DATE: March 25, 2025
TO: Board of Supervisors
SUBMITTED BY: Sanja Bugay, Director, Department of Social Services
SUBJECT: Budget Resolutions for Org 1138 and 1120
RECOMMENDED ACTION(S):
TITLE
1. Adopt Budget Resolution increasing FY 2024-25 appropriations for Social Services Fund 0065, Emergency Rental Assistance Org 1138 in the amount of $627,347 to continue providing temporary shelter and housing support services including advocacy for social security benefits to individuals with disabilities (4/5 vote); and
2. Adopt Budget Resolution decreasing FY 2024-25 appropriations and estimated revenues for the Housing and Disability Advocacy Program in Social Services Fund 0065, Welfare Advance Fund Org 1120 in the amount of $627,347 (4/5 vote).
REPORT
There is no additional Net County Cost associated with the recommended actions. Approval of the recommended actions will allow the Department to address funding reductions made by the State on October 2024. The actions will provide the Department with the budgetary tools needed to utilize and maximize existing, temporarily available funds to continue providing temporary shelter and housing support services including advocacy for social security benefits to individuals with disabilities. Both the Emergency Rental Assistance (ERA) funds and the Housing and Disability Advocacy Program (HDAP) funds specifically support this specialized population and services; however, due to specified funding requirements revenues are managed through separate funds. The State reduced HDAP allocated funds in the amount of $627,347, however, the Department has available ERA funds, to make up the shortfall necessary to continue these housing services. The budgeting process sets spending authority by individual funds, hence a change in funding source requires the requested resolutions. This item is countywide.
ALTERNATIVE ACTION(S):
There are no viable alternative actions in order to maintain the same level of housing services. If the recommended actions are not approved, the Department will not have sufficient appropriations in the Emergency Rental Assistance (ERA) Org 1138 to offset and provide the required match to the Housing and Disability Advocacy Program funds.
ERA funds are available to the Department through September 30, 2025, and your Board’s approval of the recommended actions will assure ERA funds are maximized and used to serve the intended population through established active contracts through September 30, 2025.
Contracts previously funded with ERA funds expired on September 30, 2024. But these unused ERA funds, in the amount of $627,347, can still be used for other existing housing and disability advocacy service agreements discussed below. Furthermore, not maximizing ERA funds would mean services would not be provided while funding was still available, as any unused ERA funds would need to be returned to US Treasury Department.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions.
Recommended action 1 will increase appropriations in the Special Revenue Fund, Emergency Rental Assistance (ERA) Org 1138 ($627,347), allowing the Department to use the current fund balance of ERA funds to offset existing housing and disability advocacy service agreements, and meet the match requirement for HDAP funding. Because the Department is utilizing HDAP funds that require a dollar for dollar match, ERA is being used for the match. The Department will include sufficient appropriations and revenues in future budget requests.
To align with reductions in State funding, recommended action 2 will decrease the appropriations and estimated revenues in the Special Revenue Fund, Welfare Advance Fund Org 1120 ($627,347).
DISCUSSION:
Approval of the recommended actions will allow the Department to use available ERA funds, in the amount of $627,347, to fund current housing contracts with available fund balance. These available ERA funds may be used as the required match to draw down the HDAP allocation (FY 23-24). The combined funding of ERA and HDAP funds will assist in prolonging contracted services through September 30, 2025 to the Department’s most vulnerable clients as both funding will continue to offset costs for these services.
HDAP funding requires funding to be used to provide outreach, case management, disability benefits advocacy and housing assistance for people experiencing homelessness or at risk of homelessness who are likely eligible for disability benefits. Your Board approved allocating these funds on December 12, 2023 and September 10, 2024 for Agreement No. 23-674 with WestCare and Agreement No. 24-498 with Central California Legal Services (CCLS), respectively. The housing assistance provided through WestCare allows individuals in the community access to temporary shelter while they simultaneously receive services that will support access to long-term benefits and financial support. Benefits advocacy and legal representation through CCLS support HDAP participants through the process of accessing Social Security or Social Security Disability benefits.
In FY 2024-2025, the Department budgeted State HDAP revenues in the Welfare Advance Fund Org 1120 to fully offset contracted expenses for both Westcare and CCLS with then-existing balances of FY 22-23 HDAP allocated funding that were to be available through June 30, 2025. However, on October 2024, the State reduced the FY22-23 allocated HDAP funds. The Department is reducing budgeted HDAP State funds in the Welfare Advance Fund Org 1120 to align with the reduction in such State funding.
Increasing appropriations in the ERA Org 1138 will allow the Department to use ERA funds still available to offset current HDAP funded contracts (i.e. with Westcare and CCLS) and meet the HDAP match requirement.
REFERENCE MATERIAL:
BAI # 60, September 10, 2024
BAI # 51, December 12, 2023
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Resolution (Org 1138)
On file with Clerk - Resolution (Org 1120)
CAO ANALYST:
Ronald Alexander