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HEARING - Health and Human Services Agency (HHSA) recommending the Board:
1) Adopt and authorize the Chair to sign Resolution 028-2024 thereby finding that, in accordance with Welfare and Institutions Code (WIC) 17600.20(d), the transfer of realignment revenues to be the most cost-effective use of available revenues to maximize client outcomes; and
2) Approve and authorize the Chair to sign a Budget Transfer Request specific to the Public Health Division for Fiscal Year 2023-24, to allow for the statutory ten percent (10%) 1991 Realignment transfer provision, in the amount of $683,356 from the Health Sub-Account to the Social Services Sub-Account (4/5 vote required).
FUNDING: 100% 1991 Realignment.
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DISCUSSION / BACKGROUND:
In Fiscal Year 1991-92, the State Legislature enacted Assembly Bill (AB) 1491, known as the 1991 Realignment, to provide counties with a funding source for their public health and mental health programs.
The WIC Section 17600 established the Local Revenue Fund, through which each county receives realignment funds. According to WIC Section 17600.20(a), every county is required to establish a Local Health and Welfare Trust fund comprising three distinct sub-accounts: the Mental Health Sub-Account, the Social Services Sub-Account, and the Health Sub-Account.
WIC Section 17600.20(a) allows counties or cities, or city and county, to reallocate funds among the accounts within the local health and welfare trust fund not to exceed ten percent (10%) of the amount deposited in the account from which the funds are reallocated for that fiscal year. Additionally, a county may reallocate up to an additional 10 percent (10%) of the money from the health account to the social services account in the 1992-93 fiscal year and fiscal years thereafter, for caseload increases for mandated social services programs listed in paragraph (2) of subdivision (b) of Section 17605 in excess of revenue growth in the social services account.
HHSA exercised the transfer authority from the Social Services Sub-Account to the Mental Health Sub-Account in fiscal years 2020-21 and 2021-22, and from the Health Sub-Account to the Mental Health Sub-Account in fiscal years 2020-21, 2021-22, 2022-23, and 2023-24. Due to significant cost increases for providing mandated social services programs that exceed available Realignment revenues, and economic projections of no growth for the foreseeable future, HHSA is requesting to exercise the additional ten percent transfer from the Health Sub-Account to the Social Services Sub-Account in the current fiscal year. The state of the California economy is contributing to increased caseloads for health and welfare programs, including cash assistance. Additionally, the Governor’s 2024 California Proposed Budget makes significant cuts to the administration of these programs at a time when both needs and costs are rising. With this request, HHSA is taking a pro-active approach to mitigating negative impacts to both program service delivery and the local general fund.
HHSA recommends that the Board authorize the Chair to sign a Resolution and Budget Transfer Request, enabling the statutory ten percent (10%) 1991 Realignment (amount not exceed $683,356) transfer provision from the Public Health Sub-Account to the Social Services Sub-Account. This proposed action aims to utilize accumulated savings in Public Health Realignment to offset potential adverse effects on the General Fund and Social Services operations caused by anticipated declines in state economic conditions.
ALTERNATIVES:
Should the Board decline to approve this recommendation, the Social Services Division may require additional General Fund to deliver mandatory services and assistance to the community, if Realignment collections decline.
PRIOR BOARD ACTION:
1) 06/13/23, 23-1120, CAO - Budget Hearing
2) 09/19/23, 23-1725, CAO - Adopted Budget Direction
3) 09/26/23, 23-1771, CAO - Budget Resolution
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
County Counsel has reviewed and approved the proposed Resolution.
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
This Budget Transfer Request transfers 1991 Realignment funding from Public Health to Social Services in the amount of $683,356. There would be no impact to Public Health programming in the current year, as only contingency funding will be reduced.
CLERK OF THE BOARD FOLLOW UP ACTIONS:
1) Clerk of the Board to obtain signature of Chair on the attached Resolution, and provide a certified copy to the HHSA, Contracts Unit at 3057 Briw Road, Suite B;
2) Clerk of the Board to obtain signature of Chair on the attached Budget Transfer Request (BTR); and
3) Submit the BTR to the Chief Administrative Office for further processing.
STRATEGIC PLAN COMPONENT:
Good Governance
CONTACT
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency