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HomeMy WebLinkAboutMINUTES - 02051991 - 2.5 005 �ro'f BOARD OF SUPERVISORS yF L Contra Phil Batchelor, County Administrator Costa FROM: �Y ...I, County DATE: February 5, 1991 SUBJECT: SECOND QUARTER BUDGET REPORT FOR FISCAL YEAR 1990/91 SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Accept this report and direct the County Administrator to continue to monitor the budget and implement corrective plans, where necessary. BACKGROUND: This mid-year report has been prepared to inform the Board of the status of the budget., the major issues that impact the budget and any deviations from the budget plan. The County Administrator' s staff have reviewed the second quarter expenditure and revenue reports for all of the various County budget units . As a result of this review, we can report that most budget units are within the budget targets for the second quarter. Those departments and budget units identified in the previous quarterly report, which require special attention, are noted below: General County Revenues Although an economic slowdown was expected in budgeting revenues, the slowdown was greater than expected. Overall, revenues in this budget unit are estimated to be approximately $500,000 below budgeted levels. The estimate is based on six months of actual experience and adjusted for seasonal variations where appropriate. The key property tax accounts will not be precisely known until the second tax payment is processed in April . CONTINUED ON ATTACHMENT: _ YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON February J, 19 91 APPROVED AS RECOMMENDED OTHER The Board accepted the report and requested the County Administrator to provide productivity statistics in the Third Quarter report . VOTE OF SUPERVISORS X _ _ _ I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: Deputy County.Admlrilstrators ATTESTED February 5 , 1991 Auditor-Controller PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) BY , ✓ �f�-� DEPUTY i -2- As noted in the December report to the Board, the revenue sources which have been adversely impacted by the recession are: Real Property Transfer Tax, Supplemental Property Tax, and Sales Tax. These slumping revenues sources are a direct result of a softening in the real estate market and consumer spending. A total of $6, 800,000 of new revenue was budgeted this year as a result of State legislation authorizing a property tax administration fee and a jail booking fee. However, resistance to these fees has surfaced and a court challenge against the property tax administration fee has been filed against the State by the school districts . Legal action may tie up these funds. and further aggravate the revenue picture. Finally, since revenue is a major contributor to the year-end fund balance, this austere revenue situation causes concern that the availability of fund balance to help finance next year's budget will drop appreciably from prior years . Health Services Department The Health Services Department has been pursuing an aggressive revenue generating plan to relieve a projected $2 . 3 million shortfall caused by the State reduction of the Medically Indigent Services Program and the. Mental Health Program. Based upon information to date, the department has successfully identified $1 .7 million of the required revenue; the balance is dependent upon . State Medi-Cal rate negotiations which are currently underway. In the first quarter : report, concern was raised regarding the potential decline in the census level at the Hospital and the related. revenue impact. Since the last report, the daily census level has stabilized at an. average of 132 and is beginning to return to last year's level. This will continue to be closely monitored. Probation-Juvenile Hall The high population ' at Juvenile Hall continued to be a concern during the second quarter. During the month of December, the average daily population was 145, with the daily population ranging from a -low of 98 to a high of 168 juveniles . During the second quarter, emergency release measures were implemented on at least six separate occasions because of fire and personal safety concerns . Despite the opening of the Monticello Unit on October 15, . 1990, which added 20 beds to the hall capacity, the . department was required to sleep juveniles in the previously closed Boys Treatment Center. This overflow situation resulted in higher than expected levels of temporary personnel services and overtime to accommodate the increased population. The hall population is further compounded by the increasing number of juveniles awaiting either a Byron Boys ' Ranch placement - or a private placement. The department continues to experience high costs for support and care of juveniles awaiting private placement who . do not qualify for AFDC. This problem is being addressed through the cooperative efforts of the Probation and Social Service Departments by way of detailed eligibility reviews . As a result, costs for support and care of juveniles have declined steadily in the past three months . J -3- Recorder's Office Recorder revenues continue to be under-realized at 44% . Of particular concern are Recording Fees which continue to be low presumably because of the recession and slower housing market. The month of December, usually thepeak month for recordings, was significantly lower in volume than anticipated. Recorder expenditures are also slightly lower, but will not mitigate a potential deficit if the current revenue trend continues . We are watching this situation closely. Retiree Health Benefits Health plan programs for retirees are estimated to exceed budgeted levels by approximately $200, 000 . The cause of this over-expenditure appears to be a greater than anticipated cost increase in health care premiums . Sheriff ' s Department The average daily inmate population for all the County adult detention facilities through the second quarter is virtually the same as the budgeted level : an average ADP of 1,463 compared to a budgeted ADP of 1,457 . The department's various alternative custody programs, including County parole and electronic home surveillance, continue at a high level of operation. These programs have a positive impact on inmate population. On the other hand, a continuing law enforcement emphasis on drug enforcement contributes to a high jail ADP as well as crowded court calendars . The Sheriff's Department budget continues a positive trend for the second quarter. However, a raised ADP would have a negative impact upon the department' s budget. Social Service Department On January 15, the Board took action to balance the administrative budget . which was estimated to have a $1.,500, 000 deficit. A total of . 32 funded positions were eliminated, departmental reorganization implemented and automation programs accelerated. County Administrator' s Office and Social Service staff are currently reviewing the impact of these changes and following-up on other budget reducing measures . The General Assistance and Homeless budget has a serious budget overrun of an estimated $2, 000,000 . If current trends continue, the County will spend $13, 500, 000 on General Assistance and Homeless . Five years ago, the County spent $4,900,000 . Caseloads are expected to continue to grow as the recession expands the unemployment rolls . Hiring and Purchasing Freeze The Board imposed freeze on hiring and ordering non-critical fixed assets and other major purchase items continues . The freeze was imposed because of anticipated budget shortages this fiscal year and the need to mitigate the adverse effects of a budget, shortfall . A variety of service disruptions have occurred because of the freeze and department managers have . adjusted work schedules and priorities to overcome. these obstacles . In spite of the problems which the freeze causes, we are recommending that the freeze not be lifted because of continued budget uncertainties . -4- 1991-1992 State Budget Governor Wilson' s proposed budget was presented in early January and can be characterized as hopeful and optimistic. The budget was developed assuming a $7 billion deficit as well as a short recession. Generally, the Governor' s budget includes no COLAs for local programs and some cuts from the current year. The preliminary estimate is that the County will suffer a $4 million shortfall in fiscal year 1991-92, using the proposed budget figures. However, the Legislative Analyst estimates that the State will face a $10 billion deficit in fiscal year 1991-92. These estimates were based on less optimistic revenue projections and a deeper recession than the Governor' s . budget. We will be closely tracking the State budget process .and will be presenting status reports in the future.