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HomeMy WebLinkAboutMINUTES - 05081990 - 2.2 ✓ TO: BOARD OF SUPERVISORS FROM: PHIL BATCHELOR Contra County Administrator Costa DATE: May 4, 1990 . County TwcbilN • SUBJECT: THIRD QUARTER BUDGET STATUS REPORT, FISCAL YEAR 1989-90 Specific Request(s) or Recommendations(s) & Background & Justification RECOMMENDATION: Accept this report and direct the County Administrator to continue to monitor the budget and implement corrective plans, where necessary, including implementation of the freeze imposed April 17, 1990. BACKGROUND: The County Administrator's Office has prepared quarterly budget status reports over the last five years. The purpose of these reports is to inform the Board of major issues, deviations from the adopted budget plan, and productivity measures, thus allowing the Board to make decisions to ensure a well-managed, balanced budget. This third quarter report continues the practice of reporting the status of those major issues that have been identified in previous quarterly reports. As reported in the second quarter report, CAO staff has worked closely with Department staff to monitor the success of required reduction plans. As a result, we can report to you that most budget units are within the budget targets for the second quarter. During the 4th quarter, strong emphasis will be on implementing the freeze on various personnel actions and purchasing imposed by your Board on April 17, 1990. We are hopeful that action taken pursuant to the freeze will produce further savings and increase the fund balance which will then be available for funding the FY 1990-91 budget. The issues and budget units which merit special attention in this quarter's report are: General County Revenues General County revenues are projected to slightly exceed budgeted levels. Property taxes, supplemental property taxes and the real property transfer taxes should exceed budget levels. This is primarily due to the continued, relatively strong real estate market in the County--most notably residential sales and resales. However, sales tax revenue should be under-realized essentially because of a general slowdown in retail sales, particularly auto sales. CONTINUED ON ATTACHMENT: X YES Signature: X Recommendation of County Administrator Recommendation of Board Committee X Approve Other Signature(s)- Action of Board on: May 8, 1990 Approved as Recommended X Other Vote of Supervisors: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN X Unanimous (Absent AND ENTERED ON THE MINUTES OF THE Ayes: Noes: BOARD OF SUPERVISORS ON DATE SHOWN. Absent- Abstain: Attested: $, /990 cc: County Administrator Phil BaV-helor, Clerk of Auditor-Controller the Board of Supervisors and County Administrator By: Y.& DEPUTY u fihird-Quarter Budget Status 2 May 4, 1990 Report, Fiscal Year 1989-90 Health Services Department The Health Services Department is projecting a balanced budget for fiscal year 1989-90. The hospital in-patient census levelled off during the second quarter but is again on the rise to historically high levels. Medical outpatient visits also continue to increase. The total outpatient visits recorded for March 1990 were 17,969. In order to address the increased outpatient workload, convenience hours are being added at the clinics through the use of AB-75 tobacco tax revenues. Social Services Department - General Assistance Expenditures in the General Assistance (GA) budget are expected to exceed budgeted levels by approximately $2.3 to $2.4 million. Eighty-seven percent of funds budgeted for General Assistance have been expended, although only 75% of the fiscal year has passed. Three factors largely explain this overexpenditure. First, as authorized by the Board of Supervisors on September 12, 1989, General Assistance benefits were increased by an average of 18%, effective November 1, 1989. Second, the average grant for employable GA recipients is 25.3% higher than the budgeted level. Finally, with 75% of the fiscal year expended, 159% of funds budgeted for emergency assistance payments have been expended, due to the Superior Court's orders in Scates v. Rydingsword and Randolph v. County of Contra Costa, which have required the Social Service Department to continue the emergency assistance program beyond September 1989. The County Administrator's Office and the Social Service Department will continue to work together to monitor this budget and to develop alternatives to help mitigate the General Assistance budget deficit. Sheriff's Department The average daily population (ADP) for all the County adult detention facilities through the 3rd quarter continues to be less than the budgeted level, i.e. , an ADP of 1,381 versus a budgeted ADP of 1,410. The Sheriff's Department budget situation for the 3rd quarter continues a positive trend and it is anticipated that the Department will successfully implement its budget reduction plan. The Department's actual expenditures are close to the projections developed by this Office in cooperation with the Department. Probation Department The Probation Department's budget continues a positive trend. The Department should finish the year with a positive balance. There are still many challenges confronting the Department. The average daily population (ADP) at Juvenile Hall has been hovering between 136 and 145. If this trend continues, Probation may be required to re-open the remaining portion of the Monticello unit, which is opened now only part of the day. The Juvenile Hall ADP is being closely monitored. The Department has taken steps to keep Juvenile Hall population at a manageable level. Conflict Defense Services As reported to the Board of Supervisors on April 24, this budget unit will be significantly overspent due to increased workload. This Office is exploring alternatives to control costs. Superior Court The Superior Court will be significantly in deficit because of undercollecting of revenue and overspending in professional services, particularly in outside attorney fees in juvenile and capital cases. The County Administrator will be working with the Superior Court to restore balance in this budget. The Court has indicated that it will try to seek SB 90 reimbursement for capital cases. Impact of State Budget on County's Fiscal Situation The State Department of Finance recently announced a projected revenue shortfall of approximately $1 billion, based upon income tax receipts to date. If this projection holds through the May revision of the budget projections, the $1.9 billion shortfall anticipated in the Governor's budget for 1990-91 will be considered more seriously by the Legislature. Many of the measures recommended by the Governor's Office to balance next year's budget would be felt directly by the County. In developing the Proposed 1990-91 Budget however, it was assumed that these proposals would not be approved by the Legislature. If the Legislature does approve any of the Governor's proposals, next year's County budget would be in further jeopardy. The outcome of State budget deliberations will probably not be completely clear until summer. Revisions to the Proposed Budget may be made at that time.