County of Marin

March 2004

County Budget Overview and Potential Impact of

State Funding Cuts

COUNTY REVENUE SOURCES

FY 2003-04 General Fund Operating Budget$310.2 Million

Over 50% of County revenues are required to be spent for specific programs (such as State/Federal aid

for health & human services programs)

Taxes29%

Other Dept Revenue

6%

Vehicle License Fees (health and human

services)3%

Aid From State and Federal Government

40%

Licenses, Permits and Franchises

2%

Charges for Current Services

4%

Fund Balance9%

Vehicle License Fees(general government)

4%

Misc. Revenues3%

COUNTY SPENDING

Public Safety26.4%

Non-Departmental8.7%

Community Services3%

Health & Human Services41.3%

Community Development & Public Works10.2%

Admin. & Finance16.6%

By Service Area

Public Safety and Health & Human Services account for 67% of the County’s General Fund Budget

$310.2 MillionFY 2003-04 General Fund Operating Budget

Program categorySER

VIC

E L

EV

EL

Mandated DiscretionaryD

iscr

etio

nary

M

anda

ted

Program and service level are required by Federal or State statute or Court ruling.

County is not required to operate programs. If County does operate them, service level is mandated as a condition of funding.

Programs required by law, but the level of service and funding is decided by the Board of Supervisors.

Programs and activities County is not required to operate and where service level is decided by the Board of Supervisors

•Public assistance for single adults

•Aid to families and dependent children

•County Jail

•Community Development Fund grants

•Sheriff and District Attorney grants

•Fire protection for CA Dept of Forestry

•County Library

•Mental health

•Public health programs

•Land-use and community planning

•Public safety

•Capital improvements

•Parks and recreation

•Administrative services

•Additional health and social programs beyond State/Federal requirements

Dis

cret

ion

ary

Man

dat

ed

MANDATED AND DISCRETIONARY COUNTY PROGRAMS AND SERVICES

PROJECTED COUNTY BUDGET DEFICIT IN FY 2004-05

General Fund Operating Budget (in millions)

FY 2002-03

FY 2003-04

% Change

FY 2004-05 (estimated)

% Change

Total Expenditures $302.5 $310.2 2.5% $321.5 3.6%

Total Revenues $281.6 $288.2 2.3% $293.4 1.8%

Required Fund Balance for Operating Budget

$20.9 $22.0 5.3% $28.1 27.7%

Estimated Fund Balance Available

- - - $20.0 -

Projected Revenue Surplus (Shortfall)

- - - ($8.1) -

Projected budget deficit caused by overall revenue growth not keeping pace with increased costs

(not including any cuts in State funding)

POTENTIAL COUNTY IMPACT OF GOVERNOR’S PROPOSED

FY 2004-05 BUDGETHealth and Human Services $2.2M

• IHSS (In-Home Support Services) wages/benefits $1.4M

• Reduction in children's mental health programs $360K

• Reduction in Medi-Cal provider rates $425K

General Government $8.9M

• Shift of County property tax revenues to pay for $8.0M State’s obligation to fund schools (Tax shift formula not yet determined)

• State reimbursements and mandates for child $925K support funding

Transportation $600K

• Reduction in road construction and maintenance $600K

Public Safety $833K

• Reduce funding for juvenile probation $500K

• Reduce reimbursements for jail booking fees $333K

TOTAL POTENTIAL STATE REVENUE LOSS $12.5M

•Working with State legislators to minimize impact on priority programs

•Identifying options for program reductions

•Identifying countywide cost savings

•Exploring early retirement program for County employees

•Increasing opportunities for public and staff input into budget process

COUNTY RESPONSE

KEY UPCOMING DATES IN COUNTY BUDGET PROCESS

• Public budget workshops March 22, 24

• Board of Supervisors action on Early April initial reductions

• Deadline for submitting budget April 30 suggestion form

• Board of Supervisors budget workshop Mid-May

• Release of Governor’s revised proposed budget Mid-May

• Board of Supervisors adoption of interim Late June FY 2004-05 County budget

• Public budget hearings Late July

• Additional public budget hearings if necessary TBD for budget amendments due to final State budget