HomeMy WebLinkAboutMINUTES - 05172011 - D.1
D.1
Board of Supervisors
Contra Costa County
D. 1 Informal UPDATE on pending state and federal legislation. (David Twa, County Administrator)
David Twa, County Administrator, presented an update for the Board.
On May 16, 2011 Governor Brown released the May revise of the state budget. The County Administrators
Office has requested all departments to do an analysis based on the available information in order to provide a
more detailed report next week or soon thereafter.
Revenues incoming are approximately $6.6 billion more than forecast earlier in the year, leaving a hole of
about $10.8 billion that the Governor desires to fill. About $9.6 billion of that amount is in actual cuts which
are either to be made or, are in revenue to be raised. The Governor has also indicated he would like to
establish a $1.2 billion reserve fund. It is important to keep in mind that all of these previously mentioned
items are dependent upon taxes. The proposal for the surcharge on 2011 income tax has been eliminated but
will likely be reinstated for 2013 for a 4-year span. The other extensions of taxes are still on the table, and it is
on that basis upon which the Governor intends to fund the realignment proposals that have been made. The
issue and desire of the County to have a constitutional amendment that would guarantee the funding in the
event these realignment proposals move forward, continues to remain. Such an amendment would be valid for
5 years and thereafter the state would still need to have a plan to backfill the programs which the State would
transfer down to the local level.
The revision still includes the elimination of redevelopment agencies, saving the state about $1.7 billion. The
proposal to eliminate enterprise zones has been changed to reforming them, for an estimated savings of $100
million.
Tax increases are not possible until the November 2011 ballot at the earliest, but efforts continue to get tax
extensions until then. There is positive bipartisan support and proposals to continue funding in the area of
criminal justice to support transferring some state prison responsibilities to the County level, should the tax
increase not pass. There are some proposals as relates to additional dollars that would deal with detention
and rehabilitation and reentry programs, and funding to the district attorneys and public defenders for parole
hearings.
No significant downturns in terms of additional impacts were noted in the areas of health and human services.
One proposal made was to increase foster care funding, which would increase the County's share about
$453,000.
Key to this matter are the tax extensions moving forward to resolving the state's approximately $10 billion
budget deficit. Staff will return next week with updated information.