FY 2012 & FY 2013 Proposed Balancing Measures. March 22, 2010

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Alberta Paul
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1 FY 2012 & FY 2013 Proposed Balancing Measures March 22,

2 Introduction National Economic Recovery - Slow General Fund - FY 12 ($3M) FY 13 ($4M) Special Funds ($9.5M) Federal Budget proposed cuts to City programs- (unknown - 7.5% - 62% ) State Budget ($25.4B) Balancing Measures Reductions - $12.5M Significant Impacts on City Services Department of Housing and Community Services Police Department Department of Health Services 2

3 Council Policies Focusing on the long-term fiscal health of the City by adopting a two-year budget and conducting multi-year planning; Building a prudent reserve; Developing long-term strategies to reduce unfunded liabilities; Controlling labor costs while minimizing layoffs; Allocating one-time revenue for one-time expenses; Requiring enterprise and grant funds to balance, and new programs to pay for themselves; and Any new expenditure requires revenue or expenditure reductions. 3

4 National Recovery Forecast - Slow Source: Legislative Analyst s Office 4

5 FY 2012 & FY 2013 General Fund Deficit Forecast General Fund Deficit (dollars in millions) FY 2012 FY 2013 Projected Revenue $149 $152 Projected Expenses $152 $156 Balance ($3) ($4) These projections assume the following: No additional Federal or State cuts No funding for new programs No increased funding for capital improvement programs No funding for Berkeley Housing Authority operations No further decreases in revenue No cost of living (salary) increase 5

6 FY 2012 and 2013 Projections Escalating Costs CalPERS FY 2011 Actual FY 2012 PERS Actual FY 2013 PERS Projected % Increase* $ Increase* (in millions) Police 36.0% 40.4% 41.9% 16.4% $ 1.46 Fire 24.7% 28.6% 30.7% 24.3% $.922 Misc 16.3% 19.0% 19.9% 22.1% $ 4.38 * Two-year increase from FY 2011 to FY

7 Impact of Escalating Costs on the General Fund by FY 2013 (Police) FY 1999 FY 2013 Police, 33% Police, 44% All Others (except Fire), 67% All Others (except Fire), 56% 7

8 FY 2012 and 2013 Projections Escalating Costs - Health Kaiser S-1 Plan Health Insurance Rate Increases $1,600 $1,400 $1,200 $1,000 $800 $600 $400 Single 2-Party Family $200 $0 8

9 Special Funds Facing Structural Deficits in FY 2012 ($9.5 Million) Public and Mental Health ($2-3 million) Refuse ($2-3 million) Permit Service Center ($.75 million) Clean Storm Water ($1.25 million) Federal (CDBG, CSBG, weatherization) ($ M) Total ($9.5 million) 9

10 Proposed Federal Budget Reductions Uncertainties but Bad News Housing Department Funding Reductions: CSBG ($260,000) CDBG ($265, ,000) HOME ($138,000) Weatherization ($237,000) Total ($900, million) CDBG 7.5% - 25% 10

11 State Budget Impacts Deficit ($25.4 billion) Proposed Reductions: $1.7 billion in Redevelopment $924 million in Enterprise zones $5.8 billion in Social Services Loss of redevelopment funding = 1.5 FTEs 11

12 Number of Eliminated Positions by Service Area FY 2012 FY 2013 Service Area Filled Vacant Filled Vacant General Government (1.00) (4.00) (0.30) Police (9.00) (1.00) (9.00)* Public Works (4.00) (21.00) Parks Recreation & Waterfront (3.00) Library (2.50) (2.40) Health Services & Housing (17.25) (16.85) (4.90) Totals (23.75) (36.25) (27.20) (9.00) * Anticipated vacancies 12

13 Use of General Fund Capital Improvement Program Reserves Facilities Revised FY 2011 Plan Ratcliff Building Shortfall West Campus Secure City Hall Information Systems VOIP FY 2011 FY2012 FY 2013 FY 2014 FY 2015 Total 1.7 (0.6) Parks Sidewalks Streets Clean Storm Water CIP Storm System Emergencies Transportation Animal Shelter* Refuse** 1.3 Debt *$1.3 million from sale of property **$1.3 million loan for Capital Improvements repayment programmed for storm improvements 13 starting in FY 14

14 FY 2011 Reserve Summary Council Policy Maintain the reserve at 8% of gross General Fund revenues Purpose Provide flexibility to address one-time priority programs, smooth out economic swings, buffer loss of State and Federal revenues, support City operations during emergencies such as natural disasters An 8% reserve would fund the City for 30 days Current reserve: Available unassigned liquid reserve balance 8.3% Undesignated reserve balance is 10.5% 14

15 FTEs Decline in City Workforce FY 2009 to FY 2011 and Projected to FY 2009 FY 2010 FY 2011 FY 2012 FY

16 Police Department 16

17 Department of Housing and Community Services 17

18 Housing & Community Services Department Staffing Budget Revenues Compared to Prior Year FY 2012 Recurring FY 2013 Additional General Fund -141, ,109 TCM -146,595 CDBG* -53,018 Further cuts expected HOME* -13,755-12,379 CSBG* -86,090 Weatherization -237,149 Stimulus Programs (ARRA) -280,738 Shelter Plus Care 26,356 Total Change -956,098 * Federal funding estimates based on current Administration and Congressional proposals. 18

19 Housing & Community Services Department Budget Impacts to Services The Weatherization Program is proposed to be eliminated in January 2012, once calendar 2011 contracts expire. The West Berkeley Senior Center is proposed to be converted to a supportive services hub and Aging staffing reorganized to support this change. GF reductions and reduced federal sources for community agency contracts: HCSD will bring recommendations on April 26 th 19

20 Housing & Community Services Department Staffing Changes Reorganize Aging Services Eliminate 2.59 FTE in July of these are currently vacant Reallocate 5.0 FTE in July 2011 Eliminate Weatherization Eliminate 5.0 FTE in Jan of these are currently vacant Reduce Administrative Capacity Eliminate 2.0 FTE in July

21 Department of Health Services 21

22 Department of Health Services Fiscal Overview FY 11 Adopted Budget FY 12 Proposed Budget FY 13 Proposed Budget Admin $ 1,374,379 $ 1,205,990 $ 1,226,697 EH $ 1,902,865 $ 2,182,969 $ 2,203,235 MH $ 10,918,545 $ 9,776,499 $ 9,930,690 PH $ 10,447,692 $ 9,498,950 $ 9,006,274 All DHS $ 24,643,481 $ 22,664,408 $ 22,366,895 22

23 Department of Health Services Personnel Reduction Overview FY 12 FY 13 Vacant Filled Vacant Filled Mental Health Public Health TOTAL

24 Department of Health Services Impact Overview Mental Health Division-Wide Restructuring creating greater community Access to Adult, Youth, & Crisis Services; Increased baseline productivity standards; and Increased Assessment of objective and client-centered Level of Care determinations. Reduction in Services of high intensity supports (i.e., intensive services treatment, a more comprehensive and expensive form of mental health support). Increased use of client-centered, brief treatment, psycho-education, group therapy, referrals and other supports (as well as intensive services for clients in greatest need). Increased focus on Wellness Recovery and Resiliency, Prevention, Consumer and Family Centered Services; Peer and Consumer positions and activities; and increased outreach to state defined underserved/ inappropriately ethnic communities through MHSA supportive services. 24

25 Department of Health Services Impact Overview Public Health Reduced direct client services: PH Clinic will decrease to 3 days/week and will not include routine immunizations. Narrower nursing case management eligibility standards. Vital statistics customer service hours (birth and death certificates) will be reduced by an additional day/week. Reduced population health services: Communicable Disease control activities will be limited to the highest risk diseases. Development, implementation, and enforcement of policies related to smoking, healthy eating, and lead exposures will be reduced. Responding to future Public Health emergencies (such as H1N1) will require immediate reduction of day-to-day operations. Program evaluation capacity will decrease. Reduced community health promotion services: PH staff will participate in fewer community health events. Neighborhood-based outreach and education will decrease in frequency and intensity. Increased reliance on partnerships with other community service providers to meet community needs. 25

26 Budget Calendar March 29: Refuse Capital Improvement Program April 26: Community Agencies May 3: FY 2012 & FY 2013 Proposed Biennial Budget 26

27 Discussion 27

FY 2015 Proposed Budget Update. May 6, 2014

FY 2015 Proposed Budget Update May 6, 2014 Tonight s Overview General Fund Special Funds CalPERS GASB 68 Voluntary Time Off (VTO) Other Capital Improvements General Fund Balance Fees Budget Referrals 2