BOARD OF SUPERVISORS

Alcohol, Drug, and Mental Health Services (ADMHS) Budget

• The department presented a $68.4 million operating budget with a proposed $1.096 million shortfall in the core mental health fund.
• A revised proposal was introduced to mitigate service cuts by delaying the transfer of four FTEs, which eliminates the $125,000 reduction to homeless contracts.
• Acute and long-term psychiatric bed purchases were adjusted, while the Psychiatric Health Facility cost reduction remained at $203,000.
• The department projected a $4.4 million budget gap for FY 2013-14 due to salary increases and declining state funds.

Child Support Services Budget

• The department presented a $9.5 million budget funded entirely by federal and state sources with no General Fund contribution.
• Staffing was reduced by 40 positions through attrition, and the Lompoc branch office was closed over the past decade.
• The department met all federal performance measures, including 100% paternity establishment, and collected $27 million in support.
• Future service levels are expected to remain constant, with plans to address rising costs through technology and self-service tools.

Public Health Budget

• The proposed $79.6 million operating budget reflects a 13% decrease in the General Fund contribution compared to the prior year.
• Efficiency measures include implementing electronic health records and eliminating the radiology program at the Santa Barbara Health Care Center.
• Staffing at the Santa Maria Women’s Health Care Center will be adjusted based on decreased patient visits without eliminating services.
• The department projected a reduction in FTEs from 493.5 to 483.3 for the upcoming fiscal year.

First 5 Budget

• The department presented a $5.1 million operating budget funded by Proposition 10 and state grants with no General Fund contribution.
• Key accomplishments include the "Thrive" public-private partnership and a 21% national accreditation rate for child care centers.
• The department plans to continue the Thrive partnership and expand data integration with school districts.
• A strategic reserve is being utilized to maximize service sustainability as Proposition 10 revenues decline.

Social Services Budget

• The department presented a $142.5 million operating budget with a 16% decrease in the County General Fund contribution.
• Current service levels are retained despite being insufficient to meet demand, with the department serving over 95,000 individuals monthly.
• New mandates such as KDA and AB 12, along with realignment responsibilities, are impacting departmental resources.
• A $4.2 million budget gap is projected for FY 2013-14, with a rebudget expected in January 2013.

Auditor-Controller Budget

• The department presented a $7.7 million budget supported by the General Fund, with staffing decreased from 57.9 to 45.3 FTEs over five years.
• Key risks include the dissolution of Redevelopment Agencies and the implementation of the Manitron property tax system.
• The Manitron project is a three-year, $2.4 million initiative that is currently understaffed relative to vendor recommendations.
• $2.3 million in unanticipated revenue from RDA dissolution has been deposited into the county’s general revenue budget.

Clerk-Recorder-Assessor Budget

• The department reported a 22% reduction in full-time employees since 2007-08, with the Assessor division facing a 20% staff reduction.
• The Assessor division workload has increased by 30%, resulting in a 66% increase in workload per FTE.
• The department requested the restoration of one appraiser position at a cost of $105,000 to mitigate potential property tax revenue losses.
• A projected $1.6 million budget gap for 2013-14 would require a 10% reduction in staffing if not addressed.

Treasurer-Tax Collector-Public Administrator Budget

• The department presented a $6.1 million operating budget with a 29% reduction in positions over six years.
• Proposed service impacts include the elimination of the Representative Payee Program and the Santa Barbara Veterans Services position.
• The department recommended restoring funding for two Representative Payee positions and both Veterans Services offices.
• The Manitron property tax system conversion is jointly managed with the Auditor-Controller and is currently understaffed.

General Services Department Budget

• The proposed $65.2 million operating budget represents a 29% decrease in employee count compared to fiscal year 2003-2004.
• The department reported a deferred maintenance backlog of approximately $30 million, with a $1.5 million allocation for 2012-2013.
• Recent accomplishments include a telephone network redesign, worker’s compensation tail claims outsourcing, and a 1-megawatt solar project.
• The department aims to reduce county lease space by 10% and county-owned building space by 5% through a new space utilization report.

General County Programs Department Budget

• The operating budget decreased to $1.4 million due to the transfer of First 5 and library funds to other departments.
• The department holds $6.4 million in discretionary fund balance, including a target of $2 million for jail operations in 2012-2013.
• The board was asked to approve the transfer of former RDA housing fund activities to the Housing and Community Development Division.
• Residual receipts for the successor housing agency are minimal, though potential larger funds from construction contract loans may return to the agency.

Governor’s May Revision and State Budget Impacts

• The Governor’s proposal includes a $2,000 monthly charge per juvenile ward committed to the Department of Juvenile Justice.
• CalWORKs is proposed to be replaced by a three-pronged system, with approximately 3,800 county families removed from the current program.
• In-Home Support Services hours are proposed to be reduced by 7% across the board, effective August 2012.
• A $40 million cut to First 5 state monies is proposed, with $175,000 in direct reductions to local child support funding.

ABX-26 Litigation Update

• Staff provided an update on litigation filed by 12 cities challenging provisions of ABX-26 regarding RDA dissolution.
• The suit focuses on Department of Finance directives, sequestering of disputed funds, and procedural issues with tax increment payments.
• The County is not a party to the litigation but will be informed by the court’s judgment.
• The primary potential benefit for the County would be judicial guidance on how the Department of Finance uses website FAQs.

General Revenues and Budget Projections

• Revenue growth has been relatively flat through fiscal year 2012-13, with a $9.7 million increase over the 2011-12 adopted budget.
• The increase is primarily due to a $7 million accounting change and a projected 1.5% increase in property taxes.
• A projected favorable ending balance of $1.6 million for 2011-12 is recommended for the strategic reserve.
• Recent data suggests property tax growth may be tempered by approximately 1% compared to initial projections.

Meeting Context

• The Santa Barbara County Board of Supervisors convened for its second budget meeting on Wednesday, June 13, 2012. The session began with a roll call and the Pledge of Allegiance. Staff announced that the meeting was being streamed live and broadcast on County TV, and that updated budget materials and a log of board inquiries had been distributed.

General Public Comment (Initial)

• Three members of the public addressed the board:
• Jeff Bard expressed support for the open public comment process.
• Andy Caldwell (COLAB) recommended identifying discretionary spending to offset financial straits, specifically questioning expenditures on a non-mandated climate action plan related to AB 32 and suggesting funds be redirected to mandated services.
• Robin Barber (SEIU Local 620) requested that management consider the impact of budget cuts on employee workload during performance evaluations and urged the board to address instances of "bully boss" tactics.

Departmental Budget Presentations

1. Alcohol, Drug, and Mental Health Services (ADMHS)

• Presentation: Director Dr. Dietrich presented a recommended operating budget of $68.4 million and a capital budget of $105,000 for FY 2012-13. The General Fund contribution is projected at $3 million (4.39% of the total budget), with 295.2 FTEs.
• Service Level Impacts: The department initially proposed reductions due to a $1.096 million shortfall in the core mental health fund, including cuts to homeless contracts, out-of-county acute and long-term psychiatric inpatient capacity, and Psychiatric Health Facility (PUF) costs.
• Revised Proposal: Dr. Dietrich proposed a revised set of impacts to mitigate service reductions by delaying the transfer of four FTEs from MHSA Fund 48 to Core Fund 44, reducing expected service impacts by $475,000.
• The proposed reduction of $125,000 to homeless contracts would be eliminated.
• The purchase of acute psychiatric beds at Vista Del Mar would be reduced from five to 4.2.
• The purchase of long-term psychiatric beds would be reduced from 16 to 14.
• The PUF cost reduction would remain at $203,000 (3%).
• Board Discussion: Supervisors clarified the revised figures. Supervisor Lavagnino noted the changes were not yet reflected in updated documents. Supervisor Gray expressed concern about last-minute funding shifts. Supervisor Wolf confirmed that the $125,000 cut to homeless contracts would be removed from the service impact list, while the PUF reduction would stay at $203,000.
• Future Outlook: The department projected a $4.4 million budget gap for FY 2013-14, citing salary increases, service costs, and declining MHSA funds.
• Decision: No motion was made or vote taken.

2. Child Support Services

• Presentation: Director Carrie Topliff presented an annual budget of $9.5 million, funded two-thirds by federal and one-third by state sources, with no County General Fund contribution.
• Performance: The department met all five federal performance measures, including 100% paternity establishment. Collections totaled $27 million, with $22.1 million distributed to families.
• Staffing: The department reduced staff by 40 through attrition and closed the Lompoc branch office over the past decade.
• Future Outlook: Service levels are expected to remain constant in FY 2012-13. For FY 2013-14, the department plans to address rising costs by not filling vacant positions and relying on technology and customer self-service tools.
• Decision: No motion was made or vote taken.

3. Public Health

• Presentation: Director Dr. Wada presented a proposed operating budget of $79.6 million, down from $84.1 million the previous year. The General Fund contribution is approximately $6.9 million (8% of the budget), a 13% decrease from the prior year, offset by one-time realignment funds. FTEs are projected at 483.3, down from 493.5.
• Efficiency Measures:
• Implementation of electronic health records is expected to save $427,000 by reducing 5.2 medical records positions and $168,000 by reducing two data entry positions.
• The radiology program at the Santa Barbara Health Care Center will be eliminated, saving $237,000 and reducing three positions; services will be provided through community providers.
• Staffing and practice models at the Santa Maria Women’s Health Care Center will be adjusted based on decreased patient visits, with no services eliminated.
• Board Discussion: Supervisor Gray asked about the 44 FTE increase in health departments mentioned in the budget overview. CEO Waller clarified that the increases were in Social Services (30 FTEs) and Mental Health (14 FTEs) due to vacancy factors, while Public Health is reducing FTEs. Supervisor Gray inquired about the utility of electronic health records for accessing benefits like SSI. Dr. Wada confirmed that electronic records would facilitate the provision of comprehensive patient records for benefit applications. Supervisor Wolf confirmed that no definitive decision has been made regarding the Santa Maria Women’s Clinic, noting that the department is exploring staffing and service model adjustments rather than eliminating services.
• Decision: No motion was made or vote taken.

4. First 5

• Presentation: Director Pat Wheatley presented a total operating budget of $5.1 million, funded by Proposition 10 ($3.9 million) and state/foundation grants ($1.2 million). There is no General Fund contribution, and the department has 14 FTEs.
• Accomplishments: The department highlighted the "Thrive" public-private partnership for school readiness, the implementation of the Federal Race to the Top Early Learning Challenge Grant, and the achievement of a 21% national accreditation rate for child care centers (compared to 5% statewide).
• Future Outlook: The department plans to continue the Thrive partnership, expand data integration with school districts, and oversee the implementation of Race to the Top. A strategic reserve is being used to maximize service sustainability as Proposition 10 revenues decline.
• Board Discussion: Multiple supervisors acknowledged Director Wheatley’s departure at the end of December. They recognized her leadership in establishing the Thrive model and the department’s high accreditation rates. Supervisor Lavagnino praised the targeted approach of the Thrive program. Supervisor Gray and Supervisor Carbajal expressed appreciation for her service and leadership.
• Decision: No motion was made or vote taken.

5. Social Services

• Presentation: Director Kathy Gallagher presented a recommended operating budget of $142.5 million, essentially unchanged from the prior year, but with a 16% decrease in the County General Fund contribution. FTEs are projected to decrease by 10.3 from the FY 2011-12 rebudget.
• Service Levels: The budget retains current service levels without recommending workforce or service reductions, though the department noted these levels are insufficient to meet demand. The department serves over 95,000 individuals monthly.
• Challenges:
• New Mandates: KDA (expanded mental health/child welfare services for foster children), AB 12 (Extended Foster Care), and SB 734 (Workforce Investment Act training requirements) are impacting resources.
• Realignment: Child welfare, foster care, adoptions, and adult protective services are moving to county responsibility with increasing mandates but potentially insufficient funding.
• Healthcare Reform: If implemented, Medi-Cal eligibility expansion is projected to add 20,000 residents to the program, creating significant workload impacts for eligibility determination and case management, though no direct county cost is anticipated.
• Future Outlook: A $4.2 million budget gap is projected for FY 2013-14 due to expenditure increases and the depletion of one-time reserves. The department expects to bring a rebudget to the board in January 2013 after the state budget is finalized.
• Board Discussion: Supervisor Carbajal expressed appreciation for the department’s leadership in serving vulnerable populations.
• Decision: No motion was made or vote taken.

Public Comment on Departmental Budgets (Continuation)

• Following brief remarks from Supervisors Wolf, Lavagnino, and Gallagher regarding the scale of departmental caseloads and the impact of federal healthcare reform, the Board opened the floor for public comment. Due to the high volume of speakers (23 total), the Chair limited each speaker to two minutes.
• Public comments focused primarily on the proposed budget cuts to the Alcohol, Drug, and Mental Health Services (ADMHS) department, specifically regarding acute psychiatric inpatient beds, the Psychiatric Urgent Facility (PUF), and homeless services. Key points raised by speakers included:
• Psychiatric Bed Shortages: Multiple speakers described instances where individuals in acute crisis were held in jail, emergency room beds, or discharged into the streets due to a lack of available psychiatric beds.
• Impact on Homeless Services: Representatives from housing authorities and non-profits urged the Board to maintain or increase funding for homeless-related contracts and services.
• Cost-Effectiveness and Alternatives: Several speakers argued that providing supportive services and housing is more cost-effective than incarceration.
• Specific Program Concerns:
• Radiology Department Closure: A union representative expressed concern over the proposed closure of the radiology department at a county facility.
• Veterans Services: A speaker representing COLAB criticized the proposed cuts to veteran services.
• Workforce Investment: Supervisor Lavagnino inquired about the status of the Workforce Investment program. Kathy Gallagher responded that the program is not being lost but is being retooled to meet new federal definitions of training.
• CalFresh Outreach: Supervisor Lavagnino asked if the county was responsible for a radio ad promoting CalFresh benefits. Gallagher clarified that the outreach campaign is a federal and state effort, not a county initiative.
• Decision: No motions were moved, seconded, or voted upon during this segment.

Auditor-Controller Budget Presentation

• Bob Geis, Auditor-Controller, presented the department’s budget and operational status. He highlighted the department’s role in supporting the county, coordinating with the CEO’s office, and managing relationships with the State Comptroller’s Office and the State Department of Finance regarding the dissolution of Redevelopment Agencies (RDA). Geis detailed the department’s risk management process, which involves identifying risks and converting them into long-term projects. Key risks and projects discussed included:
• RDA Dissolution: Implementation of new property tax processes, handling legislation related to RDA dissolution, and addressing the Oxnard RDA vs. Ventura lawsuit.
• Property Tax System: Implementation of the Manitron GRM system, a three-year project costing $2.4 million. Geis noted that the system is not yet live in any California county and requires significant resources. He presented data indicating the project is currently understaffed, with the Treasurer-Tax Collector’s office contributing less than one FTE compared to the vendor’s recommendation of 10 FTEs for successful implementation.
• Other Projects: Automation of budget revision request processing, implementation of a Parks reservation and cashiering system (Kamava), and updates to the employee time capture system.
• Staffing and Funding: The department’s budget is $7.7 million, supported by the General Fund. Staffing has decreased from 57.9 FTEs to 45.3 FTEs over five years. Geis noted that the department is processing bills with interns and is experiencing pressure to maintain service levels while managing RDA-related tasks.
• Revenue: Geis confirmed that $2.3 million in unanticipated revenue from the RDA dissolution has been deposited into the county’s general revenue budget.

Questions and Responses

• Supervisor Lavagnino inquired about the department’s ability to exercise subpoena power for audits. Geis stated that the department plans to train its internal audit manager for this purpose.
• Supervisor Carbajal thanked the department for its collaboration on the budget structure.
• Supervisor Wolf asked for assurance that the $2.3 million in RDA funds would not be subject to litigation or recall. Geis confirmed the funds are deposited as unanticipated revenue in the county system.
• Supervisor Gray asked about the cost and nature of the Parks reservation system. Geis stated the system was purchased for less than $100,000 and is used for reservations and cashiering in Parks.
• Supervisor Gray and Supervisor Carbajal discussed the resource constraints for the Manitron project, with Geis emphasizing the need for additional staffing in the Treasurer-Tax Collector’s office to support system development and maintenance.
• Decision: No motion was made or vote taken.

Clerk-Recorder-Assessor Budget Presentation

• Joe Holland, County Clerk-Recorder-Assessor, presented the proposed 2012-13 budget. Key points included:
• Staffing: Full-time employees have decreased from 118 in 2007-08 to 91.8 in 2012-13, a 22% reduction.
• Service Impacts: Reduced hours of service and responsiveness in the Recorder and Elections divisions. The Assessor division faces a 20% reduction in staff (from 64 to 53 FTEs) while workload has increased by 30%, resulting in a 66% increase in workload per FTE.
• Restoration Request: The department requested the restoration of one appraiser position at a cost of $105,000 to mitigate potential losses in property tax revenue, estimated between $3 million and $10 million.
• Future Budget Gap: A projected gap of $1.6 million for 2013-14 due to the loss of one-time funding and increased costs, which would require a 10% reduction in staffing (12-14 FTEs). Holland stated that any further cuts would fall on the Assessor division, as the Clerk-Recorder and Elections divisions are fee-funded or have already reached minimum staffing levels.

Questions and Responses

• Supervisor Lavagnino asked about the potential for mandating vote-by-mail to reduce costs. Holland stated that over 50% of voters already receive mail ballots and that a full shift to vote-by-mail could save 20-35% in costs, but legislative changes are required.
• Supervisor Gray asked about polling place sizes. Holland explained that current law requires precincts to have 1,000 registered voters, but with high mail-in voting rates, this results in low turnout at polls, leading to overstaffing of poll workers.
• Supervisor Wolf asked about the funding source for the restored appraiser position. CEO Waller clarified that the funding came from the contingency fund.
• Supervisor Carbajal requested a conservative estimate of the revenue generated by the additional appraiser position to help prioritize funding decisions.
• Decision: No motion was made or vote taken.

Treasurer-Tax Collector-Public Administrator Budget Presentation

• Harry Hagan, Treasurer-Tax Collector-Public Administrator, presented the proposed 2012-13 budget. Key points included:
• Budget: Operating budget of $6.1 million and capital budget of $800,000 for the Manitron property tax system. The General Fund contribution is $2.7 million (44% of operating expenses), a 25.6% reduction since 2007-08.
• Staffing: Proposed 37.8 positions, a 29% reduction over six years.
• Accomplishments: Redesign of the property tax payment website, issuance of $5.25 million in energy conservation bonds, issuance of $60 million in tax and revenue anticipation notes, refunding of $16.9 million in Certificates of Participation (saving $1.6 million), and processing 1,542 veterans’ claims resulting in $9.1 million in benefits.
• Service Impacts:
• Representative Payee Program (ProPay): Proposed elimination of the program, which serves approximately 250 clients with mental illness who cannot manage their SSA/SSI benefits. Hagan warned that elimination could lead to increased homelessness, involuntary hospitalization, and conservatorships.
• Veterans Services: Proposed elimination of the Santa Barbara position, which would force the closure of the Santa Barbara office and limit Lompoc service to one day a week by appointment. Hagan recommended restoring funding for two Representative Payee positions and both the Santa Barbara and Lompoc Veterans Services offices.
• Future Budget Gap: Projected gap of $187,000 for 2013-14.
• Manitron Project: Hagan emphasized the critical nature of the Manitron property tax system conversion, noting that it is jointly managed with the Auditor-Controller and is currently understaffed.

Questions and Responses

• CEO Waller noted that the proposed FTE addition for the Manitron project is one of the few additions in the budget and is critical for project success.
• Supervisor Gray asked about the possibility of using volunteers for clerical tasks in Veterans Services. Hagan explained that the department already uses VA Work Study students for administrative duties and that volunteers can assist through service organizations like the VFW or American Legion, but accredited officers are required to file claims.
• Supervisor Lavagnino asked about the workload distribution among the Santa Maria, Santa Barbara, and Lompoc offices. Hagan stated that Lompoc is currently open one day a week by appointment, with wait times of up to six weeks, while Santa Maria and Santa Barbara have similar workloads.
• Supervisor Wolf expressed support for maintaining working programs, particularly Veterans Services and ProPay.
• Supervisor Carbajal requested data on the geographic distribution of veterans and the utilization of services by location to inform funding decisions.
• Supervisor Lavagnino asked about the average wait time when the department was fully funded. Hagan stated it was approximately one week.
• Chair Farr clarified the cost of restoring the Santa Barbara and Lompoc Veterans Services positions, totaling $178,582.

Public Comment

• Several members of the public spoke in support of maintaining the Representative Payee Program and Veterans Services positions:
• Andy Caldwell urged the Board to prioritize programs that meet pressing needs and eliminate redundant or ineffective programs.
• Marcella Sanchez-Petanos requested that the Representative Payee Program not be cut.
• Leah Juniper criticized the proposed cuts to Veterans Services.
• Darla Kaiser urged the Board to protect the Representative Payee Program.
• Alice Villarreal-Reddit emphasized the importance of the Representative Payee Program for housing stability.
• Wilson Hubble highlighted the role of Veterans Service Officers in helping veterans access benefits.
• Ellery Price called for the retention of Veterans Service Officers.
• David Smith praised the county’s Veterans Service Officers.
• Decision: No motion was made or vote taken.

Public Comment on Veterans Services and Propay Programs

• The board accepted public comment regarding the proposed budget cuts to Veterans Services officers and the Propay program.
• Donald Aubrey (Military Order of the World Wars) stated that the organization represents 63 retired officers in Santa Barbara, many of whom are over 80.
• Tony Perez (Vietnam Veteran) described difficulties in navigating the VA system.
• Michael Kwan (Military Officers Association of America) noted that two Full-Time Equivalent (FTE) positions cost $178,000 but process 1,542 claims, bringing in $1.9 million.
• Bob Handy (Chair, Veterans County Committee) cited a lawsuit against the VA regarding inadequate care and delays.
• Emily Allen argued that cutting Veterans Services representatives and the Propay program would hinder efforts to address homelessness.
• William Connell stated that every supervisor’s district should have a certified service officer.
• Mary McGrath (Santa Maria) requested that the Veterans Service Officer position be kept local to North County.
• The Chair closed the public comment section for this topic and the board took a lunch break.

General Services Department Budget Presentation

• Mr. Nesbitt presented the General Services Department’s proposed operating budget for fiscal year 2012–2013, which is $65.2 million, a decrease of $1.6 million from the previous year. The capital budget is proposed at $8.8 million, a decrease of $6 million. Key points included:
• Staffing: The proposed employee count represents a 29% decrease compared to fiscal year 2003–2004.
• Accomplishments: The department completed a telephone network redesign (saving ~$1 million over three years), contracted out worker’s compensation "tail claims" (saving ~$1 million over ten years), supported the move to the new Emergency Operations Center (EOC), installed a 1-megawatt solar project at the Chi Real campus, and completed three major building projects (EOC, Santa Maria Court Clerk’s building, and Public Defender remodel).
• Deferred Maintenance: The department reported a deferred maintenance backlog of approximately $30 million. Benchmarks indicate the county currently has one maintenance worker per 69,000 square feet (standard is 50,000) and spends 0.6% of replacement cost on maintenance (standard is 1%).
• Future Budget Gap: The expected budget gap for fiscal year 2013–2014 is $479,000, primarily due to salary and benefit increases.

Board Discussion and Questions

• Space Utilization: Supervisor Gray asked about the status of the space utilization report. Mr. Nesbitt stated the current report is outdated (2006–2011) and a new one is in preparation. The goal is to reduce county lease space by 10% and county-owned building space by 5%. CEO Waller added that the executive team is exploring field-based inspections and common workspaces to reduce office space needs.
• EOC Funding: Supervisor Wolf asked about the cost of the EOC. Mr. Nesbitt confirmed that approximately $2 million was paid by a nonprofit organization.
• Deferred Maintenance Projects: Supervisor Lavagnino asked if the $30 million backlog is a prioritized list. Mr. Nesbitt confirmed it is a list of specific, prioritized projects. Supervisor Wolf asked for the total of deferred maintenance projects for 2012–2013; Mr. Nesbitt stated the allocation is $1.5 million, of which approximately $1.2 million is for specific projects and the remainder funds three FTEs.
• Staff Sharing: Supervisor Levin asked if General Services shares maintenance staff (plumbers, welders) with other departments like Public Works. Mr. Nesbitt stated they have one or two plumbers but generally contract out specialized work.
• Capital Budget Access: Supervisor Levin asked who has access to the proposed $500,000 increase in the capital budget. CEO Waller explained that this fund is for mid-year capital projects across various departments and is not specific to General Services.
• Lompoc Veterans Memorial Building: Supervisor Gray asked why this building was not listed in the completed projects. Mr. Nesbitt explained that the building received one-time federal and CBG grants, which were not part of the deferred maintenance allocation being discussed.
• Project Costs: Supervisor Gray asked about the bid versus actual cost for the EOC, Court Clerk’s building, and Public Defender remodel. Mr. Nesbitt stated the Public Defender project stayed within its original budget range of $5.6–6 million (final cost $5.8 million). The EOC project had a 12-year history and ultimately came in under budget.
• Decision: No motion was made or vote taken.

General County Programs Department Budget Presentation

• Mr. Alvarez presented the General County Programs Department budget. The operating budget for 2012–2013 is $1.4 million, down from approximately $9 million the previous year. The decrease is due to the transfer of First 5 funds (~$5 million) to a separate department and library funds (~$2.5 million) to the Community Services Department.
• Fund Balances: The department holds $6.4 million in discretionary fund balance for specific purposes, such as the new jail operating reserve.
• Jail Funding: The target for 2012–2013 is to set aside $2 million for jail operations, bringing the cumulative balance to $3 million. For 2013–2014, the allocation is $3.3 million, bringing the cumulative balance to $6.3 million.
• RDA Successor Agency: The presentation included new slides regarding the dissolution of Redevelopment Agencies (RDA). The board was asked to approve the transfer of the former RDA housing fund and activities from the CEO’s office to the Housing and Community Development (HCD) Division of the Community Services Department, effective July 1, 2012.
• RDA Pass-Throughs: CEO Waller noted that a recent letter from CSAC indicated a proposal to invalidate direct pass-through agreements, which would shift revenue from school districts to the state. Bob Geis clarified that in Santa Barbara County, this would primarily affect the Goleta School District and Isla Vista Recreation and Park, with the general fund potentially benefiting from the shift.
• Housing Funds: Bob Geis stated that the residual receipts for the successor housing agency are minimal ($65,000 booked this year, $18,000 budgeted next year), but there are potential larger funds from construction contract loans (e.g., the Loop project, ~$1.6 million) that may return to the successor agency, though the legislation is ambiguous.
• Decision: No motion was made or vote taken.

Governor’s May Revision and State Budget Impacts

• Ms. Nisic presented an update on the Governor’s May Revision, released May 14. Key impacts on Santa Barbara County include:
• Realignment: A tentative agreement has been reached for the next two fiscal years, with long-term structures still under negotiation.
• Probation: The Governor proposes charging counties $2,000 per month per ward committed to the Department of Juvenile Justice, an estimated $140,000 annual impact on the Probation Department.
• Agriculture: A $2.5 million reduction to the California Department of Food and Agriculture is proposed, which may result in a 30% reduction in local services for invasive pest prevention.
• CalWORKs: The program is proposed to be replaced by a three-pronged system (CalWORKs Basic, CalWORKs Plus, and Child Maintenance Program). Approximately 75% of participants would face a minimum 27% cut to grant levels. Approximately 3,800 families in the county would be removed from the current CalWORKs program.
• Child Care: Subsidized child care would be limited to those meeting work participation requirements. An estimated 30% decline in slots (up to 800 slots) is anticipated, potentially leading to job losses and center closures.
• In-Home Support Services (IHSS): A 7% across-the-board reduction in hours is proposed, effective August 2012. This would result in an average loss of 6.1 hours per month for recipients. Domestic and related services for children living with parents would be eliminated.
• First 5 and Child Support: A $40 million cut to First 5 state monies is proposed, redirected to Medi-Cal. Child support funding to local agencies would be reduced by $14.7 million statewide, with a $175,000 direct reduction to the local department.

Board Discussion and Questions

• Timing of Cuts: Supervisor Carbajal asked if the cuts would occur immediately or upon the failure of the November ballot initiative. Ms. Nisic clarified that the listed cuts would occur now, while an additional $6 billion in cuts (primarily to education) would trigger if the November initiative fails.
• RDA Legislation: Ms. Nisic discussed AB 26, which reaffirms the authority of the state and local auditor/controller to require the return of improperly spent RDA funds within 60 days. She also noted AB 1585, which would allow housing agencies to keep uncommitted balances but restricts total tax increment flow to counties, and SB 986, which died in committee. The League of California Cities is lobbying for legislation that may restrict asset transfers to counties.
• Governor’s Stance: The Chair asked if the Governor is opposed to legislation undoing RDA dissolution. Ms. Nisic agreed, noting it is a critical component of the budget balancing strategy.
• Litigation: The Chair asked about the likelihood of success for ongoing litigation regarding RDA dissolution, given previous court rulings.
• Decision: No motion was made or vote taken.

ABX-26 Litigation Update

• Discussion: Staff provided an update regarding litigation filed by 12 cities challenging provisions of ABX-26. The suit focuses on Department of Finance directives issued via website FAQs, the sequestering of disputed funds at the local level, and procedural issues related to former tax increment payments to successor agencies. Staff clarified that the County is not a party to the litigation but will be informed by the court’s judgment. Staff noted that current financial handling is not jeopardized by the suit and that the primary potential benefit for the County would be judicial guidance on how the Department of Finance uses website FAQs to direct local government.
• Decision: No motion was made. The item was for informational purposes.

Public Comment – Outside Organizations and Non-County Agencies

• Process: The Board accepted public comments from 22 registered speakers representing various organizations and private citizens. Speakers addressed the proposed budget, specifically focusing on the Human Services Commission funding, risk management, and homeless services.
• Key Points Raised by Speakers:
• Risk Management & General Fund: One speaker noted an increase in General Fund contributions to the risk management department from $14.8 million in 2010-11 to $19.2 million the following year. Another speaker suggested privatizing vehicle maintenance to reduce retirement costs.
• Human Services Commission (HSC) Funding: Multiple speakers requested the restoration of $1.2 million in HSC funding to the General Fund as a permanent line item.
• Community Collaboration: One speaker proposed the establishment of a community-led "Human Services Working Group" to analyze county spending and coordinate with nonprofits and philanthropic sectors. Supervisors responded positively to the concept, suggesting it should be community-led but government-endorsed, and advised the speaker to coordinate with the CEO’s office to determine next steps.
• Rapid Rehousing: A representative for Casa Esperanza and Good Samaritan requested $127,960 to continue rapid rehousing services, noting that federal ARRA funds were expiring. They reported securing $360,000 from other sources but needed the requested amount for staffing and administration. A Supervisor expressed concern about the late submission of this request and the lack of prior vetting by staff.
• Warming Centers: Representatives for the Unitarian Society (fiscal agent for warming centers) requested $50,000 in General Fund support. They reported a 65% increase in guests served and requested funds to maintain operations and expand to Goleta and Carpinteria. Supervisors inquired about existing budget allocations for warming shelters and requested clarification on the specific funding sources and amounts currently provided to the organization. Staff indicated they would provide a detailed breakdown of existing shelter funding allocations.
• Other Requests: Speakers also discussed the Children’s Health Initiative, suggesting a shift from insurance premiums to direct care funding, and the economic impact of the nonprofit sector.
• Decision: No motion was made during the public comment period. The Board acknowledged the comments and indicated that staff would provide further clarification on specific funding allocations (e.g., warming centers) before any final decisions.

General Revenues Presentation

• The Chair indicated that the next segment would involve a presentation on general revenues and a proposed budget hearing summary. The Chair noted internal communication difficulties that might affect the ability to begin preliminary deliberations immediately. The Board took a break and then reconvened to proceed with the general revenues presentation.
• Decision: No motions or votes were recorded in this section.

General Revenues and Budget Projections

• Mr. Alvarez presented data from the budget book (pages A6 and C5) regarding general revenue growth. He noted that revenue growth has been relatively flat through fiscal year 2012-13, with a slight uptick projected for 2013-14. He explained that the 2012-13 budget shows a $9.7 million increase over the 2011-12 adopted budget, primarily due to a $7 million accounting change moving cost allocations from departments to general revenues to stabilize departmental budgets. The remaining increase is attributed to a projected 1.5% ($2.6 million) increase in property taxes. Mr. Alvarez noted that recent data from the Clerk-Recorder-Assessor suggests property tax growth may be tempered by approximately 1% ($1.5 million) compared to initial projections. He recommended setting aside a projected favorable ending balance of $1.6 million for the current year (2011-12) in the strategic reserve, which could be used to offset potential shortfalls in next year’s property tax revenues.

Discussion on Revenue Performance and Projections

• Supervisor Wolf inquired about the firmness of the $1.6 million favorable balance projection. Bob Geis responded that while the projection was reviewed that morning, certain accounts are underperforming, including property transfer taxes, supplemental taxes, and redemption penalties. However, he noted positive performance in motor vehicle license fees and strong performance in the Transportation Occupancy Tax (TOT) and Proposition 172 revenues. Geis stated that Prop 172 revenues were up 8.6% for the year, indicating strong statewide sales tax performance. Geis recommended carrying the potential surplus over to the strategic reserve to better assess next year’s tax roll.
• Supervisor Wolf asked about changes to TOT and Prop 172 numbers in the budget book. Mr. Alvarez stated that final budget adjustments were being distributed and would be available before Friday. Geis confirmed that Prop 172 funds are typically set aside for the Public Safety Department per existing board policy.
• Supervisor Lavagnino questioned the disparity between projected salary and benefits increases (from $449 million in 2010-11 to $499 million in 2013-14) and total revenue projections (decreasing from $743 million to $741 million over the same period). Mr. Alvarez confirmed the figures, noting that the 2013-14 retirement cost increase in the budget book did not include a recent rise of approximately $10 million. Supervisor Lavagnino commented on the need to address both revenue and expenditure sides of the budget.

Agriculture Department Funding

• Supervisor Wolf inquired about the availability of approximately $220,000 for different Agriculture Department uses, based on a Board Inquiry Form response regarding the scanner program. CEO Waller confirmed the amount was accurate and explained that the funds were originally intended by the department to offset a 2013-14 budget gap. However, because the board approved fee increases for the scanner and device programs, the general fund dollars previously used for these programs are now freed up. CEO Waller stated that these funds are at the board’s discretion for reallocation, such as for a biologist position, and that a proposal to appropriate the fees would be brought back in July.

Procedural Matters and Adjournment

• Chair Farr asked for board direction on proceeding with CEO Waller’s budget hearing summary and preliminary deliberations. Supervisor Carvajal suggested spending time on substantive guidance to allow staff to refine numbers before Friday. Supervisor Gray expressed a preference to adjourn and start fresh on Friday due to a prior appointment. Supervisor Lavagnino asked about the format for submitting board feedback, and CEO Waller identified Attachment E (an Excel spreadsheet) as the electronic form, noting IT issues were being resolved.
• Supervisor Wolf suggested hearing the CEO’s summary and then adjourning. Chair Farr noted the concern about retaining Supervisor Gray if the meeting continued. The board agreed to adjourn the meeting and resume on Friday morning at 9:00 AM with the budget hearing summary and deliberations.

Memorial

• Supervisor Gray offered a brief memorial for Alan Hunt, a former sports editor for the Lompoc Record and Santa Barbara News-Press, who passed away at age 63. Chair Farr thanked the board and confirmed the meeting would reconvene on Friday.