Loading...
HomeMy WebLinkAboutMINUTES - 05181999 - D1 TO: BOARD OF SUPERVISORS CONTRA FROM; Phil Batchelor COSTA County Administrator ; COUNTY DATE: MAY 18, '1999 SUBJECT: THIRD QUARTER BUDGET REPORT SPECIFIC REQUEST{S}OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: ACCEPT this report and DIRECT the County Administrator to continue to monitor the budget and implement corrective plans, where necessary. BACKGROUND: Since 1984, the County Administrator's Office has prepared quarterly reports which analyze the status of the budget and highlight the budget units which deviate from the budget plan in terms of expenditures and revenues. Actions which are necessary to ensure a healthy budget by the end of the year are recommended as part of the quarterly reporting process. tither items which have major fiscal impacts are also reviewed as part of this period report. The Administrator's {office review of budgets over this nine month period indicated that the overall County budget is in a positive position. The Administrator's Office is working with Departments to bring all Departments in compliance with their budget authorizations. What follows is a discussion of five key budgets for this period. CONTINUED ON ATTACHMENT: x YES SIGNATURE; , ; RECOMMENDATION OF COUNTY ADMINISTRATOR-RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURES} ACTION OF BOARD ON s ` ` APPROVED AS RECOMMENDED OTHER SEE ADDEND01 FOR BOARD ACTION VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS(ABSENTJ '_ } TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ABSENT:_ ABSTAIN: ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Tony Enea{5-1094} CC: Social Services ATTESTED 6 Community Service PHIL BATCHELOR, ERK Health Services THE BOARD OF SUPERVISORS Sheriff-Coroner AND C 0NTY ADMINISTRATOR Trial Courts Probation BY �✓ ��.DEPUTY ADDENDUM TO ITEM Al MAY 189 1999 On this date,the Board of Supervisors considered the recommendations of the County Administrator on the Third.Quarter Budget status report. Following further discussion,the Board took the following actions: APPROVED the recommendations of the County Administrator to accept the report and direct the County Administrator to continue to monitor the budget and implement corrective plans where necessary; DIRECTED that a letter be sent to the County's legislative delegation and the Governor regarding alignment of the Governor's priorities and the actual implementation practices at the local level, especially in regard to the foster care versus Juvenile Hall placement of youth who have committed minor offenses; and REQUESTED: 1. The monetary figures used during the budget hearings be as realistic as is possible,particularly in relation to a possible increase in the demand for funds from General Assistance and Medi-Cal programs and the resulting impact on County resources; 2. That a full discussion of the Board occur before monies not specifically budgeted are expended; 3. That the budget hearings include a discussion of the Board interaction on the policy level of Workforce Development; 4. That the budget hearings 'include a discussion regarding the priorities and alternatives the Board may have regarding funds from the the tobacco lawsuit settlement and any possible grant funds awarded through Proposition 10. GENERAL COUNTY REVENUE General County revenues amount to $166 million spread over 55 accounts. The breakout by major revenue source is presented below. Amount Percentage Property Taxes $89,000,000 54% Motor Vehicle License Fees $39,547,000 24% Licenses, Fees and Charges $14,141,000 8% Earnings on Investments $9,408,000 6% Sales Taxes $8,260,000 5% Cather Taxes $5,644,000 3% At the three quarter point, it appears that General County Revenues will meet budget targets. Property tax revenue should slightly exceed budget levels, after adjusting for city redevelopment agencies, no and low city revenue losses, state mandated transfers to school districts, Board directed distributions to Crockett and Rodeo, and the estimated impact of property tax refunds. The other major revenue sources should also achieve their revenuetargets. Vehicle license fee and sales tax revenue show continued growth and a clear reflection of strong consumer spending. Property tax transfer and transient occupancy tax revenue continue to exceed budget targets and are indicators of a strong real estate market and a high level of business activity and travel in the County. HEALTH SERVICES In the second quarter, the Health Services Department reported that it was facing a revenue shortfall of approximately $3.2 million (down from $5.2 million in the first quarter) due primarily to employee salary and benefit increases. That forecast is unchanged for the third quarter. However, the tobacco lawsuit settlement is expected to yield approximately $3.7 million for calendar year 1998, payable by June 30, 2000. It is anticipated that the receipt of these funds will allow the Department to balance for the 1998-99 fiscal year. During the third quarter the Department successfully renegotiated the Medi-Cal contract between the California Medical Assistance Commission (CMAC) and the Contra Costa Regional Medical Center. Additionally, the Department participated in another round of SS 1255 thereby securing a projected net increase of$1 million in Disproportionate Share Hospital funding. While both of these actions are positive the majority of the revenue impact will not be realized in budget year 1999-00, Additionally, the Department concluded negotiations with various community-based contract agencies resulting in a $310,017 cost of living increase. The following issues may also affect the Department's year end balance; Medi-Cal Manac,�ed Care-Aid Code 38 As previously reported, as many as 10,500 Centra Costa Health Plan members could eventually be discontinued from Medi-Cal eligibility as the State proceeds with the redetermination process for members qualified under Aid Code 38. Through its various professional organizations and with the assistance of members of our legislative delegation, the department has been aggressively seeking relief from, or at least a delay of, implementation. Despite that effort, the State has issued an All-County letter to county welfare directors that essentially maintains the previous Administration's deadline of April 30, 1999 for completion of the redeterminations of eligibility. However the directive also gives the County permission to continue cases beyond the April 30 deadline if they need additional time and guarantees that the State will pay for the Medi-Cal backlog cases beyond April 30. The Health Department and Social Service Department, working together closely through an interdepartmental team to minimize the impact of this State action, have developed an outreach program for Aid Code 38 Health Plan members. Home Health Aaencv Due to federal reductions In Medicare home health benefits, the Home Health Agency has experienced a significant loss of revenue. The Balanced Budget Act reduced Medicare's per diem reimbursement rates by an average of 16% and added an annual maximum cap per beneficiary of $3,114. Over the last six months, the Department has been aggressively pursuing a plan of action to adjust the staffing levels to the available revenue base. The plan is approaching completion and the final staffing adjustments should be completed in the next two to three weeks. Physicians The County is currently negotiating with physician employee organizations whose contract expired January 1, 1999. The Department's approved budget does not currently include funding for CELLA increases for physicians. The financial impact on this year's budget will depend on the final agreement. The Health Services Department and County Administrator's office will continue to monitor expenditures and revenues and to provide the Board of Supervisors with appropriate recommendations for corrective action if necessary. SOCIAL SERVICES The Social Service Department continues to project a balanced budget for fiscal year 1998-99. Shortfalls in financial support accounts are expected to be offset by surpluses in administration. The third quarter report reflects efforts to establish staffing levels commensurate with new State and Federal funding levels. It also includes actions by the department to meet facility needs due to the expansion of existing programs and to make necessary repairs. The status of Social Service's budget units can be summarized as follows. Aging and Adult Services Adult Protective Services, which received a $937,000 augmentation in the second quarter, is in the process of ramping up to full staffing; however, progress has been slow due to lack of qualified candidates. The SSI Advocacy program is now fully staffed and the CAR (Cash Assistance program for Immigrants) is operational. Since January, 45 Immigrant and non-immigrant General Assistance recipients have obtained permanent SSI benefits. In addition, the division is working with Employment Services to establish a program to refer appropriate TANF'clients to the SSI Advocacy Program. Children and FamilServices Although increasing, staffing in Children's Services is still below the target FTE level due to lack of qualified candidates. Expenditures in this division are also being driven by the accelerated pace of child care expenditures. With 66% of the year completed, 48.2% of the funds have been expended (with additional costs expected to accrue through August 1999 with the close out of the fiscal',year). Employment Services The Department recently submitted documentation to the state that qualifies it for approximately $6.2 million of incentive funds for achieving diversion and grant reduction targets in CaIWORKs. These funds will need to be expended on CalWORKs activities prior to September 30, 1999. Financialuport Consistent with the department's success in employment services, caseloads are declining in TANF cash assistance cases and public assistance food stamp cases. Cash assistance declined by 1,563 cases (11.6%) between February 1998 and February 1999. Public assistance food stamps cases declined by 2,369 (17.4%) during the same time period. Parallel to the decreases, the number of Medi-Cal cases for the working poor are on the rise. Overall, Medi-Cal increased by 2,229 cases (12%) between February 1998 and February 1999. Bath TANF faster care and General Assistance tester care programsare over budget; $77,890 and $238,412, respectively. Increases in TANF foster care casts reflect the 6% cast of living increase granted by the state and increased numbers of higher cast placements (driver; by the difficulty of the child). Caseloads are currently unstable as well, going from 1,800 cases in Mune 1998 to 1,770 in August and 1,894 in March of 1999. Additionally, General Assistance foster care has experienced significant increases in average caseloads and cost per case. The average monthly cost per case has increased from $179 per month to $329 for the same periods. As a consequence, average monthly casts have increased from $15,529 to $35,824 (130%), general Assistance foster care is particularly costly to the County since these children are ineligible for either state or federal aid. The Department and County Administrator's Office will continue to keep the Board apprised of issues as they develop within the department. SHERIFF-CORONER The Sheriff Coroner Agency is within acceptable expenditure levels through March 31 of fiscal year 1998-99. Patrol and Operations gross expenditures were 73% and Custody Services' were 72%. Figures for the Custody Services' division include an excess of$5 million in bailiff costs that are Trial Court Funding eligible expenses reimbursed by the Courts. As a trial court eligible cost, any over-expenditure in this area is a matter of Court concern and not a general fund obligation. The Coroner division has experienced 80% in net expenditures for the reporting period, has exceeded targeted revenue for the period, and is expected to be balanced by year-end. The Office of Emergency Services is well within acceptable levels at 61%. Actual revenues received through March 1999 were $24,109,582 for Patrol and Operations and $14,735,697 in Custody Services, 58% and 61% of budget respectively. Sales-Tax Public Protection revenue was budgeted County-wide in the amount of$44,003,223 and is expected to be realized by year-end. The Sheriff-Coroner Agency receives 82.6% of this revenue and the District Attorney receives the balance. Contract City'revenues, which historically lag, generate 27% of the Sheriffs $38,948,273 budgeted for Patrol and Operations. These revenues, which are currently at 64% of budget, will be received by yearend. The Department is maintaining control of expenditures and is expected to achieve a balanced year-end budget. PROBATION Expenditure data for the first three quarters of the fiscal year show that the Probation Department is 76% expended. However, the lag time in the finance reporting for certain expenditures such as private placements, California Youth Authority fees and interdepartmental charges give the appearance that spending is close to target when, in fact, spending is significantly higher than anticipated levels. Projected revenues, however, are expected to fully offset project cost overruns. Based on the third quarter financial data, the Department is expected to finish the year with a fund balance. The high rate of spending is primarily due to the excessive population at the ,Juvenile Hall; the ACIP at the Hall averaged 162 during the third quarter, reaching a height of 179 at times, as compared to the budgeted population level of 160. Admissions in both March and April increased by 33% over the prior three months, making papulation management an even greater challenge. Since about one third of the Hall population is awaiting placement at the JAYRF (Boys' Ranch), the Hall experienced a temporary respite from crowded conditions when the new 26-bed Boys' Ranch dormitory opened in February. However, within two months of the opening of the dorm, the Hall population rose once again to excessive levels. The Department is seeing an increase in at risk juveniles with minor offenses who the court will not return to the home because the home is deemed unfit. These juveniles would normally be in the foster care system, but because of the minor offenses are now diverting to the justice system, This trend has contributed to the high number of juveniles in the County's system. The 20-slot boys' transition program slated to open at the old Pride House beginning in June and the 10-bed Tamalpais expansion scheduled to opera in November are expected to alleviate crowded conditions at the Hall. Additionally, the department continues in its efforts to reduce the population by placing appropriate juveniles on home detention. In addition to juvenile detention costs, juvenile placement costs are expected to exceed budgeted levels. The Department continues to work diligently with the Juvenile Court to ensure that all placements are appropriate and absolutely necessary. Actual revenues appear low at 55% realization due to the customary lag time in the receipt of state and federal revenues. For example, several grant revenues are received late because of the need to submit reimbursement claims. Projections based on third quarter reimbursement claims indicate that revenues will be realized at a level high enough to offset projected cost overruns. The Probation Department has been prolific this year in securing grant funds to support new or enhanced programs. In the 2nd Quarter Report, we reported that the Department was successful in securing a grant award of$110,000 per year for three'years to fund two positions to enhance the Domestic Violence Unit. During the last quarter, the Department worked with the County Administrator to secure $22.2 million in juvenile detention facility construction funds to build a new juvenile hall. The Department also secured the Mate Board of Corrections Challenge 11 grant in the amount of $3.1 million'over three years (beginning July 1, 1099) to fund three community-based day treatment centers (East, Central and West County) for at-risk girls. The treatment centers are a collaboration amongst community-based organizations, the Department of Education, and the Probation and Health Services departments. It is intended that this program will "wrap around"those services to be provided through the Chris Adams Girls' Treatment Program, scheduled to open later this year. Additionally, the Department secured funding for an additional Domestic Violence position and an Adult Drug Court position (both with Federal funds), and was able to obtain state funds to subsidize the cost of monitoring group home placements.