COMMUNITY CORRECTIONS PARTNERSHIP - CCP EXECUTIVE COMMITTEE
Subject: WORKSHOP to review and discuss fiscal year 2026-27 AB 109 Public Safety Realignment Local Community Corrections budget proposals
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 the prior year’s 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 2024-25) to a little over $5 million (County FY 2022-23).
For reference, Attachment A provides a 6-year Base and Growth allocation summary for each county from FY 2020-21 to FY 2025-26.
In preparation for the County’s FY 2026-27 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 the Board’s Public Protection Committee no later than mid-February. A detailed budget schedule is included in Attachment B.
Referral Update:
Today’s workshop will give funded departments and agencies an opportunity to present and discuss their budget proposals. The Committee may ask departments and partner agencies to modify or correct budgets and return with a final proposal to the CCP-Executive Committee for its December 12, 2025 meeting. The December meeting will be an opportunity for the CCP-Executive Committee to deliberate further on the proposed departmental budgets and vote on FY 2025-26 budget allocations.
The State Department of Finance’s FY 2025-26 allocation estimates result in an approximate $37.4 million in Base revenue and an approximate $500,000 in Growth for Contra Costa. The current countywide AB 109 Community Corrections budget of $41.9 million is balanced based on projected revenues totaling $39.7 million and $2.2 million use of fund balance. While it is unlikely that department expenditure plans will be fully realized by year end, this $4 million gap is significant and will require diligent oversight.
The County’s FY 2026-27 Community Corrections Base allocation estimate is $38 million and is based on the FY 2024-25 to FY 2025-26 percentage increase of 1.33%. To ensure fiscal responsibility, departments were advised against submitting FY 2026-27 Community Corrections budget modifications that increase, enhance, or expand current programs. Given the continuing slower growth in sales tax than projected, this approach remains the most prudent. Departments were also asked to engage in expenditure forecasting that compares prior years’ program budget submissions with actual expenditures. The intent is to address any overestimated expenditure authority in underutilized budget categories, which ultimately support a more accurate calculation of the fund balance reserve. It's important to note that the County’s Community Corrections reserve fund balance policy mandates a reserve of 50% of budgeted expenditures.
Attachment C provides a summary of the expenditure categories as budged in the current year and a breakdown of baseline FY 2026-27, FY 2026-27 budget modifications, and total FY 2026-27 budget allocation requests, by department program area.
Attachment D is the compilation of all department budget submissions including a budget narrative, more detailed budget categories, and details on planned contracted services.
While attachments C and D contain the substantive information of department’s ongoing operations and related budget proposals, Attachment E is included to provide a summary of the percentage change between the proposed and current year budgets and the information provided by departments to explain the change.
Department proposals reflect budgets prudent to community corrections revenue limitations. Even with the considerations given, the proposed budget allocation for all programs is approximately $5.6 million over the anticipated revenue.
The Community Corrections fund balance for the period ending June 30, 2025, was approximately 47.3 million, of which $15.3 million are obligated for one-time projects and approximately $32 million are reserve funds. With the FY 2025-26 expenditure budget at $41.9 million, the reserve remains in good standing: $20.95 million is required to meet the 50% reserve policy, resulting in approximately $8.9 million above the reserve minimum requirement.
The FY 2026-27 proposed expenditures, as summarized in Attachment C, total $43.6 million, which would require the use of approximately $5.6 million of fund reserves and result in an estimate year end reserve of $24.2 million.
Recommendation(s)/Next Step(s):
WORKSHOP to review and discuss Fiscal Year 2026-27 AB 109 Public Safety Realignment Community Corrections budget proposals as submitted by operating departments. (No vote scheduled)
Fiscal Impact:
Although there will be no action taken today, it is important to recognize that even a nominal increase in funding to existing programs will continue to put pressure on the Base allocation and fund balance reserves in the upcoming years.