Fiscal Year 2013-2015 Special Budget Meeting

HONORABLE MAYOR AND CITY COUNCIL Subject: Proposed FY 13-15 Proposed Policy Budget Date: June?, 2013 Page 4 fueled vehicles, and increases use of mass transit and bike/pedestrian transit. This therefore is consistent with observations of revenue activity. 5) On p. D-59, Miscellaneous revenue goes from (194,967,319) in 11-12 to 470,829,294 in 12- 13 to projections of $41-45 million in 13-14 and all subsequent years. The budget document states that the negative revenue is due to "Port of Oakland Revenue & Expense Clearing." What is the latter? Why was the negative amount portrayed as negative revenue rather than a positive expenditure? Under the City Charter Section 7.20, the City holds the Port of Oakland ("Port") Operating Cash & and Investments and records the deposits and use of the fimds through Revenue Account # 48723 - '^Port of Oakland Revenue & Expense Clearing Account. " The reason for using the revenue account versus an expenditure account for recording Port transactions in the Oracle financial system is because the Port does not have an operating budget in Oracle financial system nor it is not part of the City's Budget Process and the expenditure accounts require a budget line to be able to post the transactions. In future financial documents, the Port financial transaction will not be presented. Human Services 1) Are schools closing down as a result of the effect of sequestration on Head Start? The FY 2013-15 Proposed Policy Budget accounted for the fiscal impacts of the federal sequestration and the City's operational cost increase on the Head Start program. This is pertaining to the Head Start program only, not the schools. The Head Start reduction in slots will not result in any families currently enrolled losing their services but rather will reduce the available openings for new families to enroll in August 2013. 2) What is the priority listing for Head Start? What are the impacts of deleting the O&M and the Administrative Assistant position for Head Start? The Head Start program serves 1,778 children currently in 17 sites throughout the City. As a reminder, the Head Start and Early Head Start programs have taken over $1.7 million in reductions ~ $917,625 in federal sequestration and an additional $782,743 in baseline reductions due to rising program costs. This will result in a loss of 137 Head Start slots if the City were not to provide added funding. Head Start priority restorations will vary depending on how much funding is available—larger amounts would allow for classroom restoration, while smaller amounts would allow for support services such as mental health. In staffs opinion, the first priority would be to restore Head Start slots. However, if slots are added, key support services such as Family Advocates would be required (Family Advocates conduct all enrollment activities, and work with families to provide