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Health and Human Services Agency recommending the Board consider the following:
1) Approve and authorize the Chair to sign a Budget Transfer Request to increase revenue and appropriations by $700,000 in Fiscal Year 2014/15 budget, comprised of an unanticipated increase in the 1991 Public Health Realignment Sales Tax and Vehicle License Fee revenues of $426,046, an anticipated increase in base allocation of $141,394, as well as a one-time payment of $132,560 by the State Board of Equalization (4/5 vote);
2) Approve and authorize the Chair to sign said Budget Transfer Request to reverse a Fiscal Year 2014/15 budget allocation of $390,128 in 1991 Public Health Realignment to the Mental Health Division (4/5 vote); and
3) Approve and authorize the Chair to sign said Budget Transfer Request to increase revenue and appropriations by $1,200,000 in Fiscal Year 2014/15 budget, comprised of a receipt of 1991 Social Services Realignment Sales Tax revenue growth of $800,000 to include an increase in the Realignment base allocation of approximately $400,000 (4/5 vote).
FUNDING: 1991 Public Health Realignment and Social Services Realignment - Sales Tax and Vehicle License Fees.
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DEPARTMENT RECOMMENDATION:
Health and Human Services Agency (HHSA) recommends approval of the above-noted Budget Transfer Request.
DISCUSSION / BACKGROUND:
1. On November 25, 2014, the County received a payment from the State of $426,046 of 1991 Realignment revenue reflecting an additional $211,093 in unanticipated State sales tax growth and an additional $214,953 in unanticipated vehicle license fee growth. In addition, based on current year actuals, the Public Health Division anticipates receiving an increase of $141,394 in the Fiscal Year (FY) 2014-15 budgeted base allocation. Lastly, the State Board of Equalization made a one-time payment of $132,560 to the County for FY 2014-15.
2. During the FY 2014-15 budget process, the Health and Human Services Agency (HHSA) allocated $390,128 of Public Health Realignment to the Mental Health Division Realignment fund, as allowed by the legislation allowing for a 10% transfer authority, to ensure sufficient funding to cover anticipated increase in client services based on historical trending.
At this time, sufficient Mental Health Realignment revenue has been received to fund client services, thereby allowing HHSA to reverse the initial request to transfer Public Health Realignment funds to Mental Health Division. This reversal restores the original Public Health Realignment allocation to include an increased distribution to Animal Services, decreasing Net County Cost by an estimated $75,000, and a distribution to Environmental Management Division in the Community Development Agency.
3. On November 25, 2014, the County received a payment from the State of $800,000 in FY 2013-14 State Sales Tax 1991 Realignment growth. In addition, based on current year actuals, HHSA anticipates receiving an increase of $400,000 in the FY 2014-15 budgeted base allocation, for an approximate total increase of $1,200,000 for FY 2015-16.
The Social Services Division has experienced a high increase in a variety of client services, including increased cost of adoptions. This additional 1991 Realignment funding would offset the increase in appropriations.
ALTERNATIVES:
1. Should the Board decide not to approve the Budget Transfer Request to accept $700,000 in unanticipated Public Health Realignment funding, said funds would remain in the 1991 Realignment Special Revenue Fund. In addition, Animal Services would not receive an additional Realignment allocation which would decrease the FY 2014-15 Net County Cost by an estimated $75,000.
2. Should the Board decide not to approve reversal of the FY 2014-15 budget action to transfer $390,128 of Public Health Realignment funding to the Mental Health Division, the Public Health Division would be unable to allocate funding to Environmental Management and Animal Services. An allocation to Animal Services would decrease the Net County Cost by an estimated $75,000.
3. Should the Board decide not to approve the Budget Transfer Request of $1,200,000 in 1991 Realignment funding to the Social Services Division, the Social Services Division would experience a shortfall in revenue and appropriations, and could require General Fund dollars to cover foster care expenditures.
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
County Development Agency, Environmental Management Division
CAO RECOMMENDATION:
[This section is completed by the CAO's Office. This section is required]
FINANCIAL IMPACT:
1) Increased Public Health Realignment in the amount of $700,000 of unanticipated growth.
2) Redistribution of Public Health Realignment to Public Health programs, including to Environmental Management, and to Animal Services, thereby decreasing Net County Cost by an estimated $75,000.
3) Transfer of $1,200,000 in 1991 Realignment funding to Social Services Division, offset by increased appropriations to the Social Services Foster Care and Adoptions Assistance Program.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1. Clerk of the Board to obtain signature of Chair on the Budget Transfer Requests.
2. Clerk of the Board to forward signed Budget Transfer Requests to the Auditor-Controller's Office for processing.
STRATEGIC PLAN COMPONENT:
N/A
CONTACT
Don Ashton, M.P.A., Director