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File #: 20-096    Version: 1 Name:
Type: Memo Status: Passed
File created: 2/21/2020 Departments: HEALTH
On agenda: 3/10/2020 Final action: 3/10/2020
Title: Accept this report and offer guidance regarding additional public feedback on the FY 2020-21 Health Budget proposals as part of the required Beilenson hearing.
Attachments: 1. 20200319_att_Notice of Public Hearing - English.pdf
Special Notice / Hearing: 14-day notice pursuant to CA Health & Safety Code section 1442.5__
Vote Required: None

To: Honorable Board of Supervisors

From: Louise Rogers, Chief of Health
Srija Srinivasan, Deputy Chief of Health

Subject: Beilenson Hearing concerning FY 20-21 Health Budget Proposals

RECOMMENDATION:
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Accept this report and offer guidance regarding additional public feedback on the FY 2020-21 Health Budget proposals as part of the required Beilenson hearing.

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BACKGROUND:
As we updated your Board at the January 28th study session, County Health (Health) has been engaged in a multi-year phased approach to addressing a structural budget deficit. Health will meet its current 2019-20 fiscal year responsibilities within our budgeted resources. However, given an estimated $57M expected shortfall for the FY 2020-21, we are bringing forward proposals for $33M in revenue increases and $16M in cost reductions for your Board's guidance and public input in advance of the usual timeline for FY 2020-21 budget planning. After implementing the above-referenced revenue increases and cost saving measures, we are proposing to cover the $8M remaining shortfall with SMMC reserves. We strive to treat everyone who may be impacted by the reductions with sensitivity and respect and part of that is affording them substantial advance notice.

The cause of the structural deficit remains that Health revenues are largely flat or declining while costs for both directly operated and contracted functions continue to increase. The majority of Health expenditures are in the workforce, where compensation and benefits are driven substantially by high Bay Area costs and competition with private healthcare employers. Our greatest asset is the workforce of our organization and of our partner organizations who carry out the important work we do to further our mission of longer and better lives for everyone in San Mateo County. At the same time, salary and benef...

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