DATE: May 3, 2022
TO: Board of Supervisors
SUBMITTED BY: Sanja K. Bugay, Director, Department of Social Services
SUBJECT: Budget Resolutions
RECOMMENDED ACTION(S):
TITLE
Adopt Budget Resolutions increasing the FY 2021-22:
a. appropriations and estimated revenues for the Aid to Families with Dependent Children-Foster Care Org 6410 in the amount of $7,025,306;
b. appropriations and estimated revenues for the Aid to Adoptions Org 6415 in the amount of $2,368,198;
c. appropriations and estimated revenues for the California Work Opportunity and Responsibility to Kids Org 6310 in the amount of $20,845,438;
d. appropriations and estimated revenues for the Social Services Fund 0065, Subclass 17225, Welfare Advance Fund Org 1120 in the amount of $3,206,382;
e. appropriations and estimated revenues for the Local Health and Welfare Trust Fund 0135, Subclass 13046, 1991 Realignment Social Services Org 5246 in the amount of $1,535,205;
f. appropriations and estimated revenues for the Local Revenue Fund 2011 Fund 0271, Subclass 13030, Protective Services Subaccount Org 6210 in the amount of $4,651,917;
g. appropriations and estimated revenues for the Local Health and Welfare Trust Fund 0135, Subclass 13047, 1991 Realign- California Work Opportunity and Responsibility to Kids Maintenance of Effort Org 5247 in the amount of $4,755,015
h. appropriations and estimated revenues for the Social Services Fund 0065, Subclass 17242, Project Homekey Org 1137 in the amount of $3,062;
i. appropriations and estimated revenues for the Department of Social Services Org 5610 in the amount of $3,062; and,
j. appropriations for the Local Health and Welfare Trust Fund 0135, Subclass 13048, 1991- Realign Family Support Org 5248 in the amount of $16,090,423
(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 placement costs due to the implementation of Continuum of Care Reform (CCR) statewide strategies and caseload growth in the Foster Care program and Aid to Adoptions Program (AAP), the receipt of additional social services revenues, and to provide sufficient appropriations for monetary transfers between Homekey Org 1137 and Department Org 5610. 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 a. 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 ($7,025,306) will be offset with State and Federal Social Services funds ($1,785,463), 1991 Realign-Social Services ($1,535,205), and 2011 Realignment ($3,704,638) revenues.
Recommended Action b. 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 ($2,368,198) will be offset with State and Federal Social Services funds ($1,420,919), and 2011 Realignment ($947,279) revenues.
Recommended Action c. will increase appropriations and estimated revenues in the California Work Opportunity and Responsibility to Kids (CalWORKs) Org 6310 ($20,845,438) to allow for receipt of additional revenues from the 1991 Realign- CalWORKs Maintenance of Effort (MOE) Org 5247 ($4,755,015) and 1991 Realign- Family Support Org 5248 ($16,090,423).
Recommended Action d. will increase appropriations and estimated revenues in the Welfare Advance Fund Org 1120 ($3,206,382) to fund Aid to Families with Dependent Children- Foster Care Org 6410 ($1,785,463), and Aid to Adoptions Org 6415 ($1,420,919).
Recommended action e. will increase appropriations and estimated revenues in 1991 Realign- Social Services Org 5246 ($1,535,205) to fund Aid to Families with Dependent Children- Foster Care Org 6410.
Recommended action f. will increase appropriations and estimated revenues in the Protective Services Subaccount Org 6210 ($4,651,917) to fund Aid to Families with Dependent Children-Foster Care Org 6410 ($3,704,638) and Aid to Adoptions Org 6415 ($947,279).
Recommended action g. will increase appropriations and estimated revenues in the 1991 Realign- CalWORKs MOE Org 5247 ($4,755,015) to allow for the receipt of additional revenues and transfer of these revenues to fund CalWORKs.
Recommended action h. will increase appropriations and estimated revenues in the Project Homekey Org 1137 ($3,062) to allow for the receipt of additional revenues and transfer of these revenues.
Recommended action i. will increase appropriations and estimated revenues in the Department of Social Services Org 5610 ($3,062) to receive additional revenues from the Project Homekey Org 1137.
Recommended action j. will increase appropriations in the 1991 Realign- Family Support Org 5248 ($16,090,423) to transfer revenues received to CalWORKs Org 6310.
DISCUSSION:
The recommended actions will address the increase in expenditures in the Foster Care and AAP Programs that have occurred since implementation of CCR in January 1, 2017. 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. CCR implementation in both programs, along with additional caseload growth of 2% overall [Dual Agency Placement of 15% in Foster Care and 2% (Federal) in AAP] has resulted in increased expenditures in both programs and requires the recommended budget adjustments.
Funds received in the 1991- Realign CalWORKs MOE Org 5247 and 1991- Realign Family Support Org 5248 are received in lieu of State General Fund; therefore, the revenues in are not considered additional revenue to offset Department and CalWORKs costs but rather a replacement of State General Fund dollars. Higher than expected revenues are being accounted for in this increase which will be used to cover CalWORKs Org 6310 costs. The increase in the Orgs has prompted an increase in appropriations and budgeted transfers to the General Fund to reimburse expenses paid through the CalWORKs Org 6310.
Project Homekey Org 1137 contains funds that were awarded as a lump sum to be incurred and expended by June 30, 2022. These funds are estimated to generate $3,062 of interest that will be used to offset costs for the Homekey Program. Approval of the recommended actions will allow the receipt of these revenues to complete a transfer to the Department’s Org 5610 where the expense will be incurred.
REFERENCE MATERIAL:
BAI #92, December 15, 2020
BAI #58, June 12, 2018
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Resolution (Org 6410)
On file with Clerk - Resolution (Org 6415)
On file with Clerk - Resolution (Org 6310)
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 - Resolution (Org 5247)
On file with Clerk - Resolution (Org 1137)
On file with Clerk - Resolution (Org 5610)
On file with Clerk - Resolution (Org 5248)
CAO ANALYST:
Sonia M. De La Rosa