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HomeMy WebLinkAboutMINUTES - 05122015 - D.6RECOMMENDATION(S): 1. ACKNOWLEDGE that the Board of Supervisors held Budget Hearings on April 21; 2. ACKNOWLEDGE that public testimony was heard and considered; 3. ACKNOWLEDGE that pending action by the State regarding its budget may require subsequent adjustments to this Recommended Budget; 4. ACKNOWLEDGE that the County Administrator was directed to return to the Board with a Resolution, authorizing the addition and deletion of certain positions in affected departments (companion item – Resolution No. 2015/147); 5. AUTHORIZE and REQUEST the Auditor-Controller to adjust FY 2014-15 appropriations and revenues by reallocating and balancing budgeted and actual expenditures and revenues as needed for various budget units and special districts, subject to Board approval in September; and 6. AUTHORIZE the Auditor-Controller to make technical adjustments to the FY 2015-16 Recommended Budget when actual amounts are known and return to the Board on September 15 for adoption of the Budget as Finally Determined. FISCAL IMPACT: The fiscal impact is described in the Fiscal Year 2015-16 Recommended Budget, which is available on-line at http://www.co.contra-costa.ca.us/DocumentCenter/View/35919. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/12/2015 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS Contact: Lisa Driscoll, County Finance Director, 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: May 12, 2015 David Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: D.6 To:Board of Supervisors From:David Twa, County Administrator Date:May 12, 2015 Contra Costa County Subject:APPROVAL OF FY 2015-16 RECOMMENDED BUDGET ACTIONS BACKGROUND: On April 21, 2015, the Board of Supervisors adopted the County's 2015-2016 State Controller's Office Recommended Budget Schedules for Countywide Funds and Special Districts. These schedules meet the requirements of State law. State law requires that local government adopt a 2015-2016 Recommended Budget for Countywide funds and Special Districts prior to June 30, 2015 in order to spend monies for the coming fiscal year. State law also requires that the Recommended Budget be adopted prior to holding Budget Hearings. These schedules serve as a placeholder until the Board approves a Final budget. The schedules are in a State-required "line item" format as opposed to the program budget format used by the Board during budget hearings. The schedules incorporated the same total net County cost level as is presented in the County Administrator's Recommended Budget. Adoption of these schedules ensured that your Board met the requirements of State law and in no way constrain your discretion with respect to the FY 2015-16 budget. After adoption of the State Schedules, the Board of Supervisors opened the public hearing on the FY 2015-16 Recommended Budget. The hearings began with an overview of the recommendations in the FY 2015-16 Budget by the County Administrator. The County Administrator advised the Board that the Recommended Budget and the County Administrator's Budget Message contain details on individual department budgets, programs, goals, and recommendations. The Budget and message represented a work plan to achieve the County's mission and priorities in the coming year. A number of key issues that have informed the development of the Budget were included in the Budget and presentation, such as property tax projections, employment benefits and retiree health care/other post employment benefits, pension benefits, General Fund reserves, infrastructure/facilities maintenance, the status of Labor Negotiations, and the status of various high-level position recruitments. Following the County Administrator's presentation, the following department heads made presentations: Sheriff-Coroner, Clerk/Recorder, District Attorney, County Probation Officer, Public Defender, Health Services Director, and Employment and Human Services Director. At the conclusion of the presentations, the Board asked for and received public comment. Taking into consideration the testimony it had received from staff and the public, the Board deliberated regarding the Recommended Budget. At the conclusion of the deliberations, the Board directed the County Administrator to return to the Board on May 12, 2015 for adoption of the FY 2015-16 Recommended Budget. The Board of Supervisors did not recommend any changes to the Proposed Budget at the Hearings on April 21, 2015. However, there were a number of items that the Supervisors and members of the public commented on during the Hearings, or have raised questions about since the Budget Hearings. Possible COLA increases to Community Based Organizations. Subsequently the County Administrator met with Kathy Gallagher, Director of Employment & Human Services on this issue. Although it is true that they have not received COLAs, Providers have received contract adjustments based on the level of services provided. Some of these contracts are based upon rates established by the State or Federal Government. In the case of the State, the reimbursement rate is often tied to specific programs, such as Foster Care Rates and is paid for with Realignment Funds. That is especially true of the contracts for the Human Services Alliance. Additionally, the contracts are usually based on specific service levels and are negotiated with the Health or Employment & Human Services Departments. Kathy Gallagher says that at least some of these services received rate increases, not only this year, but in past years. She will be able to put together a full report to the Board of Supervisors for the Board of Supervisors June 16th meeting. 1. What the Alliance appears to be requesting is a COLA on top of this. Before the “Great Recession” the Board of Supervisors did provide COLAs to some of the service providers. These COLAs were provided in lieu of a negotiated rate increase. Now, any new COLAs would have to come from the General Fund. Many of these contracts are negotiated at dates other than the July 1 Fiscal Year for the County and the State Budgets. The County Budgets are not technically finalized until the end of September, after the State Budget is determined and we see what allocations the State has made to these programs, as well as whether our Assessed Valuations are greater or smaller than the 6% built into the 2015/16 budgets. Consequently there will be time over the next several months to consider any further adjustments to service providers. Funding issues for the District Attorney and Public Defender. Both the District Attorney and Public Defender Budgets were increased in the Recommended Budget for 2015/16 and additional staff authorized. With the additional personnel each Department should have enough flexibility to assign staff to meet their mission in FY 2015/16. 2. Referral of a report on the Animal Benefit Fund to the I.O. Committee will occur either at the September or October 2015 Committee meeting. The report will identify the amounts in the fund as well as any restrictions on how they may be spent. 3. Implementation of a comprehensive health coverage program for residents regardless of their immigration status. Several members of the public spoke on this issue and made reference to the Contra Costa Cares proposal. Basically that proposal would provide for comprehensive primary health care coverage and medical homes to low income, uninsured adults residing in Contra Costa County who do not currently qualify for full-scope MediCal or Covered California. The cost for the first year of the program is estimated at $3,360,000. It has been suggested that the County provide 50% of the cost, or approximately $1,680,000 that would have to come from the General Fund. While there has been discussion with other entities, currently no other providers have agreed to provide funding. Both the State and Federal Governments are considering proposals to increase coverage to individuals regardless of their immigration status. At the State Level, SB 4 is currently “on hold” until it can be reviewed with funding available in the State Budget. At the end of this month it will either be moved to the full Senate for a vote or shelved. SB 4 would authorize residents regardless of their immigration status to qualify for MediCal or Covered California. At the Federal level, President Obama’s Executive Order giving undocumented immigrants certain protections would authorize similar coverage under the Affordable Care Act (ACA). The Executive Order is currently being challenged in the Courts. At this time, besides the uncertainty of action at the State and Federal level, and before proceeding, it would appear that the Board would need a more comprehensive proposal and understanding of what other entities might commit to the funding proposal. 4. Language/verbiage on page 256 of the Recommended Budget Book relates to the Built Environment program and to specific policy issues that have not been addressed by the Board of Supervisors. Base on comments by Supervisors the language has been revised and will be changed in the on-line Recommended Budget document. This will not affect the final budget document since none of the Recommended Budget language appears in that document. 5. Position Resolution A position resolution is required to effectuate the position additions and deletions identified in the Recommended Budget. The resolution is provided to the Board as a companion item (Resolution No. 2015/147) on today's agenda. Resolution No. 2015/147 includes positions in the Public Works, Library, Public Defender, Risk Management and Human Resources Departments. Additional positions in various departments will be held vacant in order to achieve prescribed vacancy factor dollar savings. CONSEQUENCE OF NEGATIVE ACTION: Changes to any recommended programs will require an equivalent reduction in funds from other County priorities in order to adhere to the Budget Policy to adopt a balanced budget. CLERK'S ADDENDUM Speakers: Alvaro Fuentes, Contra Costa CARES; Rose Auguste, Health Access California; Sylvia Castillo, California Family Health Council, and Bay Area Women Health Care Coalition. APPROVED the recommendations as presented in the Board Order.