Board of Supervisors

Budget and Finance Committee

Fiscal Year 2010-11 Budget Update
March 10, 2010
 FY2011 Shortfall

•Review of Deficit Projection

•Budget Calendar

•Potential Balancing Options

•Reorganization and Part-Time Positions

2
 FY2011 Shortfall
REVENUE

(81.4) General Tax, State, Federal, and other revenue weakness

(49.2) Loss of Rainy Day Reserve Revenues

(62.2) Loss of FMAP federal stimulus funding (includes FY 08-09)

(35.4) Loss of Other Starting Fund Balance

(40.0) Estimated State Budget Impact

(22.5) Other

(290.7) Revenue Total

3
 FY2011 Shortfall
EXPENDITURES

Expiration of Labor Give-Backs and existing MOU W age

(41.3)
Increases

(63.3) Health, Retirement, and Other Benefit Increases

Loss of one-time expenditure savings (e.g., Capital, Equipment)
(57.5)
FY 09-10
(69.4) Other Expenditure Increases

(231.5) Expenditure Total

4
 FY2011 Shortfall
SUMMARY

(290.7) Revenues

(231.5) Expenditures

(522.2) Projected General Fund Deficit for FY 10-11

5
 Budget Calendar

March 1 Budget Submissions Due to Mayor’s Office

Late March Joint Report Issued
May 1 Enterprise Department Budget Proposal
June 1 GF Department Budget Proposal
June Board Budget Committee Hearings
 Potential Balancing Options

(522.2) Budget Instructions Deficit

4.6 Starting Fund Balance from 6-Month Report
(3.9) Adjustments to MOU Cost Projections
11.9 Health & Dental Rate Savings (Actives & Retirees)
2.2 CalPERS Contribution Rate
(20.2) SFERS Contribution Rate
12.5 Annualized Savings from Mid-Year Balancing Plan

(515.1) Revised Deficit Projection

 Potential Balancing Options

(515.1) Revised Deficit Projection

12.0 Use of Rainy Day Reserve

27.0 Waiver Funding - Healthy SF
15.0 Prop H Trigger

(461.1) Balance
 Potential Balancing Options

(461.1) Balance from Previous Page

52.2 Reorganization - Part-Time Positions

115.0 Other Department Revenues, Positions and Spending Reductions (20% Targets)
69.0 Revenues Increases - FMAP, AB 188, Fees, etc
30.0 Capital Budget Reductions

(194.9) Additional Reductions Needed

 Other Options

16.9 Contract Negotiations - Police

11.5 Contract Negotiations - Fire
4.6 Contract Negotiations - Municipal Attorneys
3.0 Contract Negotiations - Other
30.0 Reductions to Contractors and Vendors
 Other Issues
{ State Budget ($40 million?)
{ Economic/Revenue Uncertainty
 Reorganization

• Goals:
• Minimize impact to City services
• Minimize the number of employees losing jobs

• Reorganization of Department operations to rely more

heavily on part-time positions

• Savings of $52.2 million GF, $58.5 million Non-GF

• 17,474 Positions
 Reorganization
Process
ƒ Discussions began during last year’s budget process
ƒ Positions selected for inclusion/exclusion by Departments
ƒ Based on operational and management decisions
ƒ Continued meeting and communications with Labor
Position Classifications – Percent
Included

Class
Job Type Included
Accounting 98.6%
Analyst 94.9%
Architects /Engineers 99.4%
Clerical 93.8%
Health/Social Services 79.5%
HR 97.9%
IT 98.2%
Labor/Trades 90.0%
Legal 10.4%
Management 92.9%
Misc Admin / Finance 93.0%
MTA/Trans 3.9%
Other 76.8%
Pub Safety 8.4%
Recreation/Culture 87.9%
Grand Total 62.3%
 Reorganization

Administrative Process and Timeline