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Presented by Susan S. Muranishi, County Administrator

June 9, 2016

County of Alameda

Proposed Budget 2016-2017

County Administrator’s Office

FY 2016-17 Budget Overview

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2015-16 Final

2016-17 Proposed

Change

All Funds

Budget $2,744,222,509 $2,833,007,656 $88,785,147

Full-Time Equivalent Positions

9,600.12 9,634.23 34.11

General Fund*

Budget $2,428,627,346 $2,546,559,269 $117,931,923

Full-Time Equivalent Positions

7,688.27 7,689.59 1.32

* General Fund includes Grants and Measure A

County Administrator’s Office

Alameda County Unemployment Rate

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0%

2%

4%

6%

8%

10%

12%

4.3%

County Administrator’s Office

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Assessment Roll Growth

5.2% 6.5%

7.1%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

County Administrator’s Office

Alameda County Median Home Prices

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$642,250

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

650,000

700,000

County Administrator’s Office

State Budget

Better prepared for recession than it’s been in decades

Revenue volatility & weak financial flexibility are causes for concern

Reserves proposed to be $15.2M

Revenues down $1.9 billion from January estimates; Decline in personal income tax

Targeted appropriation increases & repurposing of existing revenues to address priorities

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County Administrator’s Office

FY 2016-17 Proposed Budget Appropriations/Revenues Balanced

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All Funds: $2,833,007,656 Change from 15-16: +$ 88,785,147 General Fund: $2,546,559,269 Change from 15-16: +$ 117,931,923 Full-Time Equivalent Positions 9,634.23 increase from 15-16: + 34.11

County Administrator’s Office

Community-Based Organizations FY 2016-17 Budget (in millions)

Program 2015-16

Contracts 2016-17

Contracts

General Government $10.2 $10.1

Health Care $298.9 $313.5

Health Care – Alameda Health System $78.5 $80.1

Public Assistance $82.5 $89.2

Public Protection $6.7 $7.9

Total – CBO Contracts $476.8 $500.8

243 Contractors 8

County Administrator’s Office

Measure A—County Share

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2016-17 Proposed Budget $31,500,000 2015-16 Final Budget $29,542,280 Year-end Projection $34,000,000

County Administrator’s Office

FY 2016-17 Maintenance of Effort Budget

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General Fund 2015-16

Final 2016-17

MOE Appropriation $2,428,627,346 $2,551,988,615 Revenue $2,428,627,346 $2,479,762,084 Funding Gap $0 $72,226,531 FTE 7,688.27 7,691.51

County Administrator’s Office

Proposed Budget Balancing – General Fund

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Program Area Net County Cost

Reductions ($ millions)

General Government 16.9

Health Care 17.6

Public Assistance 7.3

Public Protection 18.4

Countywide Strategies 12.0

Total $72.2

County Administrator’s Office

Closing the Gap – Budget Balancing Strategies

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Net County Cost Reductions ($ millions)

Ongoing Strategies Program appropriation reductions $3.4 Program revenue increases $27.5

Subtotal Ongoing Strategies $30.8

One-Time Strategies Fiscal Management Reward (FMR) Savings $28.6 One-time appropriation reductions $2.1 One-time revenues $10.7

Subtotal One-Time Strategies $41.4 Grand Total Balancing Strategies $72.2

County Administrator’s Office

Proposed Budget Balancing – General Fund

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Program Area Net County Cost

Reductions ($ millions)

General Government 16.9

Health Care 17.6

Public Assistance 7.3

Public Protection 18.4

Countywide Strategies 12.0

Total $72.2

County Administrator’s Office

Closing the Gap—Use of FMR

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Program Area Use of FMR ($ millions)

General Government $15.9

Health Care $12.2

Public Assistance $0.0

Public Protection $0.6

Total FMR $28.7

County Administrator’s Office

Unfunded Obligations

$2.79 billion at the end of FY 14-15

$100.1M more than the prior year end

Unfunded pension liabilities are $1.4B of the total

Pension Obligation Bonds = $300M

Acute Care Tower = $607M

Good news: Designated $400M for pension liability

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County Administrator’s Office

Pending Factors

Sales taxes and VLF may be insufficient for services transferred from the State to counties

Cost of services will require assessment to ensure efficiency and effectiveness

Structural operating deficits and budget gaps during economic recovery raise concern about the next recession period

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County Administrator’s Office

Recommended Actions

Accept the FY 2016-2017 Proposed Budget for review pending public hearings;

Set public hearings on the Proposed Budget to commence on Wednesday, June 22, 2016 at 1:00 p.m. as outlined in the Attachment; and

Schedule public hearings and/or public meetings to consider charges for the Emergency Medical Services District, Fire Department Emergency Medical Services, Flood Control District, and Clean Water Protection

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County Administrator’s Office

FY 2016-17 Budget Hearing Schedule

• Thursday, June 9 2:30 p.m. Presentation of Proposed Budget • Wednesday, June 22 1:00 p.m. Opening Comments Health Care Public Assistance

• Thursday, June 23 1:00 p.m. Public Protection General Government Other Issues/Final Adjustments

• Friday, June 24 1:30 p.m. Final Deliberations

• Tuesday, June 28 1:30 p.m. Final Budget Adoption

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