Alameda County Budget Workgroup May 16, 2011

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Presentation from May 16, 2011 Alameda County Budget Workgroup meeting.

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Alameda County Budget Workgroup May 16, 2011

  1. 1. County Administrator’s Office Alameda County FY 2011-12 T Budget U d t B d t Update AFB d tW k RBudget Workgroup Meeting M ti DMay 16, 2011Susan S. Muranishi, County AdministratorKai Mander, Principal Analyst
  2. 2. County Administrator’s Office Economic UpdateBeacon Economics East Bay Forecast: We have reached bottom, but slow recovery T AF Unemployment to stay high for some time Median home prices have stabilized; sales still low R Taxable sales increasing D East Bay will see strong economic growth again…but  when? h ? 2
  3. 3. County Administrator’s Office TState Budget Update AF R D 3
  4. 4. County Administrator’s Office State Budget Update—May ReviseStarting gap $26.6B ‐ $13.4B cuts/transfers adopted = $13.2B current gap T ‐$6.6B increased revenue ($2.8B 2010‐11; $3.5B in 2011‐12, other ) $ ($ ;$ , ) AF +$3B: higher K‐14 spending, mental health, corrections spending ,  removal of Prop. 10 savings $9.6B gap + $1.2B to build reserve = $10.8B in solutions needed $9 6B gap + $1 2B to build reserve = $10 8B in solutions needed R Redevelopment proposal still in D Extend sales/VLF taxes until election; 0.25% income tax surcharge  removed for one year removed for one year Further program realignment Additional program cuts.  No use of Prop 10, 63 funds Cuts 5,500 State jobs, 43 boards/commissions Proposals for state and local pension reforms 4
  5. 5. County Administrator’s Office State Budget UpdateRepublican Budget Proposal No cuts to K‐12, Higher Ed T AF Over‐realized revenue this year, assumed revenue  growth next year ($5B) U fP R Use of Prop. 10 & 63 ($2.4B) 10 & 63 ($2 4B) D Rejects realignment proposal Redevelopment ($1B) R d l t ($1B) Restoring Gov. cuts rejected by Dems ($1.4B) State worker pay, benefits ($1.1B) State worker pay benefits ($1 1B) Other 5
  6. 6. County Administrator’s Office State Budget UpdateSuspension of local government mandates TDeferred payments AFOther R D 6
  7. 7. County Administrator’s Office TFederal Budget Update AF R D 7
  8. 8. County Administrator’s Office Federal Budget UpdateFY 2011 Budget $3.8 Trillion plan adopted April 15 T $38.5B in total cuts from 2010 levels AF Only Defense and Military Construction – VA increased Federal deficit projected to be $1.65 Trillion in 20112012 Budget R D President Obama proposed $3.7 Trillion in spending Over 200 programs to be cut or eliminatedDebt limit $14.3 trillion limit to be reached within weeks U.S. Treasury says it may begin defaulting on US obligations on August 2 Deficit reduction talks ongoing 8
  9. 9. County Administrator’s Office T Alameda County 2011­12 Al d  C  2011 12 AFMaintenance of Effort Budget R D 9
  10. 10. County Administrator’s Office FY 2011­12 MOE Budget ­ FY 2011 12 MOE Budget  All Funds (in millions) FY  FY  2010­11 2011­12 Inc/  %  T FINAL MOE (Dec) Change AFAppropriation $2,443.4 $2 443 4 R $2,518.8 $2 518 8 $75.4 $75 4 3.1% 3 1% DRevenue e e ue $ , 3 $2,443.4 $ ,380 9 $2,380.9 ($6 5) ($62.5) ( 6%) (2.6%)Funding Gap $0 $137.9 $137.9F.T.E. FTE  Positions* 9,103.2 9,160.0 56.8 0.6% *Full‐time equivalent positions 
  11. 11. County Administrator’s Office Major Components of Net County Cost Increase (partial list)Loss of one-time funding and revenues: $121.3M Prior year use of FMR $61.4M T Loss of stimulus funding L f ti l f di $19.6M $19 6M AF Prior year use of designations $19.0M Loss of Vehicle License Fee revenue $8.4M R 1% designation for capital $5.0M D Loss of SB 90 revenue $4.0M Other $3.9MOther expenditure and revenue changes $16.6M
  12. 12. County Administrator’s Office Closing the Gap - $137.9 millionRevenue Enhancements TProgram R d tiP Reductions AFCountywide Strategies REfficiency improvements D 12
  13. 13. County Administrator’s Office FY 11-12 Reduction Targets TProgram Area Reduction Target AFGeneral Government $22.6M RPublic Protection $44M DPublic Assistance $ $33.2MHealth Care $38.1MTotalT t l $137.9M $137 9M
  14. 14. County Administrator’s Office FY 11-12 F nding Gap Reductions 11 12 Funding Red ctions ($ in millions) ReductionProgram Target Plans FTEs T AFGeneral Government $22.6 $21.8 7Public Protection $44 $39.0 48 R DPublic Assistance $33.2 $32.8 60Health Care $38.1 $38 1 $38.1 $38 1 12General Fund Total $137.9 $131.7 127
  15. 15. County Administrator’s Office Major Components of VBB Reductions (partial list)Expenditure reductions $73.1 TRevenue increases $3.5 AFFMR $55.1Total Reduction Plans: $131.7M $ R DIncludes 127 Full time equivalent positions reductionsIncludes 127 Full‐time equivalent positions reductions
  16. 16. County Administrator’s Office General Government Reductions Major Components (in millions)Fiscal Management Reward savings $17.3 TSpending cuts, including 7 FTEsS di t i l di 7 FTE $4.0     $4 0 AFAdditional Revenue $0.5TOTAL $21.8M $21 8M R DTotal Reductions: $21.8 million; 7 FTEs ;
  17. 17. County Administrator’s Office Public Assistance Reductions Major Components (in millions)Fiscal Management Reward savings $15 TExpenditure reductions, including 64 FTEsExpenditure reductions including 64 FTEs $44.1 $44 1 AFRevenue decreases ‐$26.3TOTAL $32.8M R DTotal Reductions: $32.8 million; 60+ FTEsNote: State budget cuts result in reduced expenditures and reduced revenues
  18. 18. County Administrator’s Office Health Care Reductions Major Components (in millions)Fiscal Management Reward savings $15.5 TExpenditure reductions, including 12 FTEsE dit d ti i l di 12 FTE $16.5 $16 5 AFRevenue increases $6.1TOTAL $38.1M $38 1M R DTotal Reductions: $38.1 million; 12 FTEs ;
  19. 19. County Administrator’s Office Public Protection Reductions Major Components (in millions)Fiscal Management Reward savings $8.6 TExpenditure reductions, including 48 FTEsE dit d ti i l di 48 FTE $12.2 $12 2 AFRevenue increases $10.2Possible Prop. 172 revenuePossible Prop 172 revenue $8______ $8TOTAL R $39.0M DTotal Reductions: $39 million; 48 FTEs
  20. 20. County Administrator’s Office Pending Factors & OutlookCountywide strategies2011‐12 State Budget T AFImpact of economy, high unemploymentRetirement costs RFederal budget, deficit and debt D 20
  21. 21. County Administrator’s Office Next StepsProposed Budget Submitted to Board T June 9 2011 9, AFBudget Hearings/Adoption R June 20 – 24 2011 24, D 21
  22. 22. County Administrator’s Office Alameda County Budget Information on the Web T AFwww.acgov.org/budget.htmwww acgov org/budget htm R D 22
  23. 23. County Administrator’s Office Alameda County FY 2011-12 T Budget U d t B d t Update AFB d tW k RBudget Workgroup Meeting M ti DMay 16, 2011Susan S. Muranishi, County AdministratorKai Mander, Principal Analyst

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