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2010-2011 Midyear Budget Report & 2011-2012 Budget Outlook Update March 1, 20111.

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Presentation on theme: "2010-2011 Midyear Budget Report & 2011-2012 Budget Outlook Update March 1, 20111."— Presentation transcript:

1 Midyear Budget Report & Budget Outlook Update March 1, 20111

2 First Quarter Report Current Year Budgetary Actions  Continue Administrative Hiring Freeze  Exceptions  24-hour institutions & assigned to health/ safety functions  Grant-funded/revenue offset  Fill vacancies with existing workforce  Limit business-related travel/training  Postpone fixed assets/capital expenses  Restrict fund transfers for unbudgeted expenses  Preserve Reserve & limit its use 2

3 Net County Cost (in Millions) 3

4 General Purpose Revenue (in Millions) 4

5 Issues Identified Sales Tax Revenue  General Purpose Revenue  receipts at $11.9M  $810K over budget & $550K better than  Prop 172 Public Safety – ½ cent Statewide  Allocation based on local collections  receipts at $36M  $2.5M over budget but $400K less than  Realignment – Social Services  Allocation based on State formula  receipts at $26.5M  $2M over budget & $200K better than

6 Issues Identified Sales Tax Receipts (in Millions) 6 $104.5 $74.1 $74.4

7 Issues Identified Law & Justice  Court Assigned Counsel  1 st quarter experience  550 “overflow” cases per month  Projected $680K overrun by year-end  Midyear experience  477 “overflow” cases per month  Actual expenditures $2.1M; 44% of budget  Exceed budget $140K by year-end 7

8 Issues Identified Law & Justice  Sheriff-Coroner-Public Administrator  $3.6M over allocated NCC  Unbudgeted separation costs  Retirement rate increases  Higher Patrol vehicle usage  Delay in COPS Hiring Recovery grant  Custody overtime $100K better than 1 st quarter  Overage will be partially offset by Prop 172  Budget adjustments prior to year-end 8

9 Issues Identified Animal Control  November 2010 Board actions  Deleted 1 vacant ACO  Funded remaining 7 positions & emergency after-hour services thru June 2011 with Rabies Treatment fund balance ($101K) (1 Manager, 5 ACOs, & 1 clerical)  Depleted Rabies Treatment Fund to $17K 9

10 Issues Identified Animal Control  Sheriff’s proposal  Consolidate AC functions under Sheriff’s Patrol Division  Replace Manager with 1 ACO  New organization = 6 ACOs & 1 clerical with supervision by Patrol staff  Dispatch & support by various Sheriff’s units  New structure yields significant programmatic cost savings by utilizing existing Sheriff staff 10

11 Issues Identified Animal Control  Prelim AC budget shortfall $160K  Fund balance used to sustain current year’s operations  General Fund augmentation is not recommended due to NCC budget shortfall  AC operations remain with Ag Commissioner  CAO continues efforts on regional operations  APL report in April 11

12 Issues Identified San Joaquin General Hospital  Midyear operating loss of $5.8M  $380K less than budgeted  SJGH cash deficit  Dec 31 st = ($29.8M); $16.1M better than budget  Increased Medi-Cal inpatient per diem, one- time Hospital Fee Program & additional Medi- Cal Waiver payments  June 30 th projection = ($6M); $8M better than budget 12

13 Issues Identified Human Services Agency  Overall program expenses $18.3M below budget  NCC savings $3M  Adoptions Assistance  IHSS programs  Administration  Foster Care  Community Services Block Grant 13

14 Reserve for Contingency (as of February 28, 2011) 14  Reserve Level$10,600,000  Excess year-end GF balance2,759,081  Replace GF contribution to SJGH with unbudgeted Hospital Fee 6,014,766 Reserve Balance$19,373,847

15 Staffing Changes 15

16 Organizational Downsizing  Board proactive actions to minimize service impacts & employee layoffs  Feb 2008 – reinstated Administrative Hiring Control Program  Nov 2008 – implemented Hiring Freeze  13.8% smaller workforce compared to FY07-08  Net reduction of 854 positions  Majority were vacant positions  Unable to avoid layoff entirely 16

17 Status of Laid Off Employees Nov 2008 to Jan

18 Preliminary Outlook  Tightening of overall job market => limited placement options  SJC Dec 2010 unemployment rate 18%  1% higher than last year  Vacancy rate 6.8% vs. 10% norm  Majority (74%) in health & human services programs – vulnerable to federal/State cuts 18

19 Budget Outlook Update 19

20 Preliminary Budget Outlook Major Revenue Changes – General Fund Increase/ (Decrease)  One-time transfers/use of fund balances$(23.5) M  3% decline in property tax(3.2) M  Modest growth in sales tax  General Purpose1.0 M  Prop 172 public safety3.6 M  Realignment social services 2.5 M  Misc net adjustments 0.1 M Total Major Revenue Changes$(19.5) M 20

21 Preliminary Budget Outlook General Purpose Revenue (in Millions) $ $400.7 $295.9

22 Preliminary Budget Outlook Major Known Cost Increases 22  Negotiated salary & benefits adjustments$4.2 M  Retirement contribution13.0 M  Employee health & dental premiums 11.8 M  Unemployment insurance1.1 M  2012 elections2.4 M  Public assistance program – FMAP3.2 M Total Known Cost Increases$35.7 M

23 Preliminary Budget Outlook NCC Budget Shortfall  Gen Fund NCC shortfall = $36M to $38M; $2M worse than 1 st quarter – local issues only  Available GPR down $19.5M  Net S&B cost up $13.2M  2012 election costs as much as $2.4M  Public assistance ARRA funds end $3.2M  Misc expenditure adjustments down $1.1M  Support to SJGH remains at $11.9M 23

24 Preliminary Budget Outlook Budget Planning  Started departmental budget planning & preparation in Jan 2011 – a month earlier  NCC cuts:  Most GF-supported operations – 15%  Public safety – 10%  Detention operations – 5%  Continue to explore cost saving alternatives  Initiate discussions with employee groups  Employee benefits – health insurance & retirement plans 24

25 Preliminary Budget Outlook Community-Based Organizations County support =$683K Notification letters to CBOs – eliminating County support in

26 Governor’s January 2011 Budget 26

27 Governor’s January Proposals Major Components Projected $25.4B deficit by June 30, 2012  $8.2B current year  $17.2B structural imbalance Key budget components:  Expenditure reductions  Major State/local realignment  Tax extensions – subject to voters’ approval  Elimination of redevelopment agencies & enterprise zones 27

28 Governor’s January Proposals Highlights Special election – possibly June 2011; however, no funds to reimburse counties Tax extensions/funding transfers – $11.2B  0.5% VLF – 2011 Realignment  1% State sales tax – 2011 Realignment  0.25% personal income tax surcharge  Dependent exemption credit Funding shifts  Proposition 10 – $1B 11-12; $800K thereafter  Proposition 36 28

29 Governor’s January Proposals Highlights 2011 Realignment – $5.9B  Local public safety funds  Court security  Low-level offender/adult parole/juvenile detention  Mental health/substance abuse  Foster care/child welfare/adult protective 29

30 Governor’s January Proposals Impact on County Eliminate & Williamson Act subventions Suspend State mandate reimbursements Eliminate funding for County VSOs & Operation Welcome Home Program Cut Medi-Cal benefits & provider rates Redirect Prop 10 First 5 funds Reduce CalWORKs grants & limit benefits Reduce IHSS services 30

31 Recommendations  Receive & file Midyear Budget Report 31


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