County Administrators Office

FY201112 ProposedBudgetOverview

SusanS.Muranishi,CountyAdministrator KaiMander,PrincipalAnalyst
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County Administrators Office

FY201112 FY 2011 12 ProposedBudgetOverview

EconomicUpdate FY201112ProposedBudget p g FundingGap&BalancingStrategies FederalBudgetUpdate Federal Budget Update StateBudgetUpdate PendingFactors&Schedule Pending Factors & Schedule

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AlamedaCountyUnemploymentRate y p y SinceRecessionBegan
(notseasonallyadjusted)
13% 12% 10.3% 11% 10% 9% 8% 7% 6% 4.9% 5% 4%

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AlamedaCountyMedianHomeValues y July2007 April2011

650,000

619,000 619 000

600,000 550,000 500,000 450,000 400,000 400 000

338,000
350,000 300,000 250,000 200,000

280,000

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AssessmentRoll PercentChange AssessmentRollPercentChange AlamedaCounty

18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2% 4%

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SalesTaxRevenues
15,000,000

14,000,000

13,000,000

12,000,000

11,000,000

10,000,000 200405 200506 200607 200708 200809 200910 201011Proj. 201112 Budget 7

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Prop.172SalesTaxRevenues
$125,000,000

$120,000,000

$115,000,000

$110,000,000 $110 000 000

$105,000,000

$100,000,000

$95,000,000 200203 200304 200405 200506 200607 200708 200809 200910 201011 Proj. 201112 Budget
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MeasureARevenuesCountyShare
$30,000,000 $30 000 000

$28,000,000

$26,000,000

$24,000,000

$22,000,000

$20,000,000 20042005 20052006 20062007 20072008 20082009 20092010

20102011 20112012 Proj. Budget

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RealignmentRevenues
210,000,000

200,000,000

190,000,000

180,000,000

170,000,000

160,000,000

150,000,000 200304 200405 200506 200607 200708 200809 200910 20102011 201112 10 proj. budgeted

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QuarterlyInterestRatefor InvestmentPool
6% 5.0% 5% 4% 3% 2% 1% 0%

0.4%

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IncreasedDemandforServices

Dramaticincreaseincaseloadsforassistance programs,including:

CalWORKs FoodStamps MediCal IHSS

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EconomicOutlook

Wehavereachedbottom,butslowrecovery Unemploymenttostayhighforsometime p y y g Homepriceshavestabilized;salesstilllow Taxablesalesincreasing g EastBaywillseestrongeconomicgrowth againbutwhen? g

Source: Beacon Economics

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FY20112012ProposedBudget FY 2011 2012 P dB d

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FY201112ProposedBudget AllFunds p g ($inmillions)

2010 11 2011 12 Increase/ 201011 201112 Increase/ Final Proposed (Decrease) %Change Appropriation $2,443.4 $2,468.5 $25.1 1.0% /Revenue F.T.E. F TE Positions* 9,103.19 9 103 19 9,049.17 9 049 17 (54.02) (54 02) (0.6%) (0 6%)

*Fulltimeequivalentpositions

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FY2011 12ProposedBudget FY 201112 Proposed Budget General/Grant/MeasureAFunds

($inmillions)

201011 201112 Increase/ Final Proposed (Decrease) %Change Appropriation $2 101 6 $2,101.6 $2,056.7 $2 056 7 ($44.9) ($44 9) (2.1%) (2 1%) /Revenue F.T.E. Positions* 7,287.47 7,232.03 (55.44) (0.8%)

*Fulltimeequivalentpositions

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FY2011 12ProposedBudget FY201112ProposedBudget AppropriationbyMajorObject General/Grants/MeasureAFunds

OtherFinancing Uses 3.6% Salaries& Benefits 40.8%

OtherCharges 19.8% FixedAssets 0.3%

Services& Supplies 35.5%

TotalAppropriation:$2,056.7million

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FY2011 12ProposedBudget FY201112ProposedBudget AppropriationbyProgram General/Grants/MeasureAFunds

HealthCareServices 27.9% General Government 9.4% CapitalProjects 0.4%

NonProgram Expenditures 2.5%

PublicAssistance 31.3% Contingency& Reserves 2.4%

PublicProtection 26.1%

TotalAppropriation:$2,056.7million

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FY201112ProposedBudget FundingbySource General/Grants/MeasureAFunds

OtherSources, 8.1% PropertyTaxes, 14.6%

Chargesfor Charges for Services,14.7%

OtherTaxes, 8.4%

TotalAppropriation:$2,056.7million

State,Federal andLocal and Local Government Aid,54.2%

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FY 2011-12 Discretionary Revenue 2011 12 Share of Total General Fund

UseofFMR $56.8 3% UseofFundBalance Use of Fund Balance $7.1 1% Discretionary Discretionary Revenue $506.9 26%

ProgramRevenue $1,339.2 69%

DebtService Debt Service Revenue $25.4 1%

TotalGeneralFund:$1,935.4million

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County Administrators Office

FY 2011 12 Proposed Budget 2011-12 Discretionary Revenue by Source

OtherRevenue $34.4 7% VehicleLicenseFee (ERAF) $152.0 30% Intereston Investments $4.0 1%

PropertyTax $300.6 59%

Sales&UseTax (ERAF) $3.9 1%

Sales&UseTax $12.0 2%

DiscretionaryRevenue:$506.9million

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FY201112ProposedBudget UseofDiscretionaryRevenuebyProgram
CapitalProjects Capital Projects 1% PublicAssistance 13% General General Government 10% DebtService 5%

PublicProtection 46% Contingency& ReserveIncrease 8%

HealthCare 17%

DiscretionaryRevenue:$506.9million

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CommunityBasedOrganizations FY201112Funding(inmillions)
201112 Contracts
$46.4 $255.1 $114.4 $69.9 $4.0

Program
GeneralGovernment HealthCare HCSA AlamedaCountyMedicalCenter PublicAssistance PublicProtection

Total CBOContracts
242Contractors

$489.8
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Funding Gap and Balancing Strategies S i

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ClosingtheGap Closing the Gap General/Grant/MeasureAFunds

Net Reductions
( (inmillions) )

FTE Reductions 6.6 11.9 60.3 32.0 110.8 0.0 110.8

GeneralGovernment HealthCareServices PublicAssistance PublicProtection SubtotalPrograms CountywideStrategies Total

FTE=FullTimeEquivalentPositions

$22.6 $34.1 $33.2 $35.9 $125.8 $12.1 $137.9

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FY2011 2012 ClosingtheGap FY 20112012 Closing the Gap Ongoingvs.OneTimeStrategies

One time 60%

Ongoing 40%

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ClosingtheFundingGap
BudgetBalancingStrategies Ongoing Strategies Program reductions Program revenue increases CalWORKs revenue losses Subtotal Ongoing Strategies OneTime Strategies Fiscal Management Reward Savings Onetime revenues Use of Available Fund Balance 1% allocation for capital projects Use of Prop. 172 Designation Onetime appropriation reductions O i i i d i Subtotal OneTime Strategies Total Balancing Strategies NetReductions ($millions) $61.1 $22.4 $22 4 ($29.0) $54.5M $56.8 $9.4 $7.1 $5.0 $3.0 $2.1 $2 1 $83.4M $137.9M

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FY2011 12BalancingStrategies FY 201112 Balancing Strategies

(inmillions)

Countywide Strategies 8%

FiscalMgmt. Reward 40%

Program Reductions/ Revenue 52%

FundingGap:$137.9million

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CountywideStrategies C t id St t i
(inmillions)

UseofAvailableFundBalance Useof1%ofDisc.RevenueforCapital TOTAL

$7.1 $5.0 $12.1

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FiscalManagementRewardProgram Savings (inmillions)

GeneralGovernment HealthCare H lth C PublicAssistance PublicProtection P bli P i Total:

$17.8 $15.5 $15 5 $15.0 $8.5 $ 85 $56.8million

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County Administrators Office

FY201112ClosingtheGap FY2011 12ClosingtheGap PotentialImpacts

Reductionof111FTEs Adultinmateservices,youthservicesincluding supervisionandinvestigations,PublicDefender andDistrictAttorneyservices StateimposedcutstoCalWORKsandIHSSwill impactservicestopublicassistancerecipients Mentalhealthservices,MediCalclaiming, alcoholanddrugservices,cliniciantraining Deferredmaintenance

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FederalBudgetUpdate F d lB d U d

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FederalBudgetUpdate

FY2011Budget FY2012Budget FY 2012 B d t DeficitandDebtlimit

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StateBudgetUpdate S B d U d

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ERAFLossesbyYear(inmillions) Cumulativeloss:$4.3Billion
$350 $320 $300 $263 $250 $220 $206 $200 $170 $150 $140 $147 $129 $130 $135 $158 $187 $236 $273 $297 $335 $326 $320 $326

$100

$50

$30

$0

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FundingGapsSinceERAFIntercept
(inmillions)

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ALAMEDACOUNTY PROPERTYTAXDISTRIBUTION

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StateBudgetforFY201112
$26.6billionoriginalfundinggap -$13.4 billion in cuts, transfers already adopted -$3.6 billion (higher revenues, higher costs) $9.6 billion remaining gap

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StateBudgetforFY2011 12 StateBudgetforFY201112 ImpactfromCutsAlreadyAdopted

(partiallist)

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

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County Administrators Office

FY201112StateBudget

$9.6BillionGapRemains GovernorVetoofLegislatureApprovedPlan Governor Veto of Legislature Approved Plan ImplementationandFundingofRealignment? PhaseoutofRedevelopmentAgencies? Ph t fR d l tA i ? Pensionreform,spendingcapinexchangefor taxextensions? i ? Possibilityofallcutsbudget
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PendingFactors

FederalandStatebudgets Greaterdemandforservices Greater demand for services Economicdownturnimpactingrevenuesand expenses Retirementandhealthcostincreases

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BudgetHearingSchedule

BudgetHearings OpeningComments Health Care HealthCare PublicAssistance

June20,12:30p.m.

PublicProtection GeneralGovernment OtherIssues/FinalAdjustments / j

June21,1:30p.m.

BudgetDeliberations BudgetAdoption

June22,11:00a.m. June24,11:00a.m. 42

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FY201112 ProposedBudgetOverview

SusanS.Muranishi,CountyAdministrator KaiMander,PrincipalAnalyst
44