Remi simulation. Im referring to your slide number 19, which you report that an estimation of 1500 15,270 private sector jobs will be lost by 2019. First, i would like you to explain to me what the remi simulation is and whether it takes into account into account all the increases in cost of operation in the city, benefits, sick leave, that may not have been in place in 2004 that are in 2014 or 2014 to 2019. Curious to find out whether that was included as well, could have further increased the loss or simulation loss of jobs. So, the remi model is basically a system of economic equations, several hundred economic equations that are set up in which some of the variables in these equations are policy variableses. Theyre things that our government might want to change, or the things that a government might want to change would affect these things. Labor costs, the average Compensation Rate for industries, are the policy are among the policy variables. In the remi model, those are the one
All right. Commissioner toursarkissian. Thank you, mr. Eagan. I have a question about the remi simulation. Im referring to your slide number 19, which you report that an estimation of 1500 15,270 private sector jobs will be lost by 2019. First, i would like you to explain to me what the remi simulation is and whether it takes into account into account all the increases in cost of operation in the city, benefits, sick leave, that may not have been in place in 2004 that are in 2014 or 2014 to 2019. Curious to find out whether that was included as well, could have further increased the loss or simulation loss of jobs. So, the remi model is basically a system of economic equations, several hundred economic equations that are set up in which some of the variables in these equations are policy variableses. Theyre things that our government might want to change, or the things that a government might want to change would affect these things. Labor costs, the average Compensation Rate for indus
This spring on some of these industries, the percentage of workers for example in the Restaurant Industry is as high as its ever been exciteding 75 . We would completely grape for those workers who dont live in San Francisco and who commute in, their minimum wage increase creates economic expansion primarily from where they live and not for the city of San Francisco. ~ agree any other commissioner comments . Commissioner dwight . Id say a lot of what we currently know is its too early to tell. Lots of people are on leases that are going to come due. Were seeing that in the business sector. Im quite sure thats true in the residential sector. So, i dont think weve seen the full impact of the increase in real estate prices for residents or businesses just yet. I know anecdotally as leases are coming up in the business sectors, Small Business sectors that were familiar with, the rent increases are double if not triple digits. And that is also the case in nonrent controlled apartments. So,
Takes into account into account all the increases in cost of operation in the city, benefits, sick leave, that may not have been in place in 2004 that are in 2014 or 2014 to 2019. Curious to find out whether that was included as well, could have further increased the loss or simulation loss of jobs. So, the remi model is basically a system of economic equations, several hundred economic equations that are set up in which some of the variables in these equations are policy variableses. Theyre things that our government might want to change, or the things that a government might want to change would affect these things. Labor costs, the average Compensation Rate for industries, are the policy are among the policy variables. In the remi model, those are the ones that we changed in this particular simulation. When he we talk about employment effects with remi, were always talking about the difference between a baseline projection in which the policy doesnt happen and how the economy would
That the city overall, and in particular the food service and social assistance industries, would continue to see growth during this period notwithstanding the employment effect that we talked about. We made one recommendation to the city as a result of this analysis which is to say that the possibility of a recession that would negate these growth projections is nontrivial. It wouldnt be a 10 year period of Economic Growth if we dont have a recession by 2019 and i would say there is some possibility if thats the case. And we recommend the city may wish to consider adding flexibility to the proposal in the event there was a recession during that time period. So, i think that concludes my review of our report and id be happy to take any questions that you have, commissioners. Commissioner dooley. I was wondering if we know in the lowincome workers theyre not increasingly not no longer able to afford to live in San Francisco. So, how can we kind of balance out where their increased wage