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HomeMy WebLinkAboutMINUTES - 05141991 - 2.1 TO: BOARD OF SUPERVISORS s gat.•••; •,.,o� FROM: PHIL BATCHELOR -'�'J ;>_; Contra County Administrator o? s Costa *z County DATE: May 14, 1991 �.. - SUBJECT: THIRD QUARTER BUDGET REPORT FOR FISCAL YEAR 1990/91 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. REASONS FOR RECOMMENDATION/BACKGROUND: This third quarter report has been prepared to inform the Board of the status of the budget, the major issues that impact the budget and any deviations from the budget plan. The County Administrator's staff has reviewed the third quarter expenditure and revenue reports for all of the County budget units. As a result of this review, we can report that most budget units are within the budget targets through the third quarter. However, some departments and budget units require special attention. These are noted below. General County Revenues General County revenues are projected to slightly exceed budgeted levels. Property taxes and sales taxes should exceed budget levels. The economic slowdown has negatively impacted the supplemental property taxes and the property transfer taxes. These two taxes' revenues are most sensitive to the slowdown in the real estate ' market. This revenue estimate assumes that we will receive approximately $7 million in revenue from property tax administration charges and jail booking fees. Currently, much of these revenues are tied up in legal actions initiated by school districts and cities. Health Services Department The Health Services Department has been pursuing an aggressive revenue generating plan to relieve a projected $2.3 million shortfall caused by the State reduction of the Medically Indigent Services Program and the Mental Health Program. As previously reported, the Department had been successful in identifying $1.7 million of the required revenue; the balance was dependent upon State Medi-Cal rate negotiations which were underway at the time of the second quarter report. The Department has since concluded the negotiations with a net revenue increase sufficient to insure a balanced budget by fiscal year end. CONTINUED ON ATTACHMENT: X YES Signature: X Recommendation of County Administrator Recommendation of Board Committee X Approve Other Signature(s)- Action of Board on:- 9 Approved as Recommended Other Vote of Supervisors: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN Unanimous (Absent�_) AND ENTERED ON THE MINUTES OF THE Ayes: Noes: BOARD OF SUPERVISORS ON DATE SHOWN. Absent- Abstain- _ Attested: /Z4 /,?,?/ cc: Deputy County Administrators Phil B chelor, Clerk of Auditor-Controller the Board of Supervisors Department Heads d County Administrator By: DEPUTY _ t Quarter Budget Report 2 May 14, 1991 FY 1990/91 l Probation, Including Juvenile Hall The high population at Juvenile Hall continued to be a program concern and budget issue in the third quarter. The average daily population was an annual high of 152 in January and decreased slightly to 145 in March. There were a total of 63 days in which the population exceeded the budgeted capacity of 140, 23 of which exceeded the health and safety limit of 154. There were 35 days of emergency release in the third quarter. Currently, due to closure of the two adjacent treatment facilities, there are 41 beds available to be added to juvenile hall capacity, however, no funds have been identified to support the additional beds. The County Juvenile Hall is currently in danger of being decertified by the California Youth Authority (CYA) because of the overcrowded conditions. On average, 43% of the youths at the hall have not yet been adjudicated. Of the remaining youths, 40% are awaiting private placement and 17% are on a waiting list for Byron Boys' Ranch. The County Administrator, Juvenile Court Judge and Probation Department management have been meeting regularly to explore alternative solutions to the overcrowding and funding problems. The Department is currently using home supervision and several types of placement programs to divert youth from the hall. Other alternatives to reduce hall population that are being discussed include establishing a juvenile transition center, utilizing out-of-State placements, increasing the budgeted hall capacity, reorganizing probation services so that juvenile probation would get more resources, establishing admissions criteria for the hall, discontinuing group home therapeutic commitments and increasing commitments to the CYA. Some of the alternatives under discussion would require additional County funds which are not available or which would need to be identified from within the Probation Department's budget. The Probation Department continues to incur unbudgeted costs which at the current rate may result in a year-end deficit of $150,000. Sheriff's Department The average daily inmate population for all the County adult detention facilities through the third quarter is virtually the same as the budgeted level: an average ADP of 1,459 compared to a budget ADP of 1,457. The department's various alternative custody programs, including County parole and electronic home surveillance, continue at a high level of operation. These programs have a positive impact on inmate population. On the other hand, a continuing law enforcement emphasis on drug enforcement contributes to a high jail ADP as well as crowded court calendars. The Sheriff's Department budget continues a positive trend for the third quarter. However, a raised ADP would have a negative impact upon the department's budget. Since the adopted budget was at maintenance level, a significant fund balance is not expected. General Assistance The General Assistance and Homeless budget has a serious budget overrun of an estimated $3 million. If current trends continue, the County will spend over $14 million this fiscal year, compared to $4.9 million five years ago. The County Administrator's Office and the Social Service Department staff will continue to work together to monitor this budget and develop alternatives to help mitigate the General Assistance budget deficit. Currently, the staff is analyzing the impact of the Appellate Court decision to reverse the Scates case in the County's favor. Other Agencies There are a• number of agencies with potential fund balance problems that will need to be carefully monitored the rest of the fiscal year. These include the Superior Court, Municipal Court, Public Defender and Community Services Department. In addition, the Grand Jury expenditures are significantly over budget. We have requested the Superior Court to review Grand Jury expenditures and take whatever action is appropriate to control further over-expenditures. `;'Third Quarter Budget Report 3 May 14, 1991 FY 1990/91 Fines and Forfeitures The under-realization of fines and forfeitures this fiscal year has created an unanticipated crisis for the County, cities and other agencies who share in the distribution of this revenue. The primary reason for the revenue problem is vehicle code fines and vehicle code priors which are about 25% behind what was expected to be realized at this point in the year. We are yet to determine the reason for the lagging revenues, but there are several theories: 1) More people are going to traffic school to avoid impacts on their insurance rates; 2) High fines and penalties are contributing to non-payment of fines, increased jail time, and increased use of alternative sentencing; 3) Fewer people are being cited by traffic enforcement officers. The theory that more people are going to traffic school cannot be supported since traffic school fee revenues are also under-realized. Court filing data indicates the possibility that fewer people are being cited in certain areas. Filings are down in the Walnut Creek Court, for example, by 6,700. The Municipal Courts are gathering data by police agency to determine if certain agencies are citing fewer people. Hopefully, this research will reveal the reasons behind the lower than anticipated vehicle code fines. The County Administrator and the Courts will continue to monitor this revenue source closely. Hiring and Purchasing Freeze The Board-imposed freeze on hiring and ordering non-critical fixed assets and other major purchase items continues. The freeze was imposed because of anticipated budget shortages this fiscal year and the need to mitigate the adverse effects of a budget shortfall. A variety of service disruptions have occurred because of the freeze and department managers have adjusted work schedules and priorities to overcome these obstacles. In spite of the problems which the freeze causes, we are recommending that the freeze not be lifted because of continued budget uncertainties. Because of the severe maintenance level of current year budgets, departmental fund balance is not expected to be a significant contributor to the FY 1991/92 budget. Continuation of the freeze is needed to maximize such fund balance. 1991-1992 State Budget The Governor and Legislature are currently working to close a budget deficit projected at $12.6 billion. Part of the Governor's budget balancing plan is to transfer a variety of programs to the counties amounting to $2.3 billion and authorize revenues to offset the additional costs of the programs. The scopt of this program realignment plan is so massive that we do not fully understand the impact on our County. Currently, several groups are studying the plan, including the CSAC State Budget Task Force, co-chaired by Supervisor McPeak. Locally, the County has formed a Program Realignment Committee, composed of the County Administrator, affected department heads, and key management staff, to develop strategy and contingency plans for implementing program changes.