Title
Receive information on the FY 2016-17 Recommended Budget.
Report
RECOMMENDATION:
It is recommended that the Budget Committee receive information on the FY 2016-17 Recommended Budget.
SUMMARY:
The FY 2016-17 Recommended Budget for all funds and departments totals $1.4 billion, supporting a workforce of 5,203 authorized positions and funding for 24 general fund departments, the County's hospital, and the Monterey County Free Libraries. The Recommended Budget will be presented to the Board of Supervisors for consideration at the public budget hearings scheduled to commence on June 1, 2016.
DISCUSSION:
The recommended spending plan for FY 2016-17 includes expenditures for all funds, departments and programs of $1.4 billion, an increase of $146.7 million from the current year adopted budget. Reasons for the increase in appropriations include: increased labor costs due to rising employee health insurance rates and the addition of 169 positions since the adoption of the current year budget; higher capital spending associated with jail addition, new juvenile hall, and East/West Wing preservation; expansion of primary care and behavioral health services; and social services entitlement program commitments.
Recommended appropriations for the General Fund total $634.5 million, representing growth of $32.0 million over the current year adopted budget. Much of this increase reflects the underlying cost of providing baseline service levels. Over the last three budget cycles General Fund cost drivers - including pay raises authorized under current bargaining agreements, retirement rate increases, increases in health insurance rates, and upgrade costs for the County's enterprise resource planning (ERP) system have consumed growth in revenue. As a result of these increased costs, departments have seen erosion of their operational flexibility to meet service and staffing level goals.
To balance budgets for next fiscal year, initial "baseline" submi...
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