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HomeMy WebLinkAboutMINUTES - 01181994 - 2.1 7r 2 . 1 THE BOARD OR SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on January 18, 1994 by the following vote: AYES: Supervisor Smith, Bishop, McPeak, Torlakson, Powers NOES: None ABSENT: None ABSTAIN: None SUBJECT: Proposed State Budget 1994-1995 Fiscal Year Phil Batchelor, County Administrator, spoke on changes proposed by the Governor in the State Budget for the 1994-1995 fiscal year and potential impact on counties. He provided a summary of the Governor's Budget. At the conclusion of the discussion on this matter, IT IS BY THE BOARD ORDERED that the County Administrator is REQUESTED to schedule a Budget Conference in February to include representation from Alameda County, the Association of Bay Area Governments, the Governor's Office, and the State Speaker's Office to discuss fiscal issues and programs for the East Bay Community and including a commitment to Family Services integration. IT IS FURTHER ORDERED that the report of the County Administrator is ACCEPTED. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the cc: County Administrator Board of Supe ' ors on the date shown. ATTESTED: �- = ` 6� - T PHIL ATCHELOR.CW c of the Board of Supervisors and County ©Administrator by ��,LD' �'� ,Deputy M _ 1 SUMMARY OF 1994-95 GOVERNOR'S BUDGET [Note: all page number references are to the Summary of the Governor's Budget) ♦ IMMIGRATION COSTS Assumes that the Federal Government will reimburse California $2.3 billion in 1994-95 for immigration costs. (page 20) ✓ Made same request and same budget assumption in 1993-94 and admits California received only the balance of the SLIAG funds that were already authorized (page 21) . ✓ 1994-95 request includes: Education $1.7 billion Corrections $ .3 billion Medi-Cal $ .3 billion TOTAL $2.3 billion ♦ AFDC WELFARE REFORM Assumes legislation is in place by April 1, 1994 and that changes are effective July 1, 1994. (page 126) ✓ Made same assumptions in 1992-93 and 1993-94 and got only minimal . grant reductions actually , implemented. Grant reductions were 4.4% in 1991-92, 5. 8% in 1992-93 and 2.7% in 1993-94 . (page 31) Of Reduce grants 10% effective July 1, 1994 . State savings = $281.7 million. This becomes the "transitional grant" level for the first six months a family is on aid. (pages 34 & 126) Vol Effective January 1, 1995, "basic grant" is implemented where there is an able-bodied adult who has been aided for six months. The grant would be 15% below the "transitional grant" level. State savings in 1994-95 = $157 .0 million. (pages 34 & 126) ✓ Increase the amount that a family can have in earned income before the grant is reduced by deducting income from need level rather than grant level. Increases retained earned income from $282 to $509 for a family of three. (page 126) ✓ Deny any additional aid to a child born after the family comes on aid. (pages 34 & 127) ✓ Aid available to a teenage parent only when living with her parents - with some exceptions . (page 127) ✓ Cut off AFDC effective July 1, 1996 to any able-bodied adult where the adult has been on aid for two years. The children would continue to be eligible. Grant would be reduced by the amount of aid the adult had been receiving. No savings in 1994-95 or 1995-96. (pages 34 & 127) ✓ Increase State funding to the GAIN Program by $40.9 million and provide a financial incentive of 50% of the State's savings resulting from AFDC terminations to counties which are able to increase the number of AFDC terminations because of GAIN. Also an incentive of 25% of the county's share of GAIN expenditures. (pages 34 & 127) ✓ Assumes implementation of the Welfare Program Integrity Initiative (welfare fraud program) for State savings = $36.2 million. (pages 34 & 128) . ♦ OTHER WELFARE CHANGES ✓ Assumes enactment of a State-requested change in Federal law to permit a relative to provide care under the personal service component of the IHSS Program. State savings = $46.2 million. (page 129) ✓ Effective January 1, 1995, limit SSI/SSP eligibility for drug and alcohol addicts to two years. Require treatment as a condition of eligibility. (page 129) [Potential GA impact from individuals discontinued from SSI/SSP] . ✓ Eliminates all Medi-Cal optional services for adults except those in long-term care and those suffering from developmental disabilities. State savings = $151. 1 million. (Page 129) [Potential spin-off impact on the counties' ability to limit these services] . ✓ Contract out Medi-Cal pharmacy services effective January 1, 1995 on an at-risk basis. State savings = $33 .9 million. (page 129) ✓ Assumes the State will be successful in convincing the Federal government to assume the full cost of administering the SSI/SSP Program, eliminating the fee which is now paid by the State. State savings = $42 .7 million. (page 130) 2 ✓ Assumes the State. is successful in obtaining enactment of a State-initiated change in Federal law to increase Federal sharing in the Medi-Cal and welfare programs from 50% to 54.41% for California because of the ongoing economic recession. State savings = $595.5 million ($407.6 million in Medi-Cal and $187 .9 million in other welfare and social service programs) . (page 130) ♦ HEALTH INITIATIVES The Governor is proposing implementation or expansion of a number of prevention initiatives in the following areas: ✓ Interagency approach to controlling the spread of tuberculosis. (page 130) ✓ Expansion of program to help young teenagers avoid becoming sexually active in an effort to prevent teen pregnancies. (page 130) ✓ Increase programs to immunize all children by age 2. (page 131) ✓ Several other maternal and child public health programs. (pages 131 and 132) ♦ RESTRUCTURING THE STATE-LOCAL GOVERNMENT RELATIONSHIP ✓ Program Objectives The Governor's Budget sets forth five objectives it seeks to achieve in the proposed restructuring or expansion of the existing Realignment Program (page 67) : �+ Fiscal Neutrality -► Promotion of Economic Development -► Promotion of Local Control and Responsibility -� Establishment of Fiscal Incentives for Performance b Reduction of Bureaucracy and Administrative Oversight 3 ✓ Increase in Funding Increases funds involved in Realignment from the current $2. 1 billion to $5.4 billion, using existing revenue sources. (page 68) ✓ Four Components of New Realignment Program Conceptually, the Realignment and Restructuring Program is divided into four components, the Local Public Safety Fund, the Client Services Fund, the Community Services Fund, and the Trial Court Funding Program: Local Public Safety Fund (page 68) Existing J V sales tax approved by the voters in Proposition 172. No changes proposed. -► Client Services Fund (pages 68, 69, 70, 71) Includes the existing } 4: sales tax for Realignment and the transfer of } 1V of the State's existing share of the sales tax for a total fund = to 14: of the sales tax or $2.86 billion. Counties would use this money to pay for: 1. Counties ' increased share of the AFDC grants from 5% of the non-federal share to 50% of the non-federal share and an increased share of AFDC administrative costs from 30% to 50% (generally equal to 22.8% of total expenditures under proposed increase in Federal sharing or 25% under current law) . 2. Counties' increased share of the Medi-Cal Program from 0% to 11.5% of total expenditures, except for certain specified costs. [This does not, however, take into account the fact that the Medi-Cal Program does not pay actual cost now, resulting in a substantial existing county share of costs] . 3. Local discretionary programs such as job development services, indigent health care, mental health, substance abuse, foster care, child welfare, youth corrections and other services. This would come from the remaining $358.6 million balance in the fund. 4 b Community Services Fund (pages 71, 72) Includes the existing share of the VLF which goes to Realignment ($740.6 million) , plus a return of $1. 14 billion in property tax revenue from the State, for a total fund of $1.88 billion. Counties would use this money to pay for: 1. Indigent health care services 2. Mental Health services 3. Substance Abuse services 4. In-Home Supportive Services Program 5. Programs .now supported by the County Services Block Grant (information and referral and adult protection services) which would be eliminated. 6 . Child Welfare services. b Trial Court Funding Program (page 73) Governor proposes 1994-95 State and local funding for the Courts of $1.565 billion. The State would fund 65% of this amount. The State would return the fine and forfeiture revenue to the counties, which could use that revenue to provide funding for the 35% local share of the cost of the Courts. b County Use of Savings for Local Priorities (pages 72, 73) Counties would have unrestricted control over unspent money in the Client Services Fund and Community Services Fund at the end of the fiscal year. The funds could be used for other local priorities. ./ Property Tax Administration Costs (page 74) The Governor proposes urgency legislation to provide counties with a one-time payment of $25 million for the current fiscal year to support the administration of the property tax system. Beginning in 1994-95 the counties would be fully responsible for the cost of administering the property tax system. 5 • Assembly ways andJMe�s Commi7. ttee aLhmazzGATs OF MM WVERNOR-S PROPOSED 1994-95 BUDGET Facing a gap of $4 to $5 billion between anticipated 1994-95 - revenues and the cost of existing services and payoff of the remaining carry-over deficit, Gov. Wilson proposes a budget that anticipates a major infusion of federal funds and significantly reduces funding for Aid to Families with Dependent Children,. - bedi-Ca,l benefits and various other programs. They budget proposes to and 1994-15 ,with a resor►e of -$55 million, or about 0.1 percent of General Fund expenditures. The budget proposea to claim from the federal government a total of '$2.3 billion in reimbursements for the cost of immigrants to the state for X-12 education, Medi-Cal and corrections services. The budget also assun*s a higher federal reimbursement for the state's iledi-Cal program as well as various social services programs, amounting to $596 million. The budget proposes a major restructuring of the state-local fiscal relationship,including transfer of a portion of the state sales tax to counties along with a shift of $1.1 billion in property taxes back to counties. This transfer would be accompanied by an increased county share of cost for AFDC and Medi-Cal and full financial responsibility for certain other social services programs. Finally, the administration has proposed a personal income tax reduction for taxpayers with incomes between $251000 and $401,0001 and a tax credit for the creation of new' jobs by startup businesses, K• General Fund Condlt,ion' 1993.-94 :. 1999-95 ' (millions) Prior Year Balance 511.0 -693.1 Revenues & Transfers 39,743.3 41t128.6 Loan Repayment -11600.0 -2.200.0 . Resources 38;+654.3 39t235..5 Expenditures 39,347.4 38r788.1 Special Fund for Economic Uncertainties --110$6.0 . 54.5 Encumbrances 392.9 342.9 _1_ 12evena@a • o Pr6poses non-refundable pervanal income tax credit ($25 or $50) for selected taxpayers with less than $40,000 Ln annual incomef for a $95 million annual. GF revenue loss. o proposes a refundable jobs creation tax credit of$1,000 for each neer full-time job, up to 100 Jobst created by a start--up business in California, for a $50 million GF revenue loss in 1995-9•E, increasing in 1996--97. o Projects General Fund revenues and transfers at 841.1 billion In 1994-95, an increase of $1.4 billion or 3.5 percent over 1993-94. This number assum s rerelpt of $1«7 billion in federal funds for fmm4gration-related' services, tecerlpt of $600 million due to favorable resolution of the R$rglays (unitary) case, transfer of $296 million in fine and penalty revenues to counties, and transfer of $1.4 billion in sales tax revenues to counties as part of a proposed state--county restructuring. v The revised General Fund revenue forecast for 1993-94 is $39.7 billion, or $900 million below below the budgeted levels due to reduced economic activity. a The administration's General. Pund revenue forecast of $41.1 billion for 1994-95 is consistent with the Commission on State Finance's December 1993 estimate.' o The budget proposes transfers to the- General Fuad from various other funds of $564.5 million :in' 1993-94 and $138.2 million in 1994-95. Expenditures Revised Proposed Percent 1993-94 1954-95 Change General Fund. $39,347.4 $38,78$.0 -1.4 6peciai Funds '12,972.2 13,759.7 6.1 Budget Totals $52,319.7 $52,547.7 0.4 Selected Brand Funds 2,092.6 2t806.0 34.1 Subtotal $54,412.3 $55,353,7 1.5 Federal Trust fund 31,762.5 30,717.4 -3.3 Total Expenditures 86,174.6 Ht071.2 -.1 -2- Local Government 0 Proposes a major restructuring of the state-lucail fiscal relationship involving $5.4 billion in existing revenue. Who county share of oast :far AFDC would l.nerease to 50 percent of thy, nonfederal portion . of grants and administrative costs. Counties would assume an Y1.5 percent share of total Nadi-Cal costa t, excluding specified costs. o Shifts $1.4 billion of the state sales tax (0.50 percent _ rate) and the realignment Local. Revenue find into the neer Client Services lid to fund the county share of the AFDC•and Medi-Cal programs. o Combines the Realignment Vehicle License Fund ($741 million) with $1.14 billion in property ta* revenues redirected from school districts and establishes the community Services fund available to counties for support of indigent health, mental, health, substance abuse, In-home supportive aervices, adult protection services, and foster care programs. Shifts full responsibility for substance abase, in-home supportive services, adult protection services, and foster care programs to counties. o Proposes grants for cities And counties that reduce the local regulatory. "red tape" requirements for-busInasses. o Proposes $1.017 billion (all funds) for the Trial Court Pundai.ng Realignment and Efficiency Oct of 1991, which will fund approximately 65 percent of trial court costs in 1994-95. X-12 Education . Proposition 98 and Related funding E-12 Funding Per Pupil (dollars in millions) 1992 4 General fund 22,650 14,207 Loan Repayment -190 Local Revenue 6,673 6,120 Non-Prop 90 Loan 609 •..� Total. $21,742 $22,327 Prop. 98 ADA 5,155,690 5,294,990 $/ADA 4,217 4,21.7 -3- o Per-pupil Funding. The Governor's Budget proposes to maintain per-pupil funding (state and local) In 1994-95 at the Tama level as 1993-94. o 3*roposft3.an Sig. Proposition 98 funding is proponad to be $336 million above thg minimum fpnd£sng guarantee in 1994-95, and $326 million above the guarantee in 1993-94. The Governor's Budget pzopasea no "recaptures" or future loans. (The Budget does not reflect any potential, impact of a decision in California Teachers Association, at &I. v. Could, at al., currently pending in the Sacramento Superior Count.) a Appott£onmentsg. as treated in the 199394 Budget Act, school district and county office of education apportionments are continuously appropriated and do not appear in the Budget Act. a Major Augmentations. The budget propo6es the following major augmentations to the A-42 education budgets * Growths $501 million for enrollment increases, including $430.6 million for statutory growth in school district and county office apportionments, and $70.4 million for statutory growth in special education. * School Safety Initiatives! $20 million for increases to community schools Ana juvenile hall erx all.ments resulting from mandatory expulsions for bringing weapons or drugs to school; $3 milli-on for conflict resolution training for school Staff and students. * Prevention Initiatives: $60 million for the Governor'a prevention programs, including $25 inillion for low-income children to attend preschaal .and full-day care; $20 million to augment the Healthy Start Prvgram; $10 mill.i.on to increase mental health .. counseling services to-elementary school children;- and $5 million for the Academic volunteer Mentor Corps. . * School Reformat $8 million for continued development of the • student assessment program authorized by S$ 662 (Hart) . a Categorical Programa. The budget proposes to-continue the "mega-item" structure for categorical programs, and to maintain funding at the acme level provided in 1993-94 (no growth funding is' provided) Postsecondary Education v University of California the Governors budget increases the UC budget by $57.9 million or 3.2 percent over the 1893-94 year -- priatari.iy for salaries and benefits, inflation, and bond payments. However, this Is approximately $84 million, or 60 percent less than the wwunt requested by the Regents. " California State tTniversity - the budget treats the CSU - the same as UC with respect to areas of funding. CSU receives $57.6 million or 3.9 percent over the 1993-94 years However, this is 8 decrease of approximately $155 mill%bn, or 73 percent less than the level requested by the Trustees. California Community Colleges (CCC) - the budget proposes an Increase of $116.4 million or 3.4 percent over the current year. o Student fees. The Governor bas indicated hi§ willingness to support fee increases proposed by the governing boards of UC and CSUs as long as sufficient financial aid to needy students is budgeted. Any fee funds remaining after accounting for financial aid would not result in an additional reduction in General Fund" support for the segments. UC fee increases have yet to be determined. CSU has adopted a proposal. to eaisa undexgraduate student teen by $342, or 24 percent, graduate student fees have been proposed to increase by $432, or 30 percent over the current year level. The Governor's budget proposes to increase community college fees by $7 per unit#. from $13 to $20. 41 b Cal Grants - the budget• proposes a Genetal Fund increase of $23.4 million in carder to (1) maintiih the'current nix of Cal Grant A and B's -- $3.4 million, and (2) $20 million in recognition of the need for additional grant aid. o Capital outlay - The budget proposes a total of $475 million for capital projects for the three segments of higher education. The major source of financing ($409.3 million) for capital projects in 1$94-95 is the proposed Higher gducation Capital Dutlay Bond Fund of 1994 (general obligation bonds) which is currently pending in the legislature. The remainder ($65.7 million) would be from combination of revenue bonds (Public Buildings and Construction Fund) and other available G.O. bonds funds. -5- Corrections o A status quo, inmate population-driven, 9.24 General. Fuad increase - $251 million ' - for a total budget of $9 billion. This supports a projected prison population Increase of 8*700 inmates (7%) and a parole population increase of 6,500 (7.54). o The increase includes funds to open four new prisons: Centinela (imperial County North)t Ironwood (Riverside) , , Coalinga, and Nsdera 11. o The increase also includes funds for salary increases and restoration of the personal leave plbM. o Presumes $300 million in federal funds to support undocutmnted aliens housed in state prisons. o No new . initiatives or alternatives to incarceration. Average cost per inmate increases nominally to $20,700. a $1 billion in proposed G.6. bonds plus $1 billion in proposed revenue bonds for new prison construction. This $2 billion would build six as=yet unauthorized prisons and maintain the departmsnt's 100# overcrowding rate at the tura of the century. (Nome of these figures include estimates regarding the impact of the 1994 crime proposals such as 3-starikes-you're-rout,) Youth Authority o A 5.3 percent GF increase - $1.8.9 million'= for a total budget of $412 million, reflecting an institutional population increase of 315 Wards and a parole population increase of 219. o A series of commendable program in. tiatives - funded largely through redirections - including:- conversion of -the Karl. Holton School (Stockton} to a apecl4l. 8-month esubstince abuse recovery treatment centorl creation of an additional 60-bed sex-offender treatment unit; eacpanefon of electronic monitoring; and increased funding for special education assessments. Judicial o . A $16 million GF increase (11.5%) for - the Judiciary - $5.6 million for the Judicial Council, $8.5 million for the Courts of Appeal, and •$1.2 million for the supreme Court' - for a $155 million total. �6- Department of Justice o An 11.53 GF increase - $18.2 million'- for a total budget of $317 million. Health ' a major expansion and restructuring of the 1991 realignment of state and local programs and revenues. The health component includes the elimination of existing funds and sub-accounts and the creation of - two stew funds. The Client Services Fund {CSF} vould include the existing 1/2 cent realignment sales tart plus an additional . 1/2 cent frau the state share (total $2.86 billion) . In exchange the 'counties will be expected to pick up an 11.5% share of the costs of providing Meda.-Cal selvichs (as well us other welfare programs) . for a General fund savings of $1.4 billion. o The new Comity Services Fund i *112des the existing realignment Vehicle License Fund (VLP) and the return of $1.14 billion of property tax irbich was. shifted to the schools in 1993-94 (total funft-$1.88 billion) . The counties are expected to fund indigent health, venial health, alcohol and drug programs,. IHSSfpersonal Care, County Services Block Grant and Foster Care from this fond. The budget proposes repeal of maintenance of effort requirements for receipt of Plop 99 funds, greater county flexibility in the use of funds and unrestricted control cover unspent funds. a The budget assumet receipt of $299.8 million ' for frill reimbu=aement of emergency medical" " services for undocumented immigrants. 0 Elimination of prenatal care- for uAdocctmented women as of February 1, 1994 for a cuxrent.-year savings of $83 million and a savings in 1994-95 of $92 million. o Transfer of $12.5 million from the General. Tund to the Access for Infants and Mothers (AIH) program to continua enrollment after January 1994. The budget also proposes to supplement the annual $57.6 niillion in Cigarette and Tobacco Products Surtax Punds •(C&T) frith $38.5 trillion in 1994.-95 and $28.2 million in 95-95 for the Alm program.. o increase in the Federal Medical - Assistance- Percentage (FXAP), the Medi-Cal sharing ratio, from 50% to 54.41% for a General Fund savings of $351 million in the Medi-Cal program. '7-r; -7- !701 ; �; C,,.,:n,:;:" o Elimination of bedi-Cal optional benefits for a savings of $151.1 million. in 1994-95 (General Fund) . The benefits proposed to be eliminated are adult dental services, psychology, chiropractics, podiatry, independent rehabilitation Granters, acupunctures, non-emergency transportation, speech and audiology and certain medical supplies. The Governor'! Budget proposes to continua these services for children under age 21, persons in lvng-terga care and developmentally disabled. o The Medi-Cal budget' assumes implementation of a new program to contract. for pharmacy services on an at-risk sib for a savings of $33.9 million General Frond. o Increase 'of $11.5 xaillion General Funds and $5.9 Federal Funds for Tuberculosis ('.['B) treatments including Medi-Cal coverage and directly observed therapy programs. o General Fund support for AIDS programs is Maintained at the 1992 level with no increases however# there is an estimated $11 pillion increase in federal R,y" white cmm Act funds which is not reflected in the budget. a The Education Now and Babies Later (NNANZ) Campaign is augmented by $5 nill.ion in General Fund support and $5 million in Title V Maternal and Child health (MCH) Funds. o The budget proposes $1.97 million (General pond) for a new Women's Health initiative which includes a (1) joint project with the Department of 1ied1th Services# The Department of Justice and the Office of Criminal Justice Planning to collect data on the health impact of violence directed toward women and develop a prevention plan (2) a sexually transmitted disease (STD). control plan in high morbidity areas and (3) funding for two Women's Early Intervention Centers for 111V-infected ,Women. a The budget assumes savings of approximately-.$30 million as a result of the Omnibus Budget Reconciliation Aet (OMA) of 1993 which created a no cost vaccine program for the states. - The budget proposes to reinvest -$20 mi*Ilion to enhance the current delivery System by providing $14 million to increase the the reimbursement rate for providers, $2.5 Million for immunization outreach services in nonprofit community health centers and $3.5 million to expand local health departments delivery of. immunization. _ Rental Health o increase of $10 million in Proposition 98 funds to expand school-based early mental health services for children. o The budget proposes to return ti prgximately $15 million in patient revenues retained by the state under the 1991 ; realignment. Developmental services . 0 Increase of $76.5 million in the Regional Center budget to fund increased 'service utilisation by Misting clients, the second year impact of the Community Living Options (CLO) initiative and the costs related to an increase of 6,246 community clients. 'The CLO initiative is an effort to nova 2,000 clients fraan the Developmental Centers into the community over a five year period. This increase includes $14.4 million in nev federal fonds from the Medicaid Waiver. o A decrease of $23.6 million and 858.5 positions in the Developmental Center budget to reflect the decrease in the developmentally disabled population from normal trend population decrease and the CLQ initiative. Social services a For the third straight year, the Gov&rnor is proposing his 1942 welfaro initiative, with minor changes, assuming a July 1, 1994, start date. 0 A 10 percent reduction of AFDC grant levels for a savings of $281.7 million in 1994-95. The family of three grant level would drop from $607 to $595 per month. 0 An additional 15 percent reduction-of .AFDC grant levels for those families with an able-bodied adult who have been on AFDC for 6 months, for a Savings bf $157 million. The family-of-three grant level would drop from $546 to $964 per month. o filimination of the AFDC grant increase for women who conceive an additional child while on aid for a savings of $5.7 million. a Elimination of the $70 per month -pregnancy special geed payment and the payment of AFDC grants to pregnant women -with no other dependent children ex6dpt during the third trimester for a savings of $20.9 million. :! ' o . Savings of $46.2 million in 1994»-95 assuming a federal law change that allowe federal Beds.-Cal reimbursement for IHSS services provided by relatives under the peraonA3 care option. o ' savings of $13.1 million assuming a federal lax change to deny &sI/Ssr to recipients rho are eligible for SSI/M* based on a drug or alcohol addiction beginning January it 1995. The majority of the savings are derived from assuming that 304 of recipients will give up their . benefits due to this new lax. o !Savings of $42.7 million assume a federal law change that will ' no longer' require California to pay an administrative fee to the federal government for administering the S5IJ89P program. Q Savings of $107.9 million assuming a federal law change to increase the federal share of the AFDC program from 50 percent to 54.4 ,percent. o Savings of $25.9 million in SSI/SSP and $40.4 million in AFDC assuming the federal government will provide funding for refugees for the first 36 months after they are admitted to the country. o An increase of $20.9 million and 13.3 positionts for c6ntinued implementation of the Statewide Automated welfare System, MS. o The budget includes various welfare and SSIfSSP fraud proposals and assumes savings related to these proposals in the range of $10 million. v Savings of $17.6 million from limiting eligibility for the homeless Assistance to once in a lifetime and from requiring all payments to be in the -form of vouchers. currently clients can receive assistance once every 24 months. o The Health and Welfare Realignment proposed would result in counties paying 100 percent of the nonfederal share of the IHSS and Foster CBrp programs, 5o percent of ArDC grant -and administration casts, and 100 percent of the county services block grant which currently funds adult protective services. This Hould result in A total reduction of $1.85 billion General Fund from the D99 fidget. Transportation a The Governor's Budget proposes no major policy changes for the statele transportation programs in 1994--95. 'The . spending plan, however, reflects the weakened condition of the State Highway Amount. and the Rotor Vehicle Account stemming from the secession's impact on -gas tax revenues find registration fees. o Proposes $5.9 billion for the Department 'of Transportation (Cal-Trans) in 1994-95, essentially unchanged from the current-year IL-vel. Funding from the. State Highway Account is proposed at $2.1 billion# a 6.6% increase over the current year, while federal support is projected to fall 9% to $2.3 billion. o Reflects a currant-yea~r defiaienay of $4B million in cal-Trans administrative expenditures Palated to the department's failure to implement a $55 million unallocated reduction used by the Legislature. in the 1993 Budget Act. The Governor's Budget, however, 'also proposes a $45 million reduction in Highway TransportatiotY program staff (670 PYs) in 1994-95. c Acknowledges a $2 billion shortfall in the 1992 State Transportation Improvement Program but anticipates no delays in highway projects programmed through 1994. 0 proposes $522 million for the . Department of Motor Vehicles, a ltc increase over the current year. The budget also reflects a reduction of 215 personnel years through various workload adjustments and minor augmentations for improved data collections. Natural Resources and Environmental Protection a The Governor's Budget eliminates several departments that manage the state's natural resources and reassigns their responsibilities to two newly creates departments under the California Environmental Protection 'Agency. No major environmental protection initiatives are proposed. o Eliminates the Ener Coamnission, the Integrated Waste Management Board* the State Lands Coamumission, .amid the Department of Conservation. v Establishes the Department * of 'haste Management under Cal-EPA. The newly created department is expected to assume the functions of the rntegrated Waste management Board and administer- the Recycling " program of the Department of Conservation. --11- o Establishes the Department of Energy and Conservation. under Cal-SPA. This department is expected to cars► out the functions of the Energy Commisnion, the Department of Conservation, the State Lands Commission. o Reduces expenditures for the Department of Toxic Substances• Control by $16 million and 106 positions over the current and budget pears. o Eliminates the Habitat Conservation Fund releasing revenues for General Fund purposes. This action -requires an initiative to amend Proposition 117 passed in 1990•. a Proposes to fund certain ptoJecte praviously supported by SAFCO and outer Continental Land Act revenues with the General Fund because of the weakened condition of these funds. Hoard of Control o A $44 million GF bailout • to the Restitution Fund for 1993-94 (requires legislation) . o A $23 million transfer to the Restitution Fund from the Drivers Training Fund for 1994-95. General Government o Suspends the GF- "trigger" spending reduction for 1994-95. • o Proposes reorganization and elimination of various state agencies to consolidate functionsi reduce costs and improve services, including the FrAnchise•-•Tax Board and the Board of Equalization. o No general increase for price and operating txpense costs of state departments. - o Transfers $5.3 million Unitary Fund to4thd General Fund. o Proposes tQ gave $2.3 million by eliminating . or transferring fourteen separate bond authorities# programs and commissions from the State Treasurer's Office. Sight of the bond authorities would be assigned to a new California Revenue Bond Financing Authority. The California Debt Advisory Commission Mould be eliminated and its functions transferred to the State Treasuxer'a Office. a Eliminate the Commission of Economic Development which -the administration asserts duplicates the functions of the Trade and Commerce Agency created. -12- o The administration intends to enter into discussions with County of Lou Angeles regarding the transfer of the Museum of Science and Industry from the State to the county. 0 Expansion of the performance budget. pilot project to Lnclude two additional organl.satiOnS for the 1.994-95 ' fiscal yeart the Department of Toxic Substance Control and the California Conservation Corps. o Proposes $33.7 million for the Department of Corporations, including $84.6 million appropriated in a 1993 statute to Allow the department to fulfill its new responsibi.lities with respect -to-worker•s compensation bealth care provider organisations. 0 Increases the bpdget of the Department of Insurance by $9 million and. 85 petsonnal yekare over 199344 levels. The amounts for 1993-94 and 1994-95 includes $15 million and 79 PYa for . -investigation of fraudulent worker's compensation, clanks ;4»d $2.4 million and 1.6 PYs for Investigation of frau4ulent automobile insurance claims. o Consolidate 'the California Tax Credit Allocation Committee within the California Housing Finance .Agency.' o Proposes $210 million and $31 PYe for the Daparemeant of FlausLnq and Community Development representing a reduction of 72 PYs from the previous fiscal year. NCD will receive $39-.6 million for the federal Home investment Partnership Program (HOME) for program allocation and $6 million of the State $39.3 million federal Community Block Grant. The budget includes $3.4 million in State funds to leverage $7.2 si.11ion in federal funds for farm worker housing. o $10.5 million is proposed in the capitoll outlay program dor critical fire/life safety projects in the Department of Voterana Affaires. peeblic employees o Funds a 3.5 percent Salary increase effective 1/1/95 for civil service employees in departments that provide direct public safety. 24-hour care services, or are major revenue producers ($72.7 million all funds). o Proposes no now funding for a 3.5 percent salary increase for civil, service employees in other agencies. The budget assumes provision of the 3.5 percent increase from existing resources. -13- f'-'!T 13-... J.�i' CTI'1%hYf1--.-7 171T - o proposes to cut the number of managers and supervisors in state government by- 10 percent over the next 18 months for a savings of $xS0 million ($75 mLllion GP). o Implements a pays-far-performance program for state managers far the 1994 calendar year and proposes to extend the program to superviaors effective 1/1/95. o Proposes ne new funding for merit salary increases for civil service employees. _ o Proposes funding for half-year salary fncretkees for Uniyeralty of California, Reati ngs School of the Lau and ,CniifOrnia State University employoe*. Proposes iso new funding for merit Salary increases for these employees. -14- M -14--