Alameda County Budget Workgroup May 16, 2011
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The Alameda County Administrator's Office provided an update on the FY 2011-12 budget. The budget faces a $137.9 million shortfall due to declining revenues and one-time funds being exhausted. Reductions are planned across public assistance, health care, public protection and general government programs, totaling over 127 eliminated positions. The state and federal budgets also face large deficits, with the state gap estimated at $10.8 billion and further realignment of programs anticipated.
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Alameda County Budget Workgroup May 16, 2011
- 1. County Administrator’s Office Alameda County FY 2011-12 T Budget U d t B d t Update AF B d tW k R Budget Workgroup Meeting M ti D May 16, 2011 Susan S. Muranishi, County Administrator Kai Mander, Principal Analyst
- 2. County Administrator’s Office Economic Update Beacon 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. County Administrator’s Office T State Budget Update AF R D 3
- 4. County Administrator’s Office State Budget Update—May Revise Starting 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. County Administrator’s Office State Budget Update Republican 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. County Administrator’s Office State Budget Update Suspension of local government mandates T Deferred payments AF Other R D 6
- 7. County Administrator’s Office T Federal Budget Update AF R D 7
- 8. County Administrator’s Office Federal Budget Update FY 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 2011 2012 Budget R D President Obama proposed $3.7 Trillion in spending Over 200 programs to be cut or eliminated Debt 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. County Administrator’s Office T Alameda County 201112 Al d C 2011 12 AF Maintenance of Effort Budget R D 9
- 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 AF Appropriation $2,443.4 $2 443 4 R $2,518.8 $2 518 8 $75.4 $75 4 3.1% 3 1% D Revenue e e ue $ , 3 $2,443.4 $ ,380 9 $2,380.9 ($6 5) ($62.5) ( 6%) (2.6%) Funding Gap $0 $137.9 $137.9 F.T.E. FTE Positions* 9,103.2 9,160.0 56.8 0.6% *Full‐time equivalent positions
- 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 $3.9M Other expenditure and revenue changes $16.6M
- 12. County Administrator’s Office Closing the Gap - $137.9 million Revenue Enhancements T Program R d ti P Reductions AF Countywide Strategies R Efficiency improvements D 12
- 13. County Administrator’s Office FY 11-12 Reduction Targets T Program Area Reduction Target AF General Government $22.6M R Public Protection $44M D Public Assistance $ $33.2M Health Care $38.1M Total T t l $137.9M $137 9M
- 14. County Administrator’s Office FY 11-12 F nding Gap Reductions 11 12 Funding Red ctions ($ in millions) Reduction Program Target Plans FTEs T AF General Government $22.6 $21.8 7 Public Protection $44 $39.0 48 R D Public Assistance $33.2 $32.8 60 Health Care $38.1 $38 1 $38.1 $38 1 12 General Fund Total $137.9 $131.7 127
- 15. County Administrator’s Office Major Components of VBB Reductions (partial list) Expenditure reductions $73.1 T Revenue increases $3.5 AF FMR $55.1 Total Reduction Plans: $131.7M $ R D Includes 127 Full time equivalent positions reductions Includes 127 Full‐time equivalent positions reductions
- 16. County Administrator’s Office General Government Reductions Major Components (in millions) Fiscal Management Reward savings $17.3 T Spending cuts, including 7 FTEs S di t i l di 7 FTE $4.0 $4 0 AF Additional Revenue $0.5 TOTAL $21.8M $21 8M R D Total Reductions: $21.8 million; 7 FTEs ;
- 17. County Administrator’s Office Public Assistance Reductions Major Components (in millions) Fiscal Management Reward savings $15 T Expenditure reductions, including 64 FTEs Expenditure reductions including 64 FTEs $44.1 $44 1 AF Revenue decreases ‐$26.3 TOTAL $32.8M R D Total Reductions: $32.8 million; 60+ FTEs Note: State budget cuts result in reduced expenditures and reduced revenues
- 18. County Administrator’s Office Health Care Reductions Major Components (in millions) Fiscal Management Reward savings $15.5 T Expenditure reductions, including 12 FTEs E dit d ti i l di 12 FTE $16.5 $16 5 AF Revenue increases $6.1 TOTAL $38.1M $38 1M R D Total Reductions: $38.1 million; 12 FTEs ;
- 19. County Administrator’s Office Public Protection Reductions Major Components (in millions) Fiscal Management Reward savings $8.6 T Expenditure reductions, including 48 FTEs E dit d ti i l di 48 FTE $12.2 $12 2 AF Revenue increases $10.2 Possible Prop. 172 revenue Possible Prop 172 revenue $8______ $8 TOTAL R $39.0M D Total Reductions: $39 million; 48 FTEs
- 20. County Administrator’s Office Pending Factors & Outlook Countywide strategies 2011‐12 State Budget T AF Impact of economy, high unemployment Retirement costs R Federal budget, deficit and debt D 20
- 21. County Administrator’s Office Next Steps Proposed Budget Submitted to Board T June 9 2011 9, AF Budget Hearings/Adoption R June 20 – 24 2011 24, D 21
- 22. County Administrator’s Office Alameda County Budget Information on the Web T AF www.acgov.org/budget.htm www acgov org/budget htm R D 22
- 23. County Administrator’s Office Alameda County FY 2011-12 T Budget U d t B d t Update AF B d tW k R Budget Workgroup Meeting M ti D May 16, 2011 Susan S. Muranishi, County Administrator Kai Mander, Principal Analyst