DATE: May 23, 2023
TO: Board of Supervisors
SUBMITTED BY: Sanja Bugay, Director, Department of Social Services
SUBJECT: Budget Resolutions
RECOMMENDED ACTION(S):
TITLE
1. Adopt Budget Resolutions increasing the FY 2022-23:
a. appropriations and estimated revenues for the Aid to Adoptions Org 6415 in the amount of $1,680,479 (4/5 Vote);
b. appropriations and estimated revenues for the Department of Social Services In-Home Supportive Services Org 6420 in the amount of $500,000 (4/5 Vote);
c. appropriations and estimated revenues for the Social Services Fund 0065, Subclass 17225, Welfare Advance Fund Org 1120 in the amount of $1,486,133 (4/5 Vote);
d. estimated revenues for the GASB 87 Lease Designation Org 1117 in the amount of $2,608,804 (4/5 Vote);
e. appropriations for the Local Health and Welfare Trust Fund 0135, Subclass 13046, 1991 Realignment- Social Services Org 5246 in the amount of $2,608,804 (4/5 Vote);
f. appropriations for the Local Revenue Fund 2011 Fund 0271, Subclass 13030, Protective Services Subaccount Org 6210 in the amount of $694,346 (4/5 Vote).
2. Approve and authorize the Clerk of the Board to execute Budget Transfer No. 70 transferring FY 2022-23 appropriations from the Local Health and Welfare Trust Fund 0135, Subclass 13048, 1991- Realignment Family Support Org 5248 ($22,475,870) from account 7910 to the Social Services Fund 0065, Subclass 17225, Welfare Advance Fund Org 1120 account 7910 in the amount of $22,475,870 to offset State’s share of costs.
3. Approve and authorize the Clerk of the Board to Execute Budget Transfer No. 71 transferring FY 2022-23 appropriations within the Department of Social Services Organization 56108550 from account 7296 (Data Processing Services) to account 8300 (Equipment) in the amount of $541,467.
REPORT
There is no additional Net County Cost associated with the recommended actions. Approval of the recommended actions will allow the Department of Social Services to address budgetary needs caused by an increase in the Aid to Adoptions Program (AAP) caseload, the receipt of additional social services revenues, an increase in projected In-Home Supportive Services (IHSS) health benefit payments due to higher than anticipated provider paid hours; transfer appropriations between two different revenue Orgs to account for a change in revenue sources, and to transfer Kiosks costs to the appropriate capital asset object level account. This item is countywide.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. If the recommended actions are not approved, the Department will not have sufficient appropriations to issue State and Federal mandated payments through the end of the fiscal year, or have the ability to move offsetting revenue to the General Fund from special revenue funds.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions.
Recommended Action 1a. will increase appropriations and estimated revenues in the Aid to Adoptions Org 6415 to fund caseload growth which indicates a growth in finalized adoptions. The estimated cost increase ($1,680,479) will be offset with additional Federal and State revenues from the Welfare Advance Fund Org 1120 ($986,133), and Local Revenue Fund 2011 Org 6210 ($694,346).
Recommended Action 1b. will increase appropriations and estimated revenues in the In-Home Supportive Services (IHSS) Org 6420 ($500,000) to fund an increase in provider health benefit costs due to an increase in paid provider hours, the estimated cost increase will be offset with additional Federal and State Revenues from the Welfare Advance Fund Org 1120 ($500,000).
Recommended Action 1c. will increase appropriations and estimated revenues in the Welfare Advance Fund Org 1120 ($1,486,133) to fund the Aid to Adoptions Org 6415 ($986,133) and In-Home Supportive Services Org 6420 ($500,000).
Recommended Action 1d. will increase estimated revenues in the GASB 87 Lease Designation Org 1117 ($2,608,804).
Recommended Action 1e. will increase appropriations in 1991 Realignment- Social Services Org 5246 ($2,608,804) to fund Org GASB 87 Lease Designation.
Recommended Action 1f. will increase appropriations in the Protective Services Subaccount Org 6210 ($694,346) to fund Aid to Adoptions Org 6415 ($694,346).
Recommended Action 2 will transfer appropriations from the Local Health & Welfare Trust Fund 0135, Subclass 13048, 1991 Realignment- Family Support Org 5248 ($22,475,870) to Social Services Fund 0065, Subclass 17225, Welfare Advance Fund Org 1120 ($22,475,870).
Recommended Action 3 will transfer $541,467 in budgeted appropriations from account 7296 (Data Processing Services) to account 8300 (Equipment). Per Management Directive 410, all assets that exceed the $5,000 threshold must be capitalized.
DISCUSSION:
The recommended actions will address the increase in expenditures in the Aid to Adoptions Program. The goal of CCR is to work towards supporting foster youth by providing a home-based family environment and reducing the usage of congregate care or group home care. CCR replaced Foster Care and AAP age-based rates with Home Based Family Care rates that are based on the child’s need related to additional caseload growth of 4% (Federal) in AAP in FY 2021-22 over FY 2022-23 has resulted in an increase in expenditures and requires the recommended budget adjustments.
The In-Home Supportive Services (IHSS) Org 6420 is used to make health benefit payments and monthly MOE payments. The estimated need for health benefits is $500,000, which reflects an 8% increase above the adopted budget. Health Benefit costs are based on actual provider paid hours. The county share of the IHSS Program is based on a Maintenance-of-Effort (MOE), therefore, 100% of the cost increase will be funded with State and Federal IHSS Funding. There is no increase in the County share required for the adjusted payments as the IHSS Program is under a Maintenance of Effort (MOE).
Under GASB 87, all of the Department of Social Services (Department) leases are now capital assets with the base rent depreciated over the life of each lease, resulting in a difference between what is paid to the lessor versus what is allowed to be claimed for Federal and State reimbursement. In the early years of the lease, the Department will receive more reimbursement than what is paid to the lessor based on the depreciation schedule. In the later years of the lease when the base rent increases, the Department will receive less in reimbursement than what is paid to the lessor. The reimbursed amount over what is paid to the lessor in the early years will be held in reserve to be utilized in future years when the amounts paid to the lessor exceed what the Department claims for reimbursement.
For CalWORKs assistance payments the Department’s current process is to transfer the Family Support funds to the CalWORKs Assistance Org 6310 only when the Statement of Cash Advances show that the State is using the Family Support funds to offset their share of cost. The State’s process to offset their cost with Family Support Funds is currently delayed. The lack of offsetting State share with Family Support funds has provided the County unbudgeted State funds to cover the expenses for CalWORKs assistance payments. The transfer of $22,475,870 will allow the continuous movement of revenue from the appropriate special revenue fund.
In February 2023, the Department received a quote from CalSAWS, to procure Kiosks for multiple building sites to replace outdated equipment that will not interface with the new CalSAWS system which is set for conversion in September 2023. This quote contains kiosks that are over the $5,000 threshold for capital asset equipment; therefore, the approval of the budget transfer is necessary for the Department to purchase the Kiosks.
REFERENCE MATERIAL:
BAI #52, May 3, 2022
BAI #51, April 13, 2021
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Resolution (Org 6415)
On file with Clerk - Resolution (Org 6420)
On file with Clerk - Resolution (Org 1120)
On file with Clerk - Resolution (Org 1117)
On file with Clerk - Resolution (Org 5246)
On file with Clerk - Resolution (Org 6210)
On file with Clerk - Budget Transfer #70
On file with Clerk - Budget Transfer #71
CAO ANALYST:
Ronald Alexander