1 2011-2012 Midyear Budget Report & 2012-2013 Preliminary Budget Outlook March 13, 2013.
2010-2011 Midyear Budget Report & 2011-2012 Budget Outlook Update March 1, 20111.
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Transcript of 2010-2011 Midyear Budget Report & 2011-2012 Budget Outlook Update March 1, 20111.
2010-2011Midyear Budget Report
& 2011-2012
Budget Outlook UpdateMarch 1, 2011 1
2010-11First Quarter Report Current Year Budgetary Actions
Continue Administrative Hiring FreezeExceptions
24-hour institutions & assigned to health/safety functions
Grant-funded/revenue offsetFill 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
2010-11 Net County Cost(in Millions)
3
General Government $22.6 M $21.9 M ($0.7) MCapital Maintenance 6.1 M 6.1 M 0.0 MEnvironmental Protection 6.9 M 6.5 M (0.4) MLaw & Justice 133.0 M 134.3 M 1.3 MRoads & Facilities 0.3 M 0.3 M 0.0 MHealth Services 20.3 M 20.1 M (0.2) MHuman Services 25.6 M 20.4 M (5.2) MEducation 0.4 M 0.4 M 0.0 MParks & Recreation 2.7 M 2.7 M 0.0 M
Total Net County Cost $217.9 M $212.7 M ($5.2) M
*Includes 2009-10 encumbrances carried forward & midyear adjustments.
Adopted Budget*
Midyear Projection
Over/ (Under) Budget
2010-11 General Purpose Revenue(in Millions)
Property Taxes $165.1 M $166.6 M $1.5 MPenalty on Delinq 3.8 M 3.4 M (0.4) MRedevelopment Pass-Thru 2.5 M 3.2 M 0.7 M
Sales Taxes 11.1 M 11.9 M 0.8 MTobacco Settlement Funds 5.1 M 5.1 M 0.0 MProperty Transfer Tax 2.2 M 2.2 M 0.0 MWilliamson Act Subvention 0.0 M 0.0 M 0.0 MInterest Income 0.5 M 0.5 M 0.0 MOther 4.6 M 4.5 M (0.1) M
Total GPR $194.9 M $197.4 M $2.5 M
Adopted Budget
Midyear Projection
Over/ (Under) Budget
4
Issues IdentifiedSales Tax Revenue
General Purpose Revenue 10-11 receipts at $11.9M $810K over budget & $550K better than
09-10
Prop 172 Public Safety – ½ cent Statewide Allocation based on local collections 10-11 receipts at $36M $2.5M over budget but $400K less than 09-
10
Realignment – Social Services Allocation based on State formula 10-11 receipts at $26.5M $2M over budget & $200K better than 09-
10
5
Issues IdentifiedSales Tax Receipts (in Millions)
6
$17.1 $16.9 $15.5 $14.7 $11.4 $11.1 $11.9
$46.8 $52.0$46.1
$40.4$36.4 $33.5 $36.0
$28.9$35.6
$32.9
$28.1$26.3
$24.5$26.5
$0
$20
$40
$60
$80
$100
$120
2005-06 Actual
2006-07 Actual
2007-08 Actual
2008-09 Actual
2009-10 Actual
2010-11 Adopted Budget
2010-11 Midyear
Projection
General Purpose Revenue Prop 172 Realignment Social Services
$104.5
$74.1 $74.4
Issues IdentifiedLaw & Justice
Court Assigned Counsel 1st quarter experience
550 “overflow” cases per monthProjected $680K overrun by year-end
Midyear experience477 “overflow” cases per monthActual expenditures $2.1M; 44% of budget
Exceed budget $140K by year-end7
Issues IdentifiedLaw & Justice
Sheriff-Coroner-Public Administrator $3.6M over allocated NCC
Unbudgeted separation costsRetirement rate increasesHigher Patrol vehicle usage
Delay in COPS Hiring Recovery grant Custody overtime $100K better than 1st
quarter Overage will be partially offset by Prop
172 Budget adjustments prior to year-end
8
Issues IdentifiedAnimal 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
Issues IdentifiedAnimal 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
Issues IdentifiedAnimal Control
Prelim 2011-12 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
Issues IdentifiedSan Joaquin General Hospital
Midyear operating loss of $5.8M $380K less than budgeted
SJGH cash deficit Dec 31st = ($29.8M); $16.1M better
than budget Increased Medi-Cal inpatient per diem, one-time Hospital Fee Program & additional Medi-Cal Waiver payments
June 30th projection = ($6M); $8M better than budget
12
Issues IdentifiedHuman Services Agency
Overall program expenses $18.3M below budget NCC savings $3M Adoptions Assistance IHSS programs Administration Foster Care Community Services Block Grant
13
2010-11 Reserve for Contingency(as of February 28, 2011)
14
2010-11 Reserve Level $10,600,000
Excess year-end GF balance 2,759,081
Replace GF contribution to SJGH with unbudgeted Hospital Fee
6,014,766
Reserve Balance $19,373,847
Staffing Changes
15
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
Status of Laid Off Employees Nov 2008 to Jan 2011
17
Placed in Lower Level Positions, 123 Employees
Still in Laid OffStatus,
91 Employees
Re-employed,44 Employees
Declined Re-employment9 Employees
Retired, 6 Employees
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% normMajority (74%) in health & human
services programs – vulnerable to federal/State cuts 1
8
2011-2012Budget Outlook
Update
19
2011-12 Preliminary Budget OutlookMajor Revenue Changes – General Fund
Increase/(Decreas
e)
One-time transfers/use of fund balances
$(23.5) M
3% decline in property tax (3.2) M Modest growth in sales tax
General Purpose 1.0 M Prop 172 public safety 3.6 M Realignment social services 2.5
M Misc net adjustments 0.1
M
Total Major Revenue Changes $(19.5) M
20
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2005-06 Actual
2006-07 Actual
2007-08 Actual
2008-09 Actual
2009-10 Actual
2010-11 Adopted Budget
2010-11 Midyear
Projection
2011-12 Prelim
Estimates
Property Tax Sales Tax Others Prop 172 & Realignment Fund Balance/Transfers
$278.4
$311.3
$366.2
$303.9
$271.3
2011-12 Preliminary Budget OutlookGeneral Purpose Revenue (in Millions)
$251.8
21
$400.7
$295.9
2011-12 Preliminary Budget OutlookMajor Known Cost Increases
22
Negotiated salary & benefits adjustments
$4.2 M
Retirement contribution 13.0 M
Employee health & dental premiums
11.8 M
Unemployment insurance 1.1 M
2012 elections 2.4 M
Public assistance program – FMAP 3.2 M
Total 2011-12 Known Cost Increases
$35.7 M
2011-12 Preliminary Budget OutlookNCC Budget Shortfall
Gen Fund NCC shortfall = $36M to $38M; $2M worse than 1st quarter – local issues onlyAvailable GPR down $19.5MNet S&B cost up $13.2M2012 election costs as much as
$2.4M Public assistance ARRA funds end
$3.2MMisc expenditure adjustments
down $1.1M
Support to SJGH remains at $11.9M
23
2011-12 Preliminary Budget OutlookBudget 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 groupsEmployee benefits – health
insurance & retirement plans
24
2011-12 Preliminary Budget OutlookCommunity-Based Organizations
10-11 County support =$683K
Notification letters to CBOs – eliminating County support in 11-12
25
Governor’s January 2011 Budget
26
Governor’s January ProposalsMajor 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 zones27
Governor’s January ProposalsHighlights
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
Governor’s January ProposalsHighlights
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
Governor’s January ProposalsImpact on County
Eliminate 10-11 & 11-12 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
Recommendations
Receive & file Midyear Budget Report
31