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4.
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| PUBLIC PROTECTION COMMITTEE |
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| Information |
| RECOMMENDATION: |
REVIEW and APPROVE fiscal year 2016/17 AB 109 budget recommendations for integration into the fiscal year 2016/17 County Recommended Budget for consideration by the Board of Supervisors, as recommended by the CCP-Executive Committee.
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| BACKGROUND: |
On November 13, 2015, budget instructions for the FY 2016/17 AB 109 budget were distributed to the Community Corrections Partnership (CCP) subscriber list, including Committee members, staff and interested parties, requesting formal submission of budget requests no later than November 25, 2015. This year, staff had again requested budget submissions to 1) maintain the status quo funding level at the fiscal year 2015/16 Ongoing budget level, and 2) contemplate new funding requests based on programming needs.
On December 4, 2015, the CCP held a fiscal year 2016/17 budget workshop for departments and funded agencies to introduce budget proposals. The CCP set January 22, 2016 as the next meeting date for a vote by the CCP-Executive Committee on a budget to send to the Public Protection Committee. In addition, it was noted that Resource Development Associates (RDA), the County's data evaluation consultant for AB 109 programs, would have a final report prepared on the performance of County departments funded by AB 109 at that time. That report is included in this agenda packet as Attachment E.
On January 22, 2016, the CCP convened to have final discussion on fiscal year 2016/17 AB 109 budget requests and the CCP-Executive Committee voted on the recommendations that are before the Public Protection Committee today.
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| DISCUSSION: |
The Community Corrections Partnership has been receiving frequent updates regarding discussions at the State level around establishing a multi-year formula for the distribution of AB 109 Community Corrections sub-account allocation to counties. This process has been completed with the Realignment Allocation Committee (RAC) making its final recommendations to the California Department of Finance (DOF). The recommended formula resulted in a significant reduction in Base allocation funding to Contra Costa County beginning in fiscal year 2014/15. A summary of past funding can be found in Attachment A for reference.
FY 2016/17 Base Allocation
Recall that the Community Corrections sub-account allocation is composed of a Base allocation and a Growth allocation. The Base allocation is derived from current year funding, and the current year Growth allocation is derived from prior year actual funding from the State. By the nature of this arrangement, Growth has been observed to be more volatile than the Base allocation due to varying economic factors, which have also been compounded by the uncertainty surrounding the final statewide allocation formula.
Beginning in fiscal year 2014/15, the CCP Ongoing budget allocations have been in excess of the Base allocations from the State, due to the negative impact of the revised statewide allocation formula. In fiscal year 2016/17, the Base allocation for Contra Costa County is estimated to increase to $22,651,678 (according to new estimates released in the FY 2016/17 Governor's Proposed Budget), which is still slightly below the high of $22,854,832, in fiscal year 2013/14, when the majority of current programs were funded. Although this is positive progress, the County Base allocation still has not recovered fully from the negative impacts of the formula reallocation completed last year by the RAC and ultimately approved by DOF.
For this reason, it is important to recognize that even a nominal increase in funding, through a cost of living allowance (COLA) to existing programs or the funding of new programs, puts pressure on the Base allocation in the near term. The CCP-Executive Committee, following careful deliberation, is recommending a budget of $23,074,570 in Ongoing expenditures in fiscal year 2016/17. A summary of the CCP-Executive Committee approved budget is included as Attachment C. Below is an illustration of the three year impact of this budget, assuming from 2%, 3%, and 4% annual COLAs beginning in fiscal year 2017/18:
In fiscal year 2018/19, each of the scenarios above result in CCP Ongoing expenditures exceeding Base allocation revenue, ranging from $1.4 million to $2.3 million, annually. Should the new Growth allocation formula result in a significant reduction, as anticipated, and be insufficient to cover this overage, then it will be necessary to draw from reserves to fund the difference. Essentially, one-time resources would continue to be used to fund ongoing service levels.
FY 2015/16 Growth Allocation (distributed in FY 2016/17)
Growth allocations have historically been difficult to predict and a moving target depending on revenue estimates from the State at any given point during the year. In addition, the RAC has made recommendations to allocate growth using different funding formulas in 2013/14, 2014/15 and 2015/16.
Beginning with the fiscal year 2015/16 Growth allocation, and for several years into the future, the formula will be based on the following:
1. SB 678 Success – 80%
- SB 678 success rate (60%) – all counties
- SB 678 year-over-year improvement (20%) – only those counties showing improvement
2. Incarceration rates – 20%
- County’s reduction in year-over-year second strike admission (fixed dollar amount per number reduced
- County’s reduction in year-over-year overall new prison admission (10%)
- County’s success measured by per-capita rate of prison admissions (10%)
Contra Costa County has been a leader in the majority of the above metrics and may benefit little from incremental improvement in each category when compared to other counties throughout the State. For that reason, we do not believe that Growth funding allocated using the formula commencing in fiscal year 2016/17 will be a substantial source of revenue for our local AB 109 infrastructure.
The action before the Public Protection Committee today is to review and approve, including any amendments, the fiscal year 2016/17 AB 109 budget submitted by the CCP-Executive Committee. Once approved, staff will integrate the AB 109 budget into the fiscal year 2016/17 County Recommended Budget for consideration by the Board of Supervisors. Currently, budget hearings are scheduled for April 19, 2016. A complete timeline of the AB 109 budget process is included in Attachment B. |
| FISCAL IMPACT (if any): |
The fiscal year 2015/16 Ongoing Budget for AB 109 is $21,458,315. The FY 2016/17 Governor's Proposed Budget includes updated estimates for the statewide 2011 Local Revenue Fund, which includes the Community Corrections sub-account that allocates funding to counties. The Contra Costa factor for the Base allocation is 1.8809% of the total, statewide sub-account allocation resulting in an estimated funding allocation of $22,651,678 for Contra Costa County (See Attachment F). An estimate for the Growth allocation is difficult to project due to the new changes in the Growth formula implemented for the distribution in FY 2016/17; however, it is expected that the Contra Costa share may drop to approximately $200k - $300k.
The CCP-Executive Committee is recommending a budget of $24,874,570; $23,074,570 in ongoing expenditures and $1,800,000 in one-time expenditures. With Base revenue estimated at $22,651,678, the fiscal year 2016/17 budget will require a draw from fund balance of $2,222,892; $422,892 to support ongoing expenditures and $1,800,000 to support one-time expenditures. |
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