HomeMy WebLinkAboutMINUTES - 07081992 - H.1 y• 1
SUMMARY OF THE PROCEEDINGS
BEFORE THE BOARD OF SUPERVISORS OF
CONTRA COSTA COUNTY
/ SPECIAL MEETING OF WEDNESDAY, JULY 8, 1992
H.j A quorum of the Board was not present at the meeting this day
agendaed as a Special Meeting of the Board of Supervisors with the Ad
Hoc Budget Advisory Committee. Supervisor McPeak, the only Board
Member present, discussed budget issues with the Committee members in
attendance.
1-4, Z SPECIAL MEETING OF THURSDAY, JULY 9, 1992
The Chair convened the Special Meeting of the Board of
Supervisors this day at 9: 15 a.m. in the Board Chambers, County
Administration Building, 651 Pine Street, Martinez, California.
Supervisors Powers, Fanden, Schroder, Torlakson, and McPeak were
present.
The Board APPROVED the 16 recommendations of the County
Administrator on adjustments to the County's Proposed Budget for the
1992-1993 fiscal year amended as follows:
Recommendation No. 15: Directed the County Administrator and
all department heads, in proposing reductions to -be sensitive to
the need to minimize service cuts, especially to children and
families, to the maximum extent possible by reducing
administrative and overhead costs where appropriate, taking into
account previous reductions which have already been made. Also
requested the County Administrator to review information
provided by department heads relative to the ratio of managers/
supervisors to line staff.
Added Recommendation No. 17: Requested the County
Administrator, County Counsel, and County Clerk to explore
alternatives, identify options, and prepare for appropriate
advisory ballot measures for the November 3, 1992 election, and
to refer this matter to the City-County Relations Committee.
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TO: BOARD OF SUPERVISORS SE L Contra
FROM: Phil Batchelor, County Administrator
Costa
Count
DATE: July 8, 1992 { ;tl.,.- ::.`�'�
(UL'tit.
SUBJECT: STATUS OF THE STATE BUDGET AND RECOMMENDATIONS FOR
ADJUSTMENTS TO THE COUNTY'S PROPOSED BUDGET FOR THE 1992-93
FISCAL YEAR
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)3 BACKGROUND AND JUSTIFICATION �
RECOMMENDATIONS:
1 . Acknowledge that delay in the adoption of the State Budget is
now compounding the effort to balance the .Proposed 1992-93
County Budget. Based on the latest information from
Sacramento, it appears that the Legislature is reviewing the
possibility of removing the entire $2 . 7 billion AB-8 buyout
over a two year period, implementing some .$2 . 3 billion in
health and welfare cuts, reducing $720 million in special
district revenue ( including the elimination of the entire
Special District Augmentation Fund [SDAF] ) , and reducing the
Trial Court Block Grant by $100 million. Cuts of this
magnitude would far exceed the $69 . 2 million which would be
saved by the 30% reduction plans asked of each County
department. As a result, it has become necessary to make
reductions in the Proposed 1992-93 County Budget, despite the
incomplete information now available to us .
We are proposing that the Board make these reductions in at
least two phases . Phase I reductions would be made
immediately as a result of the Board' s consideration of
reports and public testimony on July 16 , 17 & 20, 1992 . Phase
II reductions would be made following the adoption of the
State Budget, probably early in August.
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CONTINUED ON ATTACHMENT: X _YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
e. -
� ACTION OF BOARD ON-- July 9, 1992 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS 0
1 HEREBY CERTIFY THAT THIS TRUE
UNANIMOUS SENT ) AND CORRECT COPY OF AN ACTION N
AYE
NOES. AND ENTERED ON THE MINUTES OF THE BOA
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: ATTESTED
Members, Board of Supervisors PHIL BATCHELOR.CLERK OF THE BOARD OF
All County Department Heads SUPERVISORS AND COUNTY ADMINISTRATOR
Steve Swendiman, Executive Director, CSAC
Les Spahnn, SRJ. Jackson, Barish & Associates
Ad Hoc Budget Advisory Committee BY DEPUTY
2 . Indicate that for Phase I reductions most County departments
are to receive a 30% reduction in net County costs, compared
to the amount of General Fund money each department was
allocated in the Proposed 1992-93 County Budget. Hopefully,
it will not be necessary to take any further reduction from
these departments . However, the following departments,
referred to as "Phase II" departments, may receive a lesser
reduction in Phase I, but will be subject to a larger
reduction in Phase II once all information from the adoption
of the State Budget has been analyzed.
The "Phase II" departments are:
Sheriff ' s Department
Health Services Department
Social Services Department
Probation Department
Superior Court
Municipal Courts
District Attorney
Public Defender
County Library
Fire Districts
3 . Adjourn the Board' s regular meeting on July 14, 1992, to
Thursday, July 16, 1992 at 9 :00 A.M. and Friday, July 17, 1992
at 9 : 00 A.M. in the Board Chambers for the purpose of
receiving staff reports and considering departmental reduction
plans as outlined below. In addition, adjourn the Board' s
regular meeting on July 14, 1992 to Monday, July 20, 1992 at
9 : 00 A.M. in the Board Chambers for the purpose of receiving
public testimony on those reports, and for the purpose of
making Phase I adjustments to the Proposed 1992-93 County
Budget, including reducing, modifying, or terminating
programs, eliminating positions, laying off staff, issuing
notices of reduction or termination of specified contracts,
and taking other related actions as may be required.
4 . Indicate the intent of the Board of Supervisors to implement,
on July 20, 1992, Phase I adjustments in the Proposed 1992-93
County Budget which will reduce the net General Fund and
Special District Augmentation Fund requirements of the
Proposed 1992-93 County and Special District Budgets by
approximately $50 million. Agree to take this action in view
of the delay in the passage and enactment of the State' s
Budget for the 1992-93 fiscal year, and in view of the fact
that the Proposed 1992-93 County Budget already has a
shortfall of $24 .5 million prior to any actions resulting from
the adoption of the State Budget. The $24 .5 million consists
of $21 . 1 million resulting from the impact of the continuing
recession on the County' s revenue sources, fixed expenditure
obligations, and $3 .4 million in Program Realignment revenue
shortfall from the State due primarily from the continuing
impact of the recession.
5 . Direct the County Administrator to allocate the proposed
reduction of approximately $50 million in Phase I cuts among
County departments in accordance with the following criteria
and in the sequence listed:
A. Eliminate 100% of the existing local General Fund revenue
shortfall in the Proposed 1992-93 County Budget through
departmental reductions in proportion to the amount of
General Fund revenue proposed for each department in the
Proposed 1992-93 County Budget, compared to the total
General Fund revenue contained in the Proposed 1992-93
County Budget.
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B. Eliminate 100% of the known shortfall in realignment
revenue by applying that shortfall to those departments
and programs receiving realignment revenue, to the extent
possible, in proportion to the amount of realignment
revenue anticipated for each department in the Proposed
1992-93 County Budget, compared to the total realignment
revenue.
C. Reduce proposed allocations to those fire, library and
police agencies which are projected to receive funds from
the Proposed 1992-93 Special District Budget by $9 .2
million, in proportion to the amount of revenue each
agency received from the SDAF in 1991-92 compared to the
total distributions from the SDAF in the 1991-92 fiscal
year.
D. Reduce allocations to departments which administer health
and welfare programs by 50% of the preliminary first
round reductions in health and welfare programs now being
considered by the State Legislature and the
Administration as a part of the effort to balance the
State Budget. Since the Legislature has apparently made
the decision not to decrease schools by $2 . 3 billion,
substantial additional cuts in health and welfare
programs are being considered in Sacramento.
E. Reduce allocations to the Superior Court and Municipal
Court budgets by 50% of the County' s proportional share
of the currently proposed $100 million statewide
reduction in the Trial Court Block Grant. This amounts
to a reduction in Contra Costa County of $1, 196, 000,
based on the current proposal for a statewide reduction
of $100 million out of the total of $565 million (equal
to a 17 . 7% reduction) .
F. Reduce allocations to all Phase II departments by $7 .5
million, in proportion to the amount of General Fund
money each department continues to be allocated in the
Proposed 1992-93 County Budget following the completion
of the step "A" through "E" reductions above, compared to
the total General Fund dollars remaining in the Proposed
1992-93 County Budget. This amount is intended to adjust
for 25% of the financial impact on this County of the
proposed elimination of the current AB-8 property tax
buyout (assuming that for Phase I we cut only 50% of the
reduction proposed for the 1992-93 fiscal year, that the
AB-8 buyout is eliminated over two years and that the
total impact on this County when fully implemented will
be $30 . 1 million) .
G. For all non-Phase II departments, implement a 30%
reduction in net County General Fund dollars from the
amount contained in the Proposed 1992-93 County Budget
for that department, after giving credit toward this
amount for any reductions already accomplished in any of
the above recommendations .
6 . Direct the County Administrator to provide to the Board of
Supervisors on July 16, 1992, recommendations for those
actions which need to be taken to eliminate positions in
County departments which will, in conjunction with other
recommended adjustments to the Proposed 1992-93 County Budget,
result in the reduction of the net General Fund and Special
District Augmentation Fund requirements from the Proposed
1992-93 County and Special District Budgets of approximately
$50 million.
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7 . Direct the County Administrator to provide to the Board of
Supervisors on July 16, 1992, recommendations for those
actions which need to be taken to reduce or terminate
contracts which will, in conjunction with other recommended
adjustments to the Proposed 1992-93 County Budget, result in
the reduction of the net General Fund and Special District
Augmentation Fund requirements from the Proposed 1992-93
County and Special District Budgets of approximately $50
million.
This report should also identify all contracts with private
non-profit agencies which have expired on June 30, 1992,
including the annual amount of the contract, the date the
contract expired and the nature of the service which was being
provided.
8 . Direct the Employee Relations Officer to give notice to all
recognized employee organizations of this order and of the
County Administrator' s recommendations to the Board, and to
meet and confer with such employee organizations, reserving
the right of the Board of Supervisors to take emergency action
under Government Code Section 3504 .5 and reserving the right
to decline to meet and confer concerning the merits,
necessity, or organization of any service or activity or
concerning any other matter upon which the Board or County or
District Officers may take action without meeting and
conferring.
9 . Direct the Health Services Director, in consultation with the
County Administrator and County Counsel, to prepare the
notices required to comply with the provisions of Sections
1442 and 1442 . 5 of the Health & Safety Code (the Beilenson
Hearing requirements) .
10 . Direct the County Administrator to immediately enter into
consultation and negotiations with the Superior Court and
Municipal Court benches to reach agreement on the manner in
which the reductions required pursuant to recommendation "5E"
above will be implemented in the Superior and Municipal Court
budgets .
11 . Subject to recommendation # 8, above, direct the County
Administrator and Director of Personnel to offer to enter into
discussions with all recognized employee organizations on the
following matters :
A. The availability of early retirement in selected
classifications in some departments where this would be
an appropriate and cost effective mechanism to blunt the
impact of layoffs .
B. The availability of unpaid leaves of absence of at least
three months duration during which the County would
continue to make its contribution to an employee' s health
plan.
C. Any other work or compensation alternatives which may be
proposed by County management or employee organizations .
12 . Direct the County Administrator to report to the Board of
Supervisors on July 16, 1992 any recommendations made by the
Ad Hoc Budget Advisory Committee to the Board of Supervisors
relating to possible revenue enhancements .
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13 . Direct the County Administrator to return to the Board of
Supervisors as soon as possible after the State Budget and
associated trailer bills have been signed into law and their
impact on the County can be analyzed, with recommendations for
Phase II reductions to insure that all of the State Budget
reductions are reflected in the Proposed 1992-93 County Budget
and that the Proposed 1992-93 County Budget is balanced.
14 . Direct the County Administrator to recommend to the Board of
Supervisors dates for public hearings on the adoption of the
Final 1992-93 County Budget.
15 . Direct the County Administrator and all department heads, in
proposing reductions, to be sensitive to the need to minimize
service cuts to the maximum extent possible by reducing
administrative and overhead costs where appropriate, taking
into account previous reductions which have already been made.
16 . Direct the County Administrator and all department heads to
take all steps necessary to maximize the generation of outside
revenue, including federal funds, wherever possible in an
effort to reduce the impact of reductions .
BACKGROUND:
As the Board of Supervisors is well aware, the State of California
is facing an unprecedented fiscal crisis . Since the Governor sent
his proposed budget to the Legislature in January, 1992, the
deficit has grown at nearly one billion dollars a month! It now
stands at $10. 6 billion. To date, while several efforts have been
made to balance the State Budget, the various factions appear to
remain far apart in terms of being able to reach the compromises
necessary to achieve a 2/3 vote in each House of the Legislature to
adopt a State Budget and then to get it signed by the Governor.
One deadline after another has passed with little or no movement
towards compromise. We are now 24 days past the constitutional
deadline for the Legislature to adopt a Budget and forward it to
the Governor, and nine days into the new fiscal year. The State
continues to issue registered warrants . The failure to enact a
State Budget has also resulted in lowering the State' s credit
rating.
Every day which passes without a State Budget makes it more
difficult to balance the County Budget. Each day of delay by the
County means that increasingly drastic reductions will be required
in the future in order to balance the County Budget. The Proposed
1992-93 County Budget already contains a substantial shortfall due
to the recession and court orders which have required higher
General Assistance payments than had been budgeted. This shortfall
exists regardless of anything the State will do to balance the
State Budget. In addition, it appears increasingly likely that
County revenues will be reduced as part of the effort to balance
the State Budget. This includes eliminating the AB-8 funding of
state health and welfare programs which followed the adoption of
Proposition 13 . In addition, efforts are being made to reduce or
eliminate the SDAF. Therefore, it would appear that the County
should move immediately to eliminate the existing shortfall and to
eliminate at least a portion of the other fund reductions which
will result from probable State cuts .
The actions being recommended for July 16-20, 1992 are "Phase I"
reductions . These reductions are targeted at entirely eliminating
the existing shortfall in the Proposed 1992-93 County Budget, 100%
of the existing shortfall from realignment revenue, 50% of what we
expect in the way of reductions for the 1992-93 fiscal year in AB-8
and the SDAF and 50% of what we expect in the way of State
reductions in the areas of health, welfare and trial court funding.
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A further Phase II reduction will be required, probably in August,
affecting the larger County departments which contain the vast
majority of the County General Fund dollars which will be affected
by State actions on the AB-8 property tax buyout. The size and
timing of the Phase II reductions will be dependent, to a large
extent, on the State Budget and the trailer bills which are needed
to implement the State Budget and their impact on Contra Costa
County.
We are recommending that the Board take several actions today
directing that a number of reports be brought back to the Board in
one week. At that time, we suggest that staff present all of the
reports to the Board. We suggest that departmental reduction plans
be considered on July 16 and 17 . We suggest that the Board then
convene on July 20 to receive and consider whatever public
testimony may be presented regarding the proposed reductions,
following which we recommend that the Board act on the budget
reduction plans and other recommendations .
In order to provide the necessary reports and recommendations for
consideration by the Board of Supervisors, departments and the
public, we recommend that the Board of Supervisors at this time
consider and approve each of the recommendations contained in this
report.
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