HomeMy WebLinkAboutMINUTES - 09221987 - 2.8 TO � BOARD OF SUPERVISORS
FROM: Phil Batchelor Ck ltra
County Administrator Costa
DATE: September 21, 1987 �' @ coirty
SUBJECT: 1987 Legislation Having a Fiscal
Impact on Contra Costa County
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1 . Acknowledge receipt of this preliminary report from the
County Administrator on legislation which passed in 1987
which has a fiscal impact on the County.
2 . Authorize the Chair to write to the Governor requesting that
the Governor sign SB 351, SB 1148, SB 349, AB 2519, SB 848,
AB 1364, AB 650.
3 . Authorize the Chair to write to Senator Marian Bergeson
requesting that she introduce legislation in 1988 to modify
that portion of SB 709 which transfers a portion of the
County' s property tax to .cities in this County which have
been characterized as no-property tax and low-property tax
cities.
4 . Authorize the County Administrator and the County' s lobbyist
to work with Senator Bergeson and staff of the Senate Local
Government Committee to modify that portion of SB 709 which
transfers $5,119,939 of County property tax revenue to the
cities of Pleasant Hill, Lafayette, Clayton, San Ramon,
Danville, Orinda, Moraga, and Hercules so that the County is
reimbursed for this loss and so that a needs test is
incorporated into the legislation.
5. Direct the County Administrator to continue to analyze SB
709 and report to the Board on the net fiscal impact of the
bill on the County.
BACKGROUND:
The Board of Supervisors, in preparing its legislative program
for 1987, proposed a number of measures which have a positive
fiscal impact on the County. A remarkable number of these bills
were passed and are now on. the Governor' s desk awaiting his
approval or veto. Several other bills were passed this year
which have a fiscal impact on the County. Each of these bills is
described below briefly. It must be emphasized, however, that
CONTINUED ON ATTACHMENT: _ YES SIGNATURE: Rmk4e�1i3'.I� "6/,-
X RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
X APPROVE _OTHER
SIGNATURE(S): z
ACTION OF BOARD ON September 22 1987 A.IPROVED AS RECOMMENDED X OTHER X
Also, REFERRED issue to Finance Committee (SupErvisors Powers and Schroder) ; DIRECTED
that a meeting be scheduled between the County, Superior and Municipal Court Judges, and
affected cities to discuss the impacts of SB709; and AUTHORIZED the County Administrator
to continue to pursue legislation to amend SB 709.
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TARN
AYES: NOES. AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: _ OF SUPERVISORS ON THE DATE SHOWN.
cc: Listed 011 Paae 6 ATTESTED
PHIL BATCHELOR, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
BY ,DEPUTY
M382/7-83 —
Page 2
nearly all of these bills are awaiting final action by the
Governor. Until the Governor acts on each of these bills it is
impossible to determine the net financial impact on the County.
In addition, since approximately 1000 bills were sent to the
Governor the last week of the Session, it has not been possible
to review each one to determine in any precise manner the full
financial impact on the County. We have, however, identified 16
bills which appear to have a fiscal impact on the County.
*1. SB 213 (Robbins)
Increases traffic school fee by $1. 00 to a total of $24. 00.
Depending on the passage and approval of other legislation,
the proceeds from this increase may be available to the
General Fund. Estimated to generate $25,000 annually.
*2. SB 349 (Bergeson)
Increases the assessment rate on non-parking offenses from
$1.00 to $2. 00 for each $10. 00 or fraction thereof of fines
and forfeitures collected, to be deposited in the
Courthouse Construction Fund and the Criminal Justice
Facility Temporary Construction Fund and extends the
surcharge and spinoff of revenue on parking citations to the
Courthouse Construction Fund at $1. 50 per citation. Will
increase annual revenue going to these two funds as follows:
Courthouse Construction Fund $ 800,000
Criminal Justice Facility Temporary
Construction Fund $ 600,000
TOTAL $1,400,000
*3 . SB 351 (Robbins)
Deletes requirement to spinoff $10. 00 to the State on each
filing of a violation of the requirement to have proof of
insurance coverage available in a vehicle and, instead,
requires this spinoff of $10.00 only for actual convictions.
Would reduce payments to the State by an estimated $150,000
a year, 400 of which, or $60,000, would be County money.
The balance of the savings would go to the cities.
4. SB 1148 (Bergeson)
Adds a 50 cent penalty assessment for each $10.00 or
fraction thereof of fines or bail forfeiture to be used to
fund the CAL-ID Program. It is estimated that this
provision will add $240,000 in new revenue each year to fund
the CAL-ID Program. Receipt of this money should allow some
current General Fund money to be backed out of the Sheriff ' s
budget.
*5 . AB 1940 (Quackenbush)
Adds $1 . 00 to the traffic school diversion fee for Contra
Costa, Santa Clara, and San Diego counties. AB 1940 has
already been signed by the Governor. It should generate
$25,000 a year in new revenue. However, its provisions will
be replaced by SB 213 if SB 213 is signed by the Governor.
b `
Page 3
*6 . AB 2519 (Campbell)
Allows the Board of Supervisors to authorize the court to
impose two $50 assessments on DUI offenders for deposit in
the criminalistics laboratory fund and alcohol program fund.
Currently, these two assessments are removed off the top of
the fine and forfeiture revenue. By imposing the
assessments in addition to the other fines and forfeitures a
total of $500,000 in fine and forfeiture revenue will be
freed up, 40% of which, or $200,000 a year, will go to the
County. The remaining 600, or $300,000, will go to the
cities.
7 . SB 12 (Maddy)
Authorizes a $1. 00 penalty assessment for emergency medical
services, 2/3 of which would be used to reimburse physicians
for losses they incur in providing emergency medical
services. The remaining 1/3 could be used by the County for
other emergency medical services determined by each County.
Total revenue is estimated to be $600,000 per year. Part of
this revenue will have to go to physicians in private and
district hospitals in the County, but some of it should be
available to the County.
8 . SB 68 (Roberti)
Appropriates $5 million, statewide, to increase
reimbursement under the Medi-Cal program for obstetric
services. This appropriation should generate $5 million in
matching federal funds for a total of $10 million. Some of
these funds will come to the County on the basis that it
provides obstetric services to a number of Medi-Cal
patients, both in this County and, through contract, to
patients in Solano County. It is difficult to estimate how
much of this will come to physicians and hospitals in Contra
Costa County, and how much of this will go to physicians and
hospitals in the private sector.
9 . SB 115 (Presley)
Extends to the law library board of trustees the authority
to borrow money to erect a building to house the law
library. Previously, this authority was only available to
trustees in counties with a population in excess of
2,000,000. It is unclear whether this bill could be of any
benefit in covering part of the cost of the law library
which will be located in the new Bray Courthouse Annex. It
may, however, be worth exploring this provision to see
whether it could be of any assistance to the County.
10. SB 317 (Presley)
Increases the fee on marriage licenses to be dedicated to
domestic violence centers from $19 to $25. While all of
these increased fees must be passed through to approved
domestic violence centers it may be possible to back out any
County General Funds now going to such centers, thereby
making additional funds available to the General Fund.
Page 4
*11. SB 848 (Boatwright)
Provides a pilot project grant to Contra Costa County in the
amount of $1.7 million over three years to determine the
most effective means of treating persons who are dually
diagnosed as mentally ill and substance abusers. Of the
total, $145,000 is appropriated for the 1987-88 fiscal year
in view of the fact that the bill will not be effective
until January 1, 1988 and a period of start-up will be
necessary.
12 . AB 650 (Costa)
Appropriates $110. 3 million to counties in one-time
unrestricted block grants for the 1987-88 fiscal year.
Contra Costa County' s share of this is $2,219,927 .
AB 650 also provides that if the County' s proportion of
general revenues going to four programs is higher in 1986-87
than in 1981-82, the County shall be reimbursed in full for
the difference. The four programs are AFDC, In-Home
Supportive Services, Community Mental Health ( Short-Doyle)
and Food Stamps. Payment is to be made by November 30,
1988. A similar comparison is to be made on justice
programs and reimbursement is authorized up to a statewide
total of $15 million, with a cap on the amount any one
county can receive of $1 million. If the State fully buys
out the cost of the trial courts, this provision is
suspended. It appears that Contra Costa County is not
eligible for any of this $15 million for the first year.
13 . AB 1109 (Tucker)
Provides for the assessment of a $5. 00 processing fee for
each disbursement of money collected under a writ of
execution, attachment, possession or sale. The proceeds
would be deposited in a special fund to be used to replace
vehicles for the Sheriff and Marshal. It should be possible
to back out of their budgets a corresponding amount of
General Fund dollars to be used for other purposes.
*14. AB 1364 (Vasconcellos)
Provides an appropriation of $229,000 to Contra Costa County
for the Therapeutic Nursery School, Lynn Day Care Center,
and We Care Center. Allows the County to remove County
General Fund dollars from these programs to help offset the
deficit in the Health Services Department budget. The
General Fund dollars thus removed may be used to match any
available State Short/Doyle funds on a 90o State-loo County
basis.
15. AB 1743 (Bates)
Authorizes an increase in the fee for obtaining a copy of a
birth certificate from $7 . 00 to $9.00 and increases the
amount of money going into the Children' s Trust Fund from
.$4 .00 to $6 . 00 per birth certificate. We need to determine
whether any contract programs now funded with County money
would be eligible instead to receive these increased
revenues.
Page 5
16 . SB 709 (Lockyer)
This is the Trial Court Buy-Out legislation. The bill
provides for a block grant payment to counties on the
following schedule, beginning July 1, 1988:
For each Superior Court Judge $480,000
For each Superior Court Commissioner
and Referee $468,000
For each Municipal Court Judge $474,000
For each Municipal Court Commissioner $455,000
and Referee
In exchange for the block grant, counties would have to send
the State their entire share of fines and forfeitures.
Cities are allowed to keep their share of fine and
forfeiture revenue. The block grant covers the cost of the
judges' , commissioners' , and referees' salary and benefits,
municipal court staff positions prescribed by statute,
deputy marshals and bailiffs, court-appointed counsel in
juvenile depending proceedings, materials and supplies, and
actual indirect costs, not to exceed 18%. Specifically
excluded for counties with a population in excess of
350,000 are the costs of the Probation Department, Public
Defender, and pretrial release programs. Also excluded for
all counties are the costs of the District Attorney, Grand
Jury, law library and courthouse construction. In addition,
it appears that the County Clerk' s support of the Superior
Court is excluded.
An incentive is built in to encourage counties to continue
to collect fines and forfeitures. If these collections are
reduced in any year compared to the prior year, there is a
dollar for dollar reduction in the amount of the block
grant. If, on the other hand, fine and forfeiture revenue
increases from one year to the next, the block grant would
be adjusted upward by the lesser of the COLA provided to
State employees, or the percentage increase in the fine and
forfeiture collections.
Counties would also lose their current SB 90 local
assistance and would waive all claims for State
reimbursement of local mandates which have not been approved
by a State agency. The County would also lose the existing
reimbursement for Superior Court Judges.
The bill also creates 109 new judicial positions, including
two ( 2) new Superior Court Judges for Contra Costa County.
SB 709 includes a $20 million Trial Court Impact Fund which
would be disbursed by the Judicial Council to counties which
improve court management and efficiency, case processing,
and computerization.
Most troubling to the County is that at the last minute, on
the final night of the Session, SB 709 was amended to
include the provisions of AB 339 (Cortese) which requires
the transfer of County property taxes to cities which either
impose no property tax or whose property tax is less than
the equivalent of 10 cents per $100 of assessed value. This
provision costs the County $5,119,939 annually. These
funds have to come out of any net amount the County receives
from the Trial Court block grant. The payments are phased
in over 10 years, beginning at 10% and increasing 10% each
Page 6
year. The funds would be distributed as follows, based on
calculations made earlier this year by the
Auditor-Controller:
Pleasant Hill $1,404,172
Lafayette 1,343,649
San Ramon 739,444
Danville 681,887
Orinda 509,150
Moraga 304,634
Hercules 125,418
Clayton 11,585
TOTAL $5,119,939
This provision was apparently included in a typical
"smoke-filled back room" session with no input from most
legislators, no committee hearing and no input from the
affected counties. The County Administrator has been
advised by staff to the Senate Local Government Commitee
that the Chair of that Committee, Senator Marian Bergeson,
was furious at the process used to include this provision in
SB 709. We have been led to believe that Senator Bergeson
is willing to introduce legislation in January to modify
this provision, perhaps by requiring a "needs" test before a
city would be eligible, or by providing replacement revenue
to the County for the transfer of property tax revenue.
However, SB 709 is optional with each County. If this
County opts in, we receive the block grant, new judges, and
must transfer $5,119,939 to the no- and low-property tax
cities. All of the other provisions noted above also apply
to the County.
If, however, the County determines not to participate in SB
709, none of the provisions of SB 709 apply to the County.
The County would not receive the block grant, but could keep
its fine and forfeiture revenue; would not receive the two
new Superior Court positions, and would not have to transfer
the funds to the no- and low-property tax cities. Opting to
be a part of SB 709 requires approval of a majority of the
Superior Court Judges, a majority of the Municipal Court
Judges, and a majority of the Board of Supervisors. Cities
have no direct voice in this decision, which will be one of
the most critical the Board will have to make in 1988. The
State must be advised by May 1, 1988 whether the County
wishes to participate in SB 709. Thus, a very careful
fiscal analysis of either opting in or out of SB 709 is
critical.
*CONTRA COSTA COUNTY-SPONSORED LEGISLATION
cc: County Administrator
Presiding Judge, Superior Court
Presiding Judge, Municipals Courts
Sheriff-Coroner
Walnut Creek-Danville Municipal Court
Health Services Director
Marshal
Auditor-Controller
Social Services Director
County Clerk
District Attorney