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HomeMy WebLinkAboutMINUTES - 03271984 - 1.44 'TO: BOARD OF SUPERVISORS . Contra}} FROM: C. E. Dixon, Interim County Administrator WSIa DATE: March 27, 1984 C" ply SUBJECT: AB 3108 - Financing of the Operation of Costs of the Trial Courts SPECIFIC REQUEST(S) OR RECOMMENDATION(S) $ BACKGROUND AND JUSTIFICATION RECOMMENDATION Board of Supervisors support in concept AB 3108 and the companion bill which is ` identical at this point, SB 1850 , for the financing of the operational costs of the trial court system in Contra Costa County and monitor them care- ` fully as they progress through the legislature. BACKGROUND During March, 1984 this office conducted meetings and discussions concerning AB 3108 and SB 1850 in order to evaluate the impact on Contra Costa County. The bills are identical at this point; however, careful attention must be given to watching the progress of both bills as they move through the Legislature. The bills would enact the Trial Court Funding System of 1984 which would establish a program of State funding of trial courts on a county option basis. Revenues received by the courts in option counties from filing fees , fines and forfeitures and penalty assessments and surcharges with specific exceptions would offset State funding. You will find the following attachments: 1. Schedule A entitled State Block Grant Available for Contra Costa County for Court Buyout, totaling $15, 832 ,339. 2 . Schedule B entitled Estimated Court Costs Subject to State Buyout, totaling $16, 133,200 based on fiscal year 1983-84 appropriations. 3. Schedule C entitled Court Funding Proposal Worksheet which shows total revenue loss on page 1 of $6 ,777,100 and additional revenue loss to the cities within the County of $1, 416 ,575 on page 2, which revenues are extracted from actual revenues received for fiscal year 1982-83. AB 3108 requires that the gross total block grant owing to an option county shall be expended by the County for court operations. Therefore, the State block grant available to Contra Costa County is $15 ,832,339; and the offset to this amount is shown on Schedule C and mentioned above which is a combination of the total revenue loss of $6,777,100 and $1,416,575, or a total of $8,193,675. The net amount of money due from the State of California based on these preliminary calculations would be $7, 638, 664 ($15,832, 339 minus $8 ,193, 675) . AB 3108 states the net total block grant CONTINUED ON ATTACHMENT: X YES SIGNATURE LL��/n RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVIS S ON THE DATE SHOWN. CC: County Administrator ATTESTED o2 J.R. OLSSON. CO NTY CLERK AND EX OFFICIO CLERK OF THE BOARD 000113 ,.l M362/7-83 BY DEPUTY 2. dispersed shall equal the gross total block grant owing to a County less any and all revenues collected or collectable from filing fees, fines and forfeitures owing to the State as provided in this chapter or as otherwise provided by statute. County departments that participated in the discussions concerning these bills reached the following conclusions and raised certain questions which are as follows: 1. Financially this .appears to be beneficial to Contra Costa County in that it would receive $7. 6 million in new revenue. 2. Under the provisions of the bill the County would have to assume the judges' retirement system which is a cost in the range of $520,000 to $1,300, 000 a year in addition to costs currently expended by the County. There is considerable information available that the State judges ' retirement system is vastly underfunded and the counties should receive clarification as to who would be responsible to properly fund the retirement system. Currently retired judges are being paid their retirement salaries on a , pay-as-you-go basis and there is no funding available for future years. 3. As can be seen from Schedule C, the cities are financially impacted by loss of revenue. There is some information that efforts will be made to restore this revenue through other legislation. 4. The bill provides for the State Controller and Judicial Council to adopt pertinent rules and regulations to implement this statute. This can become cumbersome to the County in that we may have many State regulations that will have to be followed and increase the difficulty of administering programs. 5. It is felt that the block grant should be given to the counties in advance in order to fund the trial court system as is intended by the bill instead of having to fund it with County money and be reimbursed at a later date by the State. This bill could put Contra Costa County in a serious cash flow problem. 6. Provisions are included in the bill that stipulate, "by accepting state funding of trial courts, the county agrees to perform all duties and provide services required by this chapter and all other provisions of law. " This may indicate that more duties would be mandated to counties and the escalation of the block grant would not keep pace with these added services. Schedule B shows the estimated costs of court systems that are includable in this legislation already exceed the State block grant calculation shown on Schedule A. 7. There is nothing in the legislation that guarantees the State will provide final settlement to the counties within a certain time .�period. This again can cause cash flow problems to counties. 8. It is not clear what, if any, interdepartmental charges such as Personnel, County Counsel, County Administrator and other County departments can be included in the calculation to determine the cost of operations. This may be a moot question in that the estimated court costs shown on Schedule B, which include direct costs, already exceed the block grant calculation shown on Schedule A. 000114 3. 9. AB 3108 is in error on page 8. It does not indicate the two municipal court commissioners in Contra Costa County. 10. There is a question concerning whether or not the State block grant funds could be used for lease purchase of new court buildings and facilities. 11. The County is concerned whether or not accounts receivable that would be on the books at the time this new program would go into operation when collected would have to be applied against the State block grant. 12. There is concern that being the cities lose most of the vehicle code fine money that they will lose incentive to enforce vehicle code violations. 13. An incentive of 10 percent in new revenues collected is built into the legislation for future years to be kept by the County; however, it is felt that this is not a great incentive to continue the effort toward improved court efficiency. CONCLUSION This bill should be watched very carefully; also its companion bill. There is a definite financial advantage to Contra Costa County to support the legislation as it currently reads with clarification of many of the items that have been listed above. 000115 SCHEDULE A 3/8%84 STATE BLOCK GRANT AVAILABLE FOR COUNTY BUYOUT SB 1850 TYPE JUDICIAL POSITION NO. RATE AMOUNT Superior Court Judges 15 $473 ,703 $ 7 , 105,545 Commissioner & Juvenile Court Referee 3 461 ,646 11384 , 938 Municipal Court Judges 14 461, 185 6 ,456 , 590 Municipal Court Commissioners 2 442 , 633 885 ,266 TOTAL AVAILABLE $15 ,832 ,339 �` 000116 SCHEDULE B 3/8/84 ESTIMATED COURT COSTS SUBJECT TO STATE BUYOUT SB 1850 DEPARTMENT F.Y. 1983-84 BUDGET OR ESTIMATED COSTS Superior Court $ 21951, 910 Mt. Diablo Muni Court 1, 975 , 990 Bay Muni Court 2,067 ,480 WC-Danville Muni Court 1,832, 320 Delta Muni Court 822 ,500 Subtotal Budgeted Court Costs 9,650,200 County Clerk (Pro-Rata Costs) 2 ,200 , 000 Marshal (Pro-Rata Costs) 1,085 ,000 Sheriff (Pro-Rata Costs) 1,0331000 (1)Judges Salaries (paid by state) 865 ,000 (1)Judges Retirement (range of $520,000-$1, 300, 000) 1, 300,000 TOTAL ESTIMATED COSTS $16 , 133, 200 (1) Retirement costs and Judges salaries (85%) currently paid by State of California. Retirement cost is unclear, higher amount is used. f' 000117 SCHEDULE C ' 3/8/84 State Court Funding Proposal Mork Sheet County Revenue General Fund - 100300 Walnut Creek-Danville Municipal Court $1, 165, 700 Delta Municipal Court 394, 300 Mt. Diablo Municipal Court 975, 100 Bay Municipal Court 944,000 Superior Court 900,000 County Clerk 1,365,000 Probation: Superior Court Fines 70,000 Administration Fees 30,000 Sheriff- Alcohol Testing 305,000 Total General Fund $6,149, 100 Fish$ Game Fund - I10200 8,000 Road Fund - 110800 330,000 Hospital Enterprise Fund - 145000 1463.16 P.C. Alcohol Program Services 290,000 Total Revenue Loss $6, 777, 100 Additional Expenditures Superior Court - Judges Salaric, 864,000 Potential Revenue Loss and Increased Expenditure $7,641,100 *Costs for Judoes Retirement have not been included in the above cost of judges salaries. The potential expense for Judges Retirement is unclear, however with the information available it has been estimated at $520,800, (26.04% of payroll) if the County does not have to assume the liability for unfunded obligations. If the county assumes the unfunded liability the cost would be approximately $1,362,400 (68.12% of payroll) . r 000118 CITY REVENUE LOSS Based on 1982/83 Revenue TOTAL REVENUE TOTAL REVENUE LOSS OF REVENUE CITY 1982/83 UNDER SB 1850* TO CITIES Clayton $ 6, 121.14 $ 1, 743.52 $ 4,377.62 Concord 316, 923.34 102,378.38 214,544. 96 Martinez 117, 348.44 31, 149.34 86,199. 10 Pleasant Hill 118,401.36 30,995 .20 87,406.16 E1 Cerrito 75,099.66 19,463.13 55,636.53 Hercules 19, 984.48 5,327.SS 14,656.93 Kensington 10,322.84 2,400.66 7,922. 18 Pinole 60,785 .59 17,606.05 43, 179.54 Richmond 328,030.79 94,546.23 233,484.56 San Pablo 53,719. 21 14,028.91 39,690.30 Lafayette 96,939. 10 23, 183.98 73, 755 .12 Mbraga 22,578.96 5,670.92 16,908.04 Walnut Creek 458,095 .91 133,611.56 324,484. 35 Danville 12,421.18 2, 888.65 9,532.53 Antioch 128, 804.33 33,318.85 95,485 .48 Brentwood 17,039.39 5,684.05 11, 355.34 Pittsburg 125,698.69 27, 742.88 97, 955 .81 TOTALS $1,968, 314.41 $ 551,739.86 $1,416,574.55 *Total Revenue under SB 1850 includes revenue not to be credited to the State of California. f` 000119