From: MPetrelis@aol.com Date: Tue, 25 Jul 2000 14:17:06 EDT Subject: The San Francisco AIDS Fdtn. is not happy with Congress July 20, 2000 The Honorable Tom Bliley Chairman, Committee on Commerce United States House of Representatives Washington, DC 20515 RE: H.R. 4807, The Ryan White CARE Act and the San Francisco AIDS Foundation Dear Chairman Bliley: There is no legislative issue more important to the San Francisco AIDS Foundation (SFAF) this year than the successful reauthorization of the Ryan White CARE Act. We applaud recent efforts by you and members of the Commerce Committee to move swiftly in reauthorizing this critical program. However, it is essential that public policy decision be based on information that is factual and accurate. Unfortunately, during the July 11th and July 13th hearing and mark-up on H.R. 4807, the Ryan White CARE Act Amendments of 2000, several statements were made regarding SFAF that were both inaccurate and misleading. This letter is intended to correct those errors and provide you and members of the Commerce Committee with factual information regarding SFAF. SFAF is a non-profit, community-based organization that serves 130,000 individuals affected by HIV and AIDS each year through an array of targeted and essential HIV services, including case management, treatment counseling and support, benefits counseling, housing assistance, substance abuse and mental health counseling referrals, women's and family services, HIV treatment publications, and the California AIDS hotline. SFAF's HIV prevention programs, community outreach and advocacy efforts reach nearly 1 million more individuals affected by the disease. Some members of the committee seemed to be under the mistaken impression that SFAF is completely reliant on government funds (and specifically Ryan White CARE Act funds) to provide these services. In reality, over 73% of our budget is privately raised, resulting in a low reliance on government funding. SFAF receives approximately $5 million in federal, state and local funds annually to provide a variety of HIV-related services and about $2.6 million of these funds come through the Ryan White CARE Act. CARE Act funds therefore make up only about 13% of our overall budget. Members on the Commerce Committee also asserted that the SFAF had a "$7 million cash reserve fund." This is not true. The figure cited apparently came from an inaccurate article that was published recently in the San Francisco Bay Area Reporter in which our net assets were inaccurately described as our "cash reserve fund." A subsequent letter correcting this mistake has since been published in the same newspaper. The Board of Directors of SFAF does mandate an operating reserve in order to prevent harm to agency HIV services that could result from drastic changes in revenue, but the amount is far less than the $7 million cited. Our operating reserve is characterized on our most recent federal 990 non-profit tax return for the fiscal year ending 6/30/99 as "Investments - Securities" and amounts to $2.65 million. This size reserve is entirely consistent with prudent financial management and in appropriate for an agency with a $19 million budget. A comprehensive and detailed overview of SFAF's fiscal status, including a complete copy of our most recent 990 federal tax filing and funding charts by source, can be obtained on our web site at www.sfaf.org/aboutsfaf/budget/. furthermore, the financial position of SFAF has no bearing on the policy debate regarding the Ryan White CARE Act Title l formula and the hold harmless provision. SFAF is not the Title l grantee, but is simply one of dozens of community-based organizations that receive funding from the CARE Act to serve the thousands of individuals living with HIV and AIDS in the San Francisco Eligible Metropolitan Area (EMA). Last year, SFAF received approximately $2.6 million of the San Francisco EMA's Title l FY 2000 aware of $35.2 million; this represents only 7% of the total Title l award for the San Francisco EMA. Regardless of SFAF's operating reserve, the fact remains that a 25% cut in Title l funding as proposed in H.R. 4807 would translate into dramatic cuts in CARE Act funded services to a continuum of community-based organizations, forcing a drastic reduction in access to medical care and support services for people living with HIV/AIDS in our community. It is also important to correct factual errors regarding wages and salaries of staff employed by SFAF. Comments suggesting SFAF spent "$8 million in wages" that "aren't necessarily associated with treatment and care" are false. In fact, total agency payroll amounts are close to $6.2 million, 82% of which are salaries for HIV program services. The remaining 18% covers administrative and fundraising salaries, which is again well within standard non-profit operating principals, and is essential to ensuring SFAF is able to raise over $13 million annually from private donors. Claims that the SFAF's Executive Director's current salary is "well in excess of $200,000 per year" are also incorrect. Our Executive Director's salary is $175,000 per year and is paid from privately raised funds. SFAF's Board is confident that the Executive Director's compensation is commensurate with the duties, scope of responsibilities and performance in the position as well as the Bay Area labor market. Additionally, the March 2000 General Accounting Office (GAO) report reached a similar conclusion that salaries paid to executives at organizations that received CARE Act funds were comparable to other non-profit organizations. Comments at the hearing also created the impression that the SFAF has misused CARE Act funds to donate $55,000 towards the efforts to defeat a state ballot initiative. The donation was entirely legal and was made from privately raised revenue. No Ryan White CARE Act money was used for this purpose. While two members on the Committee claimed the initiative "had absolutely nothing to do with HIV and AIDS" we believe that the opposite is true. The Centers for Disease Control and Prevention and our own qualitative research conducted with the Centers for AIDS Prevention Studies [of UCSF] demonstrate the link between HIV infection rates and homophobia. The initiative, banning legal recognition of same sex marriage, was discriminatory and contributed to an environment that devalues same-sex relationships and undermines the self-esteem of gay men. While members of Congress may criticize our contributions towards efforts to defeat this initiative, the scientific evidence linking homophobia and HIV transmission is clear. Our mission to end the AIDS pandemic can be realized if we oppose racism, homophobia and other forms of discrimination that feed the spread of HIV. As leaders in the fight against HIV and AIDS, we can do no less. Finally, any suggestion that the San Francisco EMA has too much Ryan White CARE Act resources and can easily absorb a 25% cut in funding over the next five years is absolutely false. No EMA, including San Francisco, has sufficient resources to address the growing need for medical care and support services for the increasing number of people living with HIV/AIDS. SFAF strongly opposes the hold harmless provision -- it will cause considerable destabilization of systems of care for individuals living with HIV and AIDS in the Bay Area. Thank you for the opportunity to provide you with additional information about our agency. If you or other members of the Commerce Committee have additional questions, please do not hesitate to contact Fred Dillion, Director of Public Policy for SFAF at 415-487-3080. Sincerely, Lonnie Payne Chair, Board of Directors San Francisco AIDS Foundation ==================== Michael Petrelis Welcome to AIDS-STATISTICS www.AIDS-statistics.com 2215-R Market Street, #413 San Francisco, CA 94114