To: Members of the Ethics Commission
From: LeeAnn Pelham, Executive Director
Subject: Agenda Item 5 – Executive Director Report for June 2022
Summary and Action Requested
This report provides various programmatic and operational highlights since the last Executive Director’s
Report. No action is required by the Commission, as this item is for informational purposes only.
FY23-24 Budget Update
The Mayor issued her proposed City budget on June 1. As previously reported, the Mayor’s budget instructions did not ask Departments to meet any budget reduction targets this year owing to the City’s $100+ million budget surplus, however Departments were asked to continue providing services within existing budget levels.
As detailed in our Ethics Commission budget proposal submitted to the Mayor’s Office in February, the Commission’s proposed operating budget for FY23 totaled $7.6 million. The table below summarizes these proposals and identifies whether they were included or rejected in the Mayor’s June 1 budget.
| Ethics Commission FY23-24 Requests | Mayor’s June Budget |
|---|---|
| Four new position authorities to establish dedicated staffing resources for public engagement; strengthened compliance assistance and audit oversight; and direct support for operations of the five-member Ethics Commission: | |
Policy Division – Job Classification 1823 |
Rejected. |
Engagement & Compliance Division – Job Classification 1823 |
Rejected. |
Audit Division – Job Classification 1823 |
Rejected. |
Job Classification 1454 |
Included. |
| Continued funding for two existing positions that expire at the start of FY24. | Rejected. |
| Reclassification of three existing position authorities to better align them with nature and level of work required of those positions. | Included. |
| Non-Position Related Services for software licenses, systems consulting, and materials and supplies. | Included. |
Services of Other Departments
|
Partially included.
Included. |
The Board of Supervisors’ Budget and Appropriations Committee will hear the Ethics Commission’s budget on June 15. To date, the Committee’s discussions with departments have included topics specific to public engagement communications and outreach activities – including how community feedback is received, tracked, and incorporated into the department’s work – and whether departments have dedicated staff responsible for communicating with the public, advertising their work and services, and soliciting and receiving resident feedback. As we turn to these discussions and to finalizing the Commission’s FY23 budget, Staff will continue to seek the range of resources that will best enable the Commission to fulfill its expectations for all of our public facing work through heightened public engagement in the coming year.
Staff News and Hiring Updates
We continue to review candidates for the Ethics@Work program team and are working to complete the hiring process this month. We are also in the candidate review phase for the Senior Investigator/Legal Analyst position in the Enforcement Division.
Revenues Report
The table below reflects revenues received by the Commission for Fiscal Year 2022 as of June 6, 2022.
| Account Description | FY21-22 Original Budget | FY21-22 Actuals as of 6/6/2022 |
|---|---|---|
| Other General | $2,450 | $500 |
| Campaign Disclosure Fines | $50,000 | $15,331 |
| Lobby Fines | $2,000 | $8,800 |
| Campaign Consultant Fines | $2,000 | $3,000 |
| Economic Interest Fines | $1,250 | $170 |
| Other Ethics Fines | $7,500 | $34,067 |
| Lobbyist Registration Fee | $85,000 | $123,000 |
| Campaign Consultant Registration Fee | $7,000 | $11,050 |
| Total | $157,200 | $195,918 |
I look forward to answering any questions you may have at the upcoming Commission meeting.