1. California State Association of Counties Executive Committee January 28, 2010 – Sacramento, CA Governor’s Proposed Budget Fiscal Year 2010-11

2. 2010-11 Shortfall (in billions) Projected 2009-10 Deficit-$6.9 Revenue Decline-$3.4 Federal & State Litigation-$4.9 Erosions of Previous Solutions-$2.3 Population/Caseload Growth-$1.4 Rebuild Reserve-$1.0 Total Shortfall-$19.9

3. Proposed Budget Solutions (in millions) 2009-102010-11Total Expenditure Reductions$1,034$7,475$8,509 Federal Funds$8$6,905$6,913 Alternative Funding$150$3,736$3,886 Funds Shifts & Other Rev.$0$572 Total$1,192$18,688$19,880

4. Expenditure Reductions - $8.51 billion Social Services - $2.9 billion  IHSS – Limit state to min wage - $950.6 million  Medi-Cal – Caps and reduce eligibility – $1.04 billion  SSI/SSP Reductions - $306.9 million  CalWORKS 15.7% grant reduction - $130 million  CalWORKS – Eliminate for legal immigrants - $22.5 million  Child Care – reduce reimbursement - $54.8 million  Healthy Families – Reduce eligibility - $74.4 million

5. Expenditure Reductions ( Cont’d ) State Employee Compensation - $1.636 billion Suspend certain mandates - $232.2 million CDCR - $1.17 billion Proposition 98 – Fund at minimum guarantee - $2.43 billion

6. Federal Funds - $6.9 billion Increased FMAP - $1.8 billion Extend ARRA Funding (FMAP, CalWORKS, DDS, Children’s Programs, Child Care) - $2.1 billion Medicare Prescription Drugs - $1.0 billion Foster Care - $94.4 million Special Education funding - $1.0 billion SCAAP – Full Reimbursement - $897.7 million

7. Alternative Funding - $3.9 billion Transportation Funding Swap - $986.2 million Prop 10 - $550 million County Share of child’s programs - $505.5 million Prop 63 - $452 million Courts – RDA Shift - $350 million Automated Speed Enforcement - $296.9 million Cal Fire – ERI - $200 million

8. Fund Shifts & Other Rev. – $572.1 million Shift Tribal Funds to GF - $95 million Fund Sweeps/Transfers - $278.1 million Miscellaneous Revenues - $450 million

9. What’s to like?  Funds May ’09 Special Election - $68.2 million What’s NOT to like?  Shifts significant burden for social service costs to counties  Unrealistic reliance on federal funds Triggers more cuts in health and social services and more shifts to counties if funds not realized  Shifts burden for thousands of state prison inmates to counties  The movie Ground Hog Day Prop 63 Prop 10 Transportation swap CalFIRE ERI Mandate payment deferrals IHSS at minimum wage CalWORKS / Medi-Cal reductions