DAS approves biennial budget that includes $3 million Dignity Fund growth despite trigger risk

The San Francisco Department of Disability and Aging Services (DAS) commission voted unanimously Feb. 7 to submit a proposed biennial budget that includes growth to the Dignity Fund in the first year while flagging the risk that the fund's annual $3 million increase could be suspended if the city's deficit exceeds a statutory trigger.

HSA Deputy Director for Administration and Finance Dan Kaplan told commissioners the city currently faces an $800 million two-year gap in projected revenues versus expenditures and that the mayor has directed agencies to identify 10% reductions in discretionary general funds plus a 5% contingency. "For HSA, 10% is about $6.5 million," Kaplan said, and he described proposed reductions in CBO contracting, projections of fee revenue, and personnel attrition as part of the department's plan to meet targets.

Kaplan said a major driver of DAS budget growth is the IHSS maintenance-of-effort (MOE), which the budget projects will rise by about $13.3 million in the first year and another $17 million in the second year of the biennium. The IHSS MOE is projected to reach roughly $179.6 million in the budget year. "We're working on the first two years of a five-year forecast," Kaplan said, explaining the city's biennial budget process.

Executive Director Kelly Dearman outlined implementation impacts from Senate Bill 43 and related staffing requests, and she emphasized the department's intent to add positions from current vacancies on a rolling basis to handle increased conservatorship referrals.

Commissioners and staff also discussed the Dignity Fund, a voter-approved fund intended to grow by $3 million annually. Kaplan said the budget as presented includes the $3 million increase for the first year, but cautioned the growth could be suspended if the city's projected deficit crosses a trigger now estimated at about $252.5 million; the current estimate of the deficit is roughly $244.7 million, leaving a narrow margin. "We are perilously close to that trigger line," Kaplan said.

Members of the Dignity Fund Coalition spoke during public comment urging the commission to preserve the allocation, warning that suspension creates cumulative losses to baseline funding. Marie Jobling, representing the coalition, said the fund was enacted in 2016 to create stable funding for services and urged commission support for ongoing advocacy.

After hearing staff presentations and public comment, the commission moved and seconded the proposed budget submission and the secretary called a roll. The commission voted unanimously to approve the budget submission and forward it to the mayor's office for consideration in the June budget proposal.

Next steps: DAS staff will finalize technical details for the submission and engage in discussions with the mayor's office, with the mayor expected to release a budget proposal in June followed by the Board of Supervisors' review.