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Approve a $1,394,664 Appropriation Transfer Request for Behavioral Health Services to increase appropriations and revenue for the Drug Medi-Cal Organized Delivery System due to increased utilization of the program (4/5 vote required); and Approve a $1,354,969 Appropriation Transfer Request for Capital Projects Management from Social Services to increase appropriations and revenue for one-time capital improvements to relocate staff from the Executive Court campus to a new location (4/5 vote required)
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Published Notice Required? Yes ___ No _ _
Public Hearing Required? Yes ___ No _ _
DEPARTMENTAL RECOMMENDATION:
The Department of Health and Social Services recommends that the Board of Supervisors:
1. Approve a $1,394,664 Appropriation Transfer Request for Behavioral Health Services to increase appropriations and revenue for the Drug Medi-Cal Organized Delivery System due to increased utilization of the program (4/5 vote required); and
2. Approve a $1,354,969 Appropriation Transfer Request for Capital Projects Management from Social Services to increase appropriations and revenue for one-time capital improvements to relocate staff from the Executive Court campus to a new location (4/5 vote required).
SUMMARY/ DISCUSSION:
This item contains two Appropriation Transfer Requests (ATR) to ensure expenditures and funding sources are appropriately classified to close out FY2025/26.
The first ATR is related to Medi-Cal beneficiaries with substance abuse issues who currently receive services under the Drug Medi-Cal Organized Delivery System (DMC-ODS) administered by the Partnership HealthPlan of California (PHC). The County reimburses PHC based on a per utilizer per month rate. Due to an increase in the number of clients receiving at least one service per month, program costs have exceeded current budgeted appropriations, and additional federal revenue will be utilized to cover the costs.
The second ATR is related to Health and Social Services receiving a total of $1,998,886 in unanticipated revenues in FY2025/26 from the FY2023/24 final settlement of Medi-Cal administration claims. The department’s overspending of allocations in FY2023/24 was covered by the County General Fund during that fiscal year. The unanticipated revenue received in FY2025/26 will be used to cover the projected additional Net County Cost of $643,947 for Social Services programs in FY2025/26. The excess of $1,354,664 will be transferred out to General Services, Capital Projects Management (CPM) for one-time capital improvement costs associated with relocating staff from the Executive Court campus to a new location. CPM will be increasing appropriations to cover costs associated with tenant improvements and moving.
FINANCIAL IMPACT:
Federal, State, and 2011 Realignment are the primary funding sources for DMC treatment services. An increase in appropriations and corresponding revenues is needed to ensure that PHC claims can be paid in FY2025/26. An ATR in the amount of $1,394,664 will increase contract appropriations and federal revenues. There is no impact on the General Fund.
A $1,354,939 increase in appropriations and transfer in is needed in General Services CPM to fund one-time capital improvement costs for relocating staff from the Executive Court campus to a new location in FY2026/27. A corresponding transfer out is needed in Social Services with revenue coming from Prior Year Revenue. There is no additional impact on the General Fund.
ALTERNATIVES:
The Board of Supervisors could choose not to approve the ATRs. This is not recommended as payments due to PHC may not occur as appropriations may be exhausted and no authority to pay them exists. In addition, unexpected funds from a prior year reimbursement can be effectively utilized for the relocation of staff.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION