Title
Health and Human Services Agency recommending the Board approve and authorize the Chair to sign a Budget Transfer Request decreasing revenue and appropriations in the Proposition 56 Tobacco Use Prevention Program sub-fund and increasing revenues and appropriations in the Proposition 99 Tobacco Use Prevention Program sub fund. (4/5 vote required)
FUNDING: State Tobacco Use Prevention Program revenue funding and Public Health Realignment.
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DISCUSSION / BACKGROUND:
Health and Human Services Agency (HHSA) is requesting a FY 2021-22 Budget transfer to streamline the accounting and reporting processes for the Tobacco Use Prevention Program (TUPP). The funding originates from two tobacco use tax sources, Proposition 99 and Proposition 56, and both target the reduction of tobacco use with identical programmatic activities. TUPP Proposition 99 revenues are required to be expended before Proposition 56 revenues. Each revenue source is required to be accounted for in separate sub-funds, but expenses are combined for state reporting.
Currently, TUPP costs are charged to the Proposition 99 sub-fund until fully expended, then charged to the Proposition 56 sub-fund. This process creates the need for numerous accounting journal entries and makes it challenging to ensure that all of Proposition 99 funding is expended first.
This budget transfer will allow TUPP costs to be charged solely to the Proposition 99 sub-fund, and then Proposition 56 revenue will be transferred to cover costs that exceed Proposition 99 funding. This change in process will require a budget transfer to ensure compliance with the State and will also streamline the administrative and reporting processes.
ALTERNATIVES:
Should the Board decline to approve the budget transfer as proposed, HHSA will continue current processes which require an increased administrative burden to ensure compliance with State requirements.
PRIOR BOARD ACTION:
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
N/A
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
There is no change to Net County Cost or funding associated with this transfer of revenue and appropriations.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board will obtain the Chair’s signature on the Budget Transfer Request form and forward it to the Chief Administrative Office (CAO) for processing.
STRATEGIC PLAN COMPONENT:
Good Governance
CONTACT
Don Semon, Director, Health and Human Services Agency