All right. Good afternoon everybody and welcome to the San Francisco board of supervisors budget and finance Committee Meeting for wednesday, march 2, 2016. My name is mark farrell, ill be chairing this committee. I am joined by Committee Member wiener, kim, and well be joined later by yee. I want to thank s fgtv for covering this meeting. Madam clerk, with that do we have any announcements . Yes, sir, please silence all cellphones and electronic devices. As part of the files to be submitted to the clerk. Thank you. Thank you madam clerk. Welcome to our first budget meeting for 2016. I thought with this one, for our first meeting, we would get a quick update report from the Controllers Office on our six month budget. So with that, if you would call item number one. Item number one, hearing on the six month budget report and request of the Controllers Office. We have michelle from our Controllers Office to speak. Hi, yes, good afternoon. Michelle from the Controllers Office and also, theres a presentation if you want to put it up. Our six month budget status report was issued in early february and as sort of the bottom line numbers that were projecting an improvement in the current years ending balance of about 59 Million Dollars compared to our last projection which was issued at the beginning of december. So what that does is bring the combined short fall for the budget years that youll be considering, fiscal years 17 and 18. Short fall to 180 Million Dollars. So a portion of that short fall. The change, the improvement is mostly more due to improvements in tax receipts, primarily property tax. But its also from departmental savings in a number of departments. But human services, Public Health, and then city wide savings due to hiring delays. And, we would like to report the progress that were making towards our economic stable reserves which were projecting will be at 6. 2 percent of general Fund Revenues at the end of the year and our target is 10 percent. So just to briefly review the Revenue Sources that are contributing to the fund balance, its largely in property tax. About theres an offset between sales tax and property tax. So about 11 Million Dollars of the bad looking news in sales tax is just a shift thats going right up to the top line to the property tax line. That all has to do with the state unwinding its triple fund. So the net is zero. The property tax is due to the strength of the Real Estate Market where were keeping less aside for less assessment appeals. And the assessor sentence rolling in prior year activity like changes in ownership faster than we had expected. Were reflecting that prior year revenue here. Otherwise, things are largely in budget in terms of revenue. And as you know, a portion of that revenue good news goes to baselines and set asides. A toeflths that is 10 Million Dollars that total safety relinement number, 7 and a half s that based on what youre expecting or just a one time fund . Oh, thats mostly a one time bump. The thing is theres extra amounts every year that can be allocated to counties and some of it is case load gross higher than we thought compared to other counties. So about 3 million of that is department of Public Health. I think thats mostly one time. Yes, so a portion of our revenue goes to base lines, as you know. On the department side, as i mentioned before, net savings, net revenue expenditure savings is about 66 Million Dollars. Department of Public Health and 11. 9 million in general responsibility. Thats just money we set aside on the city wide level in our m r u reserves to pay one time pay outs and any m l u payment costs. Its not that the department doesnt have that cost, its just that theyre unable to cover them with their own budget because a lot of them are having problems due to hiring delays. We can reduce that amount were carrying this that reserve. In terms of Public Health, its a variety of programs but extra revenue for Mental Health in the general fund, short die oh medical is shorter than expected and higher rates than we expected. Its about 12 Million Dollars in medical add minute sxen ed tur savings. As in prior years, well be bringing forward over time supplemental for your consideration for a number of departments that are exceeding their over time budgets in the current year. That will be in the next few years. And, there are also two pending supplemental proportions that will draw on the general reserve. One of which is reflected in our report, 5 million for e ph facilities and also the inaudible car barn and also implementations which is not reflected in our report but were just highlighting that for you. We always remind folks that there is a little bit of uncertainty in our projections. Some of it is on the revenue side. Well see what transfer taxes is doing. Its remarkably on budget this year which is not something we usually say. And, business taxes, we wont really know where we stand in the current year as with any year until we get a business tax filings for 2015 which will have information on that probably in april. Were still experiencing some revenue volatility with the implementation of the Affordable Care act. And with additional current spending in the year if it draws on the current reserve, well need to refill that reserve in the budget year. Outside of the general funds, the news is generally positive. Were projecting slight increases to funds balances, a short number of reasons. And one exception to that would be the ph c, if the draw is having a reduction in that department so were projecting a reduction in short balance in waste water enterprise. And have finally, in closing, the next step for us is well be working with the budget analyst and the mayors Budget Office to update our forward looking forecast. So that will be coming out the week of march 20th so thats for fiscal years 17 and on. And then for the current year outlook, well be updating in early may in our nine month rooter. Report. And just to remind everybody, the current year is hopeful. It will help reduce the short fall we had but it will not eliminate it. It will be balancing what the Mayors Office will do. Thats all i have. Happy to answer any questions thank you. Just for point of classification. So at budget instruction time, we were about 100 140 Million Dollars deficits, is that right . Yes. So the june 01 budget was 240. So were down as of the 6 month report. Were 70 and 110 speaking, generically speaking. And when youre talking about departmental and projection savings, is that in addition to . No. Thats separate . Im giving you net revenues as revenues and expenditures together. Thank you for that. I think its helpful as we continue to reef refine things and well know more at the five year projection. But as we continue hitting the budgets in terms of cuts and resource is helpful from our resources. Colleagues, any questions for controllerss office at this point . I know this is just our first meethd and its quick. But just to have level set of what is trending right now before we get into more detailed reports in the upcoming months. Okay. Thank you very much. Appreciate it. Well open it up to Public Comment. Anybody wish to comment on item number one . Okay. Seeing none, Public Comment is closed. Colleagues, thank you for addressing this. We will have a conferences in the Mayors Office in the upcoming weeks. I would like a motion to file item number one. Motion by supervisor kim and seconded by supervisor tang. We can take it without objection. Madam clerk, do we have any other