Resolution: 04-06

Approving the Submission of the Department of Public Health’s Base Budget for Fiscal Year 2006/07

WHEREAS, the City and County of San Francisco is facing a $35M shortfall for fiscal year 2006-07 and a $94M shortfall in fiscal year 2007-08 and the Mayor’s Budget Office has required that the Department absorb half the cost of restoring 7.5% employee pickup for its own employees; and

WHEREAS the projected cost of restoration employee pickup is $14.2M and therefore, the Department must absorb $7.1M in base cuts; and

WHEREAS we are required to meet this target with ongoing expenditure reductions or revenue increases (e.g., local fee increases) and not rely on one-time sources; and

WHEREAS, the base budget contains a Cost of Living Adjustment (COLA) for contractors including the University of California; and,

WHEREAS, the base budget does not include funding to offset potential State or Federal budget reductions; and,

WHEREAS, the Department has identified $24M in unavoidable increases in its base budget that are offset by $29.9M in revenues plus an additional $1.4M in reductions resulting in a $7.3M decrease in General Fund usage; and

WHEREAS, in addition to the base budget cut, the Mayor’s Budget Office has also required Departments to submit a list of reductions totaling 3% of the decreased General Fund balance; and

WHEREAS the projected 3% reduction target is $7.8M; and

WHEREAS, the Department will need to propose an additional $7.6M in future cuts but these cuts have not yet been identified; and

RESOLVED, that the Health Commission approves submission of the Department of Health’s base budget for fiscal year 2006-2007 to the Mayor’s Office; and, be it

FURTHER RESOLVED, that the Department should bring forward its list of additional cuts as soon as it is prepared.

I hereby certify that the San Francisco Health Commission at its meeting of February 21, 2006 adopted the foregoing resolution.

Michele M. Seaton, Executive Secretary to the Health Commission