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Approve a $2,303,062 Appropriation Transfer Request increasing General Fund Contributions in the In-Home Supportive Services (IHSS) Public Authority Fund 152, offset by decreased General Fund Contributions within the Health and Social Services Fund 902 to fund the IHSS Maintenance of Effort (MOE) (4/5 vote required)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The County Administrator’s Office recommends that the Board of Supervisors approve a $2,303,062 Appropriation Transfer Request (ATR) increasing General Fund Contributions in the In-Home Supportive Services (IHSS) Public Authority Fund 152, offset by decreased General Fund Contributions within the Health and Social Services Fund 902 to fund the IHSS Maintenance of Effort (MOE) (4/5 vote required).
SUMMARY/DISCUSSION:
In accordance with Welfare and Institutions Code Section 12306.16, the IHSS MOE was rebased to reflect the MOE for services in FY2019/20. Solano County’s IHSS MOE base services cost was established at $13,558,702 and was funded equally by General Fund Contributions (50%) and 1991 Realignment (50%). Per statute, the IHSS MOE is adjusted annually by a 4% inflation factor and any locally negotiated wage rate changes. From FY2019/20 to FY2023/24, the Solano County IHSS MOE adjustments totaled $2,303,062, funded by General Fund Contributions.
In the FY2023/24 Working Budget, 50% of the General Fund Contributions budgeted to cover the IHSS MOE adjustment of $2,303,062 in Fund 152 were shifted and the remaining 50%, or $1,151,531, was budgeted in Fund 902 to address anticipated increases in spending for the administration of Social Services programs. 1991 Social Services Realignment funding was then increased by 50%, or $1,151,531, in Fund 152 to cover the shortfall in the MOE previously funded by the General Fund.
The Midyear and 10-Month financial reports both indicated a decrease in spending on the administration of Social Services programs in Fund 902. This is expected to result in year-end unused General Fund Contributions of at least $1,151,531 in Fund 902; therefore, the original transaction will be reversed with $1,151,531 transferred to Fund 152 for the IHSS MOE, and 1991 Social Services Realignment reduced by $1,151,531 in Fund 152.
An Appropriation Transfer Request is needed to increase General Fund Contributions in Fund 152 by $1,151,531, offset by decrease in General Fund Contributions by $1,151,531 in Fund 902. This restores the original FY2023/24 100% General Fund share in IHSS MOE adjustments in Fund 152.
FINANCIAL IMPACT:
The Appropriation Transfer Request adjusts General Fund Contributions and revenues within Fund 152 and Fund 902 based on anticipated unused General Fund Contributions at year-end. There is no impact to County General Fund.
ALTERNATIVES:
The Board could choose not to approve the ATR; however, this is not recommended since it will result to a negative Fund Balance in Fund 152 at FY2023/24 Year-End.
OTHER AGENCY INVOLVEMENT:
The Auditor-Controller’s Office has been consulted regarding the recommendation.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION