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Health and Human Services Agency (HHSA), Administration and Finance Division, recommending the Board authorize the Chair to sign the following Budget Transfer Requests increasing revenues and appropriations in Department 15, the Health and Welfare Realignment Special Revenue Funds, Public Health, Mental Health and Environmental Management due to unanticipated 1991 Public Health Realignment Sales Tax and Vehicle License Fee revenues and increasing revenue and appropriations by $456,964 in social services to recognize unanticipated 1991 Social Services Realignment Sales Tax Caseload Growth revenues. (4/5 vote required)
FUNDING: 1991 Realignment.
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DEPARTMENT RECOMMENDATION:
Due to unanticipated 1991 Realignment revenue increases that were identified after the Board adopted the Fiscal Year 2015-16 budget, the Health and Human Services agency (HHSA) is recommending the Board authorize the Chair to sign Budget Transfer Requests increasing revenues and appropriations in the Public Health, Environmental Management, Mental Health and Social Services divisions.
DISCUSSION/BACKGROUND:
Public Health
Public Health 1991 Realignment revenues are difficult to project due to the methodology used by the State which is based on the economic volatility of the State sales tax and vehicle license collections. As a result, HHSA will always be conservative in these projections. As a result, HHSA underestimated the amount of actual Public Health revenue by $460,730.
In addition, California State Assembly Bill 85 addressed the changes in the low-income and indigent insurance coverage moving from the County Medical Services Program to the Affordable Care Act. The shift of Realignment revenues resulted in a shift from sales tax revenue to vehicle license fee revenue. HHSA did not budget sufficient appropriations to account for this shift in revenue due to the lack of State direction at the time the Fiscal Year 2015/16 budget was adopted. As a result, this budget tran...
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