COMMUNITY CORRECTIONS PARTNERSHIP
Meeting Date: December 20, 2024
Subject: FY 2025-26 Public Safety Realignment Community Corrections Budget
Presenter: Esa Ehmen-Krause, CCP Chair; Enid Mendoza, CCP Staff
Contact: Enid.Mendoza@cao.cccounty.us
Referral History:
In 2011, the State enacted the AB 109 Public Safety Realignment Act, which diverts the custody housing and supervision of individuals convicted of certain state prison offenses to the local county level. It also directs the State to give counties a portion of sales and vehicle license fee revenue to fund the realigned responsibilities from the State to the counties.
The State’s Community Corrections allocation formula is composed of a Base allocation and a Growth allocation. The Base allocation is derived from current year sales tax and vehicle license fee (VLF) funding, and the current year Growth allocation is derived from prior year actual sales tax and VLF funding from the State. Since passage of AB 109, the Growth allocation has been more volatile than the Base allocation due to varying economic factors.
The Growth allocation formula is based on 80% felony probation rates (60% felony probation success rates, 20% year-over-year felony probation improvement for counties showing improvement) and 20% incarceration rates (10% county reduction in year-over-year overall prison admission, 10% county success measured by per-capita rate of prison admissions).
Although the County has accumulatively benefited from AB 109 Community Corrections Growth allocations over the years, they have ranged from no growth allocation (County FY 2020-21) to a little over $5 million (County FY 2022-23).
For reference, Attachment A provides a 5-year Base and Growth allocation summary for each county from FY 2020-21 to FY 2024-25.
In preparation for the County’s budget development activities, which begin the first week of January annually, the AB 109 Community Corrections budget activities begin in the fall of the prior calendar year to ensure timely approvals. The AB 109 Community Corrections Partnership budget is included in the County’s annual recommended budget, upon approval of the Community Corrections Partnership - Executive Committee in December and review by the Board’s Public Protection Committee no later than mid-February. A detailed budget schedule is included in Attachment B.
In a memo dated October 1, 2024, departments were asked to submit a FY 2025-26 Community Corrections budget upon assessing prior years’ program budget allocations and actual expenditures to right size budget proposals where under-expenditure trends exist. Departments were advised that any programs or expenditure categories no longer needed in FY 2025-26, should be reflected as program modification reductions. Departments were given until October 30 to submit their budget proposals. County Administration staff worked with departments on their budget proposals through November 7.
Referral Update:
On November 15, 2024, the Community Corrections Partnership - CCP Executive Committee held a budget workshop, giving funded departments and agencies an opportunity to present and discuss their budget proposals. The purpose of the budget workshop is to allow the Partnership to ask questions on departments’ budget proposals and may at times ask departments to modify or correct budgets and return with a final proposal to the CCP-Executive Committee for its annual December meeting. The following documents included in the Partnership’s November meeting:
1. Attachment C - a summary of the expenditure categories as budged in current year and a breakdown of baseline FY 2025-26, FY 2025-26 budget modifications, and total FY 2025-26 budget allocation requests, by department program area.
2. Attachment D - a compilation of all department budget submissions including a budget narrative, more detailed budget categories, and details on planned contracted services.
3. Attachment E - a summary of the percentage change between the proposed and current year budgets and the information provided by departments to explain the change.
4. Attachment F - was provided to inform the Committee of the impacts the proposed budget could have on the fund’s reserve. The table presents the proposed budget on the far right and the potential of ending next fiscal year with a reserve only $2.5 million over the mandatory amount.
The Partnership was informed that while Attachment F assumes current year and the proposed FY 2025-26 allocations being fully expended, prior year-end trends show actual expenditures much lower than revenue received. Additionally, the last four year of actuals show under-expenditures between $4-6 million. Staff reminded the Partnership of the County’s Community Corrections reserve fund balance policy requiring 50% of budgeted expenditures and how $15 million of the fund’s existing reserves are obligated for one-time programs.
Overall, staff shared that the department proposals reflect budgets prudent to community corrections revenue limitations. Even with the considerations given, the proposed budget allocation for all programs is approximately $5 million over the anticipated revenue.
Today’s meeting is an opportunity for the CCP-Executive Committee to deliberate further on the proposed departmental budgets and vote on FY 2025-26 budget allocations. Only members of the Executive Committee may vote on budgetary actions.
Below are additional budgetary considerations presented to the Partnership at its November 15, 2024 meeting.
FY 2025-26 Community Corrections Base allocation estimate is now expected to remain flat with last year’s allocation, which was approximately $37 million. This is a result of a shortage in last year’s State Community Corrections revenues. The State is expected to backfill a portion prior year’s shortage to minimize the impact to counties, as well as continue with flat county allocations until the deficit is cleared. Flat revenue means there will be no Growth allocations in the current year nor in FY 2025-26.
Recommendation(s)/Next Step(s):
ADOPT Fiscal Year 2025-26 AB 109 Public Safety Realignment Community Corrections budget as submitted by operating departments, and forward to the Public Protection Committee for review prior to inclusion in the County’s FY 2025-26 Recommended Budget.
Fiscal Impact:
If approved as submitted, the FY 2025-26 budget will result in funding allocation recommendations totaling $42,273,393, which would require an approximate use of fund balance allocation of $5.3 million over the anticipated State revenue. Though the fund’s reserve has sufficient fund balance to cover the amount to balance the operating departments’ expenditure plan, it is important to recognize that ongoing expenditure increases will put pressure on the known flat Base allocation and overall fund balance reserves in the upcoming years.