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The latest news and announcements from Mayor London N. Breed

Mayor Lee Signs City’s Balanced Budget for Fiscal Year 2015-16 & 2016-17

City’s Two-Year Budget Invests in Residents & Keeps San Francisco Safe & Affordable with Historic Investments in Public Safety, Housing, Transportation, Education & Social Safety Net Programs for Thos

Mayor Edwin M. Lee today signed the City’s two-year balanced budget for Fiscal Year 2015-16 and 2016-17 after the Board of Supervisors’ unanimous final approval yesterday. To deliver this two-year consensus budget proposal, Mayor Lee worked with the Board of Supervisors and heard directly from residents and community leaders throughout the City, and met with hundreds of residents, nonprofit organizations, City Commissioners, labor organizations, business owners, and advocates to discuss priorities and address concerns.
 
“We are creating jobs, growing a thriving economy and increasing city services, while keeping our City safe, affordable and compassionate with these smart, strategic investments,” said Mayor Lee. “This fiscally-responsible, balanced budget makes historic investments in housing, transportation and education, increases City services including public safety, supports our continuing economic recovery, protects social services for residents most in need, and is affordable over the long term. Thank you to the entire Board of Supervisors, the Budget and Finance Committee and its Chair Supervisor Mark Farrell for leading this process. City government plays an important role in making the lives of all people better, and we are using this time of prosperity to ensure all San Franciscans benefit.”

“As Chair of the Budget and Finance Committee for the third year, I am proud to have led another consensus budget, and in particular our historic $25 million investment in permanently affordable housing,” said Supervisor Mark Farrell, Chair of the Budget and Finance Committee. “Not only did we fund an historic $25 million investment in affordable housing, but also placed a record amount into our City reserves given our strong local economy. We ultimately passed a budget that reflects the values of all San Franciscans and places top priority on addressing affordability, public safety, and reducing homelessness.”

“San Francisco is fortunate to have a thriving economy and unprecedented civic resources,” said Board President London Breed. “And with this year’s budget we have put those resources to use, investing in a better transportation system, increased public safety, and more affordable housing—all while placing millions in reserve so we can maintain these investments if and when the economy turns the other way.  I thank Mayor Lee, Budget Chair Mark Farrell, and all my colleagues for crafting another consensus budget that makes San Francisco a better, more affordable city for everyone.”

Since Mayor Lee took office in 2011, he has worked hard to make sure that as the City emerged from the Great Recession, it used its prosperity to tackle its most pressing challenges. That is why San Francisco has led the nation in developing a Housing Trust Fund, increasing the minimum wage, re-envisioning the Housing Authority, and making Muni free for low-income seniors, youth, and people with disabilities. This budget continues those efforts.

The City and County of San Francisco is a major employer, and the proposed budget for the next two fiscal years includes additional employees to:
•    Staff the new San Francisco General Hospital and implement the Electronic Health Record system at the Department of Public Health;
•    Implement the Affordable Care Act at the Human Services Agency and the Department of Public Health;
•    Improve operations, maintenance and cleanliness, and launch the largest service improvements in decades at the Municipal Transportation Agency with new bus and train drivers, mechanics, janitors, and cleaning crews; and
•    Continue the implementation of the Mayor’s six-year public safety hiring plan with new police officers, firefighters, EMT/paramedics and 911 operators.

As in prior years, the City will spend approximately half of its budget on staff to deliver core public services. Half of the budget consists of self-supporting activities at the City’s Enterprise departments, which focus on City-related business operations including the Port, the Municipal Transportation Agency, the Airport, the Public Utilities Commission, and others, while the General Fund monies comprise the remaining half, which includes Public Health, Police and Fire services, Recreation and Park, to deliver core public services.

Addressing Affordability
Addressing affordability challenges continues to be Mayor Lee’s top priority. The budget includes increased services for seniors and persons with disabilities, implementation of an increased minimum wage, free Muni for income-qualified youth, seniors, and disabled persons, investments in workforce development, and a cost-of-living adjustment (COLA) for non-profit organizations that contract with the City to provide services.

Housing remains among the top of the Mayor’s Affordability Agenda. The City’s budget includes new funding for the Housing Trust Fund, contemplates final action by the State of California allowing San Francisco to meet its redevelopment commitments more quickly, and invests in eviction prevention and neighborhood stabilization.

Mayor Lee set an aggressive goal to complete 30,000 new and rehabilitated homes by 2020, with at least one-third of those permanently affordable to low income families and half affordable to moderate income families. Two years ago, San Francisco voters created the Housing Trust Fund to create a $1.5 billion dollar stream of funding for affordable housing for low- and middle-income residents over the next 30 years. To do more, in addition to the $44.4 million from the Housing Trust Fund, the City’s budget includes $50 million in additional new funding to expedite affordable housing projects. These funds represent a significant infusion to fill gap funding on projects and seed new projects throughout San Francisco. In addition to creating more housing for low- and middle-income residents, the City’s budget focuses on re-envisioning and transforming public housing sites, reducing obstacles and red tape that slow down construction, and continuing funding for eviction prevention and rapid re-housing.

Mayor Lee will invest $2.7 billion to address the City’s ongoing affordability crisis over the next 20 years, and together with the entire Board of Supervisors proposed a $310 million Affordable Housing General Obligation Bond measure to the voters for November. If approved by voters, it would be the largest housing bond in San Francisco history and would strategically invest in public housing and affordable housing for low income and middle income families. Housing programs such as the first-time homebuyer programs and the Teacher Next Door program will be expanded and the bond would help stabilize rental units at risk of evictions. $50 million of the housing bond is dedicated to the Mission neighborhood to help stop displacement of long-time tenants and increase the supply of affordable housing in the neighborhood by acquiring buildings for affordable housing. The $310 million Affordable Housing Bond would not raise property taxes. The 2015 Affordable Housing Bond is a crucial component of Mayor Lee’s $1.1 billion 5-year affordable housing response plan that will build, rehabilitate and preserve 30,000 homes by 2020.

Service Increases to Make San Francisco Safer and More Livable
Over the next year, San Franciscans will benefit from more reliable and quality public service. The City’s budget contains a 10 percent service increase at Muni, to address crowding and reliability. In addition, building on the progress made with the Streets and Road Resurfacing Bond, this two-year budget fully funds the City’s street repaving program, which will allow the City to repave more than 1,400 blocks over the next two years. Expanding services at Public Works and the Recreation and Park Department will keep streets cleaner, increase maintenance of City’s trees, and promote public safety throughout parks and playgrounds.

The City’s two year budget also continues to fund the six-year public safety hiring plan to train the next generation of public safety personnel. Over the next two years, San Francisco will hire 400 new police officers, 198 firefighters, 55 paramedics, and 36 9-1-1 dispatchers to enhance community safety.

Investing in Our Social Safety Net
The City budget also invests in systems of care that support the most vulnerable San Franciscans. This budget includes significant new resources dedicated to opening a new San Francisco General Hospital, adding 500 new units of supportive housing for people who are exiting homelessness through the innovative Navigation Center, and millions in new funds to support seniors and people with disabilities.

The budget includes $690 million of City funds to support San Francisco’s public schools, Preschool for All programs, and provide more summer and afterschool programs to clear out the waiting lists. This investment will make sure children are educated and ready to succeed—by working together through a new bold effort to improve outcomes for all San Francisco’s children and families with the Our Children, Our Families Council.

Long-Term Financial Sustainability
The City budget balances the need for increased and enhanced services for City residents with the need to ensure long-term financial stability and invest in the City’s infrastructure. In the coming year, the City will fully fund the Capital Plan’s recommended level in the first year of the budget, and invest an unprecedented $253.4 million in General Fund support for smart, responsible capital investments based on the recommendations of the City’s Ten-Year Capital Plan.

In addition to making strategic one-time investments, this budget also continues to grow the City’s reserves to offset the impact if an economic downturn occurs. By June 2017, the City will have $297.4 million across its General Reserve, Budget Stabilization Reserve, and Rainy Day Reserve. These reserves function as the City’s savings account, protecting the City from economic uncertainty and helping continue to strengthen San Francisco’s credit rating.