1. 2007 - 2008 Budget Update Mayor’s Budget Office External Stakeholder Presentation April 20, 2007

2. Joint Report Report Highlights Change to Sources$237.8 M Uses Changes Salaries and Benefits($72.8 M) Baseline Requirements($55.6 M) Other Operating Costs(134.8 M) 2007-08 Shortfall :($25.4 M)

3. Summary Points Our current deficit projection is $25.4 million. This is lower than most past years, but double last year. As in years past, we are using a current year projected surplus (general fund balance) of $129.4 million to help balance for FY 07-08. Any supplemental appropriations will increase the deficit by a like amount. The joint report projections include a CPI increase (2.45%) on all open contracts (Police, Fire and Nurses). Every additional 1% increase on these contracts will cost an additional $6.1 million The Rainy Day fund has been triggered for the current year but not for the budget year.

4. Joint Report 3-Year Projection FY08 FY09FY10 __________________________________________________________ Projected Surplus / (Shortfall) ($25.4M) ($85.3M) $8.3M ____________________________________________________

5. Budget Calendar May 1Mayor’s Proposed Enterprise Budget to BOS May 10GF departments - budget legislation due to MBO May 2, 16MTA Hearings May 23, 30Budget Committee hearings: Enterprise Departments May Governor’s May Revise released June 1Mayor’s Proposed GF Budget to BOS June18-29Budget Committee hearings: GF Departments JulyBudget at full BOS

6. Budget Information Budget information is available on the websites of the City Controller, the Mayor’s Office and the Board of Supervisors: www.sfgov.org/site/mayor (Policy and Finance Link)www.sfgov.org/site/mayor www.sfgov.org/site/controller (Budget Information Link) www.sfgov.org/site/controller www.sfgov.org/bos/budget (Board of Supervisors Link) www.sfgov.org/bos/budget The Budget Committee meets on Wednesdays at 1:00 p.m. on the second floor of City Hall. Public comment on agenda items is taken at all meetings.