DATE: April 14, 2020
TO: Board of Supervisors
SUBMITTED BY: Delfino E. Neira, Director, Department of Social Services
SUBJECT: Budget Resolutions
RECOMMENDED ACTION(S):
TITLE
1. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for the California Work Opportunity and Responsibility to Kids Org 6310 in the amount of $16,061,290 (4/5 vote).
2. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for the Aid to Families with Dependent Children- Foster Care Org 6410 in the amount of $5,250,954 (4/5 vote).
3. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for the Aid to Adoptions Program Org 6415 in the amount of $1,082,614 (4/5 vote).
4. Adopt Budget Resolution increasing appropriations and estimated revenues for the Department of Social Services Org 5610 in the amount of $1,994,227 (4/5 vote).
5. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for the Welfare Advance Fund Organization 1120 in the amount of $17,494,134 (4/5 vote).
6. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for the Protective Services Subaccount Org 6210 in the amount of $2,450,362 (4/5 vote).
7. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for the Realignment Social Services Org 5246 in the amount of $2,450,362 (4/5 vote).
8. Adopt Budget Resolution increasing the FY 2019-20 appropriations and estimated revenues for the SB 163 Project Fund Org 1128 in the amount of $1,994,227 (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 of Social Services to address budgetary needs caused by an increase in the California Work Opportunity and Responsibility to Kids (CalWORKs) average grant and an anticipated caseload increase due to the COVID-19 pandemic, an increase in placement costs due to the implementation of Continuum Care Reform (CCR) statewide strategies, caseload growth in the Foster Care and Aid to Adoptions Program (AAP), and an increase in expenditures in the Senate Bill (SB) 163 Wraparound Special Revenue Fund (SRF). Approval of the recommended actions will provide sufficient appropriations to allow the Department to issue State and Federal mandated payments. 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.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. Recommended action 1 will increase appropriations and estimated revenues in the CalWORKs Org 6310 due to an increase in the average grant payment per household caused by the removal of the maximum family grant provision and a 13.1% grant increase to move children and families in the CalWORKs program to the 50% of the Federal Poverty Level. The Department also expects an increase in new cases (17%) due to the impact that the COVID-19 pandemic has caused in the community. The estimated cost increase ($16,061,290) will be fully offset by additional State ($10,203,855) and Federal ($5,857,435) revenues.
Recommended action 2 will increase appropriations and estimated revenues in the Aid to Families with Dependent Children-Foster Care Org 6410 to fund caseload growth and the ongoing effort to implement CCR. The estimated cost increase ($5,250,954) will be offset with 1991 Realignment ($2,450,362), 2011 Realignment ($2,450,362), and State ($350,230) revenues.
Recommended action 3 will increase appropriations and estimated revenues in the Aid to Adoptions Org 6415 to fund caseload growth and the ongoing effort to implement CCR. The estimated cost increase ($1,082,614) will be offset with Federal ($623,992) and State ($458,622) revenues.
Recommended action 4 will increase appropriations and estimated revenues in the Department of Social Services Org 5610 due to an increase in expenditures in SB 163 SRF ($1,994,227).
Recommended action 5 will increase appropriations and estimated revenues in the Welfare Advance Fund Org 1120 ($17,494,134) to fund CalWORKs Org 6310 ($16,061,290), Aid to Families with Dependent Children- Foster Care Org 6410 ($350,230), and Aid to Adoptions Org 6415 ($1,082,614).
Recommended action 6 will increase appropriations and estimated revenues in Protective Services Account Org 6210 ($2,450,362) to fund Aid to Families with Dependent Children- Foster Care Org 6410.
Recommended action 7 will increase appropriations and estimated revenues in Realignment Social Services Org 5246 ($2,450,362) to fund Aid to Families with Dependent Children- Foster Care Org 6410.
Recommended action 8 will increase appropriations and estimated revenues in the SB 163 Project Fund Org 1128 to fund new contracts ($1,994,227).
DISCUSSION:
The recommended actions will address the increase in expenditures in the CalWORKs program. The average grant payment per household has continued to increase due to removal of the maximum family grant provision, which excluded households from receiving additional cash assistance for children born ten months after the family began receiving aid. Additionally, in April 2019, the State approved increases scheduled to occur over three fiscal years to raise children and families in the CalWORKs program to 50% of the Federal Poverty Level. The Department expects a projected 17% increase of new cases in the following months due to the impact the COVID-19 pandemic has caused in the community.
Additional statewide changes to the Foster Care and Aid to Adoptions Programs have occurred since implementation of CCR in January 1, 2017. The goal of CCR is to work towards supporting foster youth by providing youth with a home-based family environment and reduce the usage of congregate care, or group home care. CCR replaced current Foster Care and Aid to Adoptions age-based rates with Home Based Family Care rates that are based on the child’s need. CCR implementation in both programs, along with additional caseload growth of 7% in Foster Care and 2% in Adoptions, has resulted in increased expenditures in both programs and requires the recommended budget adjustments.
SB 163 Project Fund Org 1128 is intended to fund a variety of contracts for the Department of Social Services. An increase in contracts with Comprehensive Youth Services, Exceptional Parents Unlimited, and Centro La Familia funded through SB 163 Project Fund has prompted an increase in the budgeted transfers to the general fund to reimburse contracts paid through the Department of Social Services Org 5610.
REFERENCE MATERIAL:
BAI #58, September 10, 2019
BAI #41, February 12, 2019
BAI #53, October 23, 2018
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Budget Resolution (Org 6310)
On file with Clerk - Budget Resolution (Org 6410)
On file with Clerk - Budget Resolution (Org 6415)
On file with Clerk - Budget Resolution (Org 5610)
On file with Clerk - Budget Resolution (Org 1120)
On file with Clerk - Budget Resolution (Org 6210)
On file with Clerk - Budget Resolution (Org 5246)
On file with Clerk - Budget Resolution (Org 1128)
CAO ANALYST:
Ron Alexander