Agenda

Back to Calendar Return

LEGISLATION COMMITTEE

Meeting Date:	05/01/2014
Subject: CSAC Weighs in on State Budget Priorities
Submitted For:	LEGISLATION COMMITTEE
Department:	County Administrator
Referral No.:	2014-21
Referral Name:	State Budget Priorities
Presenter:	Lara DeLaney/Cathy Christian	Contact:	L. DeLaney, 925-335-1097

Information

Referral History:

The Legislation Committee regularly receives information about the State Budget and discusses its impact on Contra Costa County.

Referral Update:

As the release of the Governor’s May Revision to his initial Budget proposal nears, the State’s revenues continue to surpass expectations – coming in at over $1 billion beyond the Governor’s January projections. If this trend holds, the surplus could be as high as $7 billion. While nearly half of the expected surplus will automatically be directed to schools under the Proposition 98 guarantee, there promises to be an impassioned debate between the Governor and Legislature over the remaining surplus revenues as the June 15th constitutional deadline for budget adoption approaches.

The Governor intends to direct the remaining surplus towards a rainy day fund, spending down the wall of debt, and other one-time program expenditures. The Department of Finance is diligently working to ensure the plan fully realizes the Governor’s vision of fiscal prudence. There appears to be some support from the Legislature to direct funds for the same three general purposes as the Governor; however, we know there will be continued pressure to increase expenditures on programs, particularly in areas that were cut deeply during the recession.

(On April 16, the Governor called a Special Session of the Legislature to focus on replacing the Rainy Day fund slated for the November 2014 ballot. The Governor is proposing to change ACA 4 (which the Legislature approved for the November 2014 ballot) with the intent of stabilizing the volatility of capital gains revenue, providing a reserve for schools during future downturns, and providing more flexibility to pay down long-term state liabilities. Under the Governor’s Proclamation, the Special Session will begin on April 24.)

CSAC is poised to influence those debates and is requesting the Governor and Legislature to invest in three specific ways that will assist counties in meeting our ongoing obligations associated with the 2011 public safety realignment and implementation of the Affordable Care Act. All three of our budget requests will assist counties in meeting goals shared by the state associated with these recent reforms. We are requesting $87 million to smooth the projected 2014-15 drop in 2011 public safety realignment funding; $100 million for supportive services (mental health and substance use disorder treatment, employment and housing services) for the criminal justice population; and an accelerated repayment for mandates owed counties, cities and special districts to the tune of about $900 million, of which 60 percent is owed to counties.

In 2011, counties partnered with the Governor in an effort to assist the state with prison overcrowding, to reduce state costs, and to seek innovative ways to reduce criminal activity with a focus on rehabilitation of the criminal justice populations in California. In the third year of the far-reaching reforms in the correctional system, counties remain focused on public safety and the delivery of critical services and continue to invest in programs related to recidivism reduction. In order to succeed, individuals need timely access to mental health and substance use services as well, as job training and housing. All three of our budget priorities provide much-needed resources to meet these critical objectives.

CSAC will be working with counties in the coming weeks to aid in advocacy efforts on these important requests.

Recommendation(s)/Next Step(s):

RECEIVE the report on State Budget Priorities of the California State Association of Counties (CSAC) and provide direction to staff, as needed.

Attachments
No file(s) attached.