Loading...
HomeMy WebLinkAboutMINUTES - 05091989 - 2.2 TO: BOARD OF SUPERVISORS �r1 Contra FROM: Phil Batchelor, County Administrator Costa n. Is DATE: May 9, 1989 County COON SUBJECT: THIRD QUARTER BUDGET REPORT FOR FISCAL YEAR 1988-1989 SPECIFIC REQUEST(S)OR RECOMMENDATIONS)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1 . Accept this report which details the major financial concerns that are facing the County due primarily to inadequate State and Federal funds to operate mandated programs and additional reductions currently being considered in Sacramento and Washington. 2 . Adopt the attached resolution implementing an immediate freeze on the filling of positions and a discontinuance in ordering all non-critical fixed asset and other major purchase items. 3 . Direct the County Administrator to continue to monitor the County' s fiscal condition and to report back to the Board with progress reports as appropriate. BACKGROUND: During the last four years the County Administrator' s Office has prepared quarterly budget status reports to inform the Board of major issues and deviations from the budget plan. During this period of time the Board has given policy direction that has allowed the budget to remain in balance and has directed that appropriate actions be taken to maximize productivity and reduce costs to the greatest extent possible. This has resulted in a restoration of high credit ratings, a budget that is in balance and expenditures and revenues that have been closely monitored. However, these results have not come without cost. Your employees have been continually asked each year to do more with the same or less resources. Therefore, when the State recommends continued reductions in underfunded programs for the 1989-90 fiscal year, it becomes very improbable that the County can simply tighten its belt any more. L� CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON May 9, 1989 APPROVED AS RECOMMENDED X & OTHER X Philip Bertenthal, Contra Costa Legal Services Foundation, commented on the need to assure adequate staffing of the eligibility workers unit of the Richmond Social Services office. The Social Services Director is REQUESTED to report to the Board On June 13, 1989 on steps taken to mitigate staffing problems in the Richmond office. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X 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 CAOS ATTESTED 9 19 8 9 Department Heads PHIL BATCHEL R,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) BY DEPUTY Unless changes are made in what is currently proposed by the Administration in both Sacramento and Washington for the next fiscal year, the County is potentially facing one or more of the following: -- The massive reduction in Federal funding for subsidized housing has resulted in the County' s having to assume the burden for an ever-increasing number of the homeless. -- The number of employable individuals receiving General Assistance is 21 percent higher for 1988-89 than was budgeted, and the expenditure for emergency assistance for the homeless is currently 191 percent over the appropriated amount. Together the General Assistance and AFDC increases exceed current budgeted estimates by almost $1 million for 1988-89. Unless some steps are taken by Washington to help alleviate this problem, the County continues to try to absorb the staggering increase because it is mandated to do so in spite of the fact that inadequate State or Federal assistance is provided to help with the homeless. -- The Governor' s budget is proposing severe cuts in County Justice System Subvention Program funds. If the reductions currently proposed are realized, Contra Costa County will lose at least $1.1 million. This could potentially result in the closure of the Boys' and Girls' Treatment Centers as well as the loss of funds to County departments and community organizations such as Battered Women' s Alternatives, Friends Outside, etc. These reductions would come over and above the current budget problems which the County is experiencing because of Juvenile Hall overcrowding. The requirements to reduce the overcrowding in Juvenile Hall as ordered by the State of California have overtaxed the Probation Department' s budget by approximately $321,000 for the current year. The loss of the subvention funds will only exacerbate the problem and reduce the flexibility to reduce overcrowding in the Juvenile Hall. -- The rapid increase in the jail population has been a continuing problem that the County has struggled to finance during most of the last decade. The anticipated opening of the West County Justice Center in the next fiscal year will reduce the overcrowding in the existing facilities, but requires an additional $9. 8 million to operate. It was anticipated that relief for jail operations would come through trial court funding. However, the net benefit from trial court funding ( after the no and low property tax cities and the Superior and Municipal Court requirements are met) is inadequate to fund the new jail. It is anticipated that less than fifty percent of the cost of operating the jail can be met from trial court funding. -- The Governor' s budget proposal contains severe cuts in the health care field including a reduction of $359 million in the Medically Indigent Services Program. The Administration' s proposal includes a backfilling of these funds with newly generated tobacco tax revenues which were approved by the voters as an initiative in November 1988. It was anticipated that these funds would be available to assist in replacing the current facilities that are aging and in much need of repair. -- The Governor' s proposed budget also suggests alternative reductions in local mental health services which exceed $200 million. It is unclear at this time the extent of the proposed cuts which will actually be realized once the State Legislature has acted. Nor is it clear what formula will be utilized in making the reductions. If the full impact of these mental health cuts were realized, it is anticipated by our Health Department that Contra Costa County could potentially receive as much as an $8 million reduction. This is disheartening when you consider the tremendous problems currently facing our community in the area of drug and alcohol addiction and mental health. -2- C Because of the current challenges facing the County and the actions proposed by the State and Federal Government which currently finance approximately fifty percent of our budget, it is necessary to take some actions at this time. For this reason it is recommended that a freeze be placed on the filling of all permanent and temporary County positions. It is also recommended that an absolute control be placed on the use of overtime and a freeze be placed on the purchase of all fixed asset items and major purchases which are not of a critical nature ( see Attachment A) . -3- ATTACHMENT A TO: _ BOARD OF SUPERVISORS Contra FROM: Phil Batchelor, County Administrator Costa s County DATE: May 9 , 1989 co—S SUBJECT: implementation of Expenditure Reduction Measures for FY 88/89 SPECIFIC REQUEST(S)OR RECOMMENDATION($)&BACKGROUND AND JUSTIFICATION RESOLUTION NO. 89/304 Whereas the County Administrator has advised that financial projections for 1988/1989 indicate a County wide fund balance shortfall of $3-5 million and that a comprehensive strategy is being developed for necessary budget actions to increase revenue and reduce expenditures; and Whereas pending the implementation of these actions, it is necessary that immediate steps be taken to curtail expenditures in all departments; now therefore The Contra Costa Board of Supervisors, only in its capacity as the governing body of this County RESOLVES THAT: A. The following personnel transactions are frozen effective close of business at 5 : 00 p.m. on Tuesday, May 9 , 1989: 1 . The transactions listed below are frozen for all classified, project, and exempt positions; and are not authorized or permitted except as provided herein: a. New hires b. Rehires from re-employment lists C. Provisional appointments d. Temporary appointments e. Temporary contract employments f . Short-term/temporary higher skill level reassignments within deep classes g. Increase in hours h. Overtime CONTINUED ON ATTACHMENT: YES SIGNATURE: �SN✓Y✓`r� RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMI TEE __APPROVE OTHER SIGNATURE(S): O ACTION OF BOARD ON May 9, 1989 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE _X__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: All Department Heads ATTESTED /76 9 Budget Staff PHIL SATC LOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR M382 (10/88) BY DEPUTY -4- Y 2 . For the duration of this freeze, departments shall plan their staffing coverage for vacation, sick leave and other vacancies to avoid incurring higher pay for work in a higher class or short-term or temporary higher skill reassignments in deep classes obligations under any Memorandums of Understanding by rotating a number of staff through a vacant assignment or splitting the responsibilities of a vacant assignment among several employees. 3 . For the duration of this freeze, departments shall plan their staffing coverage for vacation, sick leave and other vacancies to avoid incurring overtime obligations under any Memorandums of Understanding or the Fair Labor Standards Act. 4 . Personnel transactions listed in Section 1 above which are delayed by imposition of this freeze will not be made retroactively after the freeze is lifted. 5 . Subject to review of individual actions by the Director of Personnel and final determination by the County Administrator, the following personnel transactions are not restricted by this freeze: a. Appointments from outside County service only, for which an appointment commitment has been made prior to May 9, 1989 and documented by the appointing authority. b. Merit increments as approved by the appointing authority, including outstanding performance increments provided for in deep classes. C. Individual promotions, flexibly staffed promotions, promotional or upward level skill reassignments within deep classes and reallocations, transfers or reclassifications by P-300 or other resolution. d. Extensions of current temporary, provisional, and pay for work in a higher class appointments/reassignments and contracts for temporary help which were in effect on May 9 , 1989 and which are continuations of status quo staffing for a specific purpose and assignment already staffed in the same or similar manner and for which the appointing authority has provided documentation of that situation. e. Personnel actions agreed to or committed as a part of a dispute settlement, court order, lawsuit, grievance or appeal. f. Job related differentials, including bilingual pay, word processing differential and video display terminal operator differential, as approved by the Director of Personnel, and other differentials and incentives for management employees. g. Specific personnel actions required by law, based on public health and safety requirements or in consideration of emergency operational consequences, if supported by appropriate written documentation from the requesting department. h. Positions financed fully by revenue production or which are 100% funded from non-County sources, if supported by appropriate written documentation from the requesting department. -5- B. The Board additionally directs a freeze on contracts for services , unusual or expensive supplies as identified by the County Purchasing Agent, building acquisition and alterations, and acquisition of capital items and new equipment effective close of business May 9, 1989. Exceptions to this freeze may be authorized by the County Administrator based on health, safety or legal requirements, revenue production, and proposed use of other financial resources available for payment, or outstanding contractual commitments with documentation and reasons submitted by the department head. C. This freeze may be terminated on a departmental basis by the County Administrator for personnel transactions and/or other expenditures noted in B above. D. The Employee Relations Officer shall give notice of this Resolution to all recognized employee organizations. 1 . To the extent that the subjects of this Resolution are within the scope of representation under the Meyers-Milias-Brown Act (Government Code Section 3500 et seq. ) , the County offers to meet with any recognized employee organization upon request concerning this Resolution. 2 . Recognized employee organizations may submit to the Employee Relations Officer written requests to meet and confer on specific proposals with respect to this Resolution. This authorization and direction is given without prejudice to the Board' s right to implement a personnel freeze or reduce or terminate operations or services of the County and to eliminate classes of employees or positions, as involving the merits, necessity, or organization of services or activities of the County and not within the scope of representations. E. Without this freeze on personnel transactions, and on service and other contracts, ongoing unfunded expenditures could result in an unbalanced budget for 1989-90, which would not be legal under the County Budget Act. Therefore, this resolution is enacted without prior notice, as an emergency measure pursuant to Government Code 3504 . 5 , effective immediately. -6-