Budget State Overview. Mark Beckley Chief Deputy Director, DCSS

Transcription

1

2 Budget State Overview Mark Beckley Chief Deputy Director, DCSS

3 Have You Ever Wondered How The child support program fits into state government? The state budget process works? Child support funding is spent in California?

4 Budget Process Quick Facts

5 Departments At the lowest level, each department is responsible for developing and submitting budget proposals and cost estimates for the department and the program(s) it oversees.

6 Agencies Agencies are responsible to communicate the Governor s priorities to the departments and to approve or deny departmental requests based on those priorities. Approved requests are forwarded to the Department of Finance.

7 Department of Finance (DOF) The DOF acts as the financial arm of the Governor s Office, providing instruction and oversight for the budget process. All budget proposals and requests are analyzed and either approved or denied by the DOF.

8 DOF (continued) Approved proposals and requests are published in the Governor s January proposal and May revision. The Governor s Budget proposal is released each year on or about January 10 th The May Revise is released each year on or about May 15th

9 Governor Once both houses of the Legislature agree and pass the budget bill, it goes to the Governor for final approval or veto. The Governor may approve the budget bill as is or with changes (line-item veto).

10 The Budget Act Once signed by the Governor, the Budget Bill becomes The Budget Act

11 DCSS Budget

12 California s Child Support Program The DCSS is designated as the single state entity responsible for ensuring that all functions necessary to establish, collect and distribute child support are effectively and efficiently implemented. Services are delivered to customers through a network of 50 county and regional Local Child Support Agencies. Approximately $2.3 billion in child support payments are collected and distributed annually.

13 DCSS Budgets and Procurement Branch

14 Once Budget Two Categories

15 State Operations The state operations budget funds: Civil Service staff salaries and benefits Departmental operating expenses and equipment Judicial Council of California (JCC) contract Office of State Publishing contract Locate & Intercept contracts Other enforcement and support contracts

16 Local Assistance The local assistance budget funds: LCSA administrative and EDP expenditures Internal Revenue Service intercept fees The Federal Deficit Reduction Act mandatory fee California Child Support Automation System Child Support Enforcement (CCSAS CSE) State Disbursement Unit (SDU) service provider

17 Department Budget Overview

18 LCSA SFY Allocations Administrative Allocation Funding Sources (Dollars in Thousands) EDP Allocation Funding Sources (Dollars in Thousands) Incentives $40,550 5% General Fund $229,639 31% General Fund $8,978 34% Federal $17,428 66% Federal $471,355 64%

19 History of the Administrative Allocation Allocation Activity by State Fiscal Year: Baseline Allocations established $12.6M transferred to the State for centralization of the print/mail services contract $18.7M appropriated for Revenue Stabilization

20 Incentives and Program Performance California receives incentives based on the five federal performance measures The national pool for is $559,000,000 California s share of the national pool is 7.37% For FY , the estimated incentives are $40.5M

21 Questions?

22 Mark Beckley Chief Deputy Director California DCSS Please be sure to complete the session evaluation.

23 Carrie Topliffe Director Santa Barbara LCSA

24 Practical Considerations What makes an LCSA budget unique? Cash basis accounting Complexities of HR budgeting Local customs and politics Allocation stagnation No capacity to build reserves

25 Some Considerations Accrual accounting is the dominant governmental mode Child Support is cash basis Cash & accrual collide in the 27 pay period year!

26 Humans: always complex! Who sets salaries at the LCSA? Who determines classifications and benefits? What happens when people are out on leave?

27 What s an LCSA to do? Ask for General Fund assistance to cover extra costs Make sure that budgeting includes a provision for salary savings due to absences Have a back-up plan for getting work done when your regular employees aren t available extra challenges of being a merit department

28 Navigating the Local Landscape Some other costs Local IT costs Leases in county-owned or private buildings A-87 costs Learn the languages!

29 Special Considerations: A-87 Timeline of calculating A-87 costs Due to State Controller s Office 12/31 each year Variations in amounts from year to year Often a sizeable budget item Difficult for the LCSA to control

30 Allocation Stagnation Allocations set in 2000 when we left the DA No increases except Revenue Stabilization Funds FY ongoing Statewide caseload shifts haven t been acknowledged in allocation amounts

31 Allocation Stagnation Budget Allocation Methodology Workgroup of 16 LCSA reps DCSS staff Consultancy firm Maximus Complex considerations Caseload size Performance Cost effectiveness Local costs of doing business

32 Strategies for Increased Funding Improvements in Cost Effectiveness: collections, collections, collections! Rebranding Child Support as a vital anti-poverty program Shared services: search for efficiencies Local funds that can be federally matched 2 to 1

33 No Rainy Day Reserves Estimated $20 million in unspent allocation annually Mid Year Allocation process Ability to carry over local funds Depreciation rules

34 Coordinating a Complex Process County Federal LCSA Budget State

35 Timeline for Success Mid year budget re-allocation starts X X Happy New Year! Close last year s books Adopt New Year s budget

36 Timeline for Success Preliminary allocation letter CS356 due CS356 due CS356 due CS356 due A-87 costs presented Other local costs presented 921 budget display due Operating plan/budget narrative due EDP budget display due Staffing plans due Estimated actuals due Inventories due Budget presentations

37 Strategies for Success Be realistic about timelines Do what you can in advance Look at capital needs early Discuss strategies with local and DCSS fiscal staff Confer with other LCSA colleagues Invest in technology Understand county charges & review them!

38 Strategies for Success Make sure your Board of Supervisors knows about Child Support Develop and deliver data that demonstrates the program impacts Convey excitement about technology-based efficiencies

39 Questions

40 Carrie Topliffe Director Santa Barbara LCSA Please be sure to complete the session evaluation.

41 Rhonda L. Ross Assistant Director Butte LCSA

42 TYPES OF BUDGETING DOCUMENTS BAS 921 OR CS 921 (Budget Allocation System) Budgeting tool used by DCSS to gather information for use in the development of the initial planning allcation. EDP (Electronic Data Processing) Additional funding above the Administrative allocation and is used for equipment purchases that specifically touch or interface with the CSE system. AEC 356 or CS 356 (Administrative Expenditure Claim) LCSAs are required to submit expenditures to DCSS for federal reporting requirements.

43 What Is The Purpose of the CS 921? Intended to gather detailed data to reflect how LCSAs utilized their administrative allocation. Allows the LCSAs to reconcile their approved local budgets to the DCSS allocation. Provides an early opportunity for LCSAs to report additional needs anticipated in the upcoming SFY.

44 CS 921 (continued) Detailed administrative budget information used to display: FTEs Average salaries Expenditures Annual LCSA letter requesting data Data collected via web form Data used by state for various reports CS 921 typically due in February

45 CS 921 (continued) Administrative Budget information: FTEs reported by classification Classifications can vary county to county Explanations may be necessary Ex: Revenue difference / may be due to outside revenue sources i.e. GF or agreements with other county agencies

46 EDP (ELECTRONIC DATA PROCESSING) What is EDP? EDP is a separate and distinct allocation from the Administrative Allocation Requires a separate budget submission EDP funds can only be used for technology expenses that are necessary for and can be directly related to the use of an access to the CSE or ECSS applications.

47 EDP (Continued) LCSA letter issued with instructions for completing the online budget document In 2016, the EDP equipment inventory was not requested All MOUs and/or POCs must be submitted (County IT Shop) In 2016, the EDP online budget submission was due at the same time as the CS 921 mid/feb

48 EDP (Continued) At the completion of the EDP budget request process, an LCSA letter will be sent notifying the LCSA of the final EDP budget allocation LCSAs that requested, and were approved for EDP funds, will be ed an attachment which will provide the account numbers for claiming EDP expenses.

49 EDP Purchases Prior Approval Requirements EDP or Administrative Funds: All automation products and services planned for purchase which exceed $500, must have prior approval. [CSS 05-05] Including personal computers, servers, printers, integrated voice response units, imaging systems, new and existing software, and web contracting services All software upgrades or enhancements require prior approval, regardless of cost (Ex: burner software)

50 AEC 356 (ADMINISTRATIVE EXPENDITURE CLAIM) What is the AEC 356 / CS 356? Mechanism for reporting to DCSS Federal law requires expenditures to be reported Expenditure data used Reconcile funds advanced to the LCSAs Determine future funding For various internal reports Online claim is due 15 days after the quarter ends Or the next business day after a weekend or holiday

51 AEC 356 (continued) How does it differ from the CS 921? Quarterly process Track on-going expenses Categorizes expenses (EDP expenses by claim numbers) Less detail than CS 921

52 AEC 356 (continued) Types of claims: Current Supplemental Reversal New

53 Current Claim A current claim is done when an LCSA needs to enter expenditures for the current quarter that has just ended.

54 Supplemental Claim A supplemental claim is done when an LCSA needs to make changes to expenditures previously submitted on a current or new claim from a prior quarter. Example: This could occur if the County Auditor s Office had not posted all of your ISF journals before the expenses reports were generated from the financial system.

55 Reversal Claim A reversal claim is done when an LCSA needs to make changes to a previously submitted claim and the changes affect the Personnel ratios. When the LCSA requests a claim reversal by DCSS, it will zero out all of the expenditures previously input on that claim. The LCSA IV- D Director and the county Auditor/Controller are not required to approve reversal claims, only DCSS Accounting will approve these claims. Example: This might occur after the claim has been submitted and it was determined that not all of the costs for SDU or Early Intervention had been captured.

56 New Claim A new claim is automatically created when a reversal is submitted. The new claim is repopulated with the reversed claim s data, but has the option to be edited, with the exception of page four. Page four EDP expenditures must be reentered whether or not there were changes to the data.

57 RECAP CS 921 annual online document to report expenditures for previous year and budget for current year. Includes FTE counts by classification EDP specialized funding for information technology expenses that directly interface w/cse CS 356 quarterly online document to report expenditures to DCSS for the current year

58 Questions

59 Rhonda L. Ross Assistant Director Butte LCSA Please be sure to complete the session evaluation.

60