Cuyahoga County, Ohio 2012 First Quarter Budget Update

Transcription

1 Cuyahga Cunty, Ohi 2012 First Quarter Budget Update As f March 31 st 2012 Cuyahga Cunty Executive Office f the Fiscal Officer

2 Summary f Quarterly Review Prcess OBM is required t cnduct a quarterly assessment f the Cunty budget plan t identify variances and ther trends t prvide guidance n prgrammatic and funding matters. A quarterly review has three majr steps: 1. Prjectin quantitative assessment 2. Analysis / Review digging int the results 3. Cmmunicate Results budget status and recmmendatins The review prjectin is an estimate f all perating revenue and expenditure lines based n the first three mnths f activity infused with ther infrmatin. The quarterly prjectin answers six pertinent questins abut the budget. 2

3 Summary f First Quarter Results st Quarter Estimate General Fund and All Funds Summary GF Operating HHS Levy Fund Cmbined General Fund All Operating Funds Revenue Estimate $ $ $ $ 1,285.0 Ttal Expenditures $ $ $ $ 1,299.4 Surplus (Deficit) $ 4.8 $ 1.0 $ 5.8 $ (14.4) Reserves On Ending Balance $ 47.0 $ $ 47.0 $ Ending Balance $ $ 44.3 $ $ Balance t Expenditure % 38.8% 20.1% 31.6% 31.9% 3

4 Summary f First Quarter Results The first quarter estimate reflects perating surpluses in the General Fund ($4.8 millin) and Health & Human Service Levy Fund (under $1.0 millin) in The slight surplus in the HHS Levy Fund includes a $3.1 millin ffset f public assistance reserve dllars. Ending balances fr 2012 at 38.8% (General Fund) and 20.1% (HHS Levy Fund) are within the established fiscal guidelines. There is a small but anticipated draw n the cmbined all funds balance ($14.4 millin). 4

5 General Fund Budget Perfrmance The 2012 revenue estimate is $1.8 millin higher than the budget and is n track t exceed the budget by 0.5%. The estimate fr sales tax (1.2% ver budget) is driving much f surplus in revenue. A budget surplus f $9.0 millin dllars (2.5% f perating expenditures) is prjected in The perating results are essentially breakeven in 2013 ($0.3 millin perating lss) and culd swing t the psitive with a less than ne percent change in the perating picture. 5

6 HHS Levy Fund Budget Perfrmance The prjected Health & Human Services Levy Fund revenue estimate f $220.9 millin is $580,000 lwer (0.3%) than budget as a result f a weaker than expected first half prperty tax cllectin. HHS Levy Fund expenditures (uses) are lwer than the apprved budget by $5.8 millin r 2.6% due t the lwer prjected subsidy levels t varius public assistance prgrams. A cmbinatin f lwer than anticipated staffing csts and decreased bligatins fr service prvider cntracts in human service budgets have cntributed t the psitive budget variance fr Levy Fund subsidies. 6

7 All Funds Budget Perfrmance On an All Funds basis, perating revenue is clsely in line with the 2012 budget estimate at $1,285.0 millin. Decreases in charges fr services and ther surces have been ffset with increases in miscellaneus surces including the expectatin f financing prceeds fr ecnmic develpment. Prjected expenditures in 2012 are $49.3 millin under the current budget and $39.2 millin r 3.1% millin lwer than the prir year. Lwer spending in Human Services and General Gvernment prgram budgets ($27.2 millin lwer than the current apprved budget) are the main drivers f the prjected 2012 surplus. The prjected $14.4 millin deficit in 2012 and $9.0 millin deficit in 2013 reflect planned use f reserves in several majr funds including the Public Assistance Fund and varius selfinsurance funds. 7

8 Revenue Trends Majr Surces 8

9 Revenue Trends Majr Surces Prperty Taxes cllected frm the 1.45 inside millage are expected t generate $203.8 millin fr the General Fund and Levy Fund cmbined and are 0.3% under budget. Sales tax revenue is prjected t be 4.2% higher than 2011 and has exceeded the budget estimate by 1.1% (n the 1.0 % permissive) in first quarter based n cllectins thrugh April Revenue related t real estate transactins is up 7.1% frm 2011 and exceeding the budget estimate by ver $1.2 millin. Lcal Gvernment Fund (LGF) revenue was budgeted at the lwer levels enacted in the State FY budget. We culd ut perfrm budget in Investment earnings cntinue t decline as lw shrt term interest rates have limited returns n the Cunty prtfli. Investment earnings are prjected t cme in at $10.5 millin in 2012, lwer than the 2011 earnings and 65.5% frm the peak in 2007 ($30.4 millin). N estimate fr Casin Tax revenue in the first quarter estimate. 9

10 First Quarter Expenditure Prjectin By Functin 10

11 First Quarter Expenditure Prjectin By Functin Mst General Fund budgets are in line with apprved budget levels. There are sme significant budget surpluses in the general gvernment area. Operating deficits reflected in the first quarter assessment will be revisited in secnd quarter t verify if expenditures will exceed apprved budget levels. The General Fund cntributin t debt service increased in 2012 as a result f reflecting the full annual impact f debt payments fr the Medical Mart. There are three agency budgets that will be revised as a result f budgeting errrs. 11

12 First Quarter Expenditure Prjectin By Functin HHS Levy Funds uses are $5.8 millin lwer than the 2012 apprved budget. Lwer than expected persnnel expenditures and revisins t current year cntractual bligatins (service prviders) in HHS perating budgets are driving the prjected surplus. Prjected variances fr HHS subsidies t Justice related prgrams vary between allcatins but are in balance within this prgram area. The all funds budget picture reflects a surplus f $49.3 millin n lwer than expected expenditures in the scial services and general gvernment area. 12

13 Operating Expenditures By Object A surplus f $6.1 millin is prjected fr ttal staffing budget line. Health care budget prjectin (nt claims) is $3.3 millin ver budget as a result f a higher than anticipated emplyer share f the health care budget. A review f current bligatins fr varius cntracts has resulted in a lwer than expected prjectin fr the cntracts and client services budget lines ($32.5 millin budget surplus in 2012). Cntrlled services are prjected at the budget and will be revised in secnd quarter. 13

14 Recmmendatins and Reprt The full reprt will include agency specific sectins that include the fllwing infrmatin fr each agency budget: First quarter highlights Summary f funding surces Expenditure estimates Discussin f variances Budget bjectives (R ) Recmmendatins Prgram measures Final Reprt will be released week f May 14 th. 14