Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, SMC Health
Srija Srinivasan, Deputy Chief, SMC Health
Subject: County Health Budget Update and Plan for FY 2021-23
RECOMMENDATION:
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Accept this report from County Health regarding the plans for the FY 2021-23 budget.
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BACKGROUND:
We are bringing forward our budget plans now for the third season (Phase 3) as we reduce the structural deficit in Health that has developed over time as a result of increasing costs and flat and declining revenues:
* Phase 1: Fall 2018 through June 30, 2019 for FY 2019-20: Strategies that largely increased revenues and decreased expenses to address a projected $46M gap without severe impacts to clients/ residents and elimination of only 12 positions.
* Phase 2: Fall 2019 through June 30, 2020 for FY 2020-21: Strategies that slated increased revenues and required some reductions in services and workforce (87 positions, of which 28 were filled) to address the projected $57M gap. As a result of the pandemic, some strategies had to be delayed and the gap was initially closed in the budget with $19.5M in one-time funds, comprised of $14M in Health reserves and $5.5M of additional Net County Cost.
* Phase 3: As we plan for what we now estimate to be approximately $17M for FY 2021-22 and $23M across Health for FY 2022-23, the gap is less than 3% of our $901M (FY 20-21) Health budget. The focus of this report is our proposed plan for Phase 3--the next two-year budget cycle FY 2021-23 that addresses the structural gap of revenues not growing at the pace of our expenses in the context of the pandemic.
Planning assumptions and timeline: After receiving your input, our plan is to implement the budget items by September 1, 2021, except where otherwise noted. The timeline reflects our goal of assuring we can alert any impacted employees and contractors no later than April 1, 2021, at least ...
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