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HomeMy WebLinkAboutMINUTES - 11081994 - 1.97 TO: BOARD OF SUPERVISORS y....L_ { = �� Contra FROM: 't,. Phil Batchelor, County Administrator ��_-. .;s Costa _�... �z Count DATE: November 8, 1994 y SUBJECT: FIRST QUARTER BUDGET REPORT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. ACCEPT this report and direct the County Administrator to continue to monitor the budget and implement corrective plans, where necessary. BACKGROUND: Since 1984, the County Administrator's Office has prepared quarterly reports which analyze the status of the budget and highlights the budget units which deviate from the budget plan in terms of expenditures and revenues. Actions which are necessary to ensure a health budget by the end of the year are recommended as part of the quarterly reporting process. Other items which have major fiscal impacts are also reviewed as part of this periodic report. General County Revenues General County revenues have been significantly reduced by the state raid of property taxes over the last three fiscal years. In fiscal year 1991-92, the County received $246 million in General County revenue while this fiscal year a total of $170 million is budgeted. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE (S): ACTION OF BOARD ON V APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS 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 T y TE SH ATTESTED ((� 19 Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF Cc: Sheriff SUPERVISORS AND COUNTY ADMINISTRATOR Social Services Health Services BY f ' u DEPUTY • (. . 9 77 Page 2 It is too early to determine the overall status of revenues relative to the budget plan. The status of property tax revenues, which make up 47% of the revenues, will not be known until January when distributions are made to all taxing agencies. However, there are some initial and modest signs of positive growth among four revenue sources which may point to an improved local economy. Over the first quarter period, motor vehicle registration fees, property transfer taxes, transient occupancy taxes and business license taxes are all above targeted levels and above last year's level for this point in time. On the other hand, the revenues from interest earnings, supplemental property taxes and sales taxes are below target and below last year's level at this period of time. Sheriff-Coroner The Sheriff-Coroner Agency is within acceptable expenditure levels for the first quarter of fiscal year 1994-95. In Budget Unit 0255 (Patrol and Operations) gross expenditures were approximately 25%, as were Detention's (0300) gross expenditures. The Coroner Division (0359) experienced 21% gross expenditures for the reporting period and 33% revenue generation. Actual revenues received for the first quarter of fiscal year 1994-95 were $2,572,112 in Budget Unit 0255 and $1,422,207 in Budget Unit 0300, 8% and 9% of budget respectively. Sales-Tax Public Protection revenues were budgeted Countywide in the amount of $38,183,000. Three months of experience indicates that this budgeted amount may be somewhat high. The Sheriff-Coroner Agency receives 82.6% of this revenue and the District Attorney receives the balance. Contract City revenues, which historically lag, generate 28% of the Sheriff's $30,628,115 budgeted revenue for department #0255. These revenues, which are currently at 8% of budget, will be received by year end. A much more detailed revenue analysis will be possible after the next quarter with six months of experience to work with. Social Service The Social Services Department budget is facing a deficit of between $642,000 to as much as $1.4 million. The deficit estimate is based on additional General Assistance costs mandated by legislation and potential negative outcomes by pending litigation. As reported on October 11, AB1965 (Goldsmith) allowed the current shared housing provisions in Welfare and Institutions Code section 17001.5 to sunset on January 1, 1995. The impact of this sunset this fiscal year is approximately $642,000 and $1,284,000 in subsequent years. The state's plan to reduce AFDC grants by 2.3% is on hold as the state awaits word from the federal government on its modified welfare reform waiver request. Two lawsuits successfully challenged the federal government's approval of the state's plan to reduce AFDC grants. Implementation of the County's counterpart 2.3% reduction in General Assistance grants has been deferred pending federal action on the state's waiver request. Consequent additional cost to the GA budget is about $20,700 per month or $248,400 per year. In addition to the legislation, the County is currently petitioning for rehearing in Freitas vs. Contra Costa County, a case concerning General Assistance grant amounts for family members in shared housing. The court struck down the County's rebuttable presumption that parents are legally responsible for the support of their indigent adult children and adult children are legally responsible for the support of their indigent parents. The court found that only parents of minor children and spouses are legally responsible relatives. Under the decision, the amounts of most General Assistance grants for family members in shared housing will be governed by Welfare and Institutions Code section 17001.5, not section 17000.5. A final negative decision could cost the County approximately $49,400 per month or $593,000 per year. A7 Page 3 The staffs from the Department and Administrator's Office will continue to monitor the budget and prepare a budget balancing plan over the next several months. Health Services During the budget hearings, it was reported that the Health Services Department faced a $3-8 million revenue shortfall due to potential losses in four areas: SB910 Medi-Cal administrative claiming reimbursement; reductions in the prepaid health; state takeback of SB855 intergovernmental transfer revenues; and tobacco tax revenues. Phase I budget adjustments reduced net county costs in the Department by $1.5 million. The state has acted on SB910, taking back $3.28 million of revenues. This may be offset by payment of outstanding SB910 claims currently under review. Resolution of other revenue issues are also pending, however, disposition should be known in the next few weeks. At this time, the Department estimates its revenue shortfall at $4 million.