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HomeMy WebLinkAboutMINUTES - 05202003 - SD2 ? S TO: BOARD OF SUPERVISORS CONTRA FROM: John Sweeten,County Administrator -� - COSTA .r COUNTY DATE: May 20,203 SUBJECT: State Budget May Revise SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONM: ACCEPT the oral report of the County Administrator on the California State Budget May Revise BACKGROU YD/REASON' S FOR RECOMMENDATION (S): Each year, the Governor issues his revisions to the January State Budget Proposal in mid-May called the "May Revise." The May Revise revises the estimates of revenues and expenditure needs for the State of California for the coming fiscal year, as well as the Governor's proposed spending plan. Recent reports indicate that the May Revise may indicate a need for cuts even deeper than proposed in the January budget. Most expect that County government will bear a substantial portion of the cuts necessary to balance the state budget. The May Revise will provide insights into the Governor's latest thinking on his budget balancing plan as it affectsContra Costa County. CONTINUED ON ATTACHMENT: —YES SIGNATURE: f RECOMMENDATION'OF COUNTY ADMINISTRATOR_,RECOMMENDATION Off F r COMMITTEE PROVE ,OTHER SIGNATURE MY ACTION OF BO 1sw i 9l3f3 APPROVED AS RECOMMENDED , OTHER VOTE OF SUPERVISORS UNANIMOUS(ASSENT Goin I I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF Note: District IIT Seat Vacant SUPERVISORS ON THE DATE SHOWN. Contact: Sara Hoffman,335-1090 ATTESTED�v,0, 2W3 cc: CAO JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY, b�'�, t.... DEPUTY h �� ��` r +r F�! '�"fes '^FM'2t"dr r, `4o4 pant on County Services Mate Budget Gap was $34.6 billion now$38.2 billion Budget Balancing Strategy -0000 ➢Borrowing,one-time revenues >New takes ➢Program realignment,reductions 1 ....................................................................................................................................................................... ........................................................................................... S,0 Vehicle license Fees (VLF) sumes trigger pulled *. .Thning not certain . . .Funding gap concern 45.2 million-CCC General Purpose Revenues 17.7 million-CCC Current Realignment Revenues $1.8 Billion Realignment Funded by 10.3%Personal Income Tax 23C/pack tobacco tax(03-04) 63C/pack tobacco tax(04-05) oposed ReaUgned Programs Current P-posed resat Share Lmd MH aMdren's 4,steut of care -0- 100% $20M MR Homeless Adults DaMrated Services .0- 100% S55M COFbIlMINu-se(CAPM -0- 10096 112M Car Foster Cam Graits 6096 8096 S237M F p .X Car *net Care Admin 30% SON $11M C:"".If hild Welfare Services 30Y. 50% $197M t Protectwe Svcs MOE 100% $61M Calwom Grants 2.5% 3G% $782M CaiWORKs MOE 30% MOM EMOwment Services Admiulatration 2 Concerns - ReaUgnment ➢Caseload Growth ➢Adequacy of Revenues ➢volatility of Revenues ➢Lag in Revenue Start-up P : -$30.5 Million [From $56.9 million in 00-01 to $I.0 million in 03-04 ut $1.39 M to $25,000 for CCC Na payments for 34 mandates -open Meetings Act-repeat 03-04 -26 Mau&tes-repeal 04-OS - 7 mandates-suspend January est. $4.8 million toss to CCC 3 C h -$31 Million own Toss-CCC Courts do not track these separately � 4 17% fee increase est $150-180,000 cost to CCC { =25% share of cost =$51.8 Million charge est. $'1.34 million cost to CCC 4 )f C `.R 'a. iy5,.; y.5` as'+✓��'�5�' '�.�ro t 3%increase-Managed Care Plans 3.8%increase-Long-term care rates I5%decrease-Medi-Cal provider rates $35.6M increase-County administration $23 Mone-time increase-Indigent Health Care(Prop 99) 4 d C�� +$69M federal monies, as required by federal law(AB3632 services) $120M cost to counties .. . and growing est.$1.6 M lost mandate reimbursement to CCC $7.2B>total in 02.03 $7-OR proposed for 03-04 -Lower caseloads,-$307M .Fewer employment services,485M ,Child care counted in TANF MOE,-S57M t ; r$24.I M net loss for CalWt7RKs' 3 stages -More for welfare-to-woork *Reliance on orae-bine revenues *,Program changes reduce services, l nft eligibility,acid family share- of-cost *$938M'loan" from Transportation Fund to State General Fund +$87M of spillover S diverted to State General Fund +$207M to Traffic Congestion Relief Fund for 121 of 141 existing projects(vs. Assembly$546M) est. $2.9M loss to CCC for local projects I Will � a • Subject Redevelopment to ERAF (property tax slut to schools) • 25%in O3-04,increasing 5%per year est. $906,700 lass in 03-04, $2.8M with full shift ------------ ➢Timing critical >No structural solution ➢Legislative responses 7