County Administrator’s Office

FY 2011­12 Proposed Budget OverviewProposed Budget Overview

Susan S. Muranishi, County AdministratorSusan S. Muranishi, County AdministratorKai Mander, Principal Analyst

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County Administrator’s Office

FY 2011 12FY 2011‐12 Proposed Budget Overview

Economic Update FY 2011‐12 Proposed Budgetp g Funding Gap & Balancing Strategies Federal Budget Update Federal Budget Update State Budget Update Pending Factors & Schedule Pending Factors & Schedule

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County Administrator’s Office

Alameda County Unemployment Rate y p ySince Recession Began(not seasonally adjusted)

13%

10.3%11%

12%

13%

9%

10%

11%

7%

8%

9%

4.9%

5%

6%

7%

4%

5%

County Administrator’s Office

Alameda County Median Home ValuesyJuly 2007 – April 2011 

619 000650,000 

619,000 

550,000 

600,000 

400 000

450,000 

500,000 

338,000 

300,000 

350,000 

400,000 

280,000 

200,000 

250,000 

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County Administrator’s Office

Assessment Roll—Percent ChangeAssessment Roll Percent ChangeAlameda County

18%

14%

16%

8%

10%

12%

4%

6%

‐2%

0%

2%

6‐4%

‐2%

County Administrator’s Office

Sales Tax Revenues15,000,000

14,000,000

13,000,000

12,000,000

11,000,000

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10,000,000

2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 Proj. 2011‐12 Budget

County Administrator’s Office

Prop. 172 Sales Tax Revenues$125,000,000

$120,000,000

$110 000 000

$115,000,000

$105,000,000

$110,000,000

$100,000,000

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$95,000,000

2002‐03 2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 Proj.

2011‐12 Budget

County Administrator’s Office

Measure A Revenues—County Share

$30 000 000

$28,000,000

$30,000,000

$26,000,000

$24,000,000

$22,000,000

9$20,000,000

2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 Proj.

2011‐2012 Budget

County Administrator’s Office

Realignment Revenues210,000,000 

200,000,000 

190,000,000 

170,000,000 

180,000,000 

160,000,000 

10150,000,000 

2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐2011 proj.

2011‐12 budgeted

County Administrator’s Office

Quarterly Interest Rate for Quarterly Interest Rate for Investment Pool

6%

5.0%

5%

3%

4%

1%

2%

0.4%

0%

1%

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County Administrator’s Office

Increased Demand for Services

Dramatic increase in caseloads for assistance programs, including: CalWORKs Food Stamps Medi‐Cal IHSS IHSS

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County Administrator’s Office

Economic Outlook We have reached bottom, but slow recovery Unemployment to stay high for some timep y y g Home prices have stabilized; sales still low Taxable sales increasingg East Bay will see strong economic growth 

again…but when?g

Source: Beacon EconomicsSource: Beacon Economics

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County Administrator’s Office

FY 2011 2012 P d B dFY 2011‐2012 Proposed Budget

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County Administrator’s Office

FY 2011‐12 Proposed Budget ‐ All Funds p g($ in millions)

2010‐11 2011‐12 Increase/2010 11Final

2011 12 Proposed

Increase/ (Decrease) % Change

Appropriation $2,443.4 $2,468.5 $25.1 1.0%/Revenue

FTE 9 103 19 9 049 17 (54 02) (0 6%)F.T.E. Positions*

9,103.19 9,049.17 (54.02) (0.6%)

15*Full‐time equivalent positions 

County Administrator’s Office

FY 2011‐12 Proposed Budget –FY 2011 12 Proposed Budget General/Grant/Measure A Funds($ in millions)

2010‐11Final

2011‐12 Proposed

Increase/ (Decrease) % Change

Appropriation $2 101 6 $2 056 7 ($44 9) (2 1%)Appropriation/Revenue

$2,101.6 $2,056.7 ($44.9) (2.1%)

F.T.E. Positions*

7,287.47 7,232.03 (55.44) (0.8%)

16*Full‐time equivalent positions 

County Administrator’s Office

FY 2011­12 Proposed BudgetFY 2011 12 Proposed BudgetAppropriation by Major Object –General/Grants/Measure A Funds

Salaries & Benefits40.8%

Other Charges

Other Financing Uses3.6% 40.8%

Fixed Assets0.3%

19.8%

Services & Supplies35.5%

Total Appropriation: $2,056.7 million 17

County Administrator’s Office

FY 2011­12 Proposed BudgetFY 2011 12 Proposed BudgetAppropriation by Program General/Grants/Measure A Funds

General Government

9.4%Capital Projects

0.4%Health Care Services

27.9%

Public Assistance31.3%

Non Program Expenditures

2.5%

Contingency & Reserves2.4%

Public Protection26.1%

Total Appropriation: $2,056.7 million 18

County Administrator’s Office

FY 2011­12 Proposed Budget 

County Administrator’s Office

Funding by Source—General/Grants/Measure A Funds

Property Taxes, 14.6%Charges for

Other Sources, 8.1%

Charges for Services, 14.7%

Other Taxes, 8.4%

State, Federal and Local

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and Local Government Aid, 54.2%

Total Appropriation: $2,056.7 million

County Administrator’s Office

FY 2011 12 Discretionary Revenue

County Administrator’s Office

DiscretionaryUse of Fund Balance

FY 2011-12 Discretionary Revenue Share of Total General Fund

Discretionary Revenue$506.9 26%

Use of FMR$56.8 3%

Use of Fund Balance$7.1 1%

3%

Debt ServiceDebt Service Revenue$25.4 1%

Program Revenue$1,339.2 69%

20Total General Fund:  $1,935.4 million

County Administrator’s Office

FY 2011-12 Proposed Budget

County Administrator’s Office

FY 2011 12 Proposed BudgetDiscretionary Revenue by Source

Vehicle License Fee (ERAF)$152.0 30%

Other Revenue$34.4 7%

Interest on Investments

$4.0 1%

Sales & Use Tax$$12.0 2%

Sales & Use Tax (ERAF)$3.9 1%

Property Tax$300.6 59%

Discretionary Revenue:  $506.9 million 21

County Administrator’s OfficeCounty Administrator’s Office

GeneralCapital Projects

FY 2011­12 Proposed BudgetUse of Discretionary Revenue by Program

General Government

10% Debt Service5%Public Assistance

13%

Capital Projects1%

13%

Health Care17%

Public Protection46%

Contingency & Reserve Increase

8%

Discretionary Revenue:  $506.9 million 22

County Administrator’s Office

Community­Based OrganizationsCommunity­Based OrganizationsFY 2011­12 Funding (in millions)

Program2011‐12 Contracts

General Government $46.4

Health Care $255.1

HCSA – Alameda County Medical Center $114.4

Public Assistance $69.9

Public Protection $4.0

Total – CBO Contracts $489.8

242 Contractors23

County Administrator’s Office

Funding Gap and Balancing S iStrategies

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County Administrator’s Office

Closing the GapClosing the Gap General/Grant/Measure A Funds

Net Reductions(in millions)

FTE Reductions( )

General Government $22.6  6.6

Health Care Services $34.1 11.9

Public Assistance $33.2 60.3

Public Protection $35.9 32.0

Subtotal Programs $125.8 110.8Countywide Strategies $12.1  0.0Total $137.9 110.8FTE = Full‐Time Equivalent Positions

County Administrator’s Office

FY 2011‐2012 ‐ Closing the GapFY 2011 2012  Closing the GapOngoing vs. One‐Time Strategies

Ongoing40%

One­time60% 40%60%

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County Administrator’s Office

Closing the Funding GapBudget Balancing Strategies Net Reductions 

($ millions)($ millions)Ongoing StrategiesProgram reductions $61.1Program revenue increases $22 4Program revenue increases $22.4CalWORKs revenue losses ($29.0)Subtotal Ongoing Strategies $54.5M

One­Time StrategiesFiscal Management Reward Savings $56.8One‐time revenues $9.4Use of Available Fund Balance $7.11% allocation for capital projects $5.0Use of Prop. 172 Designation $3.0O i i i d i $2 1

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One‐time appropriation reductions $2.1Subtotal One­Time Strategies $83.4MTotal Balancing Strategies $ 137.9M

County Administrator’s Office

FY 2011‐12 Balancing StrategiesFY 2011 12 Balancing Strategies(in millions)

Fiscal Mgmt. Reward40%

Countywide Strategies

8% 40%

Program Reductions/ RRevenue52%

Funding Gap:  $137.9 million 28

County Administrator’s Office

C t id St t iCountywide Strategies (in millions)

Use of Available Fund Balance  $  7.1Use of 1% of Disc. Revenue for Capital $  5.0TOTAL $12.1

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County Administrator’s Office

Fiscal Management Reward Program Savings(in millions)

General Government $17.8  H lth C $15 5Health Care $15.5  Public Assistance $15.0  P bli P i $ 8 5Public Protection $   8.5

Total: $56.8 million

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County Administrator’s Office

FY 2011 12 Closing the GapFY 2011­12 Closing the GapPotential Impacts

Reduction of 111 FTEs Adult inmate services, youth services including supervision and investigations, Public Defender and District Attorney services

State‐imposed cuts to CalWORKs and IHSS will impact services to public assistance recipients

Mental health services, Medi‐Cal claiming, alcohol and drug services, clinician training

Deferred maintenance31

County Administrator’s Office

F d l B d U dFederal Budget Update

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County Administrator’s Office

Federal Budget Update

FY 2011 Budget FY 2012 B d t FY 2012 Budget Deficit and Debt limit

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County Administrator’s Office

S B d U dState Budget Update

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County Administrator’s Office

ERAF Losses by Year (in millions)ERAF Losses by Year (in millions)Cumulative loss: $4.3 Billion

$300

$350

$263$273

$297

$320$335 $326 $320 $326

$200

$250

$170$187

$206$220

$236

$263

$100

$150 $129 $130 $135 $140 $147$158

$170

$0

$50 $30

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County Administrator’s Office

Funding Gaps Since ERAF Intercept Funding Gaps Since ERAF Intercept (in millions)

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County Administrator’s Office

ALAMEDA COUNTY 

County Administrator’s Office

PROPERTY TAX DISTRIBUTION

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County Administrator’s Office

State Budget for FY 2011­12

$26.6 billion original funding gap-$13.4 billion in cuts, transfers already adopted-$3.6 billion (higher revenues, higher costs)$9.6 billion remaining gap

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County Administrator’s Office

State Budget for FY 2011­12State Budget for FY 2011 12Impact from Cuts Already Adopted(partial list)

CalWORKs IHSS IHSS SSI/SSP Medi Cal Medi-Cal Adult Day Health Program Healthy Families Program

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County Administrator’s Office

FY 2011­12 State Budget

$9.6 Billion Gap Remains Governor Veto of Legislature Approved Plan Governor Veto of Legislature Approved Plan Implementation and Funding of Realignment?Ph t f R d l t A i ? Phase‐out of Redevelopment Agencies?

Pension reform, spending cap in exchange for i ?tax extensions?

Possibility of all cuts budget

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County Administrator’s Office

Pending Factors

Federal and State budgets Greater demand for services Greater demand for services Economic downturn impacting revenues and expensesexpenses

Retirement and health cost increases

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County Administrator’s Office

Budget Hearing Schedule

Budget Hearings June 20, 12:30 p.m. Opening Comments Health Care Health Care Public Assistance

Public Protection June 21, 1:30 p.m. General Government Other Issues/Final Adjustments/ j

Budget Deliberations June 22, 11:00 a.m.

Budget Adoption June 24, 11:00 a.m.42

County Administrator’s Office

FY 2011­12 Proposed Budget OverviewProposed Budget Overview

Susan S. Muranishi, County AdministratorSusan S. Muranishi, County AdministratorKai Mander, Principal Analyst

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