DATE: April 9, 2024
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 2023-24:
a. appropriations and estimated revenues for the California Work Opportunity and Responsibility to Kids Org 6310 in the amount of $1,749,353 (4/5 Vote);
b. appropriations and estimated revenues for the Aid to Adoptions Org 6415 in the amount of $2,200,146 (4/5 Vote);
c. appropriations and estimated revenues for the Aid to Refugees Org 6615 in the amount of $225,032 (4/5 Vote);
d. appropriations and estimated revenues for the Social Services Fund 0065, Subclass 17225, Welfare Advance Fund Org 1120 in the amount of $3,199,771 (4/5 Vote);
e. appropriations for the Local Health and Welfare Trust Fund 0135, Subclass 13046, 1991 Realign-Social Services Org 5246 in the amount of $110,799 (4/5 Vote);
f. appropriations for the Local Revenue Fund 2011 Fund 0271, Subclass 13030, Protective Services Subaccount Org 6210 in the amount of $863,961 (4/5 Vote).
2. Approve and authorize the Clerk of the Board to execute Budget Transfer No. 8 transferring FY 2023-24 appropriations from the Local Health and Welfare Trust Fund 0135, Subclass 13048, 1991 - Realignment Family Support Org 5248 ($19,873,797) from account 7910 to the Social Services Fund 0065, Subclass 17225, Welfare Advance Fund Org 1120 account 7910 in the amount of $19,873,797 to offset State shares of costs.
3. Approve and authorize the Clerk of the Board to execute Budget Transfer No. 9 transferring FY 2023-24 appropriations from the Local Health and Welfare Trust Fund 0135, Subclass 13047, 1991 - Realignment CalWORKs MOE Org 5247 ($4,595,339) from account 7910 to the Social Services Fund 0065, Subclass 17225, Welfare Advance Fund Org 1120 account 7910 in the amount of $4,595,339 to offset State shares of costs.
4. Approve and authorize the Clerk of the Board to execute Budget Transfer No. 10 transferring FY 2023-24 appropriations from the Special Revenue Funds Fund 0065, Subclass 17233, SB163 Project Fund Org 1128 ($317,896) from account 7910 to the Special Revenue Funds Fund 0065, Subclass 17235, SB163 Adoptions Assistance Program Org 1130 account 7910 in the amount of $317,896.
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 California Work Opportunity and Responsibility to Kids (CalWORKs) caseload and expenses, an increase in Aid to Adoptions Program (AAP) caseload, an increase in Aid to Refugees Cash Assistance Program for Immigrants and Refugee Cash Assistance (CAPI RCA) caseloads, the receipt of additional social services revenues to offset direct assistance cost increases; and transfer appropriations between two different revenue Orgs to account for a change in revenue sources. 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 direct consumer assistant payments through the end of the fiscal year and the ability to transfer 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 CalWORKs Org 6310 ($1,749,353) to fund caseload growth in the CalWORKs program. The estimated cost increase ($1,749,353) will be offset with additional Federal and State revenues from the Welfare Advance Fund Org 1120.
Recommended Action 1b. 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 ($2,200,146) will be offset with additional Federal and State revenues from the Welfare Advance Fund Org 1120 ($1,225,386), 1991 Realign-Social Services Fund 0065 Org 5246 ($110,799), and Local Revenue Fund 2011 Org 6210 ($863,961).
Recommended Action 1c. will increase appropriations and estimated revenues in the Aid to Refugees Org 6615 ($225,032) to fund the increase in the CAPI and RCA caseload. The estimated cost increase ($225,032) will be offset with additional Federal and State revenues from the Welfare Advance Fund Org 1120.
Recommended Action 1d. will increase appropriations and estimated revenues in the Welfare Advance Fund Org 1120 ($3,199,771) to offset cost increases in CalWORKs Org 6310 ($1,749,353), Aid to Adoptions Org 6415 ($1,225,386), and Aid to Refugees Org 6615 ($225,032).
Recommended Action 1e. and 1f. will increase appropriations in 1991 Realign-Social Services Org 5246 ($110,799) and in the Protective Services Subaccount Org 6210 ($863,961) respectively to offset cost increases in Aid to Adoptions Org 6415 ($974,760).
Recommended Action 2 will transfer appropriations from the Local Health & Welfare Trust Fund 0135, Subclass 13048, 1991 Realignment - Family Support Org 5248 ($19,873,797) to Social Services Fund 0065, Subclass 17225, Welfare Advance Fund Org 1120 ($19,873,797).
Recommended Action 3 will transfer appropriations from the Local Health & Welfare Trust Fund 0135, Subclass 13047, 1991 Realignment - CalWORKs MOE Org 5247 ($4,595,339) to Social Services Fund 0065, Subclass 17225, Welfare Advance Fund Org 1120 ($4,595,339).
Recommended Action 4 will transfer appropriations from the Special Revenue Fund, Fund 0065, Subclass 17233, SB 163 Project Fund Org 1128 ($317,896) to the Special Revenue Fund, Fund 0065, Subclass 17235, SB 163 Adoptions Assistance Program Org 1130 in the amount of $317,896.
DISCUSSION:
The recommended actions will address the increase in expenditures in the CalWORKs Program due to unanticipated increases in caseload and expenses. The CalWORKs program provides monthly cash assistance to needy families with children. Per AB 79, the Department projected that the average grant would decrease in the current fiscal year as parents or needy caretakers start to time out. However, due to exemptions, extensions, and curing of sanctions that may have occurred at any point in time, not all parents or caretakers timed out, resulting in the average grant being higher than the budgeted average grant. The Department is also currently experiencing a 1% month over month average increase in cases due to the number of applications approved and cases restored. This increases the budgeted average monthly CalWORKs cases by 2% from 18,998 cases per month to a projected 19,417 cases per month.
The Aid to Adoptions Program (AAP) provides assistance payments to qualified parents who need financial assistance in order to adopt a child and ensure the child continues to receive needed services. The assistance payments aid families who adopt children with the cost of food, housing, other basic needs, and some special needs (i.e. ongoing counseling, health needs, etc.). Caseload growth of 6% in FY 2023-24 over FY 2022-23 has resulted in an increase in expenditures and requires the recommended budget adjustments.
The Cash Assistance Program for Immigrants (CAPI) provides cash assistance to individuals who are not eligible to Supplemental Security Income/State Supplementary Payment (SSI/SSP) due to their immigration status. The grant amount is equivalent to the SSI/SSP amounts. Prior fiscal years averaged no more than ninety individuals per month receiving CAPI benefits. FY 2023-24 is currently averaging 107 individuals receiving a monthly CAPI benefit, exceeding the budgeted average monthly individuals of 103. It is anticipated that this count will grow. Refugee Cash Assistance (RCA) benefits are issued monthly to eligible individuals for up to 12 months. The FY 2023-24 budget included a monthly count of 95 individuals to receive RCA benefits. The current FY trend is showing a month over month increase of 6%, with the year-to-date average through January 2024 at 94 persons. This count is also projected to grow.
The CalWORKs program receives Federal, State, and 1991 Realignment revenues from the Family Support Subaccount and the CalWORKs MOE Subaccount. The Statement of Cash Advances typically utilizes the Family Support Subaccount and CalWORKs MOE revenue to offset State’s share of cost towards CalWORKs assistance payments. Based on current fiscal year trend and guidance provided by the State, the Budget Transfers are needed to allow the Department to transfer revenue from the appropriate Special Revenue Fund as the State has not been offsetting the State share of cost with the Family Support Subaccount or the CalWORKs MOE. Approval of the action will allow the Department to complete transfers into the general fund to cover the CalWORKs assistance payments cost.
The Department provides additional direct services to youth through the Senate Bill 163 (SB 163) program for youth in foster care or who have been adopted. The recommended transfer between the SB 163 Special Revenue Funds will offset the increase in service cost for AAP youth receiving services out of county. Direct service costs are paid by the Department’s Org 5610 and offset with funds from the SB 163 AAP Org 1130.
REFERENCE MATERIAL:
BAI #52, May 23, 2023
BAI #52, May 3, 2022
BAI #51, April 13, 2021
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Resolution (Org 6310)
On file with Clerk - Resolution (Org 6415)
On file with Clerk - Resolution (Org 6615)
On file with Clerk - Resolution (Org 1120)
On file with Clerk - Resolution (Org 5246)
On file with Clerk - Resolution (Org 6210)
On file with Clerk - Budget Transfer No. 8
On file with Clerk - Budget Transfer No. 9
On file with Clerk - Budget Transfer No. 10
CAO ANALYST:
Ronald Alexander