REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  April  11, 2017
CATEGORY:  Consent - Health and Human Services-6.

SUBJECT:

Health and Human Services Agency Budget Amendments

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Tracy Tedder, Branch Director, HHSA-Business and Support Services, 530-229-8425

STAFF REPORT APPROVED BY:  Tracy Tedder, Branch Director

RECOMMENDATION

Take the following actions for the Fiscal Year (FY) 2016-17 Health and Human Services Agency (HHSA) budget amendments: (1) Decrease appropriations and revenue by $11,508 for a final prior period budget adjustment for FY 2015-16 in the In-Home Supportive Services-Public Authority budget; and (2) align projected appropriations and revenue: (a) increase appropriations and revenue by $46,000 in the In-Home Supportive Services-Public Authority budget; (b) increase appropriations and revenue by $82,600 in the Mental Health Services Act budget; (c) increase appropriations and revenue by $762,600 in the Mental Health budget; (d) increase appropriations and revenue by $180,000 in the Perinatal budget; (e) increase appropriations and revenue by $265,914 in the Opportunity Center budget; (f) decrease appropriations by $41,027 and decrease revenue by $800,000 in the Welfare Cash Aid budget to be offset with use of Social Services-Restricted State Realignment 1991/2011 fund balance; (g) decrease appropriations and revenue by $294,369 in the Healthcare budget; and (h) decrease appropriations by $294,369 in the General Revenue budget.

SUMMARY

To align the Health and Human Services Agency (HHSA) FY 2016-17 budgeted revenue and expenditures with those reported in the mid-year budget analysis and FY 2016-17 budget projections.

DISCUSSION

Within the Mental Health Services Act (MHSA) (BU 404) budget, MHSA is projecting to be under budget in overall expenditures, primarily due to estimated underspending in salaries and benefits. However expenses are projected higher than budgeted in Other Charges related to an increase in Adult Residential Support and Care. This increase will be offset by an increase in Intergovernmental Revenue. Overall, the HHSA continues to work on measures to control programmatic costs within this budget to ensure dedicated revenues are available for sustainable programs.

The Mental Health budget (BU 410) is projecting to be over budget in Other Charges due to an increase in Psychiatric Services and Services and Supplies due to abatement services for 2640 Breslauer Way. This increase will be offset by an increase in Intergovernmental Revenue.

The Shasta County Healthcare budget (BU 412) is projecting a slight increase in the contribution to fund balance, and projected revenues and expenditures are consistent with the current budget with the exception of the County Medical Services Program (CMSP) participation fee. The CMSP participation fee was waived for the current fiscal year saving the General Fund $294,369.

The Perinatal Substance Abuse Program budget (BU 425) is projecting revenues and expenditures to be consistent with the current budget with the exception of Other Charges, which are projected to be over budget due to an increase in residential stays. This increase will be offset by an increase in Intergovernmental Transfer Revenue.

The Opportunity Center budget (BU 530) is projecting revenues and expenditures to be under or consistent with the current budget with the exception of Other Charges, which are projected to be over budget due an increase in expenditures for client payroll because of new state mandated Community Integration Training (CIT Program). This increase will be offset by an increase in Intergovernmental Revenue.

Welfare Cash Aid budget (BU 541) supports the cost of CalWORKs, foster care, group home, adoptions assistance, and In-Home Supportive Services (IHSS) provider payments. Expenditures with this budget are anticipated to be under overall budget related to lower CalWORKs expenditures. However, adoptions and foster care expenditures are projected to exceed budget authority at the line item level due to an increase in adoptions expenditures and new program mandates in foster care related to Continuum of Care Reform (CCR). Because these programs are funded through 2011 realignment and not offset with other state revenue (and CalWORKs state revenue is reduced), revenues are projected to be under budget. This decrease in revenue results in a projected net county cost, and additional use of fund balance, in the amount of $758,973.

The IHSS Public Authority budget (BU 851) is subject to Maintenance of Effort (MOE) for overall expenditures, limiting the County obligation to the MOE amount. However Services and Supplies are projected to be over budget by $46,000 due to an increase in IHSS provider negotiation costs in the FY 2016-17 budget and the prior year overage. This cost will be offset by additional Federal and State revenue.

Included in FY 2016-17 adjustments discussed above is the IHSS Public Authority (BU 851) final (prior period) budget adjustment for FY 2015-16 (Recommendation #1). Each year after all accruals and year-end adjustments have been posted and the books are closed, the Auditor completes a review process that ensures that all budget units remained in compliance with the Government Code and the County’s budgetary control policies.

ALTERNATIVES

The Board could choose not to approve the budget amendment.

OTHER AGENCY INVOLVEMENT

The Auditor-Controller has reviewed the proposed transfers and accompanying budget amendment and will process the budget amendments with Board approval.  The recommendation has been reviewed by the County Administrative Office.

FINANCING

Sufficient fund balances exist to support each of the recommendations. There is a positive General Fund impact with the recommended action to decrease appropriation authority within the Shasta County Healthcare (BU 412) budget. There is no additional General Fund impact with the remainder of the recommendations.