FY 2016-17 Recommended Budget - ADA

RETURN TO THE PDF DOCUMENT VERSION OF THE 2016-2017 RECOMMENDED BUDGET

ORANGE COUNTY FY 2016-2017 RECOMMENDED BUDGET

BOARD OF SUPERVISORS

Lisa Bartlett - Chairwoman Michelle Steel - Vice Chair

Lisa Bartlett
Chairwoman
Supervisor, 5th District

Michelle Steel
Vice Chair
Supervisor, 2nd District

Andrew Do Todd Spitzer Shawn Nelson

Andrew Do
Supervisor, 1st District

Todd Spitzer
Supervisor, 3rd District

Shawn Nelson
Supervisor, 4th District

Supervisor District Map

Org Chart Budgeting Purposes

TRANSMITTAL LETTER

County of Orange

May 9, 2016

To:

From:

Subject

Chairwoman Lisa A. Bartlett, Supervisor, Fifth District
Members, Board of Supervisors

Frank Kim, County Executive Officer

Fiscal Year 2016-17 Recommended Budget

Frank Kim, County Executive Officer

On behalf of the County of Orange Executive Office, I am pleased to present the FY 2016-17 Recommended Budget. The budget reflects the County's disciplined approach to fiscal management and is consistent with the Board's Strategic Plan goals to stabilize the budget, prepare for contingencies and fund agency infrastructure.

Looking toward FY 2016-17, the County is well-positioned to focus on providing the needed resources to strengthen our infrastructure and continue delivering high quality public services that fulfill the County's mission to make Orange County “a safe, healthy, and fulfilling place to live, work, and play.” In FY 2015-16, the County fully paid off the General Fund debt from the 1994 bankruptcy; and the issuer credit rating by Standard and Poor's was upgraded from AA to AA+. Due largely to the County's continued disciplined financial and cash management through the Board's leadership, we will be paying off the bankruptcy bonds in FY 2017-18, as well as building upon efficiencies the County put into place during the recent recessionary years.

The FY 2016-17 Recommended Budget of $6.1 billion is structurally balanced without use of reserves for continuing operating costs or ongoing recommended augmentations. The Recommended FY 2016-17 Budget includes funding for the following key initiatives:

Homeless Initiatives : The County has acquired property for a multi-service center in the City of Anaheim that will serve the homeless on a year-round basis. This is one of many initiatives the County is implementing to assist our homeless residents, which includes providing mental and physical health services and increased coordination of services across County departments.

OC Animal Care : The County is moving forward with the construction of a new animal care center to be built on 10 acres of land at the former Tustin Marine base. The new facility will include a state-of-the-art design with outdoor areas, kennels and a training center.

800 MHz Communications System : The 800 MHz Countywide Coordinated Communications System (CCCS) is an interoperable two-way radio communications system serving the County public safety and public works agencies as well as 34 cities in the County. Efforts are underway for a full system upgrade, new infrastructure, and refresh of 800 MHz radios for County agencies and partners.

Civic Center Master Plan : The Civic Center Master Plan initiative will address the County’s long-term occupancy in the Orange County Civic Center, improve delivery of services to the community, improve space usage and departmental adjacencies, address the aging portfolio of County facilities, and better manage long-term occupancy and maintenance costs.

Central Utility Facility : The Central Utility Facility (CUF), supporting the heating and cooling systems of the Civic Center buildings since 1968, will undergo a major upgrade in FY 2016-17 to replace antiquated equipment and underground piping with the goal of ensuring continued and uninterrupted provision of utilities to critical facilities including the Central Jail and Superior Court. Completion of this project is a crucial component supporting the new Civic Center Master Plan and is expected to result in more energy efficient, reliable and environmentally responsible systems.

Connection to Services for Older Adults and Veterans : The County is addressing the demands of an increasing older adult population by dedicating resources to increase outreach, improve assessments, and engage and connect caregivers and those who would benefit from services. The Veterans Services Offices are helping the 130,000 Orange County veterans and their families receive the benefits earned through their service to our nation and have dedicated resources ensuring the veterans’ needs are met through reduced wait times, increased outreach, and greater assistance with claims and other services.

It is the continued coordinated efforts of the Board of Supervisors and the County employees that make it possible to exercise fiscal stewardship and continue enriching the lives of Orange County residents and the more than 40 million people who visit annually.

FY 2016-17 RECOMMENDED BUDGET AT A GLANCE

Total County Revenues by Source

FY 2016-17 Total = $6.1 Billion

County Revenue Source
(in Million Dollars)

FY 2014-2015

FY 2015-2016

FY 2016-2017

Change from FY 2015-2016 Budget

Code

Source Name

Actual

Modified Budget

Recommended
Budget

Amount

Percent

A

Intergovernmental Revenues

    2,068.7
    2,108.7
    2,123.0
    14.3

0.7%

B

Fund Balance Unassigned (FBU)

    245.6
    355.2
    216.8
    (138.4)

-39.0%

C

Charges For Services

    743.8
    777.5
    826.5
    49.0

6.3%

D

Taxes

    858.5
    882.1
    924.4
    42.3

4.8%

E

Miscellaneous Revenues

    401.8
    454.3
    455.3
    1.0

0.2%

F

Other Financing Sources

    391.2
    817.7
    658.4
    (159.3)

-19.5%

G

Revenue From Use Of Money & Property

    183.7
    195.3
    205.1
    9.8

5.0%

H

Reserve Cancellations

    199.5
    543.2
    574.0
    30.8

5.7%

I

Fines & Forfeitures/License & Permits

    125.7
    87.7
    78.1
    (9.6)

-10.9%

    5,218.5
    6,221.7
    6,061.6
    (160.1)

-2.6%

Total County Appropriations by Use

FY 2016-17 Total = $6.1 Billion

County Appropriations
(in Million Dollars)

FY 2014-2015

FY 2015-2016

FY 2016-2017

Change from FY 2015-2016 Budget

Code

Use

Actual

Modified Budget

Recommended Budget

Amount

Percent

A

Salaries & Benefits

    1,877.1
    2,025.6
    2,076.6
    51.0

2.5%

B

Services & Supplies

    1,168.4
    1,679.3
    1,595.1
    (84.2)

-5.0%

C

Other Charges

    1,031.0
    1,285.3
    1,180.0
    (105.3)

-8.2%

D

Capital Assets

    66.4
    126.7
    113.0
    (13.7)

-10.8%

E

Land

    3.3
    27.7
    31.6
    3.9

14.1%

F

Structures & Improvements

    78.3
    340.7
    395.6
    54.9

16.1%

G

Intangible Assets-Amortizable

    0.0
    2.7
    2.6
    (0.1)

-3.7%

H

Other Financing Uses

    358.4
    572.1
    613.5
    41.4

7.2%

I

Special Items

    -
    80.5
    104.6
    24.1

29.9%

J

Contingencies

    -
    2.7
    48.1
    45.4

1,681.5%

K

Increases to Reserves

    431.6
    220.9
    71.2
    (149.7)

-67.8%

L

Intrafund Transfers*

    (122.3)
    (151.4)
    (170.3)
    (18.9)

12.5%

    4,892.2
    6,212.8
    6,061.6
    (151.2)

-2.4%

NOTE: Intrafund transfers represent expenses recovered from one fund budget to another fund budget within the County General Fund and are not included in the pie chart for total County Appropriations by Use.

Total County Appropriations by Program

FY 2016-17 Total = $6.1 Billion

County Program Appropriations
(in Million Dollars)

FY 2014-2015

FY 2015-2016

FY 2016-2017

Change from
FY 2015-2016 Budget

Program

Program Name

Actual

Modified Budget

Recommended
Budget

Amount

Percent

I

Public Protection

    1,121.6
    1,268.5
    1,281.8
    13.3

1.0%

II

Community Services

    2,046.5
    2,310.4
    2,361.3
    50.9

2.2%

III

Infrastructure & Environmental Resources

    737.5
    1,202.3
    1,206.4
    4.1

0.3%

IV

General Government Services

    162.0
    198.4
    177.6
    (20.8)

-10.5%

V

Capital Improvements

    85.2
    249.5
    205.5
    (44.0)

-17.6%

VI

Debt Service

    191.6
    294.0
    207.6
    (86.4)

-29.4%

VII

Insurance, Reserves & Miscellaneous

    547.8
    689.7
    621.4
    (68.3)

-9.9%

    4,892.2
    6,212.8
    6,061.6
    (151.2)

-2.4%

Authorized Positions by Program

FY 2016-17 Total Positions = 18,012

Authorized Program Positions

FY 2014-2015

FY 2015-2016

FY 2016-2017

Change from
FY 2015-2016 Budget

Program

Program Name1

Actual

Modified
Budget

Recommended
Budget

Amount

Percent

I

Public Protection

    6,593
    6,522
    6,355

(167)

    -2.6%

II

Community Services

    8,583
    8,652
    8,643

(9)

    -0.1%

III

Infrastructure & Environmental Resources

    1,303
    1,299
    1,299

-

    0.0%

IV

General Government Services

    1,422
    1,434
    1,437

3

    0.2%

VII

Insurance, Reserves & Miscellaneous

    234
    281
    278

(3)

    -1.1%

    18,135
    18,188
    18,012

(176)

    -1.0%

ORANGE COUNTY PROFILE AND ECONOMIC INDICATORS

Key Facts

Founded

August 1, 1889

Size

799 square miles

Coastline

42 miles

Highest Elevation

5,689 feet (Santiago Peak)

Incorporated Cities

34

Population

2012

3,089,343

2013

3,120,180

2014

3,144,961

2015

3,169,776

Source: U.S. Census Bureau

Orange County is the third most populous county in California and the sixth most populous in the United States.

Form of Government

The County functions under a Charter adopted in 2002, including subsequent amendments. A five-member Board of Supervisors governs the County. Each elected member serves a four-year term, and the Board annually elects a Chair and Vice Chair. The supervisors represent districts that are each approximately equal in population.

County Mission

Making Orange County a safe, healthy, and fulfilling place to live, work, and play, today and for generations to come, by providing outstanding, cost-effective regional public services.

The County is committed to providing Orange County residents with the highest quality programs and services. Supporting the County's mission is a set of vision statements for business and cultural values:

Table A

VISION STATEMENT FOR
BUSINESS VALUES

VISION STATEMENT FOR
CULTURAL VALUES

We strive to be a high quality model governmental
agency that delivers services to the community in
ways that demonstrate:

We commit to creating a positive, service-oriented
culture which:

  • Excellence - Provide responsive and timely services
  • Leadership - Leverage available resources as

    we partner with regional businesses and other

    governmental agencies
  • Stewardship - Seek cost-effective and efficient methods
  • Innovation - Use leading-edge, innovative technology
  • Attracts and retains the best and the brightest
  • Fosters a spirit of collaboration and partnership
    internally and externally
  • Supports creativity, innovation, and responsiveness
  • Demonstrates a “can-do” attitude in accomplishing
    timely results
  • Creates a fun, fulfilling and rewarding working environment
  • Models the following core values in everything we do:
  • Respect
  • Integrity
  • Caring
  • Trust
  • Excellence
Economic Indicators

Key factors that influence the local Orange County economy include the unemployment rate, job growth, inflation, incomes, housing market, and taxable sales. External and internal indicators provide information about the state of the Orange County economy. The County routinely monitors: (a) how well the local economy performs relative to surrounding counties, the State and the Nation (External Indicators); and (b) how well the local economy performs relative to its own historical trends (Internal Indicators). In terms of the external indicators, Orange County's economy routinely out-performs local surrounding counties, the State, and National economies. External indicators for 2016 reflect that the local economy is experiencing a moderate recovery, trending more favorable when compared to State and National economies. In terms of internal (historical) trends, current and projected indicators forecast that economic recovery at the local level will continue to be slow and moderate. This section provides trend data for various external and internal indicators that summarize the current and projected outlook of the Orange County economy.

ORANGE COUNTY HISTORICAL EMPLOYMENT STATISTICS

Total Labor Force

No. of Employed

% Unemployment

2011

1,548,110

1,408,314

9.0%

2012

1,566,066

1,443,350

7.8%

2013

1,566,788

1,464,904

6.5%

2014

1,575,606

1,489,164

5.5%

2015

1,597,100

1,525,600

4.5%

Source: Bureau of Labor Statistics, Local Area Unemployment Statistics, State of California Employment Development Department;
Annual average for the calendar year.

HISTORICAL UNEMPLOYMENT RATES
U.S., CALIFORNIA AND ORANGE COUNTY

Image showing historical unemployment rates from 2006 to 2015

Source: Bureau of Labor Statistics, Local Area Unemployment Statistics, State of California Employment Development Department; Annual average for the
calendar year.

COMPARATIVE UNEMPLOYMENT RATES MARCH 2016

% Unemployment

Riverside County

5.9%

San Bernardino County

5.6%

Los Angeles County

5.0%

Ventura County

5.0%

San Diego County

4.7%

Orange County

4.0

Source: Bureau of Labor Statistics; State of California
Employment Development Department; March 2016 preliminary

ORANGE COUNTY YEAR-OVER-YEAR EMPLOYMENT STATISTICS (February 2015 to February 2016)

Labor Force Sector

Number of Jobs Increase/(Decrease)

Percent Change
Year-Over-Year

Non-Farm Employment

42,300

2.8%

Construction

12,500

14.7%

Leisure & Hospitality

8,500

4.3%

Professional & Business Services

7,500

2.7%

Educational & Health Services

5,700

2.9%

Government

4,000

2.5

Financial Activities

1,800

1.6

Source: State of California Employment Development Department,
Labor Market Information Division - March 18, 2016 News Release

ORANGE COUNTY HISTORICAL JOB GROWTH

Year

% Payroll Employment

2011

1.1%

2012

2.7%

2013

2.8%

2014

2.5%

2015 Estimate

3.2%

2016 Forecast

2.5%

Sources: Chapman University Economic & Business Review, December 2015

Orange County's unemployment rate has continually improved since its recent peak in 2010 during the Great Recession. Orange County continues to have one of the lowest unemployment rates in the State, and is below that of all surrounding Southern California counties, the State and Nation. Year-over-year employment trends are positive across almost all industry sectors and job growth is expected to increase moderately by 2.5% in 2016.

CONSUMER PRICE INDEX

Year

Orange County

California

United States

2011

2.7%

2.6%

3.2%

2012

2.0%

2.2%

2.1%

2013

1.1%

1.5%

1.5%

2014

1.3%

1.8%

1.6%

2015

0.9%

1.5%

0.1%

2016 Forecast

2.0%

2.3%

1.7%

Source: Bureau of Labor Statistics

Inflation, as measured by the Consumer Price Index (CPI), was lower for Orange County relative to the state, but higher than the national levels in 2015. While Orange County's CPI is expected to increase from 0.9% in 2015 to 2.0% in 2016, it is still forecasted to be below the state, but higher than the nation.

HOUSING COMPARISON

County

Median Home Price
(as of February)

Unit Sales
(as of February)

Foreclosure Statistics

2015

2016

% Change

2015

2016

% Change

March 2016

Orange County

$590,000

$610,000

3.4%

2,119

2,315

9.2%

1 in 1,586

Los Angeles

$467,000

$486,523

4.2%

4,696

5,186

10.4%

1 in 1,300

Riverside

$304,000

$315,000

3.6%

2,406

2,707

12.5%

1 in 661

San Bernardino

$250,000

$275,000

10.0%

1,710

1,894

10.8%

1 in 734

San Diego

$439,750

$455,000

3.5%

2,594

2,648

2.1%

1 in 1,586

Ventura

$463,500

$499,000

7.7%

571

623

9.1%

1 in 1,301

Source: CoreLogic, California Home Sale Activity (Median Home Price and Unit Sales), RealtyTrac, Inc. (Foreclosure Statistics)

The real estate housing market has steadily improved in California with February 2016 sales volume up 6.4% and median sales prices up by 3.8% above those recorded in February 2015. Orange County had the highest median home price in Southern California with unit sales up 9% in February 2016 year-over-year.

MEDIAN HOUSEHOLD INCOME

Image showing Median Household income

Source: California Department of Housing and Community Development, Department of Housing and Urban Development,
and the U.S. Census Bureau, 2015.

Orange County's median family income was estimated at $87,200 and is among the highest of all Southern California counties and substantially higher than the State of California and U.S. averages.

According to the December 2015 Chapman University Economic & Business Review, home buyers with a median family income need to spend 37.2% of their gross income to pay for interest, principal and property taxes. This is lower than the 47.3% of gross income needed in 2006, but still higher than the 27.2% needed in 2012.

Foreclosure rates are calculated by dividing total County housing units per the U.S. Census Bureau by the total number of properties that received notices of default (new filings, foreclosure in process, not yet recorded) within the month. RealtyTrac, Inc. forecasts that 1 in 1,586 Orange County homes received a foreclosure filing in March 2016. Among peer counties, Orange County tied for the lowest foreclosure rate in March.

Orange County Taxable Sales in the 2nd Quarter

For the 2nd Quarter/Calendar year

Taxable Sales (Billions)

Percent Change

2016 (f)

$16.7

5.7%

2015

$15.8

4.9%

2014

$15.1

4.7%

Source: Chapman University Economic & Business Review, December 2015

Taxable sales as of the second quarter of the calendar year in Orange County are forecasted by Chapman University to increase by 4.9% in 2015 and 5.7% in 2016. This compares to a projected increase of 5.8% for the State included in the Governor's FY 2016-17 Proposed Budget. The Board of Equalization reports taxable sales two years in arrears.

BUDGET OVERVIEW

Basis of Budgeting

The County's budget and its accounting system are based on the modified accrual system. The fiscal year begins on July 1. Revenues are budgeted as they are expected to be received or as they are applicable to the fiscal year. Consistent with generally accepted accounting principles, revenues are recognized when they are measurable and available. The County's availability criterion is 60 days after the end of the fiscal year.

Expenses are budgeted at an amount sufficient for 12 months if they are ongoing, and as needed in either partial or full amounts if they are one-time items. In each fund, expenses and increases to obligated fund balances must be balanced with available financing.

Budget Process

The County's budget process begins in December with careful planning by the County Budget Office. The budget unit prepares budget policies and detailed budget instructions for County departments including a budget calendar establishing completion dates for key events in the budget process.

County departments then prepare budget requests and submit them in early March to the County Budget Office. The submittal may include formal presentations by the department head or financial manager to the County Executive Officer (CEO) and key Budget Office staff.

The County Budget Office reviews and analyzes the department's budget requests and makes recommendations to the CEO. The Budget Office will also, in coordination with the County Auditor-Controller's office, establish the level of non-departmental, County-wide revenues that are projected to be available to the County. The budget is compiled, balanced and reviewed with the Chief Financial Officer and CEO. After this review, a Recommended Budget is published.

The County Budget Office plans and conducts briefing sessions for the County Board of Supervisors' staff members and study sessions for the Board members themselves. Finally, the CEO presents the budget during Board hearings and the Board takes formal action to adopt the budget.

Budget Calendar

December

County 5-Year Strategic Financial Plan is issued and establishes the Budget framework

Early January

Budget policies, instructions and calendar are provided to the County Departments

Early March

County Departments submit Budget and Augmentation requests to the County Budget Office

Mid-March

Budget review sessions are held with County Departments and the County Budget Office

April

Budget documents are issued to the Board and Public

May

Recommended Budget released and briefing sessions are held with Board of Supervisors' staff

Early June

Public Budget Hearings are held

Late June

Board Adopts Final Budget

The adopted budget becomes the spending plan and spending limit for the County departments. Actual revenues and expenses are monitored during the year and reported to the Board quarterly. The budget may be modified during the quarterly budget report process to reflect new assumptions or events.

A Citizen's Guide to Reading the Budget Document

This document includes information that provides readers with a greater understanding of each department's mission, organizational structure, and performance results as a narrative context for the budget amounts. The introduction section of Volume I contains several charts and tables that provide an overview of issues affecting the budget, sources and uses of funds, and budgeted positions. Following the introduction are sections that present each department and fund in the County's seven program areas listed below:

  1. Public Protection
  2. Community Services
  3. Infrastructure and Environmental Resources
  4. General Government Services
  5. Capital Improvements
  6. Debt Service
  7. Insurance, Reserves and Miscellaneous

The presentation for each department within each program area includes:

An Operational Summary including:

  • Mission
  • Budget at a Glance
  • Strategic Goals
  • Key Outcome Indicators (Performance Measures)
  • Key Accomplishments of the current year

An Organizational Summary including:

  • Organization Chart
  • Description of each major activity
  • Ten-year staffing trend chart with highlights of staffing changes

A FY 2016-17 Budget Summary including:

  • Department’s plan for support of the County’s strategic priorities
  • Changes included in the base budget
  • Budget augmentations and related performance plans
  • Recap of the department budget
  • Highlights of key budget trends
  • A matrix of the budget units under the department’s control

Volume II contains additional budget detail. Readers looking for more detailed budget information for a specific department can use the Index at the end of Volume II. Departments are listed in alphabetical order with the page number of that department's budget information.

Department business plan information is incorporated into this document. A business plan sets forth long-term goals, discusses operational and budget challenges, identifies strategies for overcoming the challenges and making progress on those goals during the coming year, and identifies how success will be measured by using outcome indicators (key performance measures).

Long-Term Financial Policies

STABILIZE BUDGET

The County shall adopt a balanced budget, which is defined as a budget where planned expenses do not exceed the amount of revenue or funding available in accordance with state law. The budget will realistically reflect the funds available to County departments and programs and how those funds will be spent.

PREPARE FOR CONTINGENCIES

The County shall prepare a budget with enough reserves to cover unanticipated and severe economic downturns, major emergencies, or catastrophes that cannot be covered with existing appropriations.

FUND AGENCY INFRASTRUCTURE

The County shall prepare a budget that provides the proper funding for agency infrastructure to ensure that high quality services are delivered to the community. The budget will assess the best use of County General Funds and County special funds (e.g. OC Road, OC Flood, OC Parks, etc.) in developing capital assets while maintaining long term financial stability.

State Legislation and Budget

The Governor released the FY 2016-17 State Budget Proposal on January 7, 2016, which provides increased funding for education, health care and state infrastructure; increases state reserves; and pays down $5.4 billion in budgetary debts. The budget outlines $170.7 billion in expenditures and proposes a $10.2 billion reserve by the end of FY 2016-17. Overall General Fund spending is projected to grow by 5.6% with the majority of the increased spending in education, health and human services and government operations.

The Governor, in the budget introduction, stresses that despite the strengthening state economy pushing revenues higher and allowing for restoration of previous budget cuts and expansion of services, the state must begin planning for the next recession by building up the state's Rainy Day Fund, which was a result of a budget reserve and debt payment measure (Proposition 2) that was approved by the voters in November 2015 and altered how the State saves money in its budget reserves and pays down existing debts and unfunded liabilities. The budget proposes a supplemental $2 billion transfer from the General Fund to the Budget Stabilization Account which would bring the balance of the Rainy Day Fund from the estimated 37 percent of its constitutional target to 65 percent in FY 2016-17.

In January 2016, the State Legislative Analyst's Office (LAO) released an overview of the Governor's budget proposal and concluded that the Governor's priorities are generally prudent. The Governor and the LAO acknowledge that the budget potentially is at risk for economic downturns that could develop with little warning and that increasing budget reserves and repaying State debts remain important objectives.

The County continues to monitor State fiscal policy on an ongoing basis for possible funding impacts.

Budget Development and Policies

The Strategic Financial Plan (SFP) is presented to the Board of Supervisors in December of each year and provides the framework for aligning available resources with operating requirements, implementing new programs and facilities, and serving as the foundation for the annual budget. This framework enables the Board to make annual funding decisions within the context of a comprehensive, long-term perspective.

On December 8, 2015, the Board of Supervisors adopted the County's 2015 Strategic Financial Plan. The Strategic Financial Plan included an assumption of zero General Fund Unassigned Fund Balance and modest General Purpose Revenue growth. The spending side included assumptions of 1% growth in departmental Net County Cost (NCC) limits for FY 2016-17 through FY 2020-21. After factoring in the NCC limit growth, departments still identified a 5-year cumulative budget gap of $85 million, or $142 million when partial reserve replenishment is taken into consideration. The $85 million cumulative gap includes $19.4 million in reductions that would be required to meet the FY 2016-17 NCC limits. Actual proposed reductions in the FY 2016-17 Budget to meet NCC limits are $36.4 million. The plan emphasizes that the County must ensure that resources and programs are aligned to countywide strategic priorities and values.

The following budget development policies and guidelines are used by all County departments as a starting point for budget development:

Consistency with Strategic Financial Plan and Business Plan Concepts : Base operating budget requests shall be consistent with the priorities and operational plans contained in the 2015 Strategic Financial Plan and the departmental business plans as resources are available. Department heads are responsible for using these planning processes along with program outcome indicators to evaluate existing programs and redirect existing resources as needed for greater efficiency, to reduce cost and minimize the requests for additional resources. A certification regarding the evaluation of existing resources is required as part of the budget request submittal.

Salaries & Employee Benefits : The Salary and Benefits Forecasting System (SBFS) in the County's budget system, Performance Budgeting (PB), sets the regular salary and employee benefits base budgets. Salary and employee benefits are reduced to account for vacant positions based on the average number of vacant positions during calendar year 2015 (through pay period 27).

Budgeted extra-help positions must comply with Memorandum of Understanding provisions. Those that do not are to be deleted with a corresponding reduction in the extra-help account.

Services & Supplies : Services and supplies shall be budgeted at the same level as actual use during last fiscal year and current year projections to the extent they are necessary to support business plan and Strategic Financial Plan goals.

Program Revenue and Grants : Program revenues (e.g. State and Federal programs revenues) are to be used to offset the department's proportional share of operating costs to the full extent of the program regulations. Local matching funds should normally be at the legal minimum so that the General Fund subsidy (backfill) is minimized. Program revenues are to be used for caseload growth.

One-time revenues shall be limited for use on non-recurring items such as start-up costs, program or reserve stabilization, and capital expenses.