FISCAL IMPACT:
The recommendations included in this report would have the following impact: a Fiscal Year 2023-2024 cost of approximately $5.3 million, plus additional policy-determined, year-on-year cost of living adjustment increases for the term of Measure X. All of these recommendations would be funded with sales tax revenues generated through Measure X, which are general purpose revenues.
BACKGROUND:
Measure X Allocation History
On November 3, 2020, voters in Contra Costa County approved Measure X, a Countywide, 20-year, half-cent sales tax. The ballot measure language stated the intent of Measure X as “to keep Contra Costa’s regional hospital open and staffed; fund community health centers, emergency response; support crucial safety-net services; invest in early childhood services; protect vulnerable populations; and for other essential county services.”
On November 16, 2021, the Board adopted recommendations regarding Measure X, a reserve of $20 million, one-time allocations of $53,030,200 and on-going appropriations of $71,481,000. The initial on-going funding cycle is April 1, 2022 through June 30, 2023. The Board of Supervisors subsequently allocated $75 million in hospital capital projects on December 14, 2021. This brought the total one-time allocation up to $128,030,200. The programs included in the adopted allocations identified below are categorized by the five goals of the Measure X Community Advisory Board.
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Goal #1: Mental Well-Being: We strive to be a community that supports the mental and behavioral health and well-being of all residents through prevention, crisis response services, intersectional supports, and innovative cross-sector approaches.
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Goal #2: Equity in Action: We strive to be a community that prioritizes equity and removes structural barriers that cause inequities and poverty, so that all residents can thrive.
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Goal #3: Healthy Communities: We strive to be a community in which all residents have access to affordable, timely, culturally responsive healthcare; adequate housing; high-quality childcare; and nutritious food, all of which have become more urgent as we address the ravages of the pandemic.
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Goal #4: Intergenerational Thriving: We strive to be a community that intentionally strengthens and provides support for all residents and for family members of all generations, including children, youth, and older adults.
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Goal #5: Welcoming & Safe Community: We strive to be a community where all residents feel safe and welcome and receive emergency help when they need it.
On February 22, 2022, the Board considered the recommendations in the table below for funding allocations totaling $15,567,000 projected to remain available for allocation. Of the amount, $8.833 million was one-time and $6.734 million was on-going.
Table 1
The Board adopted the funding allocations as recommended at the 2/22/22 meeting, leading to the current state for Measure X allocations listed in table 2 below. Through FY22-23, $215M has been allocated for Measure X projects, and $107M is currently allocated for FY23-24 and ongoing.
Table 2
Measure X Financials
As shown in Table 3 below, the actual Measure X revenues collected from inception through November 1, 2022 total $165M, compared to a total budget of $235M expected by June 30, 2023. The County's tax consultant projects $115.6M in Measure X revenues for the current fiscal year, which would bring the total anticipated revenues to approximately $260.9M. While the amount is higher than budgeted, it is worth noting that this annual amount would be a decrease in revenue collected compared to the prior fiscal year's $117.7M, and it is projected to further decrease to $114.9M in FY23-24; an economic downturn is forecasted, and potential budgetary challenges are on the horizon.
Table 3
Budgeted allocations and actual expenditures for Measure X projects are listed in Table 4. In accordance with the related Board policy adopted in November 2021, $20M has been allocated and funded for a Measure X Reserve. $235M has been obligated through FY22-23 for one-time and ongoing projects, with the allocations essentially matching the total budgeted revenues for the same period. Actual expenditures through 11/1/22 total $13.67M, which is low compared to budget, but not surprising given that many new programs and projects are being established and are in their initial implementation stages. The pace of expenditure is expected to increase as projects and programs ramp up, most of which are related to ongoing services.
Table 4
Recommendation for cost of living adjustments (COLAs) for Measure X allocations
Given that many of the Measure X allocations are ongoing, the County Administrator's Office (CAO) recommends that the Board consider authorizing the CAO to apply cost of living adjustments to the Measure X funded projects during each annual budget cycle, including for Fiscal Year 2023-2024. The estimated cost of applying a 5% COLA to ongoing allocations for that first year would total approximately $5.3M, as shown in Attachment 8. Adding the COLA to the Measure X FY23-24 base budget would total to $112.3M, which is near and well within the margin of error for the tax consultant's projected revenue of $114.9M. For future years, the CAO would recommend appropriate COLA amounts based on overall County revenues, projected expenditure levels, and Board direction.
Measure X projects updates and performance measures
Today's discussion will include presentations on project updates and performance measures from the four major departments that have significant Measure X allocations, including Health Services, Employment and Human Services, Conservation and Development, and Con Fire, plus a summary by CAO for other departments. More details on the status of funded Measure X projects and related expenditures are provided in the project summary document (Attachment 1) and department presentations (Attachments 2-6).
CONSEQUENCE OF NEGATIVE ACTION:
Decreased service levels for existing Measure X allocations providing services to the residents of Contra Costa County.
CLERK'S ADDENDUM
Speakers;
Written commentary provided by: 40 Voices Initiative; C.O.P.E. Family Support Center
RECEIVED report on Measure X project updates and revenue received.