Board of Supervisors — 2021-06-08

Budget Hearing Schedule and Procedural Matters

• Board meetings are now interpreted and broadcast live in Spanish via secondary audio programming for Cox and Comcast subscribers.
• Public comment procedures require Zoom registration with a three-minute limit per speaker at the Chair’s discretion.
• If budget hearings are continued to June 10, 2021, the Board may discuss budget items for any county department or special issue listed for that day.

County Executive Officer Overview and Budget Presentation

• The recommended $1.35 billion operating budget supports 4,347 employees and reflects the third consecutive year of avoiding service level reductions.
• Revenue sources include 39% federal/state funds (including $43.3 million in ARPA), 28% taxes, and 25% charges for services.
• The strategic reserve is projected to reach 8% of general fund operating revenue, with a prudent cannabis reserve of $4.8 million maintained.
• Key priorities include criminal justice improvements, environmental sustainability, infrastructure maintenance, and technology modernization.

Health and Human Services Functional Group

• The functional group contributes $25 million to the general fund and accounts for 41% of countywide FTEs.
• Public Health noted that delayed Medi-Cal Pharmacy transitions may delay anticipated 340B revenue losses.
• Behavioral Wellness expanded assisted outpatient treatment in South County and plans to update the MHSA plan to include AOT as an eligible expense.
• The Board acknowledged the departure of the Director of Behavioral Wellness and thanked her for her service.

Community Resources and Public Facilities Functional Group

• The group represents 6% of the general fund contribution and approximately 20% of operating expenditures.
• Public Works noted that the Governor’s May revision may increase local infrastructure size without providing for long-term maintenance.
• Budget requests include $1 million for park pavement rehabilitation and $2.9 million to address a road operation structural deficit.
• Staff confirmed that adequate funding is available to maintain Pavement Condition Index levels despite the structural deficit.

General Government and Support Services Functional Group

• The group represents 12% of the general fund contribution and just under 10% of total expenditures.
• The Elections Office noted potential impacts from the Governor’s recall election, though costs and state assistance remain unknown.
• Implementation of the Voters’ Choice Act was delayed in Fiscal 21-22 due to the recall election and potential passage of Assembly Bill 37.
• An additional FTE in the Treasurer-Tax Collector’s Office is included in the budget to address cannabis oversight.

Policy and Executive Functional Group

• The group represents 27% of the general fund contribution and just under 10% of operating expenditures.
• The CEO’s Office is coordinating with departments for changes related to the Governor's "Beyond the Blueprint" plan and revised Cal OSHA standards.
• A $3.5 million temporary cash advance transfer from General County Programs to Public Works was included for the Floridale Bridge Project.
• County Counsel summarized successful litigation outcomes regarding cannabis enforcement and the EDRN Prohibition Ordinance.

Public Safety Functional Group

• The group represents 47% of the general fund contribution and just under one-third of total expenditures.
• The Governor is expanding a pre-trial pilot project to all 58 counties with ongoing funding, though county-specific allocations are pending.
• Budget expansion requests totaling 6.5 FTE and $1.1 million in ongoing funds were deferred to hearings for various departments.
• The District Attorney’s Office committed to providing a data dashboard to improve transparency regarding diversion efforts.

Adjustments to the 2021-2022 Recommended Budget

• The Board directed the CEO’s office to conduct a comprehensive review of funding, staffing, and functions for all county boards and commissions.
• Funds were appropriated for one Planner III position, Library COLA, a library consultant, and Public Defender misdemeanor staffing conversions.
• Cannabis one-time funds were allocated for mobility projects, a building energy management system, and parks/trails/open space in North and South County.
• The Board deferred the decision on additional PCI funding and the District Attorney’s post-conviction litigation unit to future discussions.

Adoption of Resolution for the Board of Supervisors for the County of Santa Barbara Successor Agency

• The Clerk requested a motion for the approval of items A and B regarding the recommended budget for the successor agency.
• It was confirmed that no public comment was requested for this specific item.
• The motion to approve the resolution passed unanimously.

Closed Session

• No closed-session report was included in the provided meeting summary.

Agenda Item: Budget Hearing Schedule and Procedural Matters

• The Clerk of the Board announced that Board of Supervisors meetings are now interpreted and broadcast live in Spanish via secondary audio programming (SAP) for Cox and Comcast cable subscribers. The Clerk noted that agenda times are estimates and that if budget hearings are continued to June 10, 2021, the Board may discuss budget items for any county department or special issue listed for discussion that day. Public comment procedures were outlined, including registration via Zoom for verbal comments, with a three-minute limit per speaker at the Chair’s discretion.

Agenda Item: County Executive Officer Overview and Budget Presentation

• Mona Miyasato, County Executive Officer, presented an overview of the recommended budget, noting the county’s shift from pandemic response to recovery. Key points included:
• Fiscal Stability: The recommended budget reflects the third consecutive year of avoiding service level reductions.
• Reserves: The strategic reserve is projected to reach 8% of general fund operating revenue ($38.8 million).
• Challenges: Delayed census data affecting redistricting, legislative/regulatory changes, increased construction costs for bridge projects, and a backlog of deferred maintenance.
• Priorities: Improving the criminal justice system, environmental sustainability, infrastructure maintenance, community amenities, social safety net, equity/inclusion, stable finances, and technology modernization.
• Milestones: Progress on diversion efforts, reducing mentally ill individuals in jail, opening the Resource Center, and initiating capital projects including public safety radio replacement, new probation headquarters, jail ADA renovations, and Kachuma Lake Park improvements.
• Renew 22 Initiative: Continued efforts to innovate and transform operations through employee training and KPMG management reviews.
• Nancy Anderson, Assistant County Executive Officer, detailed the recommended budget:
• Total Operating Budget: $1.35 billion, supporting 4,347 employees (an increase of 41 FTEs from the previous year).
• Revenue: 39% from federal/state resources (including $43.3 million in American Rescue Plan Act funds), 28% from taxes, and 25% from charges for services.
• General Fund: Receives $483 million (36% of the budget), with $327 million considered discretionary. Discretionary revenue increased by $27 million, driven by property tax and cannabis revenue growth.
• Expenditures: Salary and benefits account for 53% of the budget ($700 million), a 5.9% increase. Net retirement contributions are projected at $167.3 million.
• Maintenance: The annual target of $19.9 million for maintenance funding will be met, including a $4 million ARPA allocation added since June 1.
• Budget Expansions:
• Pre-Workshop Expansions: $2.9 million in high-priority requests (e.g., redistricting consultants, data center replacement, public defender positions).
• CEO Recommended Expansions: $10.4 million in ongoing and one-time requests (e.g., Chief Data Officer, capital projects team, body-worn cameras, homeless shelter costs).
• Cannabis Tax Revenue Policy: The budget proposes allocating up to 75% of annual cannabis tax revenue to ongoing expenses and reserving 25% for one-time expenditures. A prudent reserve equal to 25% of ongoing revenue ($4.8 million) will be maintained in the cannabis account.
• ARPA and Cannabis Allocations: Based on June 1 board direction, $20.3 million was allocated from ARPA and one-time cannabis resources for specific projects, including the Foothills Forever Preserve, homeless facility acquisition, road maintenance, and capital improvement projects. Remaining ARPA funds total $25.1 million.
• Joe Holland, Clerk-Recorder-Assessor, reported that the estimated property tax increase is slightly over 3%, lower than the typical 5% average due to low statewide inflation (CPI). He noted that 15,000–20,000 properties are still under Proposition 8 reductions from the Great Recession, which may be removed as residential prices rise. The property tax roll is expected to close on June 15.

Agenda Item: Health and Human Services Functional Group

• Staff provided a high-level overview for the Health and Human Services functional group (Behavioral Wellness, Child Support Services, First 5 Santa Barbara, Public Health, and Social Services):
• General Fund Contribution: $25 million (8% of countywide total).
• Operating Expenditures: $453 million (one-third of county total).
• FTEs: 1,769 (41% of county total).
• Updates:
• Public Health: Delayed Medi-Cal Pharmacy transition may delay anticipated 340B revenue losses. ARPA and grant funds support COVID-19 response and infrastructure. The Governor’s May revision allows continued reimbursement for telephone visits.
• Behavioral Wellness: Expanded assisted outpatient treatment (AOT) in South County, funded by fund balance drawdown. Plans to update the MHSA plan to include AOT as an eligible expense in FY 22-23.
• Public comment was received from ten speakers regarding the Health and Human Services budget, including requests for funding for IHSS, the Growing Grounds Farm program, and questions regarding telehealth effectiveness and privacy rights. Supervisor Lavagnino expressed support for the Growing Grounds Farm program and committed to working with state legislators to secure continued funding. Supervisor Hartmann asked Dr. Alice Gleghorn (Director of Behavioral Wellness) to address questions regarding inpatient care reductions and telehealth. Dr. Gleghorn clarified that inpatient services were not cut; revenue decreased due to pandemic-related facility shutdowns, and telehealth usage increased to accommodate demand. The Board acknowledged Dr. Gleghorn’s departure and thanked her for her service. No motions were moved or voted upon in this section.

Agenda Item: Community Resources and Public Facilities Functional Group

• Staff presented the budget for Agricultural Commissioner, Weights & Measures, Community Services, Planning and Development, and Public Works. The group represents 6% of the county’s general fund contribution ($21 million), approximately 20% of operating expenditures ($244 million), and 12% of total FTEs (522).
• Updates:
• Public Works: Noted that the Governor’s May revision may increase local infrastructure size without providing for long-term maintenance. The County’s Legislative Coordinator is working with CSAC and the Department to address these concerns.
• Budget Requests:
• Community Services: $1 million one-time request for pavement rehabilitation in the park system.
• Public Works: $2.9 million ongoing request to address road operation structural deficit.
• Public Works: $4.3 million pavement rehabilitation request. The Board previously directed $4 million of ARPA revenues to backfill lost gas tax revenue for pavement preservation.
• Q&A: Staff confirmed that adequate funding is available to maintain Pavement Condition Index (PCI) levels. Staff explained the difference between preservation and rehabilitation costs and confirmed the $2.9 million structural deficit in road operations is due to expenses growing faster than revenues. The Chair emphasized the priority of developing a long-term fiscal plan to resolve the structural deficit.
• Public comment was received regarding priority upgrades for University Circle Park, a workforce housing study, a Long-Range Planning Team for Planning & Development, and concerns regarding road maintenance funding and environmental impacts. Supervisor Williams noted that staff are exploring lower-carbon pavement mixes. No motions were made or votes taken in this section.

Agenda Item: General Government and Support Services Functional Group

• Staff presented the budget for Auditor-Controller, Clerk-Recorder-Assessor, General Services, Human Resources, Treasurer-Tax Collector, Public Administrator, Debt Services, and Northern Branch Jail Construction Fund. The group represents 12% of the general fund contribution ($40 million), just under 10% of total expenditures ($118 million), and 8% of FTEs (368).
• Updates:
• Elections Office: Noted potential impacts from the Governor’s recall election, though costs and state assistance remain unknown.
• Voters’ Choice Act: Implementation delayed in Fiscal 21-22 due to the recall election and potential passage of Assembly Bill 37.
• Public comment was received regarding a viability study for a Central Coast Public Bank and cannabis tax revenue collection. Supervisor Lavagnino noted that an additional FTE in the Treasurer-Tax Collector’s Office is included in the budget to address cannabis oversight. No motions were made or votes taken in this section.

Agenda Item: Policy and Executive Functional Group

• Staff presented the budget for the Board of Supervisors, County Counsel, County Executive Office, and General County Programs. The group represents 27% of the general fund contribution ($87 million), just under 10% of operating expenditures ($116 million), and 2% of FTEs (107).
• Updates:
• CEO’s Office: Coordinating with departments for June 15th changes related to the Governor's "Beyond the Blueprint" plan and revised Cal OSHA standards.
• Floridale Bridge Project: A $3.5 million temporary cash advance transfer from General County Programs to Public Works was included as a final budget adjustment. Public Works will reimburse the general fund upon receipt of federal funds. This is separate from $993,000 in one-time general fund provided for local match requirements.
• County Counsel summarized successful litigation outcomes regarding cannabis enforcement and the EDRN Prohibition Ordinance. Supervisors thanked County Counsel for their service and noted the appointment of Rachel Van Molen as the new County Counsel. Public comment was received regarding the retirement of County Counsel Michael Gazzone. No motions were made or votes taken in this section.

Agenda Item: Public Safety Functional Group

• Staff presented the budget for Court Special Services, District Attorney, Fire, Probation, Public Defender, and Sheriff. The group represents 47% of the general fund contribution ($154 million), just under one-third of total expenditures (~$400 million), and 36% of FTEs (~1,500).
• Updates:
• Probation: Governor is expanding a pre-trial pilot project to all 58 counties with ongoing funding; county-specific allocations are pending.
• Budget Expansion Requests (Deferred to Hearings):
• District Attorney: 1.5 FTE for post-conviction litigation unit (~$260,000 ongoing).
• Probation: 1 FTE for professional standards unit (~$115,000 ongoing).
• Public Defender: Conversion of two extra help misdemeanor attorneys to permanent FTE (~$151,000 ongoing).
• Sheriff’s Department:
• Cannabis Compliance Team: Revised request to add two detectives (2 FTE) to existing team ($414,000 ongoing, $137,000 one-time).
• Data Center Replacement Fund: $161,000 ongoing set-aside for upgrades/purchases.
• Total Requests: 6.5 FTE, $1.1 million ongoing, $137,000 one-time.
• The District Attorney’s Office presented diversion data, noting that 42% of cases presented were not filed, and committed to providing a data dashboard to improve transparency. The Public Defender’s Office presented its budget request, highlighting the need to convert two "extra help" attorney positions into full-time funded positions at an estimated cost of $152,000 per year, and discussed the burden of post-conviction relief legislation.
• Public comment was received from numerous speakers regarding the Sheriff’s budget, jail reform, mental health treatment, cannabis compliance, and funding for the Public Defender’s Office. Speakers included representatives from clergy groups, individual citizens, the California LEAD Project, the Deputy Sheriff’s Association, the Public Defender’s Racial Justice Committee, the Taxpayers Association, the Santa Barbara County Action Network, and the NAACP.
• Supervisor Lavagnino requested staff provide data on the cannabis compliance team’s size and status. Supervisor Hartmann reported that staff identified 11.5 FTEs currently assigned to cannabis compliance, with five additional FTEs proposed in the budget. Supervisor Williams discussed the financial risks associated with mandatory overtime in the Sheriff’s Department and proposed directing staff to track hours spent on cannabis permitting and charge those costs to permittees. Sheriff Brown responded to calls for budget reduction by outlining the breadth of the Sheriff’s Office responsibilities and stating that the department is not bloated but inadequately funded in custody and patrol operations.

Agenda Item: Adjustments to the 2021-2022 Recommended Budget (Attachment E)

Boards and Commissions Funding

• Supervisor Hartmann raised a proposal from the Commission for Women for increased per diem compensation and travel funds and requested CEO staff conduct a holistic review of funding and staffing for all county boards and commissions. Supervisor Williams supported the review but suggested setting aside $50,000–$60,000 in one-time funds pending the review. Supervisor Lavagnino opposed setting aside specific funds, preferring the CEO to return with a recommendation for specific allocations. The Board directed the CEO’s office to conduct a comprehensive review of the funding, staffing, and functions of all county boards and commissions. No immediate funds were allocated.

Planning and Development (Long-Range Planning)

• The board discussed options for staffing the Planning and Development Department’s long-range planning division. Supervisor Hartmann expressed support for a larger team, while Supervisor Lavagnino and Supervisor Williams expressed concerns about the lack of a clear mission for a full team. Supervisor Nelson suggested retaining uncommitted ongoing funds for future appropriation. The board settled on appropriating funds for one Planner III position at $182,000, with the understanding that further discussions on additional staffing or specific projects would occur later in the year.

Library Funding

• The board discussed funding for the Library COLA and a consultant for the Libraries Executive Committee. Supervisor Hartmann explained that the consultant would facilitate a countywide vision for the library system. The board agreed to appropriate $127,000 for the Library COLA and $50,000 for the library consultant.

Public Defender Misdemeanor Staffing

• The board discussed converting temporary misdemeanor staffing for the Public Defender’s Office to permanent positions. The board agreed to appropriate $151,600 for this conversion.

Cannabis Funded Mobility Projects

• The board discussed the allocation of cannabis one-time funds for mobility and safety projects. Supervisor Hartmann and Supervisor Williams advocated for a broad definition of "mobility" to include sidewalks, bike lanes, and traffic improvements. The board agreed to appropriate $250,000 per district (totaling $1,250,000) for these projects, to be determined in consultation with board offices.

Building Energy Management System

• The board discussed funding for a building energy management system from the unfunded CIP list. The board agreed to appropriate $450,000 for this project.

Parks, Trails, and Open Space

• The board discussed the allocation of remaining one-time cannabis funds for parks, trails, and open space. A compromise was reached to allocate $2,000,000 for North County parks, trails, and open space (associated with the Foothills Forever project) and $1,500,000 for South County parks, trails, and open space. Additionally, $1,500,000 was allocated for the City of Santa Maria’s recreation opportunity. The board agreed to these allocations, totaling $5,000,000 for these categories.

District Attorney Post-Conviction Litigation Unit

• The board discussed a request from the District Attorney’s Office for funding to establish a post-conviction litigation unit. Supervisor Hartmann requested data on the volume of cases. The CEO’s office provided data indicating that the bulk of the work is finite. Supervisor Lavagnino proposed a one-time allocation for one year. The board did not reach a consensus to appropriate funds for this item at this time, noting that there were not enough votes to support either a one-time or ongoing allocation. The board agreed to revisit this issue in the future.

PCI (Public Capital Improvement) / Roads

• Chair Nelson requested $332,000 to fully fund PCI maintenance at current rates. Staff noted that $296,000 in deferred maintenance revenue had already been allocated to roads and recommended waiting for final ARPA calculations in October before making further allocations. The Board deferred the additional PCI funding decision to the October budget discussion.

ARPA Funds

• Chair Nelson encouraged staff to explore using ARPA funds for eligible projects to preserve general fund and cannabis resources. Staff advised that current ARPA guidance may not qualify certain projects and recommended assuming cannabis funding for now, with the option to swap funds in October if eligibility is confirmed.

Final Budget Adjustments and Adoption

• The CEO’s office presented the final adjustments to the 2021-2022 recommended budget, including the appropriations discussed above. The board reviewed the final figures for ongoing and one-time funding sources and uses.
• Supervisor Hart moved to adopt staff recommendations A through H and determine that these fiscal activities are not a project subject to CEQA. Supervisor Hartmann seconded the motion. The board voted to adopt the 2021-2022 recommended budget, including the final adjustments and the resolution for the fiscal year 2021-22 budget. The motion passed unanimously.
• Supervisor Lavagnino provided closing remarks, noting that initial concerns regarding the allocation of cannabis revenue for one-time expenses were addressed by the CEO and budget team’s proposal for a workaround to be discussed in December. Additional comments from other board members highlighted the balance of investments in infrastructure and human services.

Agenda Item: Adoption of Resolution for the Board of Supervisors for the County of Santa Barbara Successor Agency

• The Clerk of the Board requested a motion for the approval of items A and B regarding the recommended budget for the County of Santa Barbara as a successor agency to the former Santa Barbara County Redevelopment Agency. A motion was made and seconded. It was confirmed that there was no public comment requested for this item. The motion to approve the resolution passed unanimously.

Adjournment

• CEO Miyasato offered closing remarks thanking the board, department heads, and specific staff members for their work during the budget process. The Clerk of the Board confirmed there was no general public comment. The meeting was adjourned, with the next session scheduled for June 15 in Santa Barbara.