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HomeMy WebLinkAboutMINUTES - 01282014 - D.2RECOMMENDATION(S): CONSIDER accepting report on Budget and Key Issues for FY 2014/15. FISCAL IMPACT: No fiscal impact. This is an informational report only. BACKGROUND: Attached is the FY 2014/15 report on Budget and Key Issues. CONSEQUENCE OF NEGATIVE ACTION: Not applicable. CHILDREN'S IMPACT STATEMENT: None. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 01/28/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS Contact: Lisa Driscoll, County Finance Director (925) 335-1023 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: January 28, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: Robert Campbell, Auditor-Controller To:Board of Supervisors From:David Twa, County Administrator Date:January 28, 2014 Contra Costa County Subject:Board of Supervisors Annual Retreat Budget and Key Issues for FY 2014/15 CLERK'S ADDENDUM HEARD the report. No Action Required. ATTACHMENTS 2014 Budget and Key Issues 2014 Board Retreat2014 Board RetreatJanuary 28January 28 2014 Budget and Key Issues•Key Issues:–Budget and Finance–Labor–Infrastructure–Select Department Specifics•General Government•Health and Human Services•Law and Justice–Fire–Questions/Comments2 Familiar Budget Drivers and Challenges for 2014/15 and Beyond•Recognize sacrifice by Employees that were needed to address long term structural issues and to insure delivery of essential services to the public and to achieve financial stability•Labor negotiations•Continue to support Pension Reform Options that achieve a stable and sustainable Pension System•Build Reserves•Fund Infrastructure Needs (Repair & Maintenance)•Federal Budget •Adequately Fund Public Safety Departments and Public Safety Realignment•Health & Human Services Realignment•Reduce hospital dependency on General Fund as national Health Care Funding occurs•As Successor Agency for Redevelopment, deal with issues of Bond indebtedness, disposal of assets, and related matters•Contra Costa County Fire Protection District structural deficit3 Budget and Finances4 Contra Costa County •In 2008 Beacon Economics made the following prediction:–“Beacon Economics expects property taxes to decline by nearly 11% over the next three years, with the largest declines coming in 2009‐10.”•Actual Contra Costa County experience:–2009/10 (7.2% decline)–2010/11 (3.4% decline)–2011/12 (0.48% decline)–2012/13 0.86% increase–2013/14 3.45% increase–2014/15 Projected to increase 6.5%5 FY 2013/14 Mid‐Year Preliminary Stats6ALL FUNDS Budget Actual PercentExpenditures 2,667,416,136$ 1,162,706,726$ 43.6%Revenues 2,556,453,302$ 973,878,916$ 38.1%GENERAL FUND Budget Actual PercentExpenditures 1,354,222,232$ 582,311,859$ 43.0%Revenues 1,315,439,200$ 452,629,559$ 34.4%GENERAL FUND Budget Actual PercentWages & Benefits 741,824,235 332,358,975 44.8%Services & Supplies 420,922,521 171,987,556 40.9%Other Charges 236,832,370 116,402,678 49.1%Fixed Assets 34,217,056 2,490,928 7.3%Inter-departmental Charges(81,688,856) (40,928,728)50.1%Contingencies 2,114,906 450 0.0%Total Expenses1,354,222,232$ 582,311,859$ 43.0%GENERAL FUND Budget Actual PercentTaxes 291,424,000$ 187,372,177$ 64.3%Licenses, Permits, Franchises 11,288,576 2,582,353 22.9%Fines, Forfeitures, Penalties 26,044,296 3,074,151 11.8%Use of Money & Property 2,139,761 1,155,844 54.0%Federal/State Assistance 550,521,573 124,919,676 22.7%Charges for Current Services211,701,000 65,158,474 30.8%Other Revenue 222,319,994 68,366,884 30.8%Total Revenues1,315,439,200$ 452,629,559$ 34.4% General Purpose Revenue7FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13ActualsActualsActualsActualsActualsActualsActualsProperty Taxes 278,070,589 292,844,817 290,226,190 271,340,322 263,410,494266,177,126 270,099,929 270,900,000Licenses, Permits & Franchises 9,464,697 8,608,175 10,266,183 7,549,279 7,648,768 16,117,187 19,843,785 17,524,000Earnings on Investment 18,593,601 12,766,633 5,465,546 1,344,994 1,620,945 7,347,466 7,402,661 7,400,000Charges for Current Services 9,418,200 8,959,0539,226,290 8,001,888 7,234,4359,833,684 18,402,209 12,300,000Other Taxes 24,816,693 20,254,974 19,784,051 16,952,226 17,129,4271,823,372 4,415,052 1,450,000Fines, Foreitures & Penalties 8,768,838 10,648,126 9,381,467 9,400,863 12,493,236 5,251,426 4,661,882 4,950,000Intergovernmental 6,057,205 6,824,242 7,281,018 7,937,202 8,297,2287,578,851 722,065 6,600,000Other Revenue 1,289,9731,883,2251,619,071992,706910,1731,215,8561,043,997360,000Total 356,479,796 362,789,245 353,249,816 323,519,480 318,744,706315,344,968 326,591,580 321,484,0002013‐14Adopted Budget General Fund/General Purpose RevenueFY 2014/15 Projections•Property Tax –5% growth ‐General Fund increase of $8.3 million, Property Tax‐In Lieu of VLF $4.7 million.  –Total Taxes for Current Property  increase of $13.0 million (less than a 2% general fund wage increase)•Public Safety Half‐Cent Sales Tax (Prop 172) –1.71% growth including pro‐rata decrease ‐$1.2 million •Sales Tax –County receives less than $11 million per year, small growth is anticipated.•State – Mostly stable•Federal ‐unknown8 Continue General Purpose Revenue Cost Avoidance • Contribution to Hospital Enterprise Fund: • 2008/09 $61,349,686• 2013/14 $30,408,776 (50% decrease)• Potential reduction in General Fund Contribution to the Hospital as the Affordable Care Act (National Health Care) is implemented • 2014/15 reduce by additional $10 Million • 2015/16 reduce by additional $10 Million• 2016/17 and beyond – Continued Contribution = $10 Million • Assumption is that we will likely have $10 Million Uncompensated Care burden even after National Health Care9 General Fund Balance Assumptions•June 30, 2013:–Total general fund revenues were $1,226,614,000 and total fund balance including reserves was $187,508,000.  –Total fund balance is 15.3% of total revenue –Of the $187.5 million•$115.5 million was unassigned •$72.0 million was assigned, committed, restricted or nonspendable–Minimum fund balances of 5% and 10% would be $61,331,000 and $122,661,000 respectively.  There was $64,846,000 available over the 10% reserve minimum.•June 30, 2014:–It is planned and anticipated that Total General Fund Balance including Reserves will remain stable.  Projections depend upon labor negotiations.•June 30, 2015:–No fund balance use is recommended in FY 2014‐1510 Importance of Reserves for Cash Flow•Although revenues are volatile, expenses (majority for salaries) are quite smooth.•Even with a General Fund Reserve of $187.5 Million, the General Fund has a negative cash flow at least 9 months of the year.•The General Fund cash balance begins the year with a negative cash balance due to large disbursements for advances, pension pre‐pay costs, and accrued expenses.•Cash flow is not positive until the second installment of property tax receipts are received in late spring.•The Tax Losses Reserve Fund helps with the Treasury operations (cash flow) as it relates to the Teeter Advance of Taxes.These are reasons why it is important to maintain a reasonable balance in the Tax Losses Reserve Fund, rather than the minimum level.  11 12Recent Tax Losses Reserve ActivityRecent higher than ‘normal’ delinquency deposits into the Tax Losses Reserve have allowed the County to:• Transfer larger annual amounts into the General Fund for general purpose; • Fund property tax related losses such as the recent adverse decision regarding Property Tax Administration Fees ($5.3 million) without impacting services in the General Fund; and • Fund much needed facility repairs, which would otherwise be funded with General Fund dollars.Fiscal YearTax Losses Reserve TransfersFY 93-946,225,373FY 94-9515,321,481FY 95-9614,389,022FY 96-979,889,000FY 97-987,389,000FY 98-997,389,000FY 99-007,389,000FY 00-017,389,000FY 01-027,389,000FY 02-037,389,000FY 03-0420,889,000FY 04-059,000,000FY 05-069,000,000FY 06-078,000,000FY 07-0810,000,000FY 08-099,000,000FY 09-109,000,000FY 10-1112,000,000FY 11-129,000,000FY 12-1322,300,000BudgetedFY 13-1422,000,000Total Since 1993230,347,87612,000,000Budget for General Purpose Rev Transfer10,000,000Budget for Facility Projects Infrastructure13 Infrastructure14•We continue to grapple with the huge deferred maintenance costs for facilities. •We will be completing an updated assessment of our facilities this year and we have started work on an overall facilities master plan. Capital Maintenance Costs•Recall that our comprehensive building condition assessments identified an updated total of $270.2 million in deferred facilities maintenance needs and capital renewal requirements•The distribution of costs by level of priority was as follows:–Priority 1 –Currently Critical  $    2,165,000–Priority 2 –Potentially Critical 27,391,000–Priority 3 – Necessary, but not Critical 186,933,000–Priority 4 – Necessary, within 6‐10 Years 53,743,000•$  5 Million was Budgeted in FY 2012/13•$10 Million was Budgeted in FY 2013/1415 Infrastructure•Continue to fund Infrastructure Needs•Plan to budget approximately $10 million for FY 2014/15•Complete original $5 million FY 12/13 projects of Finance Building (now estimated at $13 M+), etc. •Complete remaining Priority 1 projects ($830k) –defined as needing immediate action •Continue to reduce remaining Priority 2 projects –defined as potential safety hazards or causing intermittent interruptions/deterioration. •Continue to fund facility lifecycle on a by‐building cost‐per‐square foot basis –target $750k set by Finance Committee •Continue to explore ‘cloud’ IT opportunities16 County Road Program17Impact:Gas Tax funds County road operations such as pavement preservation, grading shoulders, guardrail replacement, striping, signage, signal maintenance.Any decline in gas tax coupled with the end of Proposition 1B transportation funds and a reduced federal transportation bill will impact the County’s overall ability to properly maintain the transportation system or slow the impacts of an already underfunded service the County provides its residents.PAVEMENT CONDITIONSAFETYStatus of Unincorporated County Roads:•Pavement Condition continues a downward trend falling below our desired target.  •Collisions on County roads is trending upward after several years of decline. •Congestion meets General Plan targets, but traffic volumes are increasing on several major corridors such as Vasco RoadTargets: Arterial 80, Collectors 80, Residential 75 Labor18 19Note that December was highest month in 2012 (136).Retirements Calendar Years 2006‐2013 Unemployment Rate 7 Year Comparison20Note 2013 6.8% figure is November data. Historical Labor Costs General Fund21*   Projection is double six months.** Change column is between FY 12/13 and projected 13/14.FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14GENERAL FUNDActualsActualsActualsActualsActualsActualsProjected*Change**Permanent Salaries 361,536,332 364,404,976 337,566,573 330,685,736 323,214,116 321,605,335 331,724,084 10,118,749Temporary Salaries 12,441,270 12,497,305 14,051,898 17,931,056 20,842,008 23,594,345 22,500,772‐1,093,573Permanent Overtime 15,315,403 12,264,219 12,055,264 14,237,551 16,185,558 17,759,366 18,267,906 508,540Deferred Comp 1,020,000 1,011,277 886,956 922,829 953,934 1,157,366 1,369,780 212,414Comp & SDI Recoveries‐1,911,718‐1,589,507‐1,719,857‐1,856,792‐1,687,531‐1,847,033‐1,968,176‐121,143FICA/Medicare 22,857,870 22,691,254 21,091,543 20,988,471 20,882,816 21,126,905 21,372,752 245,847Ret Exp‐Pre 97 Retirees 1,968,495 1,956,847 1,892,272 1,878,723 1,869,642 1,845,967 1,873,746 27,779Retirement Expense 145,557,255 148,644,974 128,057,220 133,238,617 136,824,603 150,156,939 165,734,354 15,577,415Employee Group Insurance 54,185,750 56,005,178 54,337,009 53,668,491 53,002,293 52,577,358 52,755,824 178,466Retiree Health Insurance 25,192,301 25,692,908 26,714,761 28,677,012 31,270,838 31,632,649 31,479,282‐153,367OPEB Pre‐Pay 13,911,579 13,741,036 13,721,448 13,723,499 13,785,604 13,065,600‐720,004Unemployment Insurance 777,182 775,489 1,633,117 2,153,845 1,284,237 1,374,314 1,406,380 32,066Workers Comp Insurance 24,074,249 13,963,367 13,144,008 13,455,147 11,246,660 11,274,142 11,445,088 170,946Labor Received/Provided 1,013,306322,613661,279487,961581,832570,971223,362‐347,609  Salaries and Benefits 664,027,695 672,552,479 624,113,079 630,190,095 630,194,505 646,614,228 671,250,754 24,636,526Increase/(Decrease) 8,524,784‐48,439,400 6,077,016 4,410 16,419,723 24,636,526 Historical Labor Costs All County Funds22*   Projection is double six months.** Change column is between FY 12/13 and projected 13/14.FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14COUNTYActualsActualsActualsActualsActualsActualsProjected*Change**Permanent Salaries 502,129,134 514,394,873 492,801,239 487,322,501 481,217,812 480,546,483 492,086,832 10,869,020Temporary Salaries 29,178,686 32,721,949 37,337,487 40,912,512 46,635,323 52,468,685 53,111,754 6,476,431Permanent Overtime 19,520,079 16,639,812 15,740,598 17,862,642 21,723,606 23,466,747 23,371,768 1,648,162Deferred Comp 1,247,716 1,243,273 1,160,883 1,197,053 1,253,245 1,552,211 1,847,202 593,957Hrly Physician Salaries 1,545,186 1,817,809 1,891,972 2,161,730 2,134,980 2,626,854 2,620,878 485,898Perm Physicians Salaries 27,069,204 28,806,831 31,213,084 31,173,790 33,118,707 35,632,415 37,162,186 4,043,479Perm Phys Addnl Duty Pay 1,683,818 1,823,452 1,826,335 1,956,341 1,891,438 1,976,098 1,964,728 73,290Comp & SDI Recoveries‐2,962,165‐2,400,931‐2,632,322‐2,796,169‐2,332,274‐2,557,280‐2,777,578‐445,304Vacation/Sick Leave Accrual 793,515 328,684 338,576‐422,707 559,247 242,303 0‐559,247FICA/Medicare 36,332,850 37,231,115 36,364,870 36,288,855 36,696,440 37,362,344 37,119,744 423,304Ret Exp‐Pre 97 Retirees 2,750,630 2,751,898 2,752,131 2,752,614 2,751,672 2,750,979 2,750,848‐824Retirement Expense 201,167,222 207,114,048 184,140,541 192,892,090 202,105,619 221,505,843 243,147,182 41,041,563Employee Group Insurance 82,304,697 86,510,577 85,891,576 85,811,334 85,433,103 84,392,571 84,275,462‐1,157,641Retiree Health Insurance 32,878,273 33,388,058 35,170,431 37,741,416 41,709,278 42,578,927 42,543,036 833,758OPEB Pre‐Pay 17,968,343 18,942,232 18,573,163 18,625,208 18,637,346 17,263,840‐1,361,368Unemployment Insurance 1,160,943 1,188,580 2,609,671 3,463,678 2,096,833 2,265,484 2,308,886 212,053Workers Comp Insurance 35,327,965 20,405,944 19,544,807 19,763,721 16,821,150 17,044,418 17,063,600 242,450Labor Received/Provided 1,021,498287,080611,851453,732646,985550,728227,042‐419,943  Salaries and Benefits 973,149,251 1,002,221,395 965,705,962 977,108,296 993,088,372 1,023,043,156 1,056,087,410 62,999,038Increase/(Decrease) 29,072,144‐36,515,433 11,402,334 15,980,076 29,954,784 62,999,038 OPEB Liability Significantly Reduced due to Board Actions and Collective Bargaining•Most recent actuarial report received in June 2012•Reduction in 2006 OPEB Liability from $2.6 billion to $968.5 million •ARC from $216.3 million to $93.8 million•Total OPEB Trust assets $119.2 million as of  September 2013 •Reduction reflects health plan changes, caps on County contributions and labor agreements•The Board’s actions have made it possible for the County to continue to provide much needed services, including health services, to County residents including the indigent.•In March 2012, a lawsuit was filed by a retiree organization challenging the changes in retiree health care member subsidies.  If the retirees prevail, the County could be liable for past and future premium costs.•Ratio of retirees to active employees is climbing progressively•In February 2014, the Board will receive a report regarding recommendations for changes to the strategic plan and the actuarial assumptions for the biennial report of 2014.23Census Data2006 TotalActive/ Retiree2012 TotalActive/ RetireeActives 8,42863%7,72057%Retirees and Survivors 4,85637%5,94143%Total Counts 13,284 13,661 Labor Negotiations24Total NumberContractof EmployeesExpiration DateCurrently Negotiating (71% of employees)AFSCME Local 2700, United Clerical, Technical and Specialized Employees 1811 6/30/2013AFSCME Local 512, Professional and Technical Employees291 6/30/2013California Nurses Association - Per Diem Unit (L8)357 1/31/2013District Attorney Investigator’s Association (DAIA)25 6/30/2013IHSS SEIU - United Healthcare Workers West 6/30/2012Professional & Technical Engineers – Local 21, AFL-CIO901 6/30/2012Public Employees Union, FACS Site Supervisor Unit (CSB)15 6/30/2013Public Employees Union, Local One2454 6/30/2013SEIU Local 1021, Rank and File Unit947 6/30/2013SEIU Local 1021, Service Line Supervisors Unit37 6/30/2013Western Council of Engineers (WCE)18 6/30/2013SettledAFSCME Local 512, Probation Supervisors Unit (KU)22 6/30/2015California Nurses Association 570 7/31/2014CCC Deputy District Attorneys’ Association 87 6/30/2015Contra Costa County Defenders Association 77 6/30/2015Deputy Sheriff’s Association, Mgmt Unit and Rank and File Unit (DSA)806 6/30/2016IAFF Local 1230283 6/30/2014Physicians and Dentists of Contra Costa 304 10/31/2016Probation Peace Officers Association265 6/30/2015United Chief Officers’ Association (UCOA)14 6/30/2014Management Classified & Exempt369Management Project429,695 Preliminary Salary Projection Data for FY 2014/15•General Fund increase of $67.1 million (includes cost of previously funded vacancies)–$36.7 million in permanent salaries–$24.1 million in retirement expense (net of POB decrease)–$1.1 million in group health insurance–$466 thousand decrease in unemployment insurance•All County Funds increase of $125.8 million (includes cost of previously funded vacancies)–$86.7 million in permanent salaries–$35.6 million in retirement expense (net of POB decrease)–$1.8 million in group health insurance–$713 thousand decrease in unemployment insurance•We continue to be challenged by pension costs due to pending lawsuits and changes to Contra Costa County Employees’ Retirement Association policies and adopted rates–Rates may be much higher or lower in the future25 Select Department Specifics26 General Government27 •Our special districts do not have enough revenue to support basic level of service. •We are proposing to close our Materials and Testing Lab due to reduced workload and seasonal operations.  •We are starting to see some more development activity –increase in work load –Increase in developer fees for transportation projects.28Other Public Works Issues Dept. of Information Technology•Difficulty recruiting and retaining the needed skill sets•High‐risk:  Now operating at single points of failure in critical systems including public safety radio, payroll, email, property tax, finance, and justice systems•Anticipated retirements will exacerbate the situation29 Justice Case Management Systems•Systems will automate work flow and case management practices within the local criminal justice system•Will enable more robust data collection activities and help inform use of evidence‐based practices•Will provide improved management tools for tracking work status and balancing workload•Vendor demonstrations completed and systems thoroughly evaluated•Systems selected by District Attorney and Probation Departments•CAO staff working with the departments to conduct and document a fit analysis, define the scope of service, and negotiate contract terms•Contracts will come before the Board during the next few months•One to two years implementation, in phases•Public Defender system RFP will follow30 Conservation & Development•As the economy recovers, the public is moving quickly with development projects•Permit numbers are growing and are expected to continue to grow through the fiscal year•Increasing demand for services will require expanded use of technology (e.g. online permitting), improvement to website utilization, and further reorganization of staffing, for both greater efficiency and to respond to the changing nature of applications•A robust central administrative support will be critical to these efforts:  Human Resources, County Administrator’s Office, Information Technology31 Health and Human Services32 Child Support ServicesCritical priorities for the Department of Child Support Services over the next twelve months include the following:•Achieve federal performance measure levels set by the California Department of Child Support Services (1) establishing paternity, (2) increasing the number of cases with established child support orders, (3) increasing collections on current child support, (4) increasing the percentage of cases with arrears collected, and (5) improving cost effectiveness. •Lead the way for California to accept child support cash payments using Moneygram’s 35,000 nationwide locations with a customer fee of $1.99 per transaction. •Partner with Superior Court and other Contra Costa departments to install TouchPay kiosks in County locations to accept cash and credit card payments with no cost to the agencies. •Expand the use of Qualified Domestic Relations Orders (QDRO) to collect past due child support from obligor employer pensions and 401k plans. 33 Child Support Services•Develop an improved seek work program to incorporate administrative reviews and the development of partnerships and referral processes with various agencies that assist the public with job searches.•Expand stratification of the enforcement case load to segment the cases for a more focused effort to collections. 34 Health ServicesMajor challenges for the Health Services Department over the next twelve months include the following:•Implementation of the ACA and impact on CCRMC and Health Centers and CCHP.•Continuing integration of Mental Health, Alcohol and other Drugs, and Homeless programs in the Behavioral Health Division.•Integration of Behavioral Health with Primary Care in the Ambulatory Clinics.•Continuing effort to improve HR  processes.•Monitoring finances regarding ACA revenues, Realignment and the next MediCal Waiver.35 Employment and Human ServicesCurrent Status•Still recovering from the impacts of staffing losses coupled with significant caseload increases during the Recession;•Rebuilding administrative and program support and infrastructure;•Refocusing on our human capital investment to restore morale and quality services;•Investing in technology to meet state‐of‐the‐art service delivery demands.Five Strategic Initiatives for 2014•Improve organizational health to better serve customers and stakeholders;•Build a healthy organization for our employees;•Rebuild capacity to deliver quality services;•Effective communication and messaging;•Understanding and addressing poverty in Contra Costa County.36 Employment and Human ServicesOpportunities•Will promote continued outreach in the community to provide access to health insurance options;•Will continue working with Covered California to provide the highest quality services in our Call Center;•Will engage with the community to outreach to under‐served CalFreshpopulations;•Will create a focus on poverty. the impacts of income inequality and steps we can take to reduce poverty in our communities.Risks and Challenges•Continued understaffing in most sections of the department;•Structural underfunding of the Medi‐Cal administrative allocation;•Medi‐Cal and CalFresh intake service delivery to clear backlogs and meet compliance requirements;•Continue negotiations with Covered California to ensure full reimbursement of county expenses for operating the Call Center.37 Law and Justice38 Public Safety Realignment •In Spring 2013, CAO staff conducted an RFP/RFQ process to award $2.915M in AB 109 Community Program funds to the following:•Employment Services, $2M = Rubicon Programs (West & East County), Goodwill Industries (Central County)•Housing Services, $500k = SHELTER, Inc.•Peer and Mentoring Support, $200k = Contra Costa County Office of Education, with Men & Women of Purpose, Center for Human Development, Brighter Beginnings.39 Public Safety Realignment •Planning for Reentry Resource Centers or Networks, $120k = Further the Work (West Co.) and Emerald HPC International (Central & East)•Civil Legal Services, $80k = Bay Area Legal Aid•Reentry Resource Guide, $15k = Contra Costa Crisis Center.•The CAO’s office also conducted an RFQ for Data Collection & Program Evaluation Services, $246k = Resource Development Associates.40 Public Safety Realignment •Next steps include:  Implementation of plans for Reentry Resource Center (West Co.) and network of reentry services for Central & East.•Implementation of Pre‐Trial Program:  procurement of risk analysis tool, 3 additional DPOs and 2 clerks.•Additional collaboration with PPIC and CA Forward on data evaluation efforts.•Further emphasis on “Pre‐Release Activity,” including additional development of the “Jail to Community Model.”41 AB109Community Corrections Partnership•Statewide Formula Discussion Continues–Realignment Allocation Committee (“Gang of 9”) continues to meet to discuss a 2014/15 and permanent AB109 funding formulas–At stake for Contra Costa… up to $7.4 million in base allocation beginning in 2014/15–Governor’s Proposed Budget acknowledges that it’s pre‐mature to implement a permanent AB109 funding formula in 2014/15  42 AB109Community Corrections Partnership•2014/15 County AB109 Budget Process Underway–Funded agencies directed to submit status quo budgets in anticipation of reduced allocation from the State–CCP to review and take action on budget proposals at the February 14th meeting for submission to the Public Protection Committee on February 24th–Public Protection Committee recommendation integrated into the County Budget for approval by the Board of Supervisors43 Sheriff’s Office•West County Jail/Reentry Facility Grant–County did not receive SB 1022 grant–Governor’s Proposed Budget includes additional $500 million for local jail construction with a 10% local match–Preference to counties that use risk assessment as a pre‐trial release tool–Sheriff’s Office to return to the Board of Supervisors during the next grant allocation process44 Probation Department•Federal Title IV‐E Revenue Loss–Reimbursement to counties for children at imminent risk of being removed from their home–U.S. Dept. of Health and Human Services audited two California counties and cut funding to all counties based on findings–$4.2 million at stake for Contra Costa annually; $3 million in fiscal year 2013/14–Strong advocacy for restoration of funding from CSAC and Chief Probation Officers of California45 District Attorney/Public Defender•Continued Implementation of AB109 Realignment Legislation–Parole Revocation Hearings: Process transferred from State Board of Parole Hearings to local courts effective July 1, 2013•Only persons sentenced to a term of life can be revoked back to state prison; all others remain local–Arraignment Court Early Representation (ACER): Provides representation to defendants at arraignment. Program funds dedicated attorney staff from the District Attorney and Public Defender offices.46 Motorola Pulls Plug on BayWEB•Motorola notified U.S. Department of Commerce that it is pulling out of the grant due to federally‐imposed changes to the agreed‐upon business model•18 month delay caused loss in project interest and momentum•Soft loss for County in three years of staff time •Loss of opportunity for regional broadband infrastructure to support public safety communications•Despite grant termination, BayRICS projects continue with focus on connecting regional public safety radio systems47 Fire Protection48 Contra Costa Fire Protection District•Reasons for Concern–Increasing Pension Liability–Increasing Health Insurance Costs –Unfunded Infrastructure /Capital Improvement Needs –Labor Negotiations–Continued depletion of Worker’s Compensation funding level (Projected to end 2013/14 at 48%, down from 93% in November 2010)–Continued depletion of Reserves49 Contra Costa Fire Protection District50Assumptions: 1) 23 Engine Companies; 2) 5% increase in assessed valuation; 3) Minimum increase of 2% in annual expenditures; and 4) funding of 3 engine companies from SAFER grant. Contra Costa Fire Protection District51•Impact of Select Assessed Valuation Assumptions on Ending Fund BalanceNote: All Total Revenue and Ending Fund Balance figures are projections Contra Costa Fire Protection District•Reasons for Optimism–In General, Contra Costa County Economy recovering from the Great Recession–Property Tax revenues stabilizing–New Fire Chief Jeff Carman –SAFER Grant Application Submitted –Draft Fire Study Released by Fitch & Associates–Public better engaged in issues surrounding Fire and EMS Delivery52 Summary53 Continued Reasons for Optimism•Positive Economic Outlook –State Revenues Up–State Budget reasonably stable–Affordable Care Act intact –AV revenue up 3.45% for 2013/14–Projecting 5.0% growth AV revenue in 2014/15•Positive County Results–Budget structurally balanced for 2013/14–OPEB managed–Minimal lay offs over past 4 years–Have begun pre‐funding Infrastructure needs–Fund Balance Increased–Standard & Poor’s Rating Increase to AAA–Pension Obligation Bond Matures 6/1/2014 ($32,991,000)54 Reasons for Concern•AB 109 – Structure & Formula unsettled•Economy will continue slowrecovery •State Wall of Debt•Labor Negotiations –Pent‐up demand–Increased costs of benefits–Limited resources•Pension Liability•Fire ‐Structure and Funding •ADP time keeping project•Doctors’ Hospital Debt•Health Insurance Exchange Call Center55 Prediction is very difficult, especially when it’s about the future. ― Physicist Niels Bohr56 •Questions?