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a. Approve a decrease in an amount not to exceed $65,000 in Account 3121, Department of Social Services Designation and an increase in an amount not to exceed $65,000 in General Fund Unreserved Fund Balance; and
b. Authorize the Auditor-Controller to amend appropriations not to exceed $65,000 in SOC002 -General Assistance. (4/5ths vote required).
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RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve a decrease in an amount not to exceed $65,000 in Account 3121, Department of Social Services Designation and an increase in an amount not to exceed $65,000 in General Fund Unreserved Fund Balance; and
b. Authorize the Auditor-Controller to amend appropriations not to exceed $65,000 in SOC002 -General Assistance. (4/5ths vote required).
SUMMARY/DISCUSSION:
General Assistance is a county funded program that provides cash and "in-kind" assistance to extremely low-income residents who are not eligible for other public assistance programs. There are two parts to this aid program: 1) Regular General Assistance payments for indigents who are able-bodied; and 2) Interim Assistance payments which are paid to persons who are applying for Supplemental Security Income/State Supplementary Program (SSI/SSP) because of a disability. Adults who are able to work are required to participate in the Work Experience Program that requires work with government or non-profit agencies.
As has been reported throughout the fiscal year to the Board Budget Committee, the severe down-turn in the local economy continues to have a significant and increasing impact on the number of individuals needing cash assistance. The monthly average number of cases July 2010 to March 2011 was 456 and July 2011 to March 2012 was 599 for an increase of 31%. For the same periods, the monthly average amount of aid paid was $96,075 and $109,357 for an increase of 14%. SSI/SSP reimbursements have increased from a low of $172,853 in FY 2010-11 to a projection of $287,770 for FY 2011-12.
As a result, appropriations for General Assistance payments will be exceeded. Recommended actions will allow the necessary recording of payments in the General Ledger as these expenses are mandated under Welfare and Institutions Code Section 17000.
OTHER AGENCY INVOLVEMENT:
The Auditor-Controller concurs with this recommendation.
FINANCING:
General Assistance is a county program without a source of outside funding. The Final FY 2011-12 Adopted Budget has set aside a designation for costs of entitlements that may exceed appropriations. As the final expenses will not be known until June and the necessity to preserve the designation and not over draw the funds so that they are available in the future as the economy remains unstable, the recommendation is for a flexible draw with a not to exceed amount.
Prepared by: Becky Cromer, Finance Manager II, 4404
Approved by: Elliott Robinson, Director, 4434
Attachments: N/A