Page 11 - FY 2021-22 CAO Overview of Proposed Budget

EXPENDITURES: CONCERNS

Expenditure concerns include:

• Based on CAO analysis, $581 million of General Fund expenditures in the

Proposed Budget are one-time:

– Thus, $134 million in ongoing spending is being paid in the Proposed Budget with

one-time revenues calling into question whether even the base level of services is
sustainable.

– Many of the proposed new programs are designated as one-time, but there may

be a desire to continue them, despite the loss of the on-time revenues, such as:

• Basic Income Guaranteed ($24 million GCP; $3 million UB)
• Restaurant and Small Business Recovery ($25 million)

• Additional Homeless Services ($80 million)
• Homeless Prevention and Eviction Defense ($15 million)

• Separation Incentive Program

– The proposed elimination of 1,278 positions as a result of the Separation
Incentive Program will negatively impact departmental service delivery.

– Restoring more of these positions would eliminate the fiscal benefits of this

Program.

2021-22 Proposed Budget

Presentation to the Budget and Finance Committee