1. County of Marin March 2004 County Budget Overview and Potential Impact of State Funding Cuts

2. COUNTY REVENUE SOURCES FY 2003-04 General Fund Operating Budget $310.2 Million Over 50% of County revenues are required to be spent for specific programs (such as State/Federal aid for health & human services programs)

3. COUNTY SPENDING By Service Area Public Safety and Health & Human Services account for 67% of the County’s General Fund Budget $310.2 Million FY 2003-04 General Fund Operating Budget

4. Program category SERVICE LEVEL MandatedDiscretionary Discretionary Mandated Program and service level are required by Federal or State statute or Court ruling. County is not required to operate programs. If County does operate them, service level is mandated as a condition of funding. Programs required by law, but the level of service and funding is decided by the Board of Supervisors. Programs and activities County is not required to operate and where service level is decided by the Board of Supervisors Public assistance for single adults Aid to families and dependent children County Jail Community Development Fund grants Sheriff and District Attorney grants Fire protection for CA Dept of Forestry County Library Mental health Public health programs Land-use and community planning Public safety Capital improvements Parks and recreation Administrative services Additional health and social programs beyond State/Federal requirements Discretionary Mandated MANDATED AND DISCRETIONARY COUNTY PROGRAMS AND SERVICES

5. PROJECTED COUNTY BUDGET DEFICIT IN FY 2004-05 General Fund Operating Budget (in millions) FY 2002-03 FY 2003-04 % Change FY 2004-05 (estimated) % Change Total Expenditures $302.5$310.22.5%$321.53.6% Total Revenues $281.6$288.22.3%$293.41.8% Required Fund Balance for Operating Budget $20.9$22.05.3%$28.127.7% Estimated Fund Balance Available ---$20.0- Projected Revenue Surplus (Shortfall) ---($8.1) - Projected budget deficit caused by overall revenue growth not keeping pace with increased costs (not including any cuts in State funding)

6. POTENTIAL COUNTY IMPACT OF GOVERNOR’S PROPOSED FY 2004-05 BUDGET Health and Human Services $2.2M IHSS (In-Home Support Services) wages/benefits $1.4M Reduction in children's mental health programs $360K Reduction in Medi-Cal provider rates $425K General Government $8.9M Shift of County property tax revenues to pay for $8.0M State’s obligation to fund schools (Tax shift formula not yet determined) State reimbursements and mandates for child $925K support funding Transportation $600K Reduction in road construction and maintenance $600K Public Safety $833K Reduce funding for juvenile probation $500K Reduce reimbursements for jail booking fees $333K TOTAL POTENTIAL STATE REVENUE LOSS $12.5M

7. Working with State legislators to minimize impact on priority programs Identifying options for program reductions Identifying countywide cost savings Exploring early retirement program for County employees Increasing opportunities for public and staff input into budget process COUNTY RESPONSE

8. KEY UPCOMING DATES IN COUNTY BUDGET PROCESS Public budget workshops March 22, 24 Board of Supervisors action on Early April initial reductions Deadline for submitting budget April 30 suggestion form Board of Supervisors budget workshop Mid-May Release of Governor’s revised proposed budget Mid-May Board of Supervisors adoption of interim Late June FY 2004-05 County budget Public budget hearings Late July Additional public budget hearings if necessary TBD for budget amendments due to final State budget