LAKEPORT — The county Board of Supervisors approved a recommendation for cuts to the Lake County Sheriff”s Department staff and a $345,000 loan from general fund monies to the county”s Mental Health Department as part of a mid-year budget review presented Tuesday.
The loan will cover just less than half of a $745,000 shortage in the department resulting from a state audit that found $2.1 million it overpaid to Lake County Department of Mental Health.
Director Kerry Kelly told the BOS that the state has been doing a series of catch-up audits going back to 1998, and recently found that the Lake County Department of Mental Health made claims in the 2000 01 fiscal year that were not eligible for reimbursement.
Kelly explained that her department is primarily funded through the state MediCal program and electronically submits a best estimate of costs for reimbursement every year.
While the audit findings are final, said Kelly, they may be appealed. She told the board of a meeting planned with the State Department of Health to discuss the county”s appeal of approximately $700,000, or one third, of the total $2.1 million.
Chief Administrative Officer Kelly Cox wrote in his memo accompanying the budget review that a large part of the $745,000 the department is short can be absorbed in its budget.
He said the deficit exists in part because of money transfers from the Department of Social Services in past years, and recommended a $400,000 transfer from Social Services” realignment fund to cover the remainder of the deficit after the general fund loan.
Although Cox could not be reached on Monday or Tuesday, Deputy County Administrative Officer Matt Perry explained briefly how the two departments are funded.
County Mental Health is funded primarily by the state”s MediCal program through a tax allocation set aside for county Mental Health, Social Services and Public Health departments, explained Perry. By law, a certain percentage may be moved between the three departments.
Cox”s memo explains that because of monies moved from Mental Health to Social Services in years past, the $400,000 transfer of funds would reimburse Mental Health.
In the meantime, the $345,000 loan will have a direct impact on the general fund until the loan is repaid, wrote Cox in his memo to the board. When exactly that will be is unknown until the state makes its ruling on the department”s appeal, which he said could take several years.
The county”s general fund contingencies budget will see an increase of $85,210, said Cox, after the loan to the Mental Health Department.
Cox has been working with county staff to prepare the mid-year budget review since Jan. 2; the county”s final budget for FY 2006 07 was adopted in August.
According to Kelly Cox, the budget is looking good overall. The budget remains well in balance with no need for draw down from the general fund contingencies budget at this time, wrote Cox in a memo to the board dated Jan. 26.
He and his administrative staff along with county department heads have been working hard on the mid-year report since Jan. 2. The final budget for the 2006 07 fiscal year was adopted in August last year.
County department heads were asked to report on their individual budgetary expenses and revenues, and Cox prepared an analysis of the county”s overall financial status based on their findings.
Cox reported that while most revenues stayed on track with projections made in the final budget adopted last summer, some departments reported shortages.
Along with the spotlight on Mental Health, Cox highlighted needed changes in the Lake County Sheriff”s Office.
Cox”s recommendation that the county cut four new Deputy Sheriff positions added last year was also adopted as part of the review. LCSO made the cut part of a recent memorandum of understanding adopted between LCSO and the county.
The reasoning, said Cox, was that this funding would be put to more effective use by increasing compensation for public safety employees, which will assist in attracting applicants to fill several positions vacancies as well as assist in retaining existing employees.
Most departments, said Cox, are not over spending and have savings that will cover salary increases approved after the 2006 07 FY budget was adopted last year.
Contact Tiffany Revelle at trevelle@record-bee.com.
