title
Approve a $2,006,636 Appropriation Transfer Request (ATR) from the Department of Health and Social Services, Public Assistance, funded by federal, State, and 1991 and 2011 Realignment, to cover mandated aid payments based on Third Quarter projections through June 30, 2025 (4/5 vote required); and Approve a $2,505,671 ATR for Behavioral Health to add Mental Health Services Act revenues to Fund 906 and move appropriations within Fund 902 and Fund 906 to allow for repayment of MHSA Innovation reverted funds (4/5 vote required)
body
Published Notice Required? Yes _____ No __X__
Public Hearing Required? Yes _____ No __X__
DEPARTMENTAL RECOMMENDATION:
The Health and Social Services Department (H&SS) recommends that the Board of Supervisors approve a $2,006,636 Appropriation Transfer Request (ATR) from the Department of Health and Social Services, Public Assistance, funded by federal, State, and 1991 and 2011 Realignment, to cover mandated aid payments based on Third Quarter projections through June 30, 2025 (4/5 vote required); and, approve a $2,505,671 ATR for Behavioral Health to add Mental Health Services Act (MHSA) revenues to Fund 906 and move appropriations within Fund 902 and Fund 906 to allow for repayment of MHSA Innovation reverted funds (4/5 vote required).
SUMMARY/DISCUSSION:
The Public Assistance programs provide mandated categorical aid to eligible persons based on federal and State criteria. These include California Work Opportunity and Responsibility to Kids (CalWORKs), Adoptions Assistance Program, Foster Care Assistance, General Assistance, Approved Relative Caregiver, Work Incentive Nutritional Supplement, State Utility Assistance Subsidy, and Low-Income Home Energy Assistance Program payments.
Projecting the costs of Assistance programs is challenging, given regular changes in federal and State regulations, court decisions, and economic conditions impacting caseloads. The Third Quarter projections are based on nine months of actual data from July 2024 through March 2025 and indicate insufficient appropriations to cover increased expenditures in Adoptions and CalWORKs. The ATR is necessary to pay for the projected expenditures through June 30, 2025.
In November 2004, California voters passed Proposition 63, which imposes a one percent income tax on personal income in excess of $1 million to provide funding to support county mental health programs. Behavioral Health receives a monthly MHSA allocation. Under Welfare and Institutions Code (WIC) section 5892(h), any funds allocated to a County that have not been spent for their authorized purpose within a specified period (i.e., reversion period) will be reverted to the State and reallocated to other counties. Funding for the Community Services and Support (CSS), Prevention and Early Intervention (PEI), and Innovation (INN) components must be spent within three years.
In order for counties to spend Innovation funds, they must have an innovation plan approved by the Mental Health Services Oversight and Accountability Commission (MHSOAC). The innovation project must also meet several approval requirements. Solano County does not have an approved Innovation Plan; therefore, MHSA Innovation funding from FY2021/22 will be reverted to the State.
FINANCIAL IMPACT:
The FY2024/25 Working Budget for Public Assistance does not have sufficient appropriations to cover increased expenditures in Adoptions and CalWORKs. The projected increase in expenditures is fully offset by federal, State, 1991 Realignment, and 2011 Realignment revenues, with no net increase in the County General Fund.
The FY2024/25 Working Budget for Fund 906 - MHSA does not have sufficient appropriations or appropriations in the correct subobject to return MHSA Innovation funding to the State. As MHSA revenues are projected to be higher than budgeted, the ATR increases revenues to cover the additional appropriations needed to return $1,380,225 from the Innovation component to the State.
ALTERNATIVES:
The Board of Supervisors could choose not to approve one or both ATRs. However, this alternative is not recommended as not approving the first ATR will disrupt the continuity of mandated aid payments to eligible persons; and for the second ATR, State law requires the reversion of MHSA Innovation funds that are not spent within a certain timeframe.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION