HUMAN SERVICES DEPARTMENT

HUMAN SERVICES DEPARTMENT PROPOSED BUDGET FY 2017-18 PROPOSED BUDGET All Funds FY FY 2017-18 Revenues 117,054,867 115,012,680-1.7% General Fund 9,520,038 10,836,808 13.8% Total Financing 126,574,905 125,849,488-0.6% Expenditures 126,574,905 125,849,488-0.6% Total Staffing 574.00 536.00-6.6% Unfunded Staffing 24.00 28.00 16.7% ORGANIZATIONAL CHART Social Services Workforce Innovation & Opportunity Director Ellen Timberlake Veterans Services Entitlements 5-YEAR TRENDS $170.0M Revenues vs. Expenditures 600 Funded Staffing $140.0M 560 $110.0M 520 $80.0M FY 14 FY 15 FY 16 FY 17 FY 18 480 FY 14 FY 15 FY 16 FY 17 FY 18 Revenues Expenditures The gap between revenues and expenditures is financed by General Fund contributions. 5.50 positions were deleted and 24.00 unfunded in. The 17-18 budget is proposed to delete 38.00 vacant positions net and increase the number of unfunded position by 4 to 28. 145

BUDGET SUMMARY Actual 2015-16 Adopted Estimated Recommended 2017-18 Change from All Funds Revenues 111,943,779 117,054,867 114,442,573 115,012,680 (2,042,187) -1.7% General Fund 9,124,842 9,520,038 10,461,975 10,836,808 1,316,770 13.8% Total Financing 121,068,621 126,574,905 124,904,548 125,849,488 (725,417) -0.6% Expenditures 121,270,700 126,764,073 125,093,716 126,031,654 (732,419) -0.6% IntraFund Transfers (202,079) (189,168) (189,168) (182,166) 7,002-3.7% Total Expenditures 121,068,621 126,574,905 124,904,548 125,849,488 (725,417) -0.6% Total Staffing 574.00 577.00 536.00 (38.00) -6.6% Unfunded Staffing 24.00 24.00 28.00 4.00 16.7% OVERVIEW MISSION We strengthen our community by protecting the vulnerable, promoting self sufficiency, alleviating poverty, and improving the quality of life. SOCIAL SERVICES The Social Services division is comprised of: Benefit eligibility and Welfare-to-Work programs. Assistance to elderly, disabled, and dependent adults. Child Welfare programs and services. VETERANS SERVICES The Veterans Services Office represents Veterans and their eligible dependents and survivors in claims for compensation, nonservice connected pension benefits, and certain appeals. WORKFORCE INNOVATION & OPPORTUNITY ACT The Workforce Development Board s mission is Building Economic Prosperity through Workforce Development. It establishes policy and provides oversight for federal Workforce Innovation and Opportunity Act services, (WIOA). ENTITLEMENTS The Entitlement Assistance Programs encompass federal and State mandated payment programs including Adoption Assistance, Foster Care, California Work Opportunity and Responsibility to Kids, In- Home Supportive Services, and General Assistance. 146

HOW THE DEPARTMENT IS FINANCED FY 2017-18 Total Financing Charges for Services 0.2% Other 11.2% FINANCING BY DIVISION General Fund 8.6% Federal & State 80.0% GENERAL FUND The County is required to fund a share of cost for programs. The level of local funding varies and is highly leveraged to obtain the maximum reimbursement. FEDERAL & STATE Supports program services. The County s contribution is linked to federal and State funding, providing a high return on our local investment. CHARGES FOR SERVICES Consists of Children s Trust fund contributions to support the Families Together program and cost recovery from Child Support payments. OTHER 1991 Realignment revenue represents Sales and Vehicle License taxes allocated to our County to support Adoptions, Foster Care, CalWORKs, CalFresh, Child Welfare Services, and In-Home Supportive Services. Federal & State Charges for Services FY 2017-18 Financing Other* General Fund Total Financing General Fund by Division Social Services 75,921,097 148,897 10,032,334 (143,279) 85,959,049 Veterans Services 96,905 0 0 391,862 488,767 Workforce Innovation 2,859,021 0 0 0 2,859,021 Entitlements 21,844,479 110,096 3,999,851 10,588,225 36,542,651 Total General Fund 100,721,502 258,993 14,032,185 10,836,808 125,849,488 Total All Funds 100,721,502 258,993 14,032,185 10,836,808 125,849,488 *Other - Includes revenue from other local governments, insurance proceeds, sale of property, and other Voter-Approved fees, miscellaneous 147

WHERE DEPARTMENT EXPENDITURES GO FY 2017-18 Total Expenditures SALARIES & BENEFITS 46% of these expenditures support the H u m a n S e r v i c e s D e p a r t m e n t workforce. Other Charges 39% Services & Supplies 15% Salaries & Benefits 46% SERVICES & SUPPLIES 15% includes costs for professional services, telecom, office supplies, utilities and custodial services. OTHER CHARGES Other Charges include direct payments to clients, service supports through contracts to provide employment and training, housing assistance, and other client support payments including childcare and transportation assistance. *Expenditures do not include IntraFund Transfers. EXPENDITURES BY DIVISION FY 2017-18 Expenditures General Fund by Salaries & Services & Other Fixed IntraFund Total Division Benefits Supplies Charges Assets Transfers* Expenditures Social Services 56,683,957 18,191,965 11,215,293 50,000 (182,166) 85,959,049 Veterans Services 406,616 80,728 1,423 0 0 488,767 Workforce Innovation 636,625 210,918 2,011,478 0 0 2,859,021 Entitlements 0 1,000 36,541,651 0 0 36,542,651 Total General Fund 57,727,198 18,484,611 49,769,845 50,000 (182,166) 125,849,488 Total All Funds 57,727,198 18,484,611 49,769,845 50,000 (182,166) 125,849,488 *IntraFund Transfers represent reimbursements to other departments. 148

BUDGET DETAIL Actual 2015-16 Adopted Estimated Recommended 2017-18 Change from All Funds Revenues Licenses & Permits 59,500 62,000 62,000 62,000 0 0.0% Intergovernmental 98,043,236 102,753,844 100,299,429 100,721,502 (2,032,342) -2.0% Charges for Services 289,931 247,839 195,704 196,993 (50,846) -20.5% Miscellaneous 39,583 17,025 17,025 78,025 61,000 358.3% Other Financing 13,511,529 13,974,159 13,868,415 13,954,160 (19,999) -0.1% Total Revenues 111,943,779 117,054,867 114,442,573 115,012,680 (2,042,187) 0.0% General Fund 9,124,842 9,520,038 10,461,975 10,836,808 1,316,770 13.8% Total Financing 121,068,621 126,574,905 124,904,548 125,849,488 (725,417) 0.0% Expenditures Salaries & Benefits 55,458,555 58,934,355 56,107,841 57,727,198 (1,207,157) -2.0% Services & Supplies 19,671,661 19,930,157 20,683,172 18,484,611 (1,445,546) -7.3% Other Charges 45,917,826 47,849,561 48,252,703 49,769,845 1,920,284 4.0% Fixed Assets 78,920 50,000 50,000 50,000 0 0.0% Other Financing 143,738 0 0 0 0 0.0% Subtotal 121,270,700 126,764,073 125,093,716 126,031,654 (732,419) 0.0% IntraFund Transfers (202,079) (189,168) (189,168) (182,166) 7,002-3.7% Total Expenditures 121,068,621 126,574,905 124,904,548 125,849,488 (725,417) 0.0% Total Staffing 574.00 577.00 536.00 (38.00) -6.6% Unfunded Staffing 24.00 24.00 28.00 4.00 16.7% DEPARTMENT FULL TIME EQUIVALENT (FTE) EMPLOYEES Adopted Mid-Year Total Recommended Change from Division 2017-18 Social Services 566.00 3.00 569.00 527.00 (39.00) Veterans Services 4.00 0.00 4.00 4.00 0.00 Workforce Innovation 4.00 0.00 4.00 5.00 1.00 Total 574.00 3.00 577.00 536.00 (38.00) 149

EMERGING ISSUES The Human Services Department budget continues to be fiscally challenging for FY 2017-18. Significant uncertainty exists regarding the impact that federal and State proposed policy changes will have on the Human Services Department s (HSD) ability to assist County residents. The proposed budget reflects a $3.5 million reduction in revenue. This reduction consists of $2.5 million of declining State and federal allocations, largely due to declining CalWORKs and CalFresh caseloads, and a $1 million reduction in 2011 Realignment Revenue resulting from slower than expected sales tax growth. Reduction in revenue is offset by decreases in staffing levels and contracted services. The substantial reductions in federal and State funds, the need to absorb staff salaries and benefits increases, and demand of mandated programs will not deter HSD s commitment to protect the community s most vulnerable. IN-HOME SUPPORTIVE SERVICES (IHSS) Under the Maintenance of Effort (MOE) formula, annual increases to counties share of IHSS costs have been modest and predictable. The Governor s budget reflects the decision of the State Department of Finance to eliminate the MOE effective July 1, 2017, at which time counties will be required to pay 35 percent of the non-federal costs of providing IHSS. The elimination of the MOE shifts 5 years of caseload growth from the State to the counties. In FY 2017-18 the statewide impact to counties is projected to be $624 million, with the County of Santa Cruz s share of costs estimated at $3 million. By FY 2022-23, the County s costs are expected to increase to $18 million, requiring offsets in the form of dramatic decreases to other critical health and mental health services. It is anticipated that the Governor s May Revise will include a proposal that incorporates partial mitigation strategies. AFFORDABLE CARE ACT (ACA) On the federal level, the potential repeal and replacement of the ACA and California s related Medi-Cal expansion is a critical emerging issue. Under some provisions of the proposed American Health Care Act (AHCA), over 14,000 County residents who enrolled in Covered California health plans could see some facet of their coverage impacted. An additional 21,000 individuals newly eligible for coverage through the ACA s Medi-Cal Expansion could lose their health care coverage almost 30 percent of the County s entire Medi-Cal population. The AHCA proposes to eliminate the ACA Medicaid expansion, change key provisions in Medicaid eligibility, cap reimbursement limits and eliminate enhanced match for certain In-Home Supportive Services. CALIFORNIA WORK OPPORTUNITY AND RESPONSIBILITY TO KIDS (CALWORKS) At the State level, CalWORKs is slated for a second year of funding reductions under the Governor s Proposed 2017-18 Budget. While HSD was able to mitigate the impacts from the first year of reductions, the compilation of ongoing funding decreases will necessitate service reductions in the coming year. Although the County has seen a decrease in its CalWORKs caseloads, those receiving assistance require a high level of service to facilitate their ongoing self-sufficiency. With an anticipated FY 2017-18 CalWORKs budget that is more than $2 million less than in FY 2015-16, both existing clients and those who have worked themselves off of aid will have decreased access to services and supports provided by both the County and its nonprofit partners. 150

$100.0M $90.0M $80.0M $70.0M 600 550 500 SOCIAL SERVICES Revenues vs. Expenditures FY 14 FY 15 FY 16 FY 17 FY 18 Revenues Funded Staffing Expenditures OVERVIEW Social Services continues to experience a year-to-year reduction in revenue associated with decreases in allocations, related to declining caseloads, slower than anticipated sales tax growth and the loss of supplemental revenue that primarily supported the Affordable Care Act expansion. To offset these combined revenue losses, the department has reduced salary and benefits costs by unfunding select vacancies and reducing the level of support for optional post-aid services. In addition, an accounting change consolidated all Workforce Innovation Opportunity Act (WIOA) grant expenditures into their respective division. Adult and Long Term Care provides assistance to elderly, disabled, and dependent adults, and military veterans and their eligible dependents. Employment and Benefit Services is comprised of benefit and employment training programs and supportive services including the California Work Opportunity and Responsibility to Kids (CalWORKs) program, Welfare-to- Work, Medi-Cal, CalFresh and General Assistance. Family and Children s Services provides child welfare services such as emergency response, ongoing services, and adoptions. The division continues to implement Continuum of Care Reform (CCR). Starting in January 2017, one of the initial implementation aims will be to step youth down from group home placements into a home with a resource family, ideally a relative. 450 FY 14 FY 15 FY 16 FY 17 FY 18 General Administration includes fiscal, program integrity and appeals, information technology, facility services, personnel, staff development, planning and evaluation, and community relations. Information technology provides support for critical technology infrastructure. Facility services coordinates facility upgrades and replacements for aging structures and equipment. Planning and evaluation is responsible for strategic planning, oversight of department-wide projects, policy analysis, providing tools for data-driven decision making, research and evaluation and quality assurance. 151

SOCIAL SERVICES BUDGET DETAIL All Funds Revenues Actual 2015-16 Adopted Estimated Recommended 2017-18 Change from Licenses & Permits 59,500 62,000 62,000 62,000 0 0.0% Intergovernmental 77,871,589 82,051,437 79,429,300 75,921,097 (6,130,340) -7.5% Charges for Services 140,388 86,339 79,130 86,897 558 0.6% Miscellaneous 39,583 17,025 17,025 78,025 61,000 358.3% Other Financing 9,541,718 9,974,308 9,868,564 9,954,309 (19,999) -0.2% Total Revenues 87,652,778 92,191,109 89,456,019 86,102,328 (6,088,781) -6.6% General Fund (1,174,780) (939,330) (342,220) (143,279) 796,051-84.7% Total Financing 86,477,998 91,251,779 89,113,799 85,959,049 (5,292,730) -5.8% Expenditures Salaries & Benefits 54,679,240 58,025,163 55,277,187 56,683,957 (1,341,206) -2.3% Services &Supplies 19,427,544 19,665,670 20,288,408 18,191,965 (1,473,705) -7.5% Other Charges 12,326,837 13,691,316 13,678,574 11,215,293 (2,476,023) -18.1% Fixed Assets 78,920 50,000 50,000 50,000 0 0.0% Other Financing 143,738 0 0 0 0 0.0% Subtotal 86,656,279 91,432,149 89,294,169 86,141,215 (5,290,934) -5.8% IntraFund Transfers (178,281) (180,370) (180,370) (182,166) (1,796) 1.0% Total Expenditures 86,477,998 91,251,779 89,113,799 85,959,049 (5,292,730) -5.8% Total Staffing 566.00 569.00 527.00 (39.00) -6.9% Unfunded Staffing 24.00 24.00 28.00 4.00 16.7% SOCIAL SERVICES FINANCING CHANGES Financing Category Description Impact on Services Position Impact Intergovernmental 152 Consolidated all WIOA grant revenues into one division, which were previously budgeted between the WIOA and Social Services divisions Decrease due to reductions in State and federal funding for CalWORKs and CalFresh and lower than expected sales tax growth for 2011 Realignment revenue Increase/ (Decrease) None 0.00 (2,397,315) Reductions in staffing levels, contracts and direct services to clients (39.00) (3,733,025) Charges for Services Various Adjustments None 0.00 558 Miscellaneous Increase is due to a new grant. None 0.00 61,000 Lower than expected sales tax growth Other Financing None 0.00 (19,999) for 1991 Realignment revenue General Fund Salary increase offset None 0.00 796,051 Total (39.00) (5,292,730)

SOCIAL SERVICES EXPENDITURE CHANGES Expenditure Category Description Impact on Services Salaries & Benefits Revenue shortages combined with negotiated salary and benefit increases required reductions in staffing The reductions in staffing will reduce our ability to meet program needs and cause customer service delays Position Impact Cost/ (Savings) (39.00) (1,341,206) Services & Supplies Reductions to contracted services in CalWORKs and Substance Abuse Disorder The reductions in contracts and direct services equates to less resources available, decreases prevention services and reduces supportive services 0.00 (1,473,705) Other Charges IntraFund Transfers Consolidated all WIOA grant expenditures into one division, which were None 0.00 (2,295,644) previously budgeted between the WIOA and Social Services divisions Reductions to direct client and contracted services in CalWORKs Increase in interdepartmental transfers Reductions in the level of selected participant support services 0.00 (180,379) None 0.00 (1,796) Total (39.00) (5,292,730) 153

SOCIAL SERVICES GOALS & ACCOMPLISHMENTS ADULT & LONG TERM CARE The APS program participated in the development of a countywide homeless Coordinated Entry System. In FY 2017-18, the In-Home Supportive Services (IHSS) program will build on new and enhanced strategies developed at the Caregiver Summit to meet the needs of the County s most vulnerable residents and continue to collaborate with the Central California Alliance for Health to more effectively care for IHSS recipients with high service needs. Veteran s Services will continue outreach strategies to increase the utilization of benefits and services for military Veterans. EMPLOYMENT & BENEFIT SERVICES With a service center model that allows for face-to-face or telephonic interaction, the division continues to provide critical services to approximately 49,000 households. The CalFresh Program Reach Index (PRI) increased by 7.5% of eligible persons receiving CalFresh nutritional assistance. In the Medi-Cal program, approximately 750 undocumented youth under age 19 in the County of Santa Cruz have been enrolled in full Medi-Cal benefits under California s SB75. Previously, these youth were eligible to receive Medi-Cal for emergency and pregnancy-related services only. In FY 2017-18, new technologies and targeted outreach will be used to further increase CalFresh utilization. The CalWORKs Housing Support Program (HSP), known locally as the CalWORKs Housing Assistance and Move-In Program (CHAMP), will provide about 80 families with housing support services in partnership with the Homeless Services Center and Families in Transition. FAMILY & CHILDREN S SERVICES FCS exceeded the state and national average in timely response and monthly visits as part of the System Improvement Plan (SIP) which has been used as a model for other counties due to successful outcomes. FCS is also participating in several community initiatives focused on at-risk youth, including a $2.2 million federal grant for a multi-year effort to end youth homelessness, and a partnership with the Santa Cruz Museum of Art History to design and develop a six-month exhibition about transition-age foster youth. The division continues to implement Continuum of Care Reform (CCR). One key feature is that all new resource families will be approved through the Resource Family Approval (RFA) process. RFA standardizes screening and preparation whereby non-relative and relative families are assessed, trained and supported in the same way. Once approved, resource families can proceed to adoption without going through an additional assessment. In FY 2017-18, FCS will fully integrate the transitioning of foster youth from group home care to family based care which is a primary component of Continuum of Care Reform (CCR). GENERAL ADMINISTRATION HSD completed facility upgrades to increase safety and comfort, provided additional training spaces, and implemented new technologies to measure quality of service and outcomes across divisions. In FY 2017-18, strategic priorities will be on continuous quality improvement in service provision, implementation of a new centralized contract management system, employee on-boarding and a department-wide communication plan. 154

$0.6M $0.4M $0.2M $0.0M 5 4 3 2 VETERANS SERVICES Revenues vs. Expenditures FY 14 FY 15 FY 16 FY 17 FY 18 Revenues Funded Staffing Expenditures FY 14 FY 15 FY 16 FY 17 FY 18 OVERVIEW The County Veterans Services Office (CVSO) represents Veterans, their eligible dependents and survivors in claims for compensation, non-service connected pension benefits, and certain appeals. The CVSO provides referrals to health and dental care, educational programs, vocational rehabilitation, homeless services, home loans, Veterans Administration (VA) life insurance, readjustment counseling services, and substance use disorder services. The CVSO is a key partner in collaborative projects with government, business and community organizations. The CVSO also arranges transportation for Veterans in Santa Cruz to the Palo Alto VA Medical Center. The CVSO is supported by the general fund and intergovernmental funding. The intergovernmental funding is awarded to the County through a subvention funding structure by CalVet. Nearly all of the subvention awards are based on the number and type of claims filed by the CVSO on behalf of Veterans. GOALS & ACCOMPLISHMENTS In order to better serve local veterans, the CVSO has developed new strategies to increase the number of claims filed. Three additional staff members were certified to file claims. Twelve work-study veterans support the operation of the office. Their support frees up time for certified staff to file more claims. The CVSO is a key partner in collaborative projects to bring new programs and services to veterans. One project is the Bright Vision Veterans (BVV) pilot. The BVV project was developed and is supported by a private company, veteran services providers, and faith-based partners. Pilot participants are veterans who are homeless or at risk of homelessness. They are given employment at a living wage. They are also connected with housing and a path to home ownership. Three veterans joined the pilot in March. The project intends to increase its capacity to include 25 more veterans by the end of FY 2016 17. The CVSO, with community partners, implemented the Bright Vision Homeless Veterans Pilot Program serving eight veterans. In FY 2017-18, the CVSO will expand the program as its capacity increases with a goal of 40 veterans. 155

VETERANS SERVICES BUDGET DETAIL Actual 2015-16 Adopted Estimated Recommended 2017-18 Change from All Funds Revenues Intergovernmental 64,967 113,206 79,000 96,905 (16,301) -14.4% Total Revenues 64,967 113,206 79,000 96,905 (16,301) -14.4% General Fund 330,884 391,862 391,862 391,862 0 0.0% Total Financing 395,851 505,068 470,862 488,767 (16,301) -3.2% Expenditures Salaries & Benefits 299,269 409,681 331,143 406,616 (3,065) -0.7% Services & Supplies 95,160 93,964 138,296 80,728 (13,236) -14.1% Other Charges 1,422 1,423 1,423 1,423 0 0.0% Total Expenditures 395,851 505,068 470,862 488,767 (16,301) -3.2% Total Staffing 4.00 4.00 4.00 0.00 0.0% VETERANS SERVICES FINANCING CHANGES Financing Category Description Impact on Services Intergovernmental Grant not awarded for FY17-18 resulting in lower than anticipated State revenue Mitigation of impact will be through filling a budgeted Veteran Services Representative vacancy and accrediting existing staff Position Impact Increase/ (Decrease) 0.00 (16,301) Total 0.00 (16,301) VETERANS SERVICES EXPENDITURE CHANGES Expenditure Category Description Impact on Services Salaries & Benefits Increases to salaries and benefits for existing staff Position Impact Cost/ (Savings) None 0.00 (3,065) Services & Supplies Reduction in contracted services None 0.00 (13,236) Total 0.00 (16,301) 156

$3.0M $2.0M $1.0M $0.0M 5 4 3 2 WORKFORCE INNOVATION OPPORTUNITY ACT Revenues vs. Expenditures FY 14 FY 15 FY 16 FY 17 FY 18 Revenues Funded Staffing Expenditures FY 14 FY 15 FY 16 FY 17 FY 18 OVERVIEW The Workforce Innovation Opportunity Act (WIOA) budget recognizes and increase in expenditures primarily due to an accounting change which consolidated expenditures and salary and benefits costs of 1.0 full-time equivalent related to the WIOA from the Social Services division into WIOA. The associated revenue is also transferred. WIOA provides employment training and development. The Workforce Development Board (WDB) establishes policy, provides oversight, and manages federal Workforce Innovation and Opportunity Act (WIOA) services. It also brings together the business and education communities, local government, and residents to identify workforce issues and develop solutions and identify labor market changes. A new requirement of WIOA, effective July 1, 2017, is the procurement of a One-Stop Operator. In California, One-Stop Operators are responsible for coordinating service delivery among all America s Job Center of California (AJCC) partners and service providers within the Local Workforce Development Area. By having the AJCC Operator act as the local service delivery coordinator, it allows local boards to focus on strategic planning and developing partnerships at the local and regional level. The local system has all core required partners included in its comprehensive one-stop AJCC located at Watsonville Career Center, 18 West Beach St. It also has three Satellite AJCCs: Capitola Career Center, 2045 40th Ave.; Santa Cruz Career Center, 350 Encinal Street; Sequoia School/Sueños Youth Services, 229 Green Valley Rd. Features of WIOA include: The WIOA provides for engagement of local business and employers through a business-led board and business services. WIOA youth programs must utilize 75 percent of program funds for out-of- school youth, and 20 percent for earn and learn activities. Fifteen performance measures will apply across all programs, including a new business services measure. 157

WIOA BUDGET DETAIL Actual 2015-16 Adopted Estimated Recommended 2017-18 Change from All Funds Revenues Intergovernmental 605,204 659,885 746,181 2,859,021 2,199,136 333.3% Total Revenues 605,204 659,885 746,181 2,859,021 2,199,136 333.3% General Fund 1 0 0 0 0 0.0% Total Financing 605,205 659,885 746,181 2,859,021 2,199,136 333.3% Expenditures Salaries & Benefits 480,046 499,511 499,511 636,625 137,114 27.4% Services & Supplies 148,957 169,172 255,468 210,918 41,746 24.7% Other Charges 0 0 0 2,011,478 2,011,478 0.0% Subtotal 629,003 668,683 754,979 2,859,021 2,190,338 327.6% IntraFund Transfers (23,798) (8,798) (8,798) 0 8,798-100.0% Total Expenditures 605,205 659,885 746,181 2,859,021 2,199,136 333.3% Total Staffing 4.00 4.00 5.00 1.00 25.0% WIOA FINANCING CHANGES Financing Category Description Impact on Services 158 Intergovernmental Consolidated all WIOA grant revenues into one division, which were previously budgeted between the WIOA and Social Services divisions WIOA EXPENDITURE CHANGES Expenditure Category Description Impact on Services Salaries & Benefits Services & Supplies Transferred a vacant Sr. Human Services Analyst from Social Services Division Additional miscellaneous Purchase Orders Position Impact Increase/ (Decrease) None 0.00 2,199,136 Increase in full-time staff from 4.0 FTE to 5.0 FTE Increase operational function Total 0.00 2,199,136 Position Impact Cost/ (Savings) 1.00 137,114 0.00 41,746 Other Charges Consolidated all WIOA grant expenditures into one division, which were previously budgeted None 0.00 2,011,478 between the WIOA and Social Services divisions IntraFund Transfers Charges and Transfers None 0.00 8,798 Total 1.00 2,199,136

WIOA GOALS & ACCOMPLISHMENTS The Workforce Development Board (WDB) implemented a Proposition 39 grant-funded program to train 25 individuals in green building trades. The graduates who will be prepared for a career pathway in a variety of building trades, including Electricians, Iron Workers, Plasterers and Cement Masons, Sheet Metal Workers, Plumbers and Pipe Fitters, Operating Engineers and Teamsters. Participants in the County of Santa Cruz will have a special emphasis in the Welfare to Work program in order to co-enroll customers and maximize their access to supports while in the program. The WDB launched a Business Engagement Practitioners group, including partners from economic development and local workforce system partners including the Employment Development Department (EDD), Department of Rehabilitation, Center for Employment Training and service providers such as Goodwill Central Coast. The group meets monthly to discuss business engagement efforts in the County, shares best practices, and provides updates on outreach efforts to local businesses. In addition, the WDB continues to participate in the Monterey Bay Economic Partnership (MBEP) Workforce Development Committee which convenes regional economic development agencies consisting of workforce development, educational partners and employers to develop partnership opportunities. A current effort is strengthening regional career pathways, including conducting an inventory, considering promising practices from other regions and then advancing the concept to develop pathways. The Workforce Innovation and Opportunity Act (WIOA) Youth Program, Sueños, contracted with the Santa Cruz County Office of Education and moved to the new Sequoia School campus, which also houses several Regional Occupational Programs, including the career pathways of health and medical occupations, early childhood education, construction and engineering, architecture and landscape design and culinary arts and science. In FY 2017-18, the WDB will continue implementation of its Slingshot Healthcare Sector grant which seeks to develop a workforce skilled to meet the needs of the health care industry. The health care sector initiative is conducted in partnership with Health Improvement Partnership of the County of Santa Cruz (HIP). Over the next year, the WDB will help support the industry s chosen initiatives: Health Care Career Awareness Campaign, Specialty Nursing Education, and Community Health Worker Training. The WDB will also launch the technology sector initiative, which is currently in its development stages. It will be launched through a partnership between the WDB and Santa Cruz Works. This initiative will help the County of Santa Cruz s technology sector employers develop strategies to attract, develop and retain skilled workers locally. 159

$37.0M $32.0M $27.0M $22.0M ENTITLEMENTS Revenues vs. Expenditures FY 14 FY 15 FY 16 FY 17 FY 18 Revenues Expenditures OVERVIEW Entitlements Programs are comprised of Categorical Aid and General Assistance programs as described below. These programs receive funding from federal, State, and local sources. Each program has a mandated County contribution which varies by program. The County s contribution is impacted by the number of eligible recipients, mandated cost of living increases, and the eligibility status of recipients (federal or non-federal). ADOPTIONS AND FOSTER CARE ASSISTANCE The County contribution for Adoptions (AAP) and Foster Care Assistance (FC) is impacted by several cost-drivers, including caseloads, placement costs, cost of living adjustments and recipient eligibility. CALWORKS ASSISTANCE CalWORKs has increased due to modest cost of living adjustments coupled with legislative changes that repealed the Maximum Family Grant (MFG), allowing for 339 CalWORKs families to receive cash assistance for children who were not previously aided, and increased temporary housing payments. These increases are off-set by a seven percent decrease in caseload. IN-HOME SUPPORTIVE SERVICES (IHSS) The County contribution is defined by a mandated Maintenance of Effort (MOE) increased by an annual 3.5 percent inflation factor. Based on the Governor s Proposed FY 2017-18 Budget, the IHSS MOE will be discontinued effective July 1, 2017 at which time the County share will be 35 percent of the non-federal cost. The proposed elimination of the MOE would cause significant cost increase to the County. GENERAL ASSISTANCE (GA) GA provides cash assistance to eligible disabled or unemployed county residents who are ineligible for other aid programs. The GA caseload has experienced a 63 percent increase since FY 2014-15. As with CalWORKs, GA cases receive a periodic cost of living increase. Clients are screened for Supplemental Security Income (SSI) eligibility, those approved help off-set costs. 160

ENTITLEMENTS BUDGET DETAIL Actual 2015-16 Adopted Estimated Recommended Change from All Funds Revenues Intergovernmental 19,501,476 19,929,316 20,044,948 21,844,479 1,915,163 9.6% Charges for Services 149,543 161,500 116,574 110,096 (51,404) -31.8% Other Financing 3,969,811 3,999,851 3,999,851 3,999,851 0 0.0% Total Revenues 23,620,830 24,090,667 24,161,373 25,954,426 1,863,759 7.7% General Fund 9,968,737 10,067,506 10,412,333 10,588,225 520,719 5.2% Total Financing 33,589,567 34,158,173 34,573,706 36,542,651 2,384,478 7.0% Expenditures Services & Supplies 0 1,351 1,000 1,000 (351) -26.0% Other Charges 33,589,567 34,156,822 34,572,706 36,541,651 2,384,829 7.0% Total Expenditures 33,589,567 34,158,173 34,573,706 36,542,651 2,384,478 7.0% ENTITLEMENTS FINANCING CHANGES Financing Category Intergovernmental Charges for Services Impact on Description Services Increases in revenue related to Maintain services Continuum of Care Reform for Foster for our most Care and Adoptions, increases in vulnerable clients cases for federal reimbursement Decrease due to reductions in Child Support recoupment Position Impact Increase/ (Decrease) 0.00 1,915,163 None 0.00 (51,404) General Fund None 0.00 520,719 Total 0.00 2,384,478 ENTITLEMENTS EXPENDITURE CHANGES Expenditure Category Description Impact on Services Position Impact Cost/ (Savings) Services & Supplies Reduced legal fees None 0.00 (351) Other Charges Increased Foster Care placement and Adoption Assistance costs due to Continuum of Care Reform; annual California Necessities Index increase of 3.84%; Increases to CalWORKs Homeless Assistance benefits and the repeal of the maximum family grant; IHSS 3.5% mandated increase to County MOE and increased number of General Assistance clients served Maintain services for our most vulnerable clients 0.00 2,384,829 Total 0.00 2,384,478 161

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