No. 05-01

Endorsing the Principles of the Fiscal Year 2001-02 Budget, and Approving the Proposed Budget For Fiscal Year 2001-02

WHEREAS, the Health Commission has accepted and approved a Strategic Plan for the Department of Health to be implemented over a period of three years; and,

WHEREAS, the goals of the Strategic Plan are to improve access to health services, prevent disease and injury, assure that services are cost-effective and resources are maximized, and create and sustain community partnerships to assess, develop and advocate for health care funding, policies and services; and,

WHEREAS, the FY 2001-02 budget contains program initiatives and policies to further the strategic goals, including expansion of programs to improve socio-economic determinants of health status, improvement of infrastructure (both physical structures and human resources) to support health services, increase prevention programs, and increase to health coverage of uninsured residents of San Francisco; and,

WHEREAS, given limitation of financial resources, the proposed FY 2001-02 budget prioritizes its resources to target populations in greatest need and to those with no other choice; and,

WHEREAS, the proposed budget strengthens the safety net system by enhancing trauma services, increasing the integration of physical health, prevention, behavioral health, housing and social services; and,

WHEREAS, the proposed budget enhances cultural competence by providing increased access to bilingual and bicultural services; and,

WHEREAS, the budget instructions of the Mayorís Office requests the Health Department to absorb a 2% cost of living increase to County employees, to live within the existing funding appropriations, and to seek other sources than General Funds to meet the health needs of San Francisco; and,

WHEREAS, in order to prevent reductions to vital health programs, the Health Department is requesting a General Fund increase of $22 million to its base budget in order to fund unavoidable cost increases; and,

WHEREAS, the Department proposes to reallocate existing funds in order to create vital new services to meet the goals of the Strategic Plan; and,

WHEREAS, the Department has attempted to maximize State and Federal revenues and grants, and proposes to increase services by $11 million through third party revenues; and,

WHEREAS, the Department recognizes that its health care contractors require additional funds to pay for a cost of living adjustment (COLA) for salary and operating cost increases; and,

WHEREAS, the granting of COLAs to contractors is a citywide issue, which involves multiple departments; and, therefore, is not included in the budget request at this time; and,

WHEREAS, if the Cityís final budget does not fund an adequate COLA for health care providers, the Department will bring to the Health Commission recommendations on how to provide an adequate contractor COLA; now, therefore, be it

RESOLVED, that the Health Commission approves the Departmentís budget for FY 2001-02 that includes an increase of $22 million of General Funds to fund the baseline of current services, reallocates funds to create expansion of high priority programs, and adds $11.5 million in revenues to pay for new program initiatives that will be supported through third party sources; and, be it

FURTHER RESOLVED, that if additional General Funds are not allocated to the Department of Health to fund the baseline budget, the Commission directs the Director of Health to propose expenditure reductions to balance the budget.

I hereby certify that the Health Commission at its meeting of February 6, 2001 adopted the foregoing resolution.

Sandy Ouye Mori, Executive Secretary to the Health Commission