California State Association of Counties May 2010 Governor’s 2010-11 May Revision The Not-so-Good, the Bad, and the Ugly

California State Association of CountiesMay 2010

Governor’s 2010-11 May Revision

The Not-so-Good, the Bad, and the Ugly


Overview

Combined $19.1 billion gap for 2010-11 $7.7 billion in 2009-10 $10.2 billion in 2010-11 Includes $1.2 billion reserve

Continued reliance on federal funds Majority of “solutions:” $12.4 billion in spending

reductions Outright program eliminations will have significant

impact on counties and citizens we serve


January budget

proposal

May Revision

Total %

Expenditure Reductions

$ 5,844.5 $ 6,523.4 $ 12,367.9 64.6%

Federal Funds 1,067.0 1,414.2 3,382.0 17.7

Alternative Funding

1,025.9 252.4 1,278.3 6.7

Fund Shifts & Other Revenue

477.1 1,636.5 2,113.6 11.0

TOTAL $ 9,315.4 $ 9,826.4 $ 19,141.8 100%

Proposed Budget Solutions(dollars in millions)


Notable Responses

Governor: No budget signed without inclusion of budget and pension reforms

Republicans: No-tax-increase budget is good starting point

Democrats: Governor’s proposal to choose tax breaks over the children and elderly unacceptable; realignment of program responsibility and revenue authority is the answer


Health and Human Services

Outright elimination of CalWORKs, beginning 10/1/2010

Redirection of $602 million in Realignment funding for local mental health programs to social services; significant new sharing ratios for Child Welfare & Food Stamps Administration

Redirection of nearly $1 billion in “county savings” Suspension of AB 3632 mandate Medi-Cal savings focused on cost sharing


Corrections/Public Safety Counties to detain state prison inmates sentenced to felony

terms of 36 months or less Counties would receive $11,500/inmate to cover probation

programming, services, and alternative custody options Transfer of responsibility to counties for supervision of

juvenile parolees (those exiting a state DJJ facility) Continuous appropriation of $502.9 million for local public

safety subventions (now funded through VLF) beginning in 2011-12

Commitment of $300 million additional in lease-revenue bond authority for local juvenile detention facility construction

Increased fee to fund court security


TransportationNo further cuts to transportation

following March transportation tax swap

Borrowing of $650 million in HUTA to be repaid in June 2013 One-time loan Reflects redirection of funds unallocated

in March fund swap No impact on transportation programs


Government Finance and Operations

Continued commitment to provide $68.2 million in reimbursement for county costs associated with May 2009 Special Election

No change from 2009-10 budget and January 2010-11 budget proposal to suspend almost all mandates


Agriculture and Natural Resources

No funding for Williamson Act Restoration of $140 million to state parks,

replacing funding previously committed through now-withdrawn Tranquillon Ridge (oil drilling)

Continued advancement of Emergency Response Initiative: 4.8 percent surcharge on all residential and commercial property insurance statewide to fund CALFIRE; assumes 7/1/10 implementation


Response and Next Steps

Governor’s opening salvo sets stage for potentially long summer

Legislature will begin budget subcommittee hearings this week

Next Steps: CSAC focusing efforts on framing discussion on

realignment and ensuring county voice is heard Will roll out communications and advocacy strategies in

coming days and weeks Here to support local efforts to educate public and

lawmakers about budget impacts

Documents

California State Association of Counties May 2010 Governor’s 2010-11 May Revision The Not-so-Good, the Bad, and the Ugly