to include everything from ppe to testing, infection control. Other kind of enhancements to the programs the city administrators for vulnerable residents. Snap residents and homelessness and shelter support and support for individuals for addiction defense and hud supported housing. The state of the 500 million the governor has allocated to his 1 billion allocation for San Francisco the governor has allocated 100 million in Flexible Funding to address homelessness as well as 50 million allocation to assist with sro and hotels. We are working on a daily basis with state partners. I feel like a broken record. To understand how these will help San Francisco with our efforts, but i will say that as our spending takes place we do know we will receive some offset from the state and federal government. We need to understand the local impact and will work to provide updates to the committee as we discern those. The city has stepped up. We have done prior to discussion of this new fund this morning the city stepped up to help Small Businesses. We deferred the First Quarter of business taxes for Small Businesses up to 10 million of gross receipts. That is up to 40 million that acts as a no interest loan that businesses will not have to pay until february of 2021. Almost a year that is a bit more diffuse than other programs. That is a helpful aid the city has utilized to relieve pressure on Small Businesses. By delaying collection of the unified bill for various business related fees another 10 million to support 11,000 businesses for relief on having to pay the city in this time of crisis for the next three months. We have come up with direct grant and relief funds. We discussed the 1 million personal businesses. Additional grants for Small Artists and artists organizations. We discussed the priorities of the give to sf program with an equity loan to three priority areas. Access to housing, Food Security and workers and Small Businesses. We have also provided various d sick leave for private Sector Workers providing an additional 40 hours of sick leave. The Enterprise Department stepped up to help provide relief to residents m. T. A. And p. U. C. Waived late fees and shutoffs. They enhanced leave benefits through paid sick leave and leave forwarding and making sure the city supported nonprofit contractors have continuity through the contract as they add here to this shelterinplace provisions related to nonessential businesses. For cityrelated spending directly related to covid19, the departments have incurred costs to rapidly deploy resources and staff to respond to the health crisis. The vast majority of spending that has happened to date is for the department of Public Health related to staffing costs, stabilizing and supporting the Healthcare Work force, including nurses and doctors support and expediting additional hiring. Procurement of Safety Supplies including ppe allocations for additional testing and treatment. Of course, there is additional staff time across city departments responding to covid19 in terms of over time, staffing the eo c, providing support to we can work remotely all dedicated to covid19. Under the executive directive, the mayor has given me authority to have departments move money more flexibly around to meet these needs. As of now the majority of spending is departments moving money and reprioritizing in the near term. We are working to figure out how much money we will receive to offset. As the controller discussed once those shake out there will be a cleanup supplemental when we have a handle on the abilities of departments to utilize existing sources state and federal and if there is a delta to cover for that. In addition to the kind of direct spending that i mentioned in terms of staffing and supplies departments are working to get out the door, we have been working quickly to help with our forward looking costs and programs to address the crisis as it potentially grows in scope and number of impacted residents. The two priorities of especially the three biggest social service and Health Departments dph, hsa and hhh, they are focused on planning for and supporting additional surge planning for the Hospital System, seeking additional bed capacity and supplies and staffing. Vital to dphs plans is placement for people who either under investigation and not confirmed with covid19 and cov, finding places to free up capacity to help people with the highest acuity in the hospital setting. That leads to the demands we have and hard work that hsa is moving forward rapidly to identify hotel and shelter placements for vulnerable populations and front line workers. The goal is to secure about 3500 hotel rooms, which will be prioritizing to allow the Hospital System to discharge individuals who cant selfquarantine, to make sure we have enough Hotel Capacity to fill front line workers unable to selfisolate at home and vulnerable individuals without that capacity. Those in congregate settings and city shelters. There is a desire to find 2000 placements a need to find 2000 placements for additional shelter placements to help with the appropriate assistance at existing shelters and to provide assistance to those unsheltered on the streets during this health crisis. Finally, yesterday the mayor introduced in the seventh amendment to the Emergency Declaration and in concert and partnership with chair fewer and president yee, thank you for your leadership and partnership. Given this unprecedented time and need for all of us to focus on response to covid, having our staff to work to address the financial implications and getting the services and supplies needed as well as just given the ever changing financial landscape and the dramatic and Significant Impact of the likely revenue shortfall, we felt it behooves all of us t delay the budget process by two months. Here is a high level calendar. As you know, we introduced an updated the joint report yesterday. We will do another revision as the controller noted earlier in april that will take into account all of the other factors 13 or 14. During the month of april as well which is in the next slide. My office will work with city departments to close the current and come up with a rebalancing plan to clear the shortfall. The mayor will issue budget innstructions to departments in may. We will work through june and july to come up with a balanced budget. I will say there is also plans on here in order to allow the citys finances to complete. There will be an interim budget on june 1st to go through the First Quarter next fiscal year while the policy matters are deliberatessed by the mayor and the board. The mayor will introduce a balanced budget by august 1st. The Board Budget Committee will take place in august. It normally takes place in june. The full board will review the budget in september and mayor will sign by october 1st. As for the current year as controller noted, we are anticipated 170 million to 290 million in current year shortfall. In response to that, the mayor has instructed the departments to pause nonessential hiring and spending until we can develop a rebalancing plan. Those instructions include no new hiring except for essential workers, prioritizing essentially Capital Projects and other programs that havent begun construction as well as pausing new programs that havent started over the last couple of years. We have initiated new programming and if money has not gone out the door we will reevaluate those programs to unify if we want to repurpose to help close the shortfall. These are all different levers we have and we will look for Additional Savings in the current year to help offset the shortfall. This is a significant current year shortfall. We will prioritize maintaining services to vulnerable populations. We are looking at these three main areas as the first look to help usuryduce help us to reduce spending. It is to come to the board at the end of april or early may for review, as the mayor looks so close that shortfall. With that our presentation is done. Happy to answer questions. Thank you. Lets hear from the bla now, please. Good morning, chair fewer, members of the committee. Budget legislative analyst office. We dont have a report on this presentation but we did work with the Mayors Office and Controllers Office in the last few days on the update to the joint report. We concur with the conclusions in the report. Thank you very much. Lets open up for comments from my colleagues. President yee has requested to speak. Thank you very much. President yee. Thank you, chair fewer. Thanks for the presentation. It is helpful. I know it is hard to get details at this point, especially with the federal and state relief stimulus packages that are being offered. Two questions. Is there an estimate of time where you think you would have details on what San Francisco might receive from these relief and stimulus packages . In the second question on the interim budget itself, when you present the interim budget to us, what would it be based on . Is there a formula you are using or what is the thinking behind the interim budget so we know what we are voting on at some point . Yes, thank you, president yee. As the controller noted in terms of timeline for state and federal impacts to San Francisco, we would like to have some sense of that by the time we do that april update to the joint report. We will keep you all appraised as we green more information. There is daily and hourly outreach to help get that. We will provide updates with the goal of providing some type of more refined estimates as we receive information for the joint report. Update in april. Then to the interim budget, the goal is for this to be a status quo budget that allows general operations of the city to continue. The controller has a good sense of options that we have to try to maintain that without making those hard policy tradeoffs that really will be the meat of our august discussion. As we develop and finalize the shape of the interim budget, we will be in communication. The goal is to make the conversations in august and we will be in communication as the interim budget shapes up over the next month. We are going to focus on developing the current year rebalancing plan which will take efforts. If you have any insights to share on either of those points . Do you have anything to say . I think ms. Kirkpatrick handled the questions well. Each year the board of supervisors adopts a place holder interim budget for the month of july while the board deliberates on the final budget. This would look similar instead of covering july it would be for a three month period. In that interim budget, it is a status quo budget. New programs dont go into effect during that program during better times and times like this cuts would not go into effect during that window, new Capital Projects would not be permitted to proceed. I think the idea is a place holder until the mayor could submit a balanced budget with more substantive changes necessary to balance in august which would be deliberated by the board in august and september. I guess one of the reasons why i asked in your presentation, i think it was your presentation, you mentioned that the departments are adjusting to budgets at this point to certain things concerning the covid19, and i wonder if that is as you move things around this this years budget is that what will be presented or will it be just basically extension of what was presented for the budget at the beginning of the year . I think all of our offices are hoping to have for you much tighter updates o on the covid9 related spending and revenues to offset them before the budget to you in june. That is the focus of our update to these projections in a month. We should have our hands around these things and the rebalancing plan would touch on those issues as well. I think that can happen at the board sooner than the interim. Thank you. Supervisor stefani. Thank you, chair fewer. I just had a few questions for the controller or the mayors budget director based on the excellent presentation. I think this is more directed for the controller. It seems to me that any projections are filled with such uncertainty and i wonder if you know at what point you will be able to further revise the revenue projections for us. I think you are right. This is a level of financial uncertainty and Economic Uncertainty that i certainly have not lived through. Usually we express the joint report as a single number. Just expressing a range is partially acknowledging that. I anticipate one of the goals as we work through coming weeks and months to refine those ranges down as more information becomes available. I would hope that by the time we get an update to you in april we will have more certainty around a lot of these things, not all of them. By the time the mayor proposes a budget to the board later in the summer, we will have a much better picture how the Health Emergency has played out and in San Francisco and in the nation and we will better understand what the economic damage, what has occurred and what we expect to happen. I think our goal is to continue to bring these ranges tighter and tighter as we get new information. I believe you are on mute, supervisor stefani. Thank you. I am wondering to follow up to that, mr. Controller, in terms of events or indicators you will use to determine when we will have reasonable confidence in the revenue projections. I imagine we are looking at the end of the shelterinplace and with regard to Hotel Tax Revenue when will we derm it will hit the steady state . It will depend on the crisis in terms of travel looking at each state affected not only in the United States but also in terms of Hotel Revenue and tourism, what it is going to look like internationally as well. A good question. The range in the current year for hotel tax is relatively certain. It is basically zero or a little more than zero to the end of the year. I think the question will be how quickly does it recover in the year and years ahead . That is something we will watch for. That will be heavily informed how quickly the Health Emergency ends and some of the experience we see i in months after that. I think the hotel will be a lagging recovery even in more optimistic scenarios versus almost any other local part of the economy. That would be our expectation. One final question through the chair. With regard to additional expenditures, i am wondering if you think we will have a full understanding of those by august during the budget and appropriations fazan the work of our appropriations the phase, will you have an understanding what the expenses we had to incur because of the crisis by august . I hope so. We hope to have estimates what those expenses are likely toby beginning next month. Then we can track those expectations in the months that follow. Thank you. I i want to thank chair fewer. I feel confident in your leadership based on the prior two years. It is nice knowing you will lead us through this, chair fewer, and i thank you for having this forum where all supervisors can join as well. I hope you will continue to join us at our meeting. Supervisor ronen. One of my question is and as soon as we can get that information the better. I wanted to add to that request and i asked you this yesterday in the Board Meeting if we could along with the list of expenses or accounting of expenses that have been made during this emergency if we could get an update on the philanthropic dollars that have come in and what parameters around those dollars have been in place by donors . That would be great if you could give us a sense when we would get that information. Thank you for the question. I have a bit more information about the process you asked regarding yesterday that i can report today and we can follow up with more regular reporting on money into and out of that fund. In the mayors Emergency Declaration, the give to sf fund is created. The Controllers Office received payments and weep then caused them to be deposited into the fund. The fund can be used for three specific uses. Shelter in housing, Food Security and Small Business and worker relief. The approvals from the use of that fund are a three party approval. The director of Emergency Management for the city, city administrator and myself will be the authorizers of payment out of the fund. So far no payments have come out of the fund. We would expect to see recommendations for uses of the fund coming through the eoc. There is staff at the eoc working to bring forward proposals to the committee for approval. I dont have the numbers here with me today regarding how much is contributed to the fund to date. I can certainly report that and we would be happy to provide whatever reporting and regularity is helpful to the board as you work through this. If a weekly report regarding money in and out would be helpful, we wouldly glad to do that. That would be helpful. I know that checks have gone out for the micro Business Security fund, at least 30 checks have gone out. We just heard that a few minutes ago. It may be well. I can check on that. I dont believe any have out of this fund. I know that oewd and others are utilizing other appropriations to push money out faster. That may be where the money is pushed from. Thank you. Any other questions or comments . Seeing none, madam clerk can you see if there are any people in the c. U. E for public comment. Checking to see if there are callers. Please let us know if there are callers that are ready there is one caller wishing to speak. Thank you. Hello, caller. We can hear you. You can speak. Hello. Are you hearing me . Yes, we can hear you. Hello. Yes, we can hear you. . Thank you. I am from the San FranciscoHuman Services network. I want to thank our city policymakers for your leadership in implementing the strong measures to contain the virus and protect our most vulnerable residents. I want to call attention to the work of our cb os on the front line working facetoface with clients every day putting themselves at risk to flatten the curve, particularly for those experiencing homelessness, they are keeping people out of hospitals and ensuring the basic needs are met like shelter and food and Domestic Violence services. As we head into difficult budget times, i want to say i am struck that the need is greatest when resources are most scarce. This is a wakeup call. Lives are at stake. Nonprofits are experiences covidrelated costs. They will need additional city support, and right now the priority is to prevent short term gaps. This will exacerbate longterm needs for vulnerable residents throughout the recovery period. When we talk about cuts this year or in the coming years. [please stand by] supervisor ronen you mentioned that h. S. A. Are trying to get 400 hotel rooms for people that are covid positive and p. U. I. S that dont need to be hospitalized and dont have a place to quarantine or to contain themselves. And you then said youre looking for an additional 2,000 placements to thin out the shelters and laguna honda where possible, etc. Is that the only plans, because thats not what weve heard. Supervisor shamann walton, preston, peskin, haney, and myself have been participating in conversation with several people who told us that theyre looking at a much larger number. So weve gotten so much inconsistent information in this regard, and i want to make sure that i heard you right, or is that just a question of one part of the team not talking to another part of the team . Thank you so much for that question, supervisor. And i was trying to keep up to speed on the latest information, but you should accept the latest information from trent rhorer. I will say this is an ever evolving need and number, and so apologies for not being up on the latest, and definitely use those sources that you cited earlier as the most up to date. Supervisor ronen okay. Thank you. I just wanted to heireiterate t mr. Rhorer told us yesterday is that we are going to start in the next few days of action of thinning the shelter or any person over 60 who has an under lying comorbid condition will be moved, as well. We expect, given the need of First Responders, covid19 and p. U. I. S that dont need to be hospitalized, as well as Vulnerable People in the shelters are going to be way more than 5,500 rooms or at least a significant amount more than that. And in addition, those five members of the board of supervisors that ive mentioned believe we should also be providing hotel rooms for individuals sleeping on the streets, starting with those that are 60 or older or have underlying medical conditions that can care for themselves. But at this point, we have the ability if necessary to commandeer hotels, and we should be doing that, and that money should not be a block to that, to make sure that every Single Person experiencing homelessness that can care for themselves in a shelter in place order in a hotel room should be given that hotel room, and were going to continue to work to make that happen. Supervisor fewer i would just also include people in s. R. O. S. Supervisor ronen and thats included. Sorry. I didnt maenention that, but rhorer told us that People Living in s. R. O. S would be included. Thats why this number of 5500 scared me, because we know that the number is much greater, and the need is much greater than that. Chair fewer is that it, supervisor ronen . Supervisor ronen yes, thank you. Chair fewer okay. Thank you. Supervisor walton . Supervisor walton yes. My comments echo supervisor ronen, so i wont belabor that. I just wanted to say thank you. Chair fewer okay. Colleagues, any other comments or questions . I know this has been a somewhat brief presentation. I think what were missing are a lot of the hard numbers, i just wanted to secure a presentation for our april meeting, and to take note. Im wondering how much we have allocated for the expense of the hotel rooms, and how much we anticipate paying for hotel rooms, and what is the rate that we are paying for hotel rooms . Also, i understand piggybacking on supervisor waltons and ronens questions about it, i think we would all like updates on any numbers on people being released from jails. And then, are we using frontline workers . Are we using Health Care Workers . And what is the protection being given to them . And where is this funding coming from . Is this from our reserves or is this general fund money . And i think we hope to get reimbursed for some of it, but how does that funding happen . And then, i have a question, also, on testing. I wanted to know is i understand that were testing 400 a day. Is i know there is a delay in testing. Are we testing daily, and how much is it costing . And are we testing in s. R. O. S and in jails . And then, i think you answered some of the questions about we might be expecting a hiring freeze for the current year, and what are the discussions that were having with labor and the planning for the next two years with our labor partners . Are we expecting to activate v. S. W. Workers because in my neighborhood, i have 500 seniors who need meals delivered to them, and the individuals who deliver meals must pass a background check. Theyre able to be deployed rapidly, and if they are not working, theyre at home, that we could actually utilize them to work in these capacities. So those are some of my questions. I know that april, our meeting, we anticipate to have more hard numbers, is that correct . Yes. Those numbers are available in my office as well as the Controllers Office to provide sharpened numbers as we hone in on them. Chair fewer okay. Great. Oh, i see president yee on the roster. President yee . President yee thank you, chair fewer. Those are really Great Questions that you just asked. Not all, but some of these questions are being posted or answered from e. O. C. Ive seen some of the answers, but i cant remember the answers related to your questions. So if people wanted to know, maybe, some of the answers to the questions that youve asked, maybe they should look at that report that you have access to. Supervisor fewe. Chair fewer thank you, president yee. We are looking at extended answers. We had a good conversation and fo formative conversation with the chancellor of ucsf. Were wondering, im just wondering, i think this committee should know, what the extra cost for hotel rooms, e. O. C. Centers, everything weve had to deploy, if we could get a ballpark number, that would be helpful. And also, i would ask my colleagues, if were modelling whats happening in other countries. We know that countries have opened up and closed down again, and opened up again. For example, in hong kong, restaurants were open, and bars were open, and stores were open. And then, theyve had a surge, and theyve had to, again, shelter in place. So we may go through some of these transitions before we are done with this thing, and i think to have the projected cost of what we think might be for these things this year going into next year. Thank you for this presentation. Are there any other questions or comments on our committee that you would like for us to be discussing on the upcoming agendas . You can also email my office or call my office. I miss seeing you all. Its nice to see you on video because i havent seen folks for so long, but, do you have anything that youd like to give feedback to us, miss kirkpatrick, about these upcoming months . Just appreciate the partnership that i know we will have to have during these most difficult conversations. I know that our property as a city is to make sure that were supporting our vulnerable residents and responding quickly and swiftly to the medical crisis to mitigate our impacts on our community members, so i look forward to working together as we confront the tough physical challenges while trying to meet the needs of our community. Chair fewer thank you, miss kirkpatrick. I think these difficult times command it, and i residents of San Francisco expect it. Chair fewer so madam clerk, are there any other items oh, i think id like to continue this item to the call of the chair, and id like to make a motion to continue this item to the call of the chair. Could i have a roll call vote, please. Clerk is there a second . Supervisor walton second. Chair fewer oh, thank you. Supervisor walton just seconded it. Clerk on the motion [roll c]