2. PRESENTERS ■Rita Cortes, Fiscal Manager, San Mateo Department of Child Support Service ■Ignacio Guerrero, Deputy Director, San Mateo Department of Child Support Services ■Keith Johnson, Administrative Services Manager, Santa Cruz-San Benito Regional Department of Child Support Services

3. Burning Questions ■What have you always wanted to know about your department’s budget? ■How do you affect your department’s budget? ■What would you like to know about the budget process?

4. How are LCSAs Funded? ■Administrative Allocation ■EDP Allocation ✷ Specifically for expenditures related to the maintenance and support of CSE ■Federal Financial Participation ✷ Federal funds matching local dollars used on the program

5. How are LCSAs Funded? ■Performance Measures ✷ Federal incentives ✷ State incentives ■Cost Effectiveness

6. How are LCSAs Funded? ■Quarterly Claims done in October, January, April and July ■CS 921 Budget Display ■EDP Budget Display Maintenance and Operations

7. What Makes LCSA Budgets Unique? ■Labor contracts negotiated by County, but Federal/State funded ■No reserves ■Cash basis, no fund balance or carryover ■No net county cost ■Federal and state guidelines for expenditures ✷ OMB A-87 – cost principles guidelines ✷ OMB A-133 – ensures consistency and uniformity in audits

8. State Budget Overview ■Why care? ■Process & Timeline ■Politics vs. Reality

9. FY 11-12 State Budget Revenue ■Personal Income Tax41.3% ■Sales Tax26.9% Expenses ■K-12 Education29.6% ■Health & Human Services28.1% Source: Governor’s Budget Summary

10. Why Care? ■The State Budget = $ for your LCSA ■Admin & EDP Budget ■New State Initiatives ■New Federal Requirements ■Local Impact

11. Process & Timeline ■State fiscal year – July 1st thru June 30 th ■January 10: Governor proposes budget for upcoming year ■May 14: Governor revises proposed budget with updated revenue/expenditure assumptions – “MAY REVISE”

12. Process & Timeline ■June 15: Legislature submits final budget bill to Governor (Constitutional Deadline!) ■July 1: Governor signs or vetoes budget bill or portions thereof ■Once budget bill is signed, it becomes law – “Enacted Budget”

13. Politics vs. Reality ■Budget deadlines rarely met ✷ (6 th time in last 25 years) ■Process varies according to political reality ■Prop 25: 2/3rds to Simple Majority & Cut off lawmaker’s pay ■Taxes vs. Cuts/Democrats vs. Republicans

14. Politics vs. Reality ■Ballot Box Budgeting ■Governor’s Executive Order ■Trigger Reductions ■Voting Requirement for raising taxes?

15. San Mateo County ■No net county cost ■Outcome Based Budgeting ■Two Year Budget ■Structural Budget Deficit ■Budget Balancing Strategies

16. County Budget Process - Santa Cruz ■Early Estimated Actuals ■Updated Estimated Actuals ■Budget Instructions Distributed ■Updated Estimated Actuals ■Phase I General Fund Budget Request ■Updated General Fund Estimated Actuals

17. County Budget Process - Santa Cruz ■Large General Fund Depatments/ISF’s Budget Requests ■Phase II General Fund Revised Requests ■General Fund Budget Summary/Overview for each Department ■Updated Final Draft and General Fund EA’s/Requests

18. County Budget Process - Santa Cruz ■Special District & Other Requests ■All Final EA’s/Request Uploads ■Draft Narratives from Department & Analysts ■Final Draft Budget Narratives for CAO review ■Budget Review/Adjustments by CAO Analysts Only ■Final Approved Budget Narratives by CAO

19. County Budget Process – Santa Cruz ■Compile, Final Proof & Print Proposed Documents/Reports ■Proposed Budget to the Board of Supervisors ■Volume II and Budget Hearing Schedule to the Board of Supervisors ■Fee Schedule Updates

20. County Budget Process – Santa Cruz ■Continuing Agreements Lists ■Supplemental Requests ■Final Continuing Agreements List ■Supplemental to the Board of Supervisors ■Budget Hearings Begin

21. County Budget Process - Santa Cruz ■Last Day Reports ■Last Day Reports to the Board ■Concluding Report ■Concluding Report to the Board ■Budget Hearings Conclude

22. County Budget Timelines - Santa Cruz ■ Early Estimated Actuals - 11/05/10 ■ Updated Estimated Actuals - 12/03/10 ■ Budget Instructions Distributed – 12/17/10 ■ Updated Estimated Actuals – 1/07/11 ■ Phase I General Fund Budget Request – 1/21/11 ■ Updated General Fund Estimated Actuals – 02/04/11 ■ Large General Fund Depts/ISF’s Budget Requests – 02/11/11 ■ Phase II General Fund Revised Requests – 02/18/11 ■ General Fund Budget Summary/Overview per Dept – 02/24/11 ■ Updated Final Draft and General Fund EA’s/Requests – 03/04/11

23. County Budget Timelines – Santa Cruz ■ Special District & Other Requests – 03/18/11 ■ All Final EA’s/Request Uploads – 04/01/11 ■ Draft Narratives from Department & Analysts – 04/01/11 ■ Final Draft Budget Narratives for CAO review – 04/08/11 ■ Budget Review/Adjust by CAO Analysts Only – 04/02/11 – 04/17/11 ■ Budget Adjustments by CAO only – 04/18/11 – 04/22/11 ■ Final Approved Budget Narratives by CAO – 04/23/11 ■ Final Proof & Print Proposed Doc’s/Reports – 04/24/11 – 04/29/11 ■ Proposed Budget to the Board of Supervisors – 05/03/11 ■ Volume II and Budget Hearing Schedule to the BOS – 05/13/11 ■ Fee Schedule Updates - 05/13/11

24. County Budget Timelines – Santa Cruz ■ Continuing Agreements Lists – 05/13/11 ■ Supplemental Requests – 05/20/11 ■ Final Continuing Agreements List -05/20/11 ■ Supplemental to the Board of Supervisors – 06/09/11 ■ Budget Hearings Begin – 06/20/11 ■ Last Day Reports – 06/24/11 ■ Last Day Reports to the Board - 06/29/11 ■ Concluding Report - 06/27/11 ■ Concluding Report to the Board – 06/30/11 ■ Budget Hearings Conclude – 06/30/11

25. Components – Narrative and Personnel Section Components – Narrative and Personnel Section ■General Program Statement ■Personnel Summary ■Personnel Utilization by Program Area ■Department Wide Organizational Chart ■Workload

26. Components – Financial Section ■Salaries and Benefits ■Services and Supplies ■Cost Applied ■Revenue Sub-objects ■Contracts and Agreements List ■Fixed Asset Requests ■Facilities and Vehicles Requests ■Unified Fee Schedule Update

27. Budget Variables ■Layoffs ■Furloughs ■Hiring Freezes ■Salary Savings ■Program Reductions ■Labor Negotiations ■Mid-Year Adjustments ■Leveraging ■Personnel Costs (Retirement, OPEB, WC, Medical, Differentials).

28. ■QUESTIONS???