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California Counties California Counties 101101

Jean Kinney HurstJean Kinney HurstLegislative RepresentativeLegislative Representative

California State Association of California State Association of CountiesCounties

California counties California counties are…are… Political subdivisions of the Political subdivisions of the

state (California state (California Constitution, Article XI, Constitution, Article XI, Section 1)Section 1)

General purpose General purpose governmentgovernment

Different from other local Different from other local governmentsgovernments

ComplicatedComplicated

California counties California counties are…are… Providers of state services at the local Providers of state services at the local

level, including:level, including:

– CalWORKSCalWORKS– Adult Protective Adult Protective

ServicesServices– Child Protective Child Protective

ServicesServices– Drug and Alcohol Drug and Alcohol

Abuse ServicesAbuse Services– Food StampsFood Stamps– Foster CareFoster Care

– In-Home Supportive In-Home Supportive ServicesServices

– Medical Care ServicesMedical Care Services– Mental Health Mental Health

ServicesServices– Public Public

Health/LaboratoryHealth/Laboratory– Women, Infants and Women, Infants and

Children (WIC)Children (WIC)

California counties California counties are…are… Providers of municipal services in the unincorporated Providers of municipal services in the unincorporated

area (about 17% of Californians live in unincorporated area (about 17% of Californians live in unincorporated areas), including:areas), including:

– Building inspection/code Building inspection/code enforcementenforcement

– Building permits/plan Building permits/plan checkingchecking

– Economic developmentEconomic development– Emergency ServicesEmergency Services– Fire ProtectionFire Protection– HousingHousing– Library ServicesLibrary Services– Parks and RecreationParks and Recreation

– Pest ControlPest Control– Planning and zoningPlanning and zoning– Police protection (county Police protection (county

sheriff)sheriff)– SewersSewers– Street Lighting/road Street Lighting/road

maintenancemaintenance– Streets/roads/ Streets/roads/

highways/storm drainshighways/storm drains– Water deliveryWater delivery– Weed abatementWeed abatement

California counties California counties are…are… Providers of countywide services as prescribed Providers of countywide services as prescribed

by law, including: by law, including: Adult Detention (jails)Adult Detention (jails) Environmental HealthEnvironmental Health Probation (Juvenile and Probation (Juvenile and

Adult)Adult)

Ag CommissionerAg Commissioner Forensic LabsForensic Labs Public AdministratorPublic Administrator

AssessorAssessor Homeless SheltersHomeless Shelters Public Guardian-ConservatorPublic Guardian-Conservator

Auditor-ControllerAuditor-Controller ImmunizationsImmunizations LandfillLandfill

Communicable Disease Communicable Disease ControlControl

Indigent BurialsIndigent Burials Recorder/Vital StatisticsRecorder/Vital Statistics

Cooperative ExtensionCooperative Extension Juvenile DetentionJuvenile Detention Regional ParksRegional Parks

Coroner/Medical ExaminerCoroner/Medical Examiner Juvenile Justice ProgramsJuvenile Justice Programs Treasurer/Tax CollectorTreasurer/Tax Collector

District Attorney District Attorney (Prosecutions)(Prosecutions)

LandfillLandfill Weights and MeasuresWeights and Measures

ElectionsElections Law LibraryLaw Library Veterans’ ServicesVeterans’ Services

County Organization County Organization and Structureand Structure Counties do not have “home rule” authority. They may Counties do not have “home rule” authority. They may

adopt charters, which mainly provide for the internal adopt charters, which mainly provide for the internal workings of county government, to address issues such as:workings of county government, to address issues such as:

– Number of members of boards of supervisors (5 or more)Number of members of boards of supervisors (5 or more)– Compensation and terms of office of supervisorsCompensation and terms of office of supervisors– An elected sheriff, district attorney, and assessor and any An elected sheriff, district attorney, and assessor and any

other official, including compensation and terms of officeother official, including compensation and terms of office– The performance of functions required by statute, The performance of functions required by statute,

including the power of the county executive and the including the power of the county executive and the relationship between the county executive and the board relationship between the county executive and the board of supervisorsof supervisors

– The powers, duties, and the organization of governing The powers, duties, and the organization of governing bodies and other county officesbodies and other county offices

– Personnel system, labor relations, and contracting for Personnel system, labor relations, and contracting for servicesservices

Counties with Counties with ChartersChartersAlamedaAlameda SacramentoSacramento

ButteButte San BernardinoSan Bernardino

El DoradoEl Dorado San DiegoSan Diego

FresnoFresno San Francisco City and CountySan Francisco City and County

Los AngelesLos Angeles San MateoSan Mateo

OrangeOrange Santa ClaraSanta Clara

PlacerPlacer TehamaTehama

County FinancesCounty Finances2005-06

Federal19%

State34%

Charges11%

Other13%

Sales Tax1%

Property Tax22%

The bulk of county The bulk of county revenues comes from revenues comes from the state and federal the state and federal governments to governments to operate federal and operate federal and state-mandated state-mandated services.services.

Property taxes and Property taxes and sales taxes account for sales taxes account for the bulk of county the bulk of county discretionary revenues.discretionary revenues.

RealignmentRealignment In 1991, the In 1991, the

Legislature and Legislature and Governor approved a Governor approved a “realignment” of 19 “realignment” of 19 state/county health, state/county health, mental health, and mental health, and social services social services programs, essentially programs, essentially shifting a greater shifting a greater share of costs to share of costs to counties with funding counties with funding generated by new generated by new revenue sources.revenue sources.

Counties also were Counties also were granted flexibility in granted flexibility in managing some of managing some of the realigned the realigned programs, programs, particularly in the particularly in the mental health area.mental health area.

Realigned ProgramsRealigned Programs Health ServicesHealth Services

– County Health ServicesCounty Health Services– Medically Indigent Medically Indigent

Services ProgramServices Program– County Medical Services County Medical Services

ProgramProgram– Local Health ServicesLocal Health Services

Mental Health ServicesMental Health Services– Community-based Mental Community-based Mental

HealthHealth– Institutes for Mental Institutes for Mental

DiseaseDisease– State HospitalsState Hospitals

Social ServicesSocial Services– CalWORKS Aid PaymentsCalWORKS Aid Payments– Welfare AdministrationWelfare Administration– Foster CareFoster Care– Child Welfare ServicesChild Welfare Services– Adoptions AssistanceAdoptions Assistance– GAINGAIN– In-Home Supportive ServicesIn-Home Supportive Services– County Services Block GrantCounty Services Block Grant– County Juvenile Justice County Juvenile Justice

SubventionsSubventions– County Stabilization County Stabilization

SubventionsSubventions– California Children’s ServicesCalifornia Children’s Services

Realignment FundingRealignment Funding ½ cent state sales tax increase½ cent state sales tax increase A “slowing down” of the Vehicle License Fee A “slowing down” of the Vehicle License Fee

(VLF) depreciation schedule; currently, (VLF) depreciation schedule; currently, 74.9% of the 0.65 VLF rate.74.9% of the 0.65 VLF rate.

Revenues are continuously appropriated and Revenues are continuously appropriated and allocated to counties on a monthly basis.allocated to counties on a monthly basis.

County-by-county formulas are very County-by-county formulas are very complicated and, in many instances, based complicated and, in many instances, based on decades-old caseload and spending data on decades-old caseload and spending data for each jurisdiction. for each jurisdiction.

MandatesMandates New program, higher level of service (CA New program, higher level of service (CA

Constitution, Article XIIIB, Section 6)Constitution, Article XIIIB, Section 6) Amended by Proposition 1A (2004) to include cost Amended by Proposition 1A (2004) to include cost

shifts from state to locals (Section 6 (c))shifts from state to locals (Section 6 (c)) Commission on State Mandates is the quasi-judicial Commission on State Mandates is the quasi-judicial

body responsible for mandate determinationbody responsible for mandate determination For a mandate primer, check out LAO’s tutorial: For a mandate primer, check out LAO’s tutorial:

http://www.lao.ca.gov/2007/whats_a_mandate/Acro/What_Is_a_Mandate.pdf

MandatesMandates State law requires the Commission to State law requires the Commission to

complete test claims and develop a complete test claims and develop a statewide cost estimate within one year. statewide cost estimate within one year.

Current backlog goes back in some cases Current backlog goes back in some cases to six years.to six years.

While waiting for mandate determination, While waiting for mandate determination, locals are required to perform the mandate locals are required to perform the mandate and are incurring costs.and are incurring costs.

SECURED ASSESSED VALUE HISTORY

State Assessed Local Total

Estimated Secured County General

Estimated County

Current Value of County

(Unitary) Assessed Secured Tax Charge Factor Dollar Value $ Using CPI

2009-2010 205,525,624 4,448,397,653 4,653,923,277 46,539,233 0.186859 8,696,274 8,696,274

2000-2001 186,241,716 2,424,754,972 2,610,996,688 26,109,967 0.186728 4,875,462

1990-1991 199,906,999 1,442,312,698 1,642,219,697 16,422,197 0.330562 5,428,554

1980-1981 25,742,030 193,872,407 219,614,437 8,784,577 0.331873 2,915,364 6,880,000

GENERAL FUND TOTAL EXPENDITURESApproved @ Preliminary Proposed Changes Proposed Final Budget

General Government * 11,288,421 274,355 11,562,776

Public Protection * 18,600,069 401,916 19,001,985

Health Services 1,625,978 (7,097) 1,618,881

Social Services 1,569,037 166,489 1,735,526

Education 670,890 31,104 701,994

Recreation * 273,400 0 273,400

Grand Total Expenditures 34,027,795 866,767 34,894,562

*Discretionary Expenditures 30,161,890 676,271 30,838,161

County of TehamaFour-Year General Fund Budget Forecast

March 30, 2010

General FundAdopted Forecasted Forecasted Forecasted ForecastedBudget Budget Budget Budget Budget2009-10 2010-11 2011-12 2012-13 2013-14

ESTIMATED EXPENSES                   

Employee Salary & Benefits 9,256,746 9,572,954 9,834,309 10,209,620 10,609,617            Less Employee Concessions from Prior FY     0 0 0            Less Budget Reductions from Prior FY     0 0 0            Contingency 3,958,440 2,650,000 2,650,000 2,650,000 2,650,000            Public Safety Contribution 13,214,379 14,113,380 14,409,908 14,799,438 15,219,622            Social Services Contribution 1,095,465 1,095,465 1,095,465 1,095,465 1,095,465            Miscellaneous Contributions to Other Funds 395,782 395,782 395,782 395,782 395,782            All Other Expenditures 6,963,836 6,963,836 6,963,836 6,963,836 6,963,836  Total Expenditures 34,884,648 34,791,417 35,349,300 36,114,141 36,934,322            Required Increases to Reserves 511,799 0 0 0 0            Less Program Revenue (4,276,178) (4,276,178) (4,276,178) (4,276,178) (4,276,178) Net General Fund Contribution 31,120,269 30,515,239 31,073,122 31,837,963 32,658,144

Adopted Forecasted Forecasted Forecasted Forecasted

ESTIMATED REVENUES Budget Budget Budget Budget Budget

2009-10 2010-11 2011-12 2012-13 2013-14

Program Revenue $4,276,178 4,276,178 4,276,178 4,276,178 4,276,178

           

Property Taxes 9,299,073 9,105,083 9,014,032 9,014,032 9,014,032

           

Sales Taxes 1,000,000 790,801 790,801 790,801 790,801

           

Interest Earnings 630,000 399,618 399,618 399,618 399,618

           

Other Revenues 9,800,474 9,599,221 9,599,221 9,599,221 9,599,221

 

Total Revenue 25,005,725 24,170,901 24,079,850 24,079,850 24,079,850

           

Less Program Revenue (applied to expenditures above) (4,276,178) (4,276,178) (4,276,178) (4,276,178) (4,276,178)

           

Fund Balance Carryover from Prior FY 7,824,769 6,000,000 5,500,000 5,500,000 5,500,000

 

Net Available Funding $28,554,316 $25,894,723 $25,303,672 $25,303,672 $25,303,672

           

BUDGET SURPLUS/DEFICIT ($2,565,953) ($4,620,516) ($4,364,448) ($4,679,329) ($5,499,510)

PERCENTAGES -8.25% -15.14% -14.71% -15.61% -17.85%

Questions for the CAO

• What is the basic budget process and who is involved in that process?

Questions for the CAO

• Can you explain the current deficit issues for the County?

Questions for the Auditor• What is the percent that we have in reserves?

Why? How is that reserve amount set? Are all the reserves general fund money?

• Do some of these reserves have restricted/designated dollars that can only be used for specific things and cannot be used for benefits or compensation?

Questions for the Auditor• Are we currently spending down our

reserves? Can you explain what the two most talked about reserve accounts- the Economic Uncertainty Fund and the State Loan Repayment fund?

Questions for the CAO• How have we been preparing for the

shortfall in the budget the last 3 years?

• We hear the economy is starting to come back, why the continued requests for cuts? Does the public sector have a lag?

Questions for the Panel• Are you general fund or non general fund?

• Do you have reserves?

• What is your budget shortfall? How do you plan to correct your shortfall?

• What have you had to cut in services, office supplies, other?

Questions for the Panel• Have you had to do layoffs or furloughs? If so,

how many?

• Do you know how the state is going to affect your budget? Now and in the future?

• How is the economy affecting your budget?

• How are the cuts at the federal, state and local levels affecting the public?

Questions