|
|
|
|
|
COUNTY OF SAN MATEO
Inter-Departmental Correspondence
|
County Manager’s Office
|
DATE:
|
March 25, 2009
|
BOARD MEETING DATE:
|
March 31, 2009
|
SPECIAL NOTICE/HEARING:
|
None
|
VOTE REQUIRED:
|
Majority
|
|
|
TO:
|
Honorable Board of Supervisors
|
FROM:
|
David S. Boesch, County Manager
|
SUBJECT:
|
County Manager’s Report #4
|
A.
|
Detailed Analysis of the 2009-10 State Budget
|
|
|
RECOMMENDATION:
|
None. Informational only.
|
|
|
VISION ALIGNMENT:
|
Commitment: Responsive, effective and collaborative government.
|
Goal(s): 20—Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.
|
|
|
SUMMARY:
|
On March 17, 2009, staff provided your Board with a preliminary analysis of the impacts of the recently adopted 2009-10 State Budget. The state budget agreement includes “trigger” cuts, deferrals and a slate of budget measures that must go before the voters at the May 19 Special Election. Departments have completed a more thorough analysis of how these scenarios impact County programs and services. We are also mindful that a June 8 downward revision of revenue estimates may well result in additional reductions. The updated estimated impact to the County is now $ 46 million.
|
|
|
BACKGROUND:
|
On February 20, 2009 Governor Schwarzenegger signed a 17-month budget package. The complex budget package includes: $41.6 billion in “solutions:” $14.9 billion in reductions; $12.5 billion in tax increases; $5.4 billion in borrowing; and $1.3 billion in vetoes. The spending plan anticipates between $8 and $10 billion in federal stimulus funds.
|
|
|
State Budget Solutions
|
The revenue increases include:
|
• Sales Tax by 1 cent until July 1, 2011. If the spending cap does not pass, the increase would be in place for another year;
|
• Vehicle License Fee (VLF) from 0.65 percent to 1.15 percent through 2013-14 (2011-12 if spending cap fails). A portion of these funds would be used to fund local law enforcement programs.
|
• Personal Income Tax with a surcharge of 0.25 percent. If the state receives at least $10 billion in federal stimulus funds, the increase drops to 0.125 percent.
|
|
|
Additional “trigger” reductions are avoided if the federal stimulus funds California receives reach $10 billion. That determination will be made by April 1, 2009 at a hearing conducted by the Treasurer and the Director of the Department of Finance. These reductions would be effective on July 1, and include: elimination of the Medi-Cal optional benefits; a 10 percent reduction to public hospital reimbursement rates; 4 percent reduction to CalWORKS grants; and 2.3 percent reduction of SSI/SSP grants; and additional borrowing of $600 million.
|
|
|
DISCUSSION:
|
Impact on San Mateo County
|
|
|
Health System— $5.3 million FY 2009-10
|
• Maternal, Child & Adolescent Health (MCAH)--$36,376
|
• CCS Medical Therapy Unit (MTU)--$14,395
|
• Mental Health Managed Care/ESDT/Mental Health Services Act (Prop. 63)--$2,528,000
|
• Mental Health Pharmacy & Lab General Fund--$2,493,000
|
• SMMC Acute Medical Services--$271,000
|
Additional “Trigger” Cuts— ($3.871 million)
|
• Ten percent reduction in public hospital reimbursement rates--$371,000
|
• Elimination of certain optional benefits in Medi-Cal (e.g., adult dental, optometry, acupuncture, chiropractic, podiatric, and psychology services)--$1.5 million
|
|
|
Special Election— $3.186 million)
|
• Children’s Health Initiative--$686,109, if Proposition 1D is approved by the voters.
|
• Prenatal to Three/Black Infant Health (BIH)--$1 million, if Proposition 1D is approved and the local First 5 Commission decides not to use its reserves to bridge this funding gap.
|
• Proposition 1E (mental health) modification--$2.5 million, if the proposition passes. Funds currently received from the Mental Health Services Act would be used to back fill funding for Mental Health Managed Care/EPSDT (Early and Periodic Screening, Treatment, and Diagnosis). If the proposition fails, the State will likely implement a similar-sized reduction to the funding for Mental Health Managed Care/EPSDT for children’s mental health services.
|
Two-Month Deferral of State Payments (from July and August to September 2009):
|
|
|
|
|
Human Services Agency— $1.3 million in FY 2009-10
|
• CalWORKS loss of COLA--$475,152 loss as a result of a 2.4 percent reduction in client COLA. The reduction would affect 2,400 clients.
|
• SSI/SSP--$10,848 loss as a result of a 5.8 percent reduction in the COLA for clients. The reduction will affect 270 Cash Assistance Program for Immigrants (CAPI) clients.
|
• Medi-Cal Cost of Doing Business--$700,000
|
• CAPI – SSI/SSP (No federal SSI COLA pass-through)--$119,880 in direct clients impact as a result of 2.3 percent reduction in CAPI cash assistance. The reduction will affect 270 CAPI clients.
|
Additional “Trigger” Cuts — ($758,683)
|
• CalWORKS (4 percent grant reduction)--$642,383 in direct payments to clients. Approximately, 2,400 clients would be subject to a 4 percent reduction in their monthly payments.
|
• CAPI SSI/SSP (2.3 percent grant reduction)--$51,600 in direct payments to clients. The reduction will impact 270 CAPI recipients.
|
• SSI/SSP--$65,000 in direct payments to clients. About 270 CAPI clients would be subject to a 2.3 percent reduction in their current payments.
|
Two-Month Deferral of State Payments (from July and August to September 2009):
|
|
|
|
|
Probation Department— $1.5 million in FY 2009-10
|
|
|
• JPCF (Camps/Ranches) --$828,443
|
• Community Based Organizations (provider contracts)--$209,819
|
|
|
Public Works— $3.8 million deferral in FY 2009-10
|
Three-Month Deferral of Payments:
|
• Road Maintenance (Gas Tax)--$2,700,000
|
• Engineering (Proposition 1B Transportation Bond)--$1,100,000
|
|
|
District Attorney—$105,968 in FY 2009-10
|
• Statutory Rape Prosecution--$13,228
|
|
|
• Spousal Abuser Program—$91,872
|
|
|
First 5 San Mateo County—$3.6 million in FY 2009-10
|
Special Election:
|
• Potential Local Impact—approximately $3.6 million per year or $18 million over five years beginning September 2010, if Proposition 1D (First 5) modification is approved by the voters.
|
Additionally, for your information:
|
San Mateo County Regional Centers—$5.3 million in FY 2009-10)
|
• Loss of revenue for agencies providing services for the disabled in San Mateo County funded by the Golden Gate Regional Center --$5,314,394
|
|
|
|
|
The state spending agreement results in an estimated $15.6 million impact on the County’s FY 2009-10 budget. An additional $4.656 million reduction would result from the “trigger” cuts: a total of $30.3 million in deferrals; and the County’s First Five Commission would sustain a total loss of $18 million over a five-year period if approved at the May special election.
|