Ramaytush rahmytoosh ohlone olonee who are the original inhabitants of the San Francisco peninsula. Forgotten the responsibilities as the caretakers of this place, as well as for all peoples who reside in their traditional territory. Ramaytush ohlone community and by affirming their sovereign rights as first peoples. Thank you. Um, so i guess well start with the revenue update. Thank you. All right. Good morning. Um, my name is carol lou citywide revenue manager of the budget and Analysis Division from the Controllers Office thank you for being here. Last time my colleague gary talked about the homeless for another for the joint report that significantly lowered um, the tax forecast for all yours what had been previously assumed in the budget ill speak that the mark 24 to the joint report were still writing that report so ill speak about that march 24th. Key points we emphasize forecast is the best thinking in time. Um, they change as soon as theyre printed always new notation we just want through the year to help to manage the budget from the other looks on the whole San Francisco business taxes is quit sensitive to a number of things. Um, first, the national and local high Interest Rates have damaged the capital and this impacts the eco system and as well as the shift to remote and hybrid work led to lower commercial residents we talked about that in the past, and, secondly, the rates of business taxes are highly progressive the volatility in our residents. Um, a census taxes are paid by. 40u67b9 of companies paid by 4 hundred firms versus the biggest tax is 10 thousand firms so even of that the top 10 payers pay a large portion of 0 gross receipt the handful of affirms can change the forecast one way or another and another factor in our business taxes on those whole have become complex over the years wooefz phased out payroll and grow receipt through he prop e and homelessness taxes were added in recently and 22 in 2019 prop f allowed the changes for the rates and then in 2022 we started collecting the executive compensation tax all of that complexity seen legal disputes for this tax alone were not able offering not able to count ii hundred Million Dollars as earned because of challenges and taken as well taken rungz in the tax base for the future issues. Um, the turning more to the forecast you wont be surprised similar to the permission in december ill show you the slides this were anticipating a tax revenue versus the higher budget not the exact numbers but this time show a range and looking at the forecast for march and the budget as a matter we like to include we suggest included in the mayors budget outcome is citing basis by the march update but the material comes in april and may and budget for that a little bit different from the report in march and gross receipts updated tax filing and payment dont come until april and three and four that finally given the ocoh residence on the experience from higher years of um, last minute reductions often not often but yearend reductions are of the on the lower end of revenue forecast range and should the actual revenue speed budget the funds will be appropriated in the future. That is a lot of information. All right. So here um, makes things concrete the chart the 5 years at 4 points in time the blue is our 5 year forecast in march 21st and the orange a little bit lower that the march 2022 forecast and the green lower it is our march and the gray shaded area were thinking for march 24th and calling out the march forecast because that is the forecast around which the city developed the plans around so the pattern is it you as you can see with every forecast the city has made ever march forecast taking down that revenue forecast. A bit more about the shading in gray. Were still assuming no or slow gross were assuming last time and or sorry back in december um, assuming the level of remote and hybrid at the current level and making allowance for disputes for taxation increasing um, over the years and even within the year. The reason why there is a gray shading upside so far receipts coming in higher by at the same time down sides and risks. And okay. So the black dots this is the exact same pictures bus dots now the black dots are a reality check showing end in the year so forecasting higher we actually ended up lower um, thats why were making the recommendations that um, that department makes theyre spending that plans at the bottom of the revenue range that the expect the revenues come in higher that lower number it is available for appropriation in the future in a way easier to add. Okay. Just terms of the next step this is where we are in the process. So um, and in january not in january but in december 2023 the Controllers Office and Mayors Office and board of supervisors issued the Financial Plan update and in february we issued a march i mean im sorry a six months update right now in march. And we will be realizing ever finalizing and realizing the updates either tomorrow or monday and after that in may the controller issued a 9 month update that is the revenues again and material changes that will impact the budget as well and in june the mayor proposed the budget and adopts and amends and adopts the budget and in september we get to see where the budget end at that time of the year. The last slide i dont have to cover if we showed that with every presentation a revenue about the homelessness taxes. And im available for questions. Or comments. Questions that the public has . Commissioners any questions . Any questions . No, i dont have any questions. Okay. Me neither thank you for the presentation. Thank you. Um, lets see well, just one thing on the timeline um, the april meeting will be when the committee will be voting on a budget then goes to the commission and then to the mayor and then to the um, board of supervisors in june so i wanted to make sure that everyone in the audience knew that. Thank you. I think youre up next. Controller. I want to make a few announcements. Yeah. Um, talking about the process um, a couple of things so just for you all to know, of course, now have you after today have the contacts and information youll need and then next week the folks that attend the line son meeting it will be virtual to help us to look at applications for next year and basically feedback will be for the april 25th and help you draft your letter of recommendations after the brainstorm and can refine and edit and vote on your final riemsz thats in the next slide um, and then just a couple of additional statistical things to talk about. Of course, now understand quorum which is the zoo gave us the official combination without quorum we cant hold an informational meeting cant start a meeting unless a quorum and the other issue that has come up and thank you, chair for raising this point to circle back the clinic is referring to the employer and the official policy advised the oakland policy members to recuse themselves for a category of things voted on for the employer um, so the Vice President will need to remove herself from all discussion in voting on any decisions even potentially benefit third street which means she cant participated in any conversation or voting 80 has to do with with the renewal of funding or adding any funding. Anything multiple voices . Right kind of how im seeing it. Um, yeah, and lets. multiple voices. a little bit further. Okay. So just on that note, if vp recuse herself if that matter no quorum the committee will also be prohibited from discussing or making any sort of recommendation on that exact funding category. I just, you know, one of the things weve talked about and put it on the april agenda to change the way we do the define quorum as a majority of the members who are seat not the number of seats it when i have the policy both sides on filing the seats impacts our ability to do do work and so um, that i think we should have on the agenda first and change the quorum rules and no issues that is kind of doing problem solving but that will work something that is done um, in some not all but great. Um, noted um, im not sure exactly when what that means. We discussed it early on. Okay. And we can but on the bylaws and yeah. Talk to our City Attorney um, so one idea. multiple voices laughter . Thank you for looking at yeah. Yeah so one possible im going to make a suggestion to consider. Which is um, to admit any specific category in the funding from the entire recommendation progress that third street is currently in contract with or categories that the ox makes in the future. Um, we can do it sort of on that line item of funding we can go ahead on the back end when the funding ask going um, that category that theyre receiving money for and vice chair and can happen today, if you want to have a xhflgsz of conversation about that or take a couple of days to understand the categories before thursday next and so um, if were going to put that cyber thing um. Yeah. [off mic. ] not today in my mind anything involving housing or Behavorial Health or operate like all those departments like we receive the funding will you anything. Right um, so, yeah again, just to really reiterate that makes sense cant make a recommendation to redo to stay or prevent funding um, so vice chair will get back. Yeah. I have some ideas. Okay. Also with the organization. Okay. Um, and then then the last tidbit is the button um, for the april 25th meetings have Transaction Services available on a spanish and cantonese if youre aware of any other languages let us know we can help to set that up as quickly as possible if you know of any please let me know. Thats the way it is for me. Thank you. Very helpful. Um, like most stepped out they didnt have any. The agency. Okay. Great. So um, were ready for the agency. Thank you. Hi. Can you hear me . Yes [off mic. ] what . Or d c h is first. Will help us a i got it. Im as hsh. Next slide, please. Online. Got it. multiple voices . Sorry laughter. things like laughter . Hi, good morning im Christine Rollin and im the budget director of hsh. And here to present on the proposed 24, 26 budget next slide, please. Um, id like to start off by introducing you to the overall assumption since the spending plan were about to review the proposal for hsh for 24, 26 is the investments budget year finishing fy202223 budget circle and budget three percent cost of living and 24, 26 and 2 percent in 28 we shaurld will be available to continue the spending plan and used Available Fund balance and pay and Family Housing authority to incorporate that recommendation. Next slide, please. So a quick overview of this chart and you have seen this format in the slide is trying to capture our current year budget for the next two years for the budget circle circle to have a full 5 years picture of the spending plan and the revenue for hsh in the slide. Aye. As you can see this top year that the shortfall that total it the difference between our total fiscal year year and the total budget recommendation ending with the Controllers Office presentation that you just seen. As you can see the structural shortfall in hsh is overall spending plan pretty significant with the 75 percent of total cost and underneath the shortfall of one hundred and 17 million and one hundred and 5 million next year as you can see we video other one time Revenue Sources those one time revenue resources have Interest Rate and carried forward and reserve those revenues are the balance of the overall shortfall in the fund if you get to the bottom this is the total prejudged yearend shortfall and surplus with the projected under spend and the balancing the structural shortfall of the defined and every year were balancing did shortfall by deciding into prior year carried forward and the overall with the authority the structure of the funds prevents this from leveraging all of our under spend thats why were projecting shortfall across the funds and breakdown into each authoritys some of the authorities are higher shortfall than others. Next slide, please. So first up is general housing in general housing we um, have included a Strategic Plan investment um, was based on the funding plan that was built into the budget for fiscal year fy202223 and 24, 25 and as you can see we do have a structural shortfall in the general Housing Authority for prop c in current year sorry in budget year 24, 25 one revenue of 27 million but project by project a structural deficit in general housing in fiscal year 25, 2668 million and a additional structure shortfall in the fund on 6. 5 million as you can see in out year of fiscal year 27, 28 next slide, please. This gives us a little bit more detail of those really outs on this side. We have accounted for our base spending plan of our what we included in the budget last year. As you can see were assuming a level this includes a full ramp up of 200 and three 5 housing that can be seen under medium funds with roll out of our flexible housing and women flexible and emergency vouchers and the expansion of our Money Management program. And then our subsidies program. Next slide, please. So as we talked in the previous slide we have an overall 12 million shortfall in 25, 26 has been partially asphyxiated based on the programs noted in the slide because the programs in an start on july 1st, we recouped the saving to allow us to balance the shortfall in the budget cycle with the implementation of those programs but really important to note that many of the programs are from the subsidies and we launch those programs will be hard to pull back we have an unfunded gap of 12 miles the rollout of the Program Identified here in this slide. Next slide, please. Okay. Were going to transition to h usually there the housing bucket unlike the one we talked about above k actually has an overall surplus in the authority but there is an ongoing structural shortfall that between our total and our total revenue plan as you can see. 11 million in current year and 3 million in the next year of the budget because we have so many that one time Revenue Sources via interest, carried forward and the reserve were able to balance that shortfall outward to fiscal year 28. The projected use plan that you see on the slide includes ocoh recommendation of 50 k by housing and rapid housing bulbs and 15 k for the subsidies for those. One time 68 million the surplus is 39 million for acquisition. This is the detail of the slide we kind of went over showing you how the plan beaked by program. And the Housing Program grows in the out years as does the vouchers. Next slide, please. So this slide kind of shows the difference between our ocoh and what the proposal includes as you can see 8 million in k rapid subsidies as well as 2. 7 million in k rapid housing for k impacted by violence and that falls in line with the committees recommendations and hoping for the proposal 5 million for the k subsidies and was additionally an acquisition request for k p. S. Hsh based on the overall deficit i showed you. In slide 7 um, we dont actually have enough funds for an ongoing fund balance to support the operating cost we identified have enough Capital Funding for on acquisition work with the question to look at the funding with the services will look like but at that point not built into the funding plan next step the Family Housing authority and as you can see have an overall structural shortfall um, a difference of 20 million between the use and revenue and fiscal year 24, 25 dropping to 5 million in 25, 26 and balancing that with our one time Revenue Source of interest carried forward in our reserve with 30. 01 time revenue were going to eye in 24, 25 as you can see in the out years the one time revenue really is eaten and with a surplus over one Million Dollars in fiscal year 8 we dont have ongoing funding um, outside of what youre current spending plan includes and the current spending plan includes 80 subsidies this program is allotted um, all in year one of the budget cycle of 24, 25 that is partially what you see the 20 million shortfall. Um, the 5 years rapid Housing Program in year one of the funding will go out up front and but good for 4 or 5 year subsidy. Next slide, please. This again is the detail of use plan that i poke on the other side and as you can see family rapid housing loaded at 22 million in fiscal year 24, 25 dropping down to 2 million in the out years that is based on the Program Design proposed by the community and reflecting here the rest of program in the Family Housing are level with 5 Year Spending plan as accounts for the adjustment for the other year. Next slide, please. So for families housing the Committee Recommendations is 25 million for one hundred and 25 based on the ongoing and one time Revenue Sources we have available were able to build 20 million for an estimated 5, and budget 47,000 per family per year instead of of the estimated 40 am. Next slide, please. Okay. Um, as we transition into the problem solving our overall um, truly shortfall and growth um, we as you can see in prevention and problem solving bucket have a total plan of 60 million every year with the cost and overall the revenue is 75 million leaving the 30 million gap every year and based on the under spend underserved we can a balance this over the next two years but project the fiscal year 26 and 27 and 27 and 28 will be a major shortfall we expect to spend down our reserve and any Funds Available for the end of 25, 26. This is detail for as you can see the breakdown of what the plan looks like and one thing that important to note that there were accounting for just as involved families and k all the the base level and the plan of approximately to 11 million per year ago those few minutes for problem so