Alameda County 2011-12 Proposed Budget Overview

County Administrator’s Office

FY 201112 Proposed Budget OverviewProposed Budget Overview

Susan S. Muranishi, County AdministratorSusan S. Muranishi, County AdministratorKai Mander, Principal Analyst

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FY 2011 12FY 2011‐12 Proposed Budget Overview

Economic Update FY 2011‐12 Proposed Budgetp g Funding Gap & Balancing Strategies Federal Budget Update Federal Budget Update State Budget Update Pending Factors & Schedule Pending Factors & Schedule

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Alameda County Unemployment Rate y p ySince Recession Began(not seasonally adjusted)

13%

10.3%11%

12%

13%

9%

10%

11%

7%

8%

9%

4.9%

5%

6%

7%

4%

5%


Alameda County Median Home ValuesyJuly 2007 – April 2011

619 000650,000

619,000

550,000

600,000

400 000

450,000

500,000

338,000

300,000

350,000

400,000

280,000

200,000

250,000

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Assessment Roll—Percent ChangeAssessment Roll Percent ChangeAlameda County

18%

14%

16%

8%

10%

12%

4%

6%

‐2%

0%

2%

6‐4%

‐2%


Sales Tax Revenues15,000,000

14,000,000

13,000,000

12,000,000

11,000,000

7

10,000,000

2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 Proj. 2011‐12 Budget


Prop. 172 Sales Tax Revenues$125,000,000

$120,000,000

$110 000 000

$115,000,000

$105,000,000

$110,000,000

$100,000,000

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$95,000,000

2002‐03 2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 Proj.

2011‐12 Budget


Measure A Revenues—County Share

$30 000 000

$28,000,000

$30,000,000

$26,000,000

$24,000,000

$22,000,000

9$20,000,000

2004‐2005 2005‐2006 2006‐2007 2007‐2008 2008‐2009 2009‐2010 2010‐2011 Proj.

2011‐2012 Budget


Realignment Revenues210,000,000

200,000,000

190,000,000

170,000,000

180,000,000

160,000,000

10150,000,000

2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐2011 proj.

2011‐12 budgeted


Quarterly Interest Rate for Quarterly Interest Rate for Investment Pool

6%

5.0%

5%

3%

4%

1%

2%

0.4%

0%

1%

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Increased Demand for Services

Dramatic increase in caseloads for assistance programs, including: CalWORKs Food Stamps Medi‐Cal IHSS IHSS

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Economic Outlook We have reached bottom, but slow recovery Unemployment to stay high for some timep y y g Home prices have stabilized; sales still low Taxable sales increasingg East Bay will see strong economic growth

again…but when?g

Source: Beacon EconomicsSource: Beacon Economics

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FY 2011 2012 P d B dFY 2011‐2012 Proposed Budget

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FY 2011‐12 Proposed Budget ‐ All Funds p g($ in millions)

2010‐11 2011‐12 Increase/2010 11Final

2011 12 Proposed

Increase/ (Decrease) % Change

Appropriation $2,443.4 $2,468.5 $25.1 1.0%/Revenue

FTE 9 103 19 9 049 17 (54 02) (0 6%)F.T.E. Positions*

9,103.19 9,049.17 (54.02) (0.6%)

15*Full‐time equivalent positions


FY 2011‐12 Proposed Budget –FY 2011 12 Proposed Budget General/Grant/Measure A Funds($ in millions)

2010‐11Final

2011‐12 Proposed

Increase/ (Decrease) % Change

Appropriation $2 101 6 $2 056 7 ($44 9) (2 1%)Appropriation/Revenue

$2,101.6 $2,056.7 ($44.9) (2.1%)

F.T.E. Positions*

7,287.47 7,232.03 (55.44) (0.8%)

16*Full‐time equivalent positions


FY 201112 Proposed BudgetFY 2011 12 Proposed BudgetAppropriation by Major Object –General/Grants/Measure A Funds

Salaries & Benefits40.8%

Other Charges

Other Financing Uses3.6% 40.8%

Fixed Assets0.3%

19.8%

Services & Supplies35.5%

Total Appropriation: $2,056.7 million 17


FY 201112 Proposed BudgetFY 2011 12 Proposed BudgetAppropriation by Program General/Grants/Measure A Funds

General Government

9.4%Capital Projects

0.4%Health Care Services

27.9%

Public Assistance31.3%

Non Program Expenditures

2.5%

Contingency & Reserves2.4%

Public Protection26.1%

Total Appropriation: $2,056.7 million 18


FY 201112 Proposed Budget


Funding by Source—General/Grants/Measure A Funds

Property Taxes, 14.6%Charges for

Other Sources, 8.1%

Charges for Services, 14.7%

Other Taxes, 8.4%

State, Federal and Local

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and Local Government Aid, 54.2%

Total Appropriation: $2,056.7 million


FY 2011 12 Discretionary Revenue


DiscretionaryUse of Fund Balance

FY 2011-12 Discretionary Revenue Share of Total General Fund

Discretionary Revenue$506.9 26%

Use of FMR$56.8 3%

Use of Fund Balance$7.1 1%

3%

Debt ServiceDebt Service Revenue$25.4 1%

Program Revenue$1,339.2 69%

20Total General Fund: $1,935.4 million


FY 2011-12 Proposed Budget


FY 2011 12 Proposed BudgetDiscretionary Revenue by Source

Vehicle License Fee (ERAF)$152.0 30%

Other Revenue$34.4 7%

Interest on Investments

$4.0 1%

Sales & Use Tax$$12.0 2%

Sales & Use Tax (ERAF)$3.9 1%

Property Tax$300.6 59%

Discretionary Revenue: $506.9 million 21

County Administrator’s OfficeCounty Administrator’s Office

GeneralCapital Projects

FY 201112 Proposed BudgetUse of Discretionary Revenue by Program

General Government

10% Debt Service5%Public Assistance

13%

Capital Projects1%

13%

Health Care17%

Public Protection46%

Contingency & Reserve Increase

8%

Discretionary Revenue: $506.9 million 22


CommunityBased OrganizationsCommunityBased OrganizationsFY 201112 Funding (in millions)

Program2011‐12 Contracts

General Government $46.4

Health Care $255.1

HCSA – Alameda County Medical Center $114.4

Public Assistance $69.9

Public Protection $4.0

Total – CBO Contracts $489.8

242 Contractors23


Funding Gap and Balancing S iStrategies

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Closing the GapClosing the Gap General/Grant/Measure A Funds

Net Reductions(in millions)

FTE Reductions( )

General Government $22.6 6.6

Health Care Services $34.1 11.9

Public Assistance $33.2 60.3

Public Protection $35.9 32.0

Subtotal Programs $125.8 110.8Countywide Strategies $12.1 0.0Total $137.9 110.8FTE = Full‐Time Equivalent Positions


FY 2011‐2012 ‐ Closing the GapFY 2011 2012 Closing the GapOngoing vs. One‐Time Strategies

Ongoing40%

Onetime60% 40%60%

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Closing the Funding GapBudget Balancing Strategies Net Reductions

($ millions)($ millions)Ongoing StrategiesProgram reductions $61.1Program revenue increases $22 4Program revenue increases $22.4CalWORKs revenue losses ($29.0)Subtotal Ongoing Strategies $54.5M

OneTime StrategiesFiscal Management Reward Savings $56.8One‐time revenues $9.4Use of Available Fund Balance $7.11% allocation for capital projects $5.0Use of Prop. 172 Designation $3.0O i i i d i $2 1

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One‐time appropriation reductions $2.1Subtotal OneTime Strategies $83.4MTotal Balancing Strategies $ 137.9M


FY 2011‐12 Balancing StrategiesFY 2011 12 Balancing Strategies(in millions)

Fiscal Mgmt. Reward40%

Countywide Strategies

8% 40%

Program Reductions/ RRevenue52%

Funding Gap: $137.9 million 28


C t id St t iCountywide Strategies (in millions)

Use of Available Fund Balance $ 7.1Use of 1% of Disc. Revenue for Capital $ 5.0TOTAL $12.1

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Fiscal Management Reward Program Savings(in millions)

General Government $17.8 H lth C $15 5Health Care $15.5 Public Assistance $15.0 P bli P i $ 8 5Public Protection $ 8.5

Total: $56.8 million

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FY 2011 12 Closing the GapFY 201112 Closing the GapPotential Impacts

Reduction of 111 FTEs Adult inmate services, youth services including supervision and investigations, Public Defender and District Attorney services

State‐imposed cuts to CalWORKs and IHSS will impact services to public assistance recipients

Mental health services, Medi‐Cal claiming, alcohol and drug services, clinician training

Deferred maintenance31


F d l B d U dFederal Budget Update

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Federal Budget Update

FY 2011 Budget FY 2012 B d t FY 2012 Budget Deficit and Debt limit

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S B d U dState Budget Update

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ERAF Losses by Year (in millions)ERAF Losses by Year (in millions)Cumulative loss: $4.3 Billion

$300

$350

$263$273

$297

$320$335 $326 $320 $326

$200

$250

$170$187

$206$220

$236

$263

$100

$150 $129 $130 $135 $140 $147$158

$170

$0

$50 $30

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Funding Gaps Since ERAF Intercept Funding Gaps Since ERAF Intercept (in millions)

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ALAMEDA COUNTY


PROPERTY TAX DISTRIBUTION

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State Budget for FY 201112

$26.6 billion original funding gap-$13.4 billion in cuts, transfers already adopted-$3.6 billion (higher revenues, higher costs)$9.6 billion remaining gap

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State Budget for FY 201112State Budget for FY 2011 12Impact from Cuts Already Adopted(partial list)

CalWORKs IHSS IHSS SSI/SSP Medi Cal Medi-Cal Adult Day Health Program Healthy Families Program

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FY 201112 State Budget

$9.6 Billion Gap Remains Governor Veto of Legislature Approved Plan Governor Veto of Legislature Approved Plan Implementation and Funding of Realignment?Ph t f R d l t A i ? Phase‐out of Redevelopment Agencies?

Pension reform, spending cap in exchange for i ?tax extensions?

Possibility of all cuts budget

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Pending Factors

Federal and State budgets Greater demand for services Greater demand for services Economic downturn impacting revenues and expensesexpenses

Retirement and health cost increases

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Budget Hearing Schedule

Budget Hearings June 20, 12:30 p.m. Opening Comments Health Care Health Care Public Assistance

Public Protection June 21, 1:30 p.m. General Government Other Issues/Final Adjustments/ j

Budget Deliberations June 22, 11:00 a.m.

Budget Adoption June 24, 11:00 a.m.42


FY 201112 Proposed Budget OverviewProposed Budget Overview

Susan S. Muranishi, County AdministratorSusan S. Muranishi, County AdministratorKai Mander, Principal Analyst

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Alameda County 2011-12 Proposed Budget Overview