San Francisco DPH commission forwards $2.1 billion FY17'19 budget to mayor's office

The San Francisco Department of Public Health (DPH) Commission on Feb. 20 voted unanimously to forward the department's proposed FY17'19 budget to the Mayor's Office for review. The department's proposal, presented by Chief Financial Officer Greg Wagner and budget manager Jenny Louie, covers a two'year cycle with a base around $2.1 billion and is structured to meet the mayor's 3% reduction targets over the two years.

Wagner told commissioners the submission includes a combination of baseline revenue growth and targeted initiatives. "If the commission approves this budget and sends it forward to the mayor's office, the next step in the process would be that from now until June 1, the department will work with the mayor's office as they review our budget submission and make amendments," he said.

Louie detailed the revenue and spending drivers in the packet. She said Zuckerberg San Francisco General's baseline revenue growth and projections for new Medi'Cal waivers (GPP and PRIME) account for significant general fund savings—about $49 million in year one falling to $41 million in year two—and that the department is also realigning resources for the new Zuckerberg hospital's emergency and radiology services.

The presentation highlighted several longer'term initiatives. Louie said DPH is continuing a multiyear electronic health record (EHR) project with cumulative projected costs through FY18'19 of roughly $152 million and noted a remaining funding gap of about $8.3 million that staff will continue to close as plans and vendor selection progress. "We don't actually have a final implementation plan," she said, adding that the department expects to add $15 million ongoing to the project budget in the upcoming cycle.

Commissioners asked for clarifications about program funding, including the proposed Behavioral Health Navigation Center at Hummingbird and the transfer of emergency medical services (EMS) oversight into DPH. Wagner and Director Garcia said some items will be worked in the Mayor's Office phase; on EMS, Garcia explained the department is receiving regulatory EMS staff and expects to recruit additional positions to run the transferred program.

After questions and discussion, the chair called for a motion "to forward this document to the mayor's office as the Health Commission's proposed budget for the upcoming two'year budget cycle." The motion was seconded and the commission voted to submit the budget.

Next steps: DPH staff will continue working with the Mayor's Office through June 1 as the mayor formulates the city'wide submission; the mayor's proposed budget will then go to the Board of Supervisors for review with final adoption anticipated in July.