Due to the global pandemic and the loss of revenue throughout the country, the Department of Child of Support Services received an amended allocation letter from the State of California reducing the 2020-2021 fiscal year budget by $2.6 million from the initial allocation letter. The department reduced costs from services and supplies; however, in order to meet the budget, personnel costs had to be reduced as well. Due to the large reduction, eliminating positions listed in Attachment A is necessary.
On May 14, 2020, the Governor announced his revisions to the administration’s January Proposed FY 2020-21 State Budget. As a result of the global health crisis that triggered a global financial crisis, the May Revise included a series of changes to the proposed budget to fund the most essential public health, safety and education. Many of the cuts proposed would be taken prior to a possible federal aid bill for states and local governments. Included in the May Revise to the Proposed 2020-21 State Budget is an assumption that the funding of local child support agencies will revert to 2018 funding levels. This proposal would result in statewide savings of $38.2 million in 2020-21. Contra Costa County’s share of that state funding is $2.25 million. This May revise proposal would not take effect on July 1 if the federal government provides sufficient funding to restore them.
An offer to meet and confer regarding the impact of the position reductions was sent to our labor organizations on June 3, 2020.
On June 3, 2020, the Assembly and Senate came to an agreement on a State Budget for 2020-21. Following the June 3 agreement, legislative leaders began discussions with the Governor. A significant feature of the Legislative Branch budget agreement is to make any cuts on October 1 if sufficient federal assistance is not received by September 1. However, the Floor Report from the Assembly Budget Committee notes that the Legislative Branch budget agreement rejects the reversion of local child support agency funding to 2018 levels and maintains funding as proposed in the Governor’s January Proposed 2020-21 Budget regardless of future federal assistance to state and local governments.
At this time, no agreement between the Legislature and the Administration has occurred. It is unclear today whether the final adopted State budget, or any relevant budget trailer bills, will include reduced or continued funding to local child support agencies. Therefore, the position deletions may be reversed at a later date if sufficient continued funding is included in the adopted State 2020-21 budget. Because a delay in making reductions will require additional cuts to filled positions, the recommendation is to make these cuts effective as of July 1, 2020. The Human Resources Department has activated the Tactical Employment Team Program (TETP) to mitigate the negative impact that anticipated layoffs may have (Attachment B).
If not approved for implementation on July 1, 2020, the delay will require the department to eliminate more positions to achieve the required savings over a shorter period of time.
This matter will return to the Board at a future date uncertain. NO ACTION TAKEN