Newsom Bashing?!

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Board of Supes hear The Budget Analysts' report on Prop N.

by ADRIEL HAMPTON AND EVELYN RUSLI/San Francisco Examiner

To deliver on campaign promises, Care Not Cash will cost millions more
than The City currently spends on homeless welfare recipients,
supervisors heard Monday.

According to Board of Supervisors Budget Analyst Harvey Rose,
providing housing, food, health care and mental health treatment for
homeless welfare recipients will cost far more than the $13.9 million
budget for cash welfare grants.

Supervisors used Rose's findings to batter absent mayoral candidate
Supervisor Gavin Newsom, who authored the measure.

Supervisors Tony Hall, Chris Daly and Matt Gonzalez were particularly
wary of the Department of Human Services' estimate that in the initial
12 months of the program's implementation, 50 percent of participants
will drop out.

"We either add more money or we have to accept the claim that 50
percent of the people will walk away," said Hall. "I'm having a rough
time believing that 50 percent of the people will walk away. Neither
option is what the voters voted on. No new tax dollars will be spent
... I just fail to see how that's possible," Hall said.

Trent Rohrer, executive director of the DHS, supported the 50 percent
figure by explaining that it is based on compelling data and reflects
a slow, steady dropout over 12 months. In response, some supervisors
voiced concern that even this figure was financially troubling because
the DHS further estimated that half of the dropouts would still be
dependent on The City if they move off the homeless rolls but still
draw welfare checks. They can do so by claiming a residence that a DHS
caseworker will then confirm.

"Half of the dropoff is not exactly dropped off. They are still
getting cash disbursements," Gonzalez said.

Supervisor Chris Daly estimated that the cost would be at least $3
million greater than what The City now pays in welfare grants to the
homeless, just for housing and food.

"The details were not thought out. It's almost embarrassing," Daly
said. "We need to get back to the basics and get some things done but
this model right here is not getting things done and the math doesn't
add up."

Gonzalez said it seems that a working Proposition N -- with new
housing and treatment programs -- would look more like Proposition O,
a Care Not Cash rival measure that mandated a specific number of new
housing and treatment slots before cutting cash to homeless people. It
failed at the ballot last year.

For more than three hours, supervisors hammered away at the
legislation without the presence of Newsom or a DHS representative,
and committee chair Hall repeatedly criticized their lack of
attendance. The meeting agenda, however, clearly stated that there
would be no action on the item, and that Newsom and Rhorer would be
unavailable. Both came to the hearing after 1 p.m.

At issue for Hall were "thousands" of e-mails demanding that he stop
slowing down implementation of Care Not Cash. After Newsom arrived,
Hall called for a Tuesday hearing to take action on Prop. N.

Newsom stridently objected.

"To throw this on tomorrow without any notification to thousands of
San Franciscans is to me wholly inappropriate and absolutely unfair on
the basis of process and the basis of principle," Newsom said. "This
is absolutely wrong."

Pointing a finger back at Newsom, Hall replied, "Your office was
notified about the hearing, how long do you want to delay this?"

After more heated words, Hall recessed the meeting. Reconvening
without Newsom, Hall explained they had agreed to schedule action on
Care Not Cash for next Monday. That could put the legislation before
the full board for action as early as July 8.

The issue of time and the program's stalled implementation was a
constant topic of debate throughout the hearing. As the July 1
deadline looms overhead, there has been building pressure to turn out
results. However, Rose concluded that Care not Cash will not even be
fully implemented by the spring 2004 deadline promised to voters in
November.

The courts have thrown out key provisions of the measure, but Newsom
has pushed the board to pass those provisions. Newsom says the reform
will take a good deal of time to run smoothly.

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