Fundraiser Thanks, County Services Budget Meeting, 2012 Budget Overview

Thanks to all those that contributed and/or came to my fundraiser for State Representative at Commissioner Penelope Tsernoglou and Steve Ross’ house. We had a great turnout, hit our mark for fundraising, and are close to the goal set for the year! That, combined with the growing list of endorsements and the hundreds of doors already knocked and neighborhood meetings and events attended have given the campaign great momentum!

This week, the Ingham County Commission started our budget hearings. Each liaison committee goes through the recommendations of the County Controller with the Department heads. We have four liaison committees – Human Services, County Services, Law Enforcement, and Judiciary. We also have the Finance Committee, which reviews the proposals in full when the liaison committees are through and puts the budget together before consideration on the Board floor. I serve on the County Services committee and can recount that committee. My other committee is the Finance Committee, which I Chair. Finance will consider the budget in a few weeks.

The County Services committee was relatively easy, all things considered. Not one Department head complained about their budget allotment. I think that is the first time I have seen that in my 9 years on the Board! There were also no requests for funding from our Strategic Planning Fund, also called the Z-List (about $300,000 set aside in the budget for priority cuts to be restored). We had a discussion with the Drain Commissioner about some drains in Leslie and Onondaga and their assessments as well as about rain capacity in the drains and how they were overburdened by the immense amount of rainfall a few weeks ago. In essence, there is a drain that dates back to the WPA days that is not maintained by anyone, and it flooded. That caused about $300,000 worth of damage. The Drain Commissioner is going through the motions now to take over that drain at the request of the residents and is working with them on an assessment. We also discussed the Parks budget with the Parks Director. There are some complaints about the allocation of resources in the budget towards the zoo and that will likely come out in the Finance committee. We also heard public comment from the UAW about the proposed elimination of 13 vacant positions in the county budget (see below). They correctly pointed out that these eliminations will lead to others doing that work and being overburdened. I hope that we will be able to do something about that through the process.

Here is a preview of the 2012 Ingham County Controller Recommended Budget:

The budget is focused on the 2012 budget priorities and the long-term strategic planning objectives established by the Board of Commissioners. This budget would continue to assure accessible health care, support for public safety, assure judicial processing, encourage the use of appropriate sanctions for adult offenders, provide appropriate treatment and sanctions for at-risk juveniles, promote recreational opportunities, and foster economic well being.

The total recommended budget is $193.8 million, a $1.36 million or .71% increase from the 2011 adopted budget, but is artificially inflated because 2012 represents the first year the Delinquent Tax Revolving Fund (DTRF) is included as a part of the overall budget ($4.5 million increase). But for the inclusion of the DTRF, the overall budget would have decreased by $3 million or 1.5 %. The general fund budget is recommended at $71.5 million, a $2.35 million or 3.2% reduction from the 2011 adopted budget. 2012 will represent the fourth year in a row that the general fund budget has declined. The total property tax levy supporting the recommended budget will be 9.5463 mills. The proposed levies for County operations, 911, juvenile justice, Capital Regional Airport Authority, Potter Park Zoo, indigent veterans support, and Farmland and Open Space remain unchanged. The special transportation millage is increased slightly from a total of .4768 mills to .48 mills, due to the 2010 voter approved renewal which goes into effect for the 2012 budget year.

The single largest contributor to the County’s multi-year budget shortfalls is the decline in property tax values. Property tax revenues have traditionally accounted for approximately 60% of the overall general fund revenues. Property values declined for the third year in a row, and will likely continue to decline through fiscal years 2014. The recommended budget assumes that the property tax levy for county general operations will remain at 6.3512 mills. These operating levies will generate $41.34 million, a decline of $1.5 million or 3.5 percent, from the 2011 adopted budget.

In July, the Controller’s Office estimated the general fund shortfall for 2012 at $5.3 million. The shortfall is the difference between projected revenues and what it would cost to fund services at current year levels. Overall revenues were estimated to be $2.8 million below the 2011 amended budget. This includes a decrease of $1.5 million in property tax revenues, a $1.5 million reduction in state revenue sharing, and a $100,000 decline in department generated revenues. Overall expenditures were estimated to increase by $2.3 million in order to cover the cost of current services.

The general fund budget was balanced with a mix of targeted reductions and a $1 million increase in the use of unreserved fund balance. Please note that the solutions do not include the layoff of any county employee.

The solutions include but are not limited to the following:

• Increase in the use of unreserved general fund balance from $1 to $2 million
• Continue the hiring freeze and 8 week hiring delay - $435,000
• Assume a 1% savings associated with employee bargaining concessions - $480,000 general fund and $800,000 overall savings
• Elimination of 13 Vacant FTEs - $521,000
• Re-project Employee Health Insurance Costs - $232,000
• Liability Insurance Decrease in Premiums and Rebate - $208,000
• A $1.2 million reduction in the Health Department’s general fund appropriation
- Attrition savings - $400,000
- Increase Medicaid and Health Plan Management Revenue - $450,000
- Jail medical savings - $100,000
- Other - $245,000
• A reduction in the Parks general fund appropriation - $183,000
• Child Care Fund - Juvenile Delinquency Private Placement savings - $315,000
• Child Care Fund - Foster Care Private Placement savings - $210,000
• A reduction in controllable expenditures across the departments - $460,000
• A net increase in department generated revenues - $56,000

As we look ahead, we assume that property values will continue to decline with a corresponding reduction in property tax collections. Our Controller estimates that property tax collections will decline in fiscal years 2013 through 2014 by an additional $1.5-$2.5 million per year. State and federal revenue sources are also likely to decline, putting even more pressure on the County’s future budgets. Therefore, we will continue to plan ahead and implement long term cost savings ideas in order to get through the next few budget cycles without decimating our program priorities.

Despite all this bleak news, the County’s reserves remain steady. The general fund undesignated fund balance at the end of fiscal year 2012 is projected at $13.8 million and the Public Improvement Fund at $.8 million. The budget stabilization fund should remain at $10.6 million through 2012.

I hope this provides a good picture of the Controller’s Recommended Budget and what County Commissioners will be looking at for the next two months!

Fundraiser, Budget, Ingham Health Plan, Health and Zoo Directors, DSH Payment, Veterinarian

Welcome back to the Schor Blog. Sorry for the two week delay!

First, a political note: I invite everyone to my next fundraiser for my State Representative campaign. It is tomorrow (Thursday) from 5:30 - 7:30 at the home of Commissioner Penelope Tsernoglou and Steve Ross at 1197 Prescott in East Lansing. For more details, go to www.andyschor.com.

Now, on to the County Issues...

At the Board meeting, we were given our Controller Recommended Budget. After months of hearing budget projections, meetings with countywide elected officials and department heads at the County, and discussions of direction for staff to take in drafting a budget we now have a starting document. And because our Controller is the best in the state (nation? world?), this is likely going to be very close to the final product. We will now start on budget discussions, with each committee holding budget hearings and the Finance committee (which I chair) putting it all together and recommending a final product for the Board to consider in October. Should be an interesting few months as we solve a $5.5 million budget deficit.

At the Board meeting, we passed several important resolutions. One resolution we passed authorizes a Public Health Service Agreement for 2011-2012 with the Ingham
Health Plan Corporation (IHPC). For those that don't know, we contract with the IHPC to provide public health services to low income residents of Ingham County. The IHPC amount this year is for services up to $2,603,118. The services include:
- Public Health Nursing
- Adult Dental
- Outreach and Enrollment
- Support for the Ingham Community Health Center Network

The Ingham Health Plan is a tremendous success in providing health care to the uninsured. If you are unfamiliar, go to www.ingham.org and follow the page to the Health Department and you can get all the info. I am very proud of this program and our support for it.

We also transferred funds to the State of Michigan for the purpose of supporting
Disproportionate Share Hospital (DHS) payments to Ingham Regional Medical Center and Sparrow Health System. The federal government allows for an “Indigent Care Agreements Pool” for hospitals which qualify for Medicaid Disproportionate Share (“DSH”)payments and allows them to receive DSH payments under the Indigent Care Agreements Pool so long as: (a) the hospital had an Indigent Care Agreement with a local health care entity, such as Ingham Health Plan Corporation; and (b) the Indigent Care Agreement stipulated that direct or indirect health care services be provided to low-income patients with special needs who are not covered under other public or private health care programs. Both Ingham Regional Medical
Center and Sparrow Health are qualified to receive these special payments.
The Ingham Health Plan Corporation was created in 1998 as a non-profit corporation for the purposes of promoting, arranging, and managing an effective system of health care in a manner which decreases the cost of health care services to the community at large and persons unable to pay for such care. The Corporation also supports certain public health services which are directed at low-income, uninsured persons, including services delivered by the Ingham County Health Department. We transferred up to $3.8 million for the year from the Health Fund to support Disproportionate Share Hospital Payments to Ingham Regional Medical Center and Sparrow Health System.

The Board also passed a resolution calling on the State Legislature to oppose efforts to make Michigan a right-to-work state. After hearing that other counties were providing resolutions (both for and against), we decided Ingham County should weigh in to ensure that our legislators and our countywide association know the opinions of the elected commissioners of Ingham County. There was no discussion on the Board floor, and the resolution passed on a 13-2 vote. The resolution (and all others) can be read here.

We passed a resolution to form a special committee to look at hiring a new Health Director. Unfortunately, our Health Director - Dean Sienko - is retiring. He has been tremendous as a Health Director, and will be missed. We have a world class Health Department due to his leadership, and he will be hard to replace. The task force has a tough job ahead of them. We are also going to have to replace the director of the Potter Park Zoo. We learned that Gerry Brady is retiring and we will need to fill that post as well. Tough times, but new leadership is always an opportunity for new ideas and innovation!

The final resolution I will mention is the hiring of a part-time veterinarian. Ingham County Animal Control has historically contracted for veterinary services at the shelter to examine and treat sick and injured animals and prescribe medications. The annual renewal of the contract has always been tenuous as few, if any, applicants apply. We had persuaded a local veterinarian to apply until a more permanent vendor could be contracted; however, that permanent vendor has eluded us. Each time the position is up for renewal it struggles to attract candidates based
on the wage amount, hours and contract requirements. The current vendor (veterinarian) accepted the bid on a short term basis simply to help the shelter
out. However, due to his busy practice he has expressed his desire to opt out but will continue until a replacement is found. However, he proposed to double the current contract. We couldn't accept that, so we decided to hire a part-time veterinarian (instead of contracting) for 20 hours per week. We included in the job description spaying and neutering of animals and other medical procedures to be required as part of the service conducted at the shelter at no additional cost. Animal Control will have the equipment and facilities to conduct such treatments. In addition to creating a more stable position, it ensures better training of animal care staff by a veterinarian, increases the quality of care, provides much needed veterinary care of the high volume of sick injured and abused animals brought into the county’s animal shelter, and results in long term savings on funds and resources currently spent on injured animal care, surgical, spay/neuter and veterinary costs.

I will remind those that read this blog by getting the facebook email that facebook is eliminating the group at some point. So, if you want to continue to get notifications, please "like" my facebook fan page. You can go here to do it - http://www.facebook.com/#!/andyschor.

I hope you have a great week!

Special Blog: Tri-County Office on Aging

This week, I am going to take a different approach to this blog. While I usually report what is going on at the County Commission, I would like to focus on one of the many independent boards and commissions that Commissioners serve on – the Tri-County Office on Aging.

The Tri-County Office on Aging (TCOA) runs many awesome programs to assist and protect seniors and elder residents of the Ingham, Clinton, and Eaton couhttp://www.blogger.com/img/blank.gifnty area. This includes Meals on Wheels, the MIChoice Home and Community Based Waiver, long-term care programs, Medicaid and Medicare programs, etc. You can see all they do at www.tcoa.org and it is definitely an impressive list.

I am one of three Ingham County Commissioners that serve on the Tri-County Office on Aging board. We are joined by three representatives of the City of Lansing, as well as representatives of Eaton and Clinton counties. Our role is to make policy decisions for the Tri-County Office of Aging (which is one of the several Office on Aging Boards statewide).

On the Board, we set and review the budget of TCOA on a monthly basis. They have excellent staff, lead by Marion Owen (the executive director) and there are not many controversial items.

I have been greatly involved in several issues that come up frequently regarding important services provided to our seniors. One is Meals on Wheels. I don’t think I have to explain that one…it ensures that seniors receive balanced and nutritional meals regularly, and is has volunteers pick up the food at our facility and drive it to seniors in need. What a great program. The second great program the home MIChoice and community based waiver. Seniors generally want to remain in their homes as they get older. Unfortunately, there is more money available for nursing care than for at-home care. Nursing homes and care facilities are far more expensive for seniors and communities. The MIChoice program provides assistance to seniors for this home health care who want to stay in their home and just need a certain level of medical assistance. As Commissioner Rebecca Bahar-Cook pointed out in a recent Lansing State Journal op-ed (July 7, 2011), “the average home health care visit under Medicare Part A and Part B is just $137. That same service if performed in a skilled nursing facility is $325 a day. If that service is performed in a hospital the cost is almost $1,500 a day.” I am not against nursing homes - they serve an important resource for those that need that level of care. I just believe that we need to also allow people to stay in their homes as they get older, and need to provide these necessary services at less cost to the elder and the community.

At the most recent meeting, we learned several interesting things. First, we learned that our budget would not have to be amended because the state budget did not include cuts to in-home services, volunteer services or nutrition. That is good news for our seniors, and for ensuring that we can provide the best care for those older citizens in need. Now we can get started on the 2012 budget. We also learned that the state Department of Community Health is holding a series of forums around the state regarding their plan for developing a Medicare and Medicaid integrated care initiative in Michigan. Michigan is one of 15 states to win a grant from the federal government to do this. DCH will develop a plan with public and consumer input. While I am happy they are looking into this to see about efficiencies and maximizing federal dollars, they are not holding a forum in the Lansing area which is very disappointing.

In addition, we heard updates about the nutrition programs that TCOA runs, as well as the Meals on Wheels program and input regarding that program. We also worked on updating the employee handbook to ensure that all procedures are clearly spelled out to employees.

The TCOA board is just one of many boards and commissions that county commissioners serve on as representatives of our constituents and the community. There are so many others, and I will try to highlight them in this blog when possible

NOTE: As always, I will add a reminder here that I will be posting this blog through facebook on my political facebook page (www.facebook.com/andyschor) instead of my personal facebook page. Please go to www.facebook.com/andyschor and click on “like” if you want to be on the list of people to have the notice in your news feed. I will also continue to send out the blog through my facebook group, but facebook is eliminating that group shortly.