DATE: February 25, 2025
TO: Board of Supervisors
SUBMITTED BY: Sanja Bugay, Director, Department of Social Services
SUBJECT: Budget Resolutions
RECOMMENDED ACTION(S):
TITLE
1. Adopt Budget Resolution increasing FY 2024-25 appropriations and estimated revenues for General Relief Org 6645 in the amount of $714,170 (4/5 Vote); and
2. Adopt Budget Resolution increasing FY 2024-25 appropriations for the Local Health and Welfare Trust Fund 0135, Subclass 13047, 1991-Realignment CalWORKs Maintenance of Effort Org 5247 account 7910 in the amount of $574,568, and estimated revenues for California Work Opportunity and Responsibility to Kids (CalWORKs) Org 6310 in the amount of $574,568. (4/5 Vote).
REPORT
There is no additional Net County Cost (NCC) 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 General Relief Program caseload, ensure timely issuance of payments to clients and offset costs with increased Interim Assistance Reimbursements and one-time available funds. 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 client assistance payments through the end of the fiscal year. This will allow the Department to reimburse the general fund for assistance payments.
FISCAL IMPACT:
There is no increase in NCC associated with the recommended actions. Recommended Action one will increase appropriations and estimated revenues in the General Relief program Org 6645 ($714,170) to fund caseload growth. The estimated cost increase will be offset with NCC savings from CalWORKs Org 6310 ($574,568), Interim Assistance Reimbursement ($135,847), and Welfare Repayment revenues ($3,755).
Recommended Action two will increase appropriations in the Local Health and Welfare Trust Fund 0135, Subclass 13047, 1991-Realignment CalWORKs Maintenance of Effort (MOE) Org 5247 in the amount of $574,568 to make use of one-time interest revenues to offset cost in the CalWORKs 6310 Assistance Org. In addition, to increase estimated revenues in CalWORKs Org 6310 ($574,568).
DISCUSSION:
The recommended actions will address rising expenditures in the General Relief program due to increases in caseload. General Relief is a County funded program governed by the Welfare and Institutions Code (WIC) 17000. General relief provides temporary cash assistance to indigent adults who are not supported by their own means, other public funds, or assistance programs. The grants are intended to support essential living costs, including food, shelter, personal needs, and other related expenses. To be eligible for assistance, applicants must be either unemployed (and employable) or incapacitated, have income of less than $245 per month and meet other eligibility requirements as established through the Board of Supervisor’s General Relief resolution. Once the applicants meet the General Relief program eligibility requirements, the issuance of cash aid payment benefits is treated as an entitlement as long as individuals remain eligible.
The average caseload per month for FY 2024-25 was budgeted at 1,441 based on early caseload estimates from FY 2023-24. However, the application and caseloads for this program continued to increase more rapidly than projected during both fiscal years, and revised caseload projections based on recent months is 2,092 for FY 2024-25.
Prior to the pandemic, the monthly average caseload in FY 2018-19 for General Relief was approximately 2,908. During the peak of the COVID-19 Pandemic, this figure significantly declined to a monthly average of 918 cases. This decrease can be largely attributed to the availability of alternative assistance programs and housing programs that were implemented to support individuals during the pandemic, including Stimulus Checks, Pandemic Unemployment Compensation (PUC), Pandemic Emergency Unemployment Compensation (PEUC), Pandemic Unemployment Assistance (PUA), Pandemic Emergency Assistance Fund (PEAF) payments, and increased monthly allotments of CalFresh benefits. These alternative forms of assistance have gradually phased out, and application and eligibility for all assistance programs administered by the Department have significantly increased in the past two fiscal years.
To offset increased cost in General Relief, the Department proposes to have the CalWORKs Assistance Org 6310 utilize prior year one-time earned interest revenues from the CalWORKs MOE Subaccount which is designated to fund the State share of CalWORKs Assistance costs. This one-time interest revenue will be used to offset NCC cost in the CalWORKs Assistance Org 6310, which then can be transferred to the Budget Org 6645 to be used in General Relief. If the recommended action is approved, the General Relief Org expected budgetary need will be met with the CalWORKs Assistance NCC savings and the additional unanticipated Interim Assistance Reimbursement and Welfare Repayments.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Resolution (Org 6645)
On file with Clerk - Resolution (Org 5247)
CAO ANALYST:
Ronald Alexander