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DPH ends FY19–20 with positive close after one-time revenues; FY20–21 forecast hinges on COVID reimbursements and centralized COVID project
Summary
Acting CFO Jenny Louie told the Health Commission the Department closed FY19–20 with a $126.4 million balance (partly used in the mayor's year-end balancing), one-time revenues offsetting pandemic-related losses, and outlined FY20–21 first-quarter assumptions including centralized COVID accounting, PPE underspend and hotel isolation cost pressures.
Jenny Louie, acting chief financial officer for the Department of Public Health, presented FY19–20 fourth‑quarter/annual financials and the FY20–21 first‑quarter report to the Health Commission on Dec. 22.
Louie said the department’s year‑end fund balance was $126,400,000, noting that about $90,600,000 of that balance was assumed in year‑end balancing by the controller and the mayor’s office. She described operating losses tied to COVID‑related productivity declines—ZSFG showed roughly a $20 million net patient revenue shortfall—but said those losses were offset by large, primarily one‑time revenues: quality incentive and enhanced payment program receipts she described as approximately $102 million, a $36 million settlement release, and $40.5 million in retroactive Medicaid GME payments.
On COVID accounting, Louie explained that the controller’s office created a central COVID project in fiscal 2021 to allow citywide flexibility to move funds between departments. The city will track COVID response spending centrally and report variances to the mayor and controller’s offices. Louie said the COVID project included FEMA reimbursement assumptions and recognition of donated PPE as non‑cash revenue.
For FY20–21 first-quarter projections, Louie reported a modest operating surplus of about $3.3 million but flagged uncertainties: FEMA reimbursements, the Medi‑Cal waiver timeline and shifting revenue streams across the city. She noted expectations of underspending on PPE (because large inventories were purchased in FY19–20) and higher testing costs and an unfavorable variance of about $2.9 million on isolation/quarantine hotel operations due to staffing and contract changes.
Commissioners asked about revenue uncertainties and the timing of updated citywide financial projections; DPH leadership said they expect updated five‑year projections from the mayor’s office and controller’s office and that commission budget hearings in January will provide further detail.
The commission received the financial reports and will continue fiscal oversight in upcoming budget hearings.
