State Budget Impacts on the County: The Budget
Conference Committee has finished making its recommendations on cuts to make up an
estimated $24 billion deficit. (This does not include an additional $10 billion a year
deficit to pay retiree benefits over the next three years.) The recommendations differ
somewhat from the Governor’s, with fewer cuts to social services, balanced by $2
billion in additional taxes on oil severance, cigarettes and corporations, which the
Governor has vowed to veto. The budget now moves to the “Big 5” for more
hammering.
Although the State cash flow crisis needs to be addressed by the end
of the month, the state budget process is expected to run into July. The State is
currently proposing to collect estimated tax payments from small business early. They are
usually due in December. Not to mention the impact on small business, this would result in
more than a million dollars in County reprogramming and other costs to bill and collect
the taxes early.
Currently on the State budget table are County revenue cuts as
follows: At least a one year cut in Williamson Act subventions – leaving the County
holding the bag for $700,000; and the taking of local transportation funds (as much as
$5.6 million to the County.) Currently, it does not appear the State will take County
property tax money through Proposition 1A, (up to $1.16 million,) but that could change.
As previously indicated, this could severely impact our ability to continue to plow roads
in the winter. There are also multiple smaller funding cuts in other areas.
At our last Board of Supervisor’s meeting, there was
considerable discussion about a growing crisis in mental health services funding. Siskiyou
County currently provides clinical treatment for the severely and persistently mentally
ill, (about 1,500 clients.) These services are
provided under a contract with the State. That contract is up for extension the end of
this month. Under the contract, the County charges a certain amount per minute under
Medi-Cal. That amount is paid, then at the end of the year, the payments are reconciled
with the actual costs – including support staff and overhead. Some services are
provided by sub-contractors.
The state has not paid for any services incurred this year. $2.9
million in claims for payment have been submitted but are sitting with the State. The
Board has decided to advance the waiting contractors a portion of the current reserves it
holds for Behavioral Health, leaving enough to continue coverage of County costs for one
month, (about $780,000.) Discussions at the State level have included deferring payment
for services from another two months to more than six additional months. There are also
proposals to cut funding for certain managed care mental health services and to shift
funding for children’s services over to Prop. 63 funding.
Normally, the County has fund balances elsewhere that can cover the
shortfall in cash internally. We no longer have those. The next place to go for short term
borrowing is the combined investment pool with the schools and special districts. However,
they are also suffering State cuts.
Other programs that are on the table for cuts are: (1) a ten percent
reduction in Medi-Cal reimbursement rates; (2) some cuts in CalWorks (welfare to work)
monies balanced by increased local control over how funds are spent; (3) about a 30
percent cut in eligibility for In Home Support Services for low income elderly and
disabled. (Will affect about 150 clients in Siskiyou County.)
Other reductions in funding for Senior Services are expected to
impact: (1) Alzheimer’s Day Care; (2) Caregiver Resource Centers; (3) Adult Day
Health Care (limiting service to a maximum of three days a week); (4) ombudsmen to visit
nursing home facilities to investigate possible elder neglect/abuse; and (5) SSP grants to
individuals by $5 per month and couples to the federally required maintenance of effort.
It appears that the $48 fee to support CalFire Services will be added
to homeowner’s insurance rates in the State Responsibility Area. However, the budget
is still a moving target.
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