The Board of Supervisors (“Board”) conducted budget hearings on Tuesday, June 6, 2017. The Board received a report from the County Executive Officer (“CEO”) and after careful review, consideration, and discussion, the Board approved the budget as recommended by the CEO and as amended by the Board prior to commencement of the budget hearings on record with the Clerk of the Board. The State of California County Budget Act provides a central reference point of state code requirements, administrative directives and recommended practices pertaining to the form and content of the annual county budget. Shasta County adheres to the provisions of the County Budget Act.
Following is a brief description of each recommended action:
- The Board adopted Administrative Policy 2-104, Fund Balance Policy for Financial Statement Reporting on March 1, 2011. The classification “Committed Fund Balance” includes amounts that can be used only for the specific purpose determined by the Board. Commitments may be changed or lifted only by the Board taking the same formal action that imposed the constraint originally. The formal action must occur prior to the end of the reporting period (June 30th), and the amount which will be subject to the constraint may be determined in the subsequent period. Therefore, it is recommended that the Board adopt a resolution which establishes committed fund balance classification for those funds formally constrained to be used for a specific purpose.
- Adopting a Salary Resolution will make those personnel changes included in the FY 2017-18 Budget approved by the Board on June 6, 2017.
- Government Code section 29089 requires a resolution for the adoption of the budget of the county, each dependent special district, and each other agency as defined in section 29002. The budget is comprised of the Recommended Budget as recommended by the CEO and approved by the Board of Supervisors and as amended prior to Budget Hearings on record with the Clerk of the Board, with inclusion of the following:
- Various technical corrections to the Recommended Budget recommended by the Auditor-Controller and approved by the CEO; and
- By attachment, the Fiscal Year 2017-18 Schedule of Position Allocations by budget unit, and the County Salary Plan; and
- Affirms that the budget, as adopted, is within the appropriations limit as required pursuant to statute; and
- Reaffirms the budgetary policies, controls, and authorizations set out in Administrative Manual Policy #2-101, Budgetary Policies and Controls; and
- Authorizes the Auditor-Controller, in consultation with the CEO, to make any technical adjustments to contingency reserves or fund balances, to be reflected in Fiscal Year 2017-18 appropriations, as necessary to balance the budget after the posting of accruals; and
- Authorizes the Auditor-Controller, in consultation with the CEO, to transfer money from one fund to another if the Board of Supervisors has authority over each fund, as necessary during Fiscal Year 2017-18.
Staffing Levels
The FY 2017-18 Budget includes a workforce of 2,007 FTE’s. This includes a net decrease of 8.5 FTE’s.
As of February 7, 2017, total vacancies were 266, or 13.0 percent. The CEO confers with Support Services weekly to review all requests to fill positions. This is in part to reduce expenditures, but also to preserve positions for employees facing a layoff situation.
Technical and Balancing Adjustments
This element allows the Auditor-Controller to make technical adjustments necessary to balance the budget after the actual year-end postings are complete for the 2015-16 fiscal year. Occasionally these adjustments require the Auditor-Controller to transfer money between funds; such action is in accordance with Government Code section 25252. Any adjustments will be made after consultation with the CEO to ensure there is agreement as to final determinations. The Adopted Budget Resolution will allow the Auditor-Controller to reduce FY 2017-18 appropriations if adequate fund balance is not available to support the Adopted Budget.
The review and compilation of the budget may on occasion require various technical adjustments to the FY 2017-18 Adopted Budget. These adjustments are recommended by the Auditor-Controller, approved by the CEO, and communicated to the affected departments.
State of California Budget
The Governor’s “May Revise” Budget was released on May 11, 2017. His focus continues to be on preserving fiscal stability. The Governor pointed out that revenue is slipping and economic indicators point to a slowdown or even a recession.
The May Revise focuses on these areas state-wide:
Reducing Pension Liabilities - $6 billion via a loan from the Surplus Money Investment Fund.
Board of Equalization Miscalculations – The May Revise proposes that any amounts counties may owe the State through FY 2015-16 will not have to be repaid.
Child Care – Restoration of the $500 million that in January the Governor said should be “paused”.
Housing - $25 million for Supportive Housing.
New Tobacco Tax Revenue – The Governor is holding to his January proposal to use some of the new proceeds for Medi-Cal Costs.
Prop 57/Post Release Community Supervision – An increase of $4.4 million for a total of $15.4 million.
Prop 47 – An increase of $3.5 million compared to the January estimate for a total of $45.6 million. Of this amount, just over $29 million will be available to the counties for Mental Health and Substance Abuse Services.
The CEO will monitor the eventual adoption of a State spending plan for FY 2017-18, and keep the Board apprised of any negative impact on the County budget and the public we serve.