-  FOR THOSE PRESENT TODAY WHO FEEL MORE COMFORTABLE

[00:00:02]

WE HAVE SOMEONE AVAILABLE WHO WILL TRANSLATE YOUR COMMENT INTO ENGLISH.

FOR THOSE WHO REQUIRE TRANSLATION OF THE WHOLE MEETING...

FOR THOSE PRESENT TODAY WHO FEEL MORE COMFORTABLE MAKING THEIR COMMENTS IN SPANISH, PLEASE LET US KNOW.

WE HAVE SOMEONE AVAILABLE WHO WILL TRANSLATE YOUR COMMENT INTO ENGLISH.

FOR THOSE WHO REQUIRE TRANSLATION OF THE WHOLE MEETING, PLEASE MAKE ARRANGEMENTS IN ADVANCE WITH THE CLERK OF THE BOARD, EITHER BY VISITING THEIR OFFICE IN PERSON OR BY CALLING 454-2323.

WE WANNA HEAR FROM OUR NON-ENGLISH SPEAKING COMMUNITY, SO PLEASE DO REQUEST TRANSLATION ASSISTANCE IF YOU FEEL LANGUAGE IS A BARRIER TO YOUR PARTICIPATION.

[CALL TO ORDER]

I WOULD LIKE TO CALL TO ORDER THE JUNE 10TH, 2026 MEETING OF THE SANTA CRUZ COUNTY BOARD OF SUPERVISORS.

WILL THE CLERK PLEASE CALL THE ROLL? - CERTAINLY, CHAIR. SUPERVISOR DE SERPA? - UH, PRESENT.

- KOENIG? - HERE.

- HERNANDEZ? - HERE.

- AND MARTINEZ? - HERE.

[MOMENT OF SILENCE AND PLEDGE OF ALLEGIANCE]

DO ANY OF MY COLLEAGUES HAVE ANYBODY THEY'D LIKE TO RECOGNIZE THIS MORNING? SEEING NONE, PLEASE JOIN ME IN A MOMENT OF SILENCE.

[SILENCE] THANK YOU.

PLEASE JOIN ME FOR THE PLEDGE OF ALLEGIANCE.

- I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

[CONSIDERATION OF LATE ADDITIONS TO THE AGENDA; ADDITIONS AND DELETIONS TO CONSENT AND REGULAR AGENDAS]

UM, ON THE REGULAR AGENDA FOR ITEM NUMBER FOUR, WE HAVE ADDITIONAL MATERIALS.

WE HAVE ADDED AN ATTACHMENT THAT WILL BE INSERTED AFTER PAGE EIGHT.

UM, THIS, UH, IS CONTAINING THE 2026, '27 PROPOSED BUDGET QUESTIONS MEMO.

AND FOR ITEM EIGHT ON THE REGULAR AGENDA, WE ALSO HAVE ADDITIONAL MATERIALS.

THESE ARE CORRECTED ATTACHMENTS.

UH, THEY'RE REPLACING PAGES, UM, 90 THROUGH 91, AND THE ATTACHMENT IS HSD CAL '26/'27.

UM, LASTLY, FOR ITEM NUMBER 9, WE HAVE ADDITIONAL MATERIALS.

WE HAVE THREE NEW ATTACHMENTS THAT WILL BE INSERTED AFTER PACKET PAGE 113, AND THESE ATTACHMENTS ARE A MEMO ON THE APDO PROPOSAL, UM, THAT'S DATED JUNE 9TH, 2026.

WE ALSO HAVE THE PAGE AND DUDLEY, DUDLEY CONTRACT, WHICH WAS APPROVED ON MARCH 8TH, 2022, AND THE PAGE AND DUDLEY AMENDMENT THAT WAS APPROVED ON JUNE 10TH, 2025.

- THANK YOU.

[COUNTY EXECUTIVE OFFICER BUDGET OVERVIEW]

WE ARE GONNA START OFF BY INTRODUCING OUR CEO TO GIVE A BUDGET OVERVIEW, UH, WITH HER TEAM, AND THEN WE'LL BE GIVING OUR COLLEAGUES JUST AN OPPORTUNITY TO MAKE SOME HIGH LEVEL COMMENTS ABOUT THE BUDGET, IF APPROPRIATE OR IF YOU WOULD LIKE.

AND THEN WE'LL BE GOING OUT TO PUBLIC COMMENT, AND THAT WILL BE OUR GENERAL PUBLIC COMMENT THAT WILL BE ON THE CONSENT AGENDA AND ANYTHING THAT'S OF PURVIEW OF THE BOARD, UM, TODAY, AND NOT OUR REGULAR AGENDA ITEMS. SO, UM, NOW EVERYBODY UNDERSTANDS THE PROCESS.

UM, I WELCOME YOU ALL HERE, AND I'M VERY PLEASED TO TURN IT OVER TO CEO COBURN TO GIVE US OUR BUDGET OVERVIEW.

- THANK YOU.

GOOD MORNING, UH, CHAIR MARTINEZ AND MEMBERS OF THE BOARD.

UM, SO TODAY I AM GOING TO BE GIVING A PRESENTATION THAT STARTS OUT SOMEWHAT SIMILAR TO WHAT WE PRESENTED WHEN WE KICKED OFF OUR BUDGET HEARINGS ON MAY 5TH.

BUT THE BUDGET NUMBERS THAT WE'RE GONNA BE PRESENTING INCORPORATE OUR SUPPLEMENTAL CHANGES THAT WERE RECENTLY ADDED FOR VARIOUS DEPARTMENTS.

UM, AS I'M JOINED TODAY ACROSS THE TABLE, I... WE HAVE HERE OUR COUNTY BUDGET MANAGER, MARCUS PIMENTEL,

[00:05:05]

SO, UM, AS A REMINDER, JUST FOR, WE HAVE, UM, A LARGE AUDIENCE SO, UM, I JUST WANNA REMIND EVERYONE, YOU KNOW, THE COUNTY IS PROVIDING A VARIETY OF SERVICES, BOTH MUNICIPAL AND STATE AND FEDERAL MANDATED.

UM, WE ARE THE SAFETY NET FOR THE COUNTY, PROVIDING THOSE SERVICES COUNTY-WIDE, IN ADDITION TO MORE MUNICIPAL SERVICES IN OUR UNINCORPORATED AREAS.

WE'VE BEEN ABLE TO DELIVER A BALANCED BUDGET IN A VERY CHALLENGING FISCAL ENVIRONMENT WITH VARIOUS FEDERAL CHANGES, BOTH POLICY AND BUDGET, UM, BEING, UM, SENT DOWN FROM, FROM THE FEDERAL GOVERNMENT THROUGH THE STATE TO US, AND AS WELL AS THE STATE MAKING VARIOUS CHANGES.

UM, WE ARE... HAVE IN THIS PROPOSED BUDGET, UM, NO LAYOFFS AT THIS TIME, BUT WE ARE DELETING A SIGNIFICANT, SIGNIFICANT NUMBER OF VACANT POSITIONS, UM, WHICH, YOU KNOW, WILL HAVE, UM, VARIOUS IMPACTS ON OUR SERVICES.

UM, WE ARE CONTINUING TO PRIORITIZE INVESTMENTS IN AFFORDABLE HOUSING, COUNTY OPERATIONS, UM, NATURAL RESOURCES WILDFIRE RESILIENCY, AND HOMELESSNESS RESPONSE.

UM, WE HAVE HAD TO UTILIZE $43 MILLION IN ONE-TIME RESOURCES INCLUDING $31 MILLION FROM OUR RESERVES.

SO, UM, WE ARE JUST BEGINNING THE WORK OF REALLY ADDRESSING OUR STRUCTURAL ISSUES AND THE HR1 IMPACTS THAT WE WILL BE EXPERIENCING OVER THE NEXT SEVERAL YEARS.

SO NEXT SLIDE.

UM, TODAY IN TERMS OF THE FLOW OF THE PRESENTATION, UM, WE'RE GOING TO JUST TALK ABOUT SOME OF THE HIGH LEVEL ISSUES.

WE'LL THEN DIVE INTO THE PRINCIPLES, UM, THAT THE BUDGET'S BEEN BASED ON, HOW WE BALANCE THE BUDGET, AND SOME OF THE RISKS GOING FORWARD.

WE'LL HAVE A DISCUSSION WITH YOU, AND, UM, GET TO THE RECOMMENDED ACTIONS.

UM, SO IN TERMS OF, UM, HOW WE GOT HERE IF YOU COULD GO TO THE NEXT SLIDE, UM, THIS IS THE ARC OF WHERE WE CAME FROM.

WE HAD THE MID-YEAR REPORT IN FEBRUARY.

WE CAME BACK TO THE BOARD WITH THE BUDGETING PRINCIPLES THAT LAID THE FOUNDATION FOR OUR BUDGET, AND THEN WE GOT TO THE PROPOSED BUDGET PRESENTATION ON MAY 5TH.

UM, THIS HAS ALL BEEN INFORMED BY OUR FORECAST, OUR MID-YEAR UPDATE.

UM, WE'VE PRESENTED TO THE BOARD THAT WE HAVE A SIGNIFICANT STRUCTURAL DEFICIT THAT WILL EXTEND, UM, INTO FUTURE YEARS, AND WHAT HAS BEEN GUIDED...

IF YOU COULD GO TO THE NEXT SLIDE, MARCUS.

UM, THIS ENTIRE BUDGET PROCESS HAS BEEN GUIDED BY THESE BUDGETING PRINCIPLES THAT THE, WE TALKED TO THE BOARD ABOUT, UM, IN F-, IT, A FEW MONTHS AGO.

SO WE'VE BEEN REALLY PRIORITIZING TRYING TO MAINTAIN OUR MANDATES, GENERATE ADDITIONAL REVENUE WHERE WE CAN, UM, BALANCING THE IMPACTS TO BOTH, UM, THE COUNTY AND OUR COMMUNITY SERVICE PROVIDERS WHO ARE AN EXTENSION OF THE COUNTY.

WE'VE BEEN TRYING TO FIGURE OUT WHERE WE CAN, UM, WHERE THERE ARE DISCRETIONARY SERVICES, IDENTIFYING DIFFERENT FUNDING SOURCES FOR THOSE FEE ADJUSTMENTS.

FOR INSTANCE, IN HEALTH SERVICES, WE'RE GOING AFTER A RATE INCREASE FOR OUR HEALTH CLINICS SO REALLY TRYING TO SHORE UP THE REVENUE WE'RE BRINGING IN, UM, TRYING TO MAXIMIZE WHAT WE'RE LEVERAGING, AND THEN JUST BUILDING THE ONGOING CAPACITY OF THE COUNTY TO CLOSE THAT GAP AND TO CONTINUE TO DELIVER OUR SERVICES.

SO LONG TERM, WE'RE GONNA HAVE TO COME UP WITH SOME ADDITIONAL STRATEGIES FOR CLOSING WHAT IS A ALMOST A $68 MILLION GAP THAT WE'RE CURRENTLY PROJECTING AS A DEFICIT IN THE OUT YEARS.

IN TERMS OF OUR BUDGET TIMELINE, WE ARE NOW IN JUNE FOR THE BUDGET HEARINGS.

UM, I DO WANNA HIGHLIGHT, WHICH I'LL TALK ABOUT A LITTLE BIT LATER, THE STATE IS STILL IN NEGOTIATION OF THEIR BUDGET AGREEMENT.

THE LEGISLATURE IS CURRENTLY, UM, WORKING ON RECONCILING THE SENATE AND ASSEMBLY BUDGET FRAMEWORKS AND PRESENTING, UH, AN AGREEMENT FOR THE GOVERNOR TO, UM, THEN CONSIDER AND DECIDE WHAT HE IS GOING TO KEEP OR POTENTIALLY VETO IN THAT BUDGET AGREEMENT.

SO WE ARE EAGERLY WAITING ON WHAT MIGHT, UM, BE IN THAT.

THE ASSEMBLY BUDGET FRAMEWORK DOES HAVE SOME SIGNIFICANT, UH, FUNDING FOR COUNTIES,

[00:10:02]

UM, SO WE WILL BE COMING BACK TO THE BOARD AFTER OUR BUDGET HEARINGS IN SEPTEMBER WITH THE FINAL BUDGET AND MAKING ANY FINAL ADJUSTMENTS.

SO WITH THAT, I'M GOING TO TURN IT OVER TO MARCUS.

- GOOD MORNING, MARCUS PIMENTEL, YOUR COUNTY BUDGET MANAGER.

THIS HAS BEEN A CHALLENGING BUDGET SEASON.

AND AS YOU KNOW, ACROSS CALIFORNIA AND ACROSS THE COUNTRY, MANY AGENCIES ARE EXPERIENCING SIMILAR CHALLENGES.

ACROSS CALIFORNIA, MANY COUNTIES ARE HAVING TO RELY ON THIS MOMENT ON THEIR ONE-TIME RESERVES TO KIND OF PLUG THEIR GAPS, THEIR GAPS.

AND WHAT WE'RE SEEING IS SOMETHING THAT'S, UM, WHILE CHALLENGING FOR US TO ACCEPT, IT IS SOMETHING A-, ALL OF OUR PEERS ARE STRUGGLING WITHIN THIS MOMENT TO TRY TO ADAPT TO THE LEVEL WHERE WE HAVE FUNDED MANDATES OR UNFUNDED MANDATES OF DELIVERY OF SERVICES, AND THE FUNDING ISN'T THERE TO SUPPORT THAT.

AS NICOLE MENTIONED, YOU'VE SEEN THIS PRESENTATION LARGELY ON MAY 5TH.

WE'VE UPDATED IT FOR THE SUPPLEMENTAL CHANGES.

THE SUPPLEMENTAL AT, AT ITS HIGHEST LEVEL, UM, ADDED SEVEN POINT FIVE MILLION DOLLARS OF EXPENSES FUNDED BY SEVEN POINT SIX MILLION DOLLARS OF REVENUE.

SO WE HAD A LITTLE BIT OF A NET GAIN IN THE SUPPLEMENTAL, SO IT HASN'T MADE US WORSE.

IT'S EFFECTIVELY WE'RE THE SAME, AND THAT'S NORMAL.

THE SUPPLEMENTAL IS A PLACE WHERE TYPICALLY NEW GRANT OPPORTUNITIES ARE RECOGNIZED AND BROUGHT IN.

IN TOTAL, OUR GENERAL FUND INCREASED, UH, EIGHT HUNDRED AND FIFTY-ONE MILLION DOLLARS OF SPEND, UH, AGAINST, UH, AGAINST OUR REVENUES, ADJUSTED ABOUT 820.

OUR STAFFING IS 2683.

WE ADDED ONE IN THE SUPPLEMENTAL FUNDED, AND OUR RESERVES STAND AT TEN POINT FOUR PERCENT, JUST ABOVE OUR FLOOR OF TEN PERCENT.

SO FROM A PERSPECTIVE OF, WE GET THE QUESTION A LOT, "HOW WILL, HOW WILL THIS DRAW DOWN OUR RESERVES? HOW DO WE THINK IT WILL IMPACT OUR BOND RATING?" WHICH IS CRITICAL FOR AN AGENCY LIKE US THAT'S RELIED ON DEBT ISSUANCE IN THE LAST NUMBER OF YEARS.

AT THIS POINT IN TIME, WE FEEL CONFIDENT OUR BOND RATING SHOULD REMAIN, UM, AS IT IS IN THE TRIPLE A HIGHEST, STRONGEST LEVEL.

WE'RE GONNA BE DOING SOME NEW RATINGS IN THE, IN THE FALL SO WE'LL BE ABLE TO VALIDATE THAT.

BUT WE EXPECT THAT THE DRAWDOWN IN RESERVES, BECAUSE IT'S SOMETHING THAT'S BEING SEEN ACROSS CALIFORNIA, ACROSS OTHER AGENCIES, THAT IT'S, THAT THE RATING AGENCIES ARE EXPECTING THIS.

AND WE HAVE A LONG HISTORY OF BEING VERY PRUDENT, PRUDENT FINANCIALLY WITH ALL OF OUR DECISIONS.

AS YOU'LL HEAR AND YOU'VE HAVE HEARD, THERE ARE NO LAYOFFS IN THIS PROPOSED BUDGET.

THE REDUCTIONS ARE ALL IN VACANT POSITIONS.

UM, AGAIN, THE DRAWDOWN ON RESERVES IS ABOUT THIRTY MILLION DOLLARS, BRINGING US TO TEN POINT FOUR PERCENT.

I'LL TURN IT OVER TO RYAN FRIEDRICH, WHO'S, WILL KIND OF WALK YOU THROUGH SOME OF THE DETAILS THAT, IN THIS BUDGET.

- ALL RIGHT. THANK YOU, MARCUS. I'M RYAN FRIEDRICH.

I'M A PRINCIPAL ANALYST HERE IN THE CEO'S OFFICE, AND I'VE BEEN TASKED WITH THE, UH, WONDERFUL PRIVILEGE OF DIVING INTO THESE, UH, NUMBERS A LITTLE BIT DEEPER FOR YOU ALL.

SO BEAR WITH ME AS I THROW A LOT OF INFORMATION AT ALL OF YOU IN A VERY SHORT AMOUNT OF TIME.

UM, WE'RE GONNA BE STICKING TO LOOKING AT THE GENERAL FUND BECAUSE THAT IS THE COUNTY'S MOST DISCRETIONARY, UH, ACCOUNT FOR ALL THINGS CROSS-FUNCTIONALLY WITHIN THE COUNTY.

UM, AS YOU KNOW, IT'S $850,000,000 GENERAL FUND OUT OF A ONE POINT THREE BILLION DOLLAR BUDGET.

THOSE OTHER FUNDS THAT WE'RE NOT GONNA TALK ABOUT ARE THINGS LIKE THE ROAD FUND, WHICH YOU CAN PROBABLY GUESS WHAT THAT DOES, OR THE SANITATION FUNDS, YOU CAN PROBABLY GUESS WHAT THEY DO.

SO, BUT WHEN LOOKING AT A GENERAL FUND, THAT IS REALLY CROSS-FUNCTIONAL, AND SO WE'RE GONNA BE TAKING A DEEPER LI-, DEEPER LOOK INTO THAT UH, INTO THAT FUND RIGHT NOW.

SO THE GENERAL FUND IS SUPPORTED BY $820,000,000 WORTH OF FUNDING SOURCES, WHICH WE CAN BROADLY CATEGORIZE UNDER THREE MAIN BUCKETS.

FIRST IS OUR CHARGES FOR SERVICES.

SO THAT'S IF YOU GO TO BOOK A, UH, BOOK A SWIM LANE AT SIMPKINS SWIM CENTER, OR A PICNIC TABLE AT ONE OF OUR COUNTY PARKS, OR APPLYING FOR A BUILDING PERMIT, WE CHARGE FOR THOSE SERVICES AT COST.

OUR TAX REVENUE IS OUR LOCAL TAX REVENUE, SO THAT'S PROPERTY TAXES THAT WE PAY, THAT'S SALES TAX, THAT'S TRANS OCCUPANCY OR HOTEL TAX THAT WE ALL PAY INTO OUR, UH, INTO OUR COUNTY GOVERNMENT COFFERS.

AND THEN LASTLY, OUR BIGGEST CHUNK, UH, OF LOCAL REVENUES IS WHAT WE GET THROUGH INTERGOVERNMENTAL FUNDS, WHICH IS A FANCY WORD FOR SAYING FUNDS THAT WE GET FROM THE FEDERAL GOVERNMENT AND FROM THE STATE GOVERNMENT AS WELL.

AND WE'LL TALK ABOUT THIS A BIT MORE LATER WHEN WE TALK ABOUT RISKS IN THE GENERAL FUND.

BUT THIS BEING OUR BIGGEST FUNDING SOURCE, IT'S ALSO LATELY BEEN OUR MOST UNRELIABLE FUNDING PARTNER.

SO IT'S SOMETHING TO REALLY FLAG AS WE LOOK AT HOW, YOU KNOW, WE'RE SEEING DECREASES IN OUR INTERGOVERNMENTAL FUNDS, YOU KNOW, THAT ARE REALLY OFFSETTING ANY, YOU KNOW, LOCAL TAX REVENUE THAT WE HAVE BEEN ABLE TO INCREASE WITHIN OUR BUDGET.

AND OVERALL, WE'RE JUST SEEING A, A REALLY FLATLINED WITHIN OUR COUNTY REVENUES, UM, UH, THROUGHOUT THIS BUDGET SEASON.

NEXT SLIDE.

I WANNA TAKE A MOMENT TO, UH, TO JUST SHOW OUR SCHEDULE

[00:15:01]

THESE ARE SALES TAX MEASURES THAT HAVE BEEN PASSED, UH, THE FIRST ONE, I BELIEVE, IN 2018, THE SECOND ONE IN 2024.

UM, THESE HAVE REALLY HAVE BEEN, UH, A LIFEBOAT FOR THE GENERAL FUND OVER THESE PAST FEW YEARS AS WE'VE SEEN REALLY INCREASED COSTS, UM, REALLY BEGIN TO HIT OUR, REALLY BEGIN TO HIT OUR EXPENSE LEDGER.

SO YOU'LL SEE OUR MEASURE G GENERAL FUND SUPPORT OF 10.3 MILLION AND THEN MEASURE K, WHICH HAS A FEW MORE PROGRAMMATIC USES, UM, THAT WE WANTED TO JUST HIGHLIGHT IN MORE DETAIL, SHOWING THAT THESE ARE ALL INTACT, AND WE CAN GO INTO FURTHER DETAILS IF THE BOARD REQUESTS.

UH, THIS SLIDE IS ONE OF, YOU KNOW, OUR REALLY CRUX, UH, PIECES OF INFORMATION WHEN IT COMES TO PRESENTING HOW OUR GENERAL FUND WORKS.

YOU'LL SEE EVERYTHING THAT IS IN GOLD AND THAT IS IN RED ARE, ARE R-, ARE ONE-TIME SOURCES OR ARE REALLY DISCRETIONARY LOCAL TAX REVENUE THAT THE COUNTY CAN USE FOR PRETTY MUCH ANY SERVICE THAT OUR POLICIES, POLICYMAKERS REALLY WANT US TO PURSUE.

AND SO WE REALLY WANTED TO HIGHLIGHT AND REALLY ZOOM IN ON THOSE GOLD AND RED BARS TO SHOW HOW EXACTLY OUR LOCAL REVENUES ARE ALLOCATED ACROSS THESE SEVEN FUNCTIONAL AREAS.

AND WE CAN SEE THAT THE MAJORITY OF THOSE, UH, FUNDING SOURCES THOSE LOCAL GENERAL FUND SOURCES, UH, GO TO PUBLIC SAFETY AND JUSTICE, UH, PARTICULARLY BECAUSE THERE REALLY ISN'T A LOT OF OUTSIDE SOURCES OR THE OUTSIDE FUNDING FOR THESE SERVICES.

SO THE STATE AND THE FEDS REALLY SAY, YOU KNOW, UH, LAW ENFORCEMENT, THAT'S A LOCAL ISSUE.

YOU KNOW, UH, WHETHER THAT'S THROUGH THE SHERIFF'S OFFICE, WHETHER THAT'S THROUGH THE DISTRICT ATTORNEY, OR WHETHER THAT'S THROUGH PUBLIC DEFENSE, IT'S REALLY CONSIDERED A, A, A LOCAL ISSUE.

UM, HEALTH AND HUMAN, WHILE IS THE, WHILE THOSE DEPARTMENTS ARE OUR BIGGEST DEPARTMENTS WITHIN THE GENERAL FUND, THEY TEND TO BE HIGHLY LEVERAGED, AND WE'LL, WE'LL TALK A LITTLE BIT ABOUT THAT IN, IN A MINUTE.

SO THAT'S WHY, THOUGH THEY ARE THE LARGEST, THEY DON'T NECESSARILY RECEIVE THE MOST AMOUNT OF GENERAL REVENUES.

AND THEN WHEN YOU ADD THOSE TWO FUNCTIONAL AREAS TOGETHER, BOTH PUBLIC SAFETY AND HEALTH AND HUMAN, THAT ACCOUNTS FOR 88% OF OUR LOCAL DISCRETIONARY DOLLARS GOING TO THOSE AREAS, LEAVING JUST THE REMAINING 12% TO GO TO OUR PLANNING DEPARTMENT, TO GO TO OUR AG COMMISSIONER, TO GO TO COUNTY COUNCIL, TO GO TO OUR AUDITOR CONTROLLER FOR THEIR SERVICES.

A BIG THEME OF OUR, OF OUR BUDGET SEASON THIS YEAR IS REALLY TALKING ABOUT AND REALLY EXPOSING A STRUCTURAL DRIVER THAT'S DRIVING, UH, OUR DEFICITS AND OUR FORECASTS, AND THAT REALLY HAS TO DO WITH THE INCREASED COST OF LIVING THAT'S DRIVING UP OUR LABOR COSTS.

YOU SEE AN 8% GROWTH IN, IN OUR NEGOTIATED, UH, SALARY AND BENEFIT INCREASES JUST VASTLY OUTPACING OUR LOCAL REVENUE SOURCES TO KEEP UP.

AND SO THAT IS SOMETHING THAT WE ARE GONNA BE REALLY FOCUSED ON OVER THESE NEXT FEW YEARS AND REALLY TRYING TO RIGHT-SIZE AND REALLY RESTRUCTURE OURSELVES TO WHERE WE, WE CAN ABSORB THOSE COSTS.

BECAUSE WE'RE REALLY SEEING A, YOU KNOW, A MANIFEST OF HOW LOCAL COST OF LIVING IS REALLY IMPACTING LOCAL WAGES, AND WE WANNA BE ABLE TO BE A GOOD EMPLOYER FOR OUR STAFF AND REALLY GIVE THEM A CHANCE TO LIVE AND WORK, UH, IN THE COMMUNITY THAT THEY SERVE.

AND DOING SO THOUGH JUST SIMPLY OUTPACES THE REVENUE SOURCES THAT ARE AVAILABLE TO US.

AS MENTIONED EARLIER, HEALTH AND HUMAN SERVICES ACCOUNTS FOR THE VAST MAJORITY, UH, OF OUR, OF OUR GENERAL FUND.

UH, YOU CAN SEE HERE THAT, UH, 93 CENTS TO THE DOLLAR, UH, THAT IS SPENT ON, ON THE GENERAL FUND IS LEVERAGED THROUGH OUTSIDE FUNDING SOURCES, LEAVING JUST THE, A SMALL REMAINDER, UM, LEANING ON OUR GENERAL REVENUE SOURCES FOR THAT.

WHILE PUBLIC SAFETY, ON THE OTHER HAND, UH, IS 62 CENTS TO THE DOLLAR NEEDING GENERAL FUND SOURCES IN ORDER TO PROVIDE THOSE SERVICES.

LASTLY, WHEN WE TALKED ABOUT STAFFING, IT WAS MENTIONED EARLIER BY CEO COBURN THAT THERE ARE SOME DELETIONS IN THIS BUDGET RELATED TO VACANT POSITIONS, AND YOU CAN SEE THE DISTRIBUTION OF WHERE THOSE POSITIONS, ARE, ARE BEING, UH, ARE, ARE BEING TAKEN BACK FROM.

UM, THE VAST MAJORITY OF THEM COMING FROM HEALTH AND HUMAN, A LOT OF WHICH IS RELATED TO, UH, UH, IMPACTS FROM HR1.

UM, THIS DOESN'T ALSO INCLUDE OR COUNT THAT CURRENTLY RIGHT NOW THE COUNTY IS UNDER A HIRING FREEZE.

UM, SO AS NEW, UH, POSITIONS BECOME VACANT, THEY GO THROUGH A, UH, AN EXTREMELY THOROUGH REVIEW BEFORE WE EVEN CONSIDER, UH, FILLING ANY NEW VACANCIES THAT DO OCCUR.

ALL RIGHT, I'M GONNA PASS IT BACK OVER TO MARCUS PIMENTEL TO TALK ABOUT HOW WE GOT TO A BALANCED BUDGET.

- THANKS, RYAN.

UM, AGAIN, AS A, OUR OPENING COMMENTS THIS HAS BEEN A CHALLENGING YEAR FOR A LOT OF REASONS.

THIS BUDGET AND THE USE OF ONE-TIME RESERVES IS ATYPICAL FOR OUR COUNTY.

WE'VE TYPICALLY NOT HAD TO GO THERE BUT IN THE ESSENCE OF FOLLOWING OUR FOUNDATIONAL PRINCIPLES AND TRYING TO MAINTAIN CORE SERVICES WHILE HAVING AN EYE TOWARDS HOW DO WE, IN THE FUTURE, FIND SOLUTIONS THAT AVOID THE S-, RELIANCE ON ONE-TIME RESERVES BECAUSE WE HAVE A ONE TIME TO DO IT, YOU KNOW.

TH-, IT WON'T BE AVAILABLE AGAIN IN OUR OUT YEARS.

UM, SO WHEN WE LOOKED AT BUD- AT THIS BUDGET SEASON AND WITH AN EYE TOWARDS WHAT'S COMING AHEAD,

[00:20:02]

UH, WE ALSO ASKED DEPARTMENTS, AND DEPARTMENTS PRESENTED IDEAS ON THE REVENUE SIDE, AND THEN THE ONE-TIME RESOURCES WERE KIND OF THE, THE LAST, THE LAST TIER, THE LAST LINE OF, OF WHAT WE NEEDED TO MAINTAIN OUR CORE SERVICES.

SO YOU'RE SEEING IN THE COST REDUCTIONS, WE DID A SCAN OF THE POSITIONS ACROSS THE COUNTY THAT WE COULD REDUCE WITH MINIMAL IMPACT TO OPERATIONS, 56.88 AS A NET TOTAL, THAT SHOULD GENERATE $5 TO $7 MILLION OF ANNUAL NET SAVINGS.

AGAIN, NOT EVERY POSITION IS A ONE-TO-ONE DOLLAR COST SAVINGS.

SOME WE ASSUME IN THEIR SALARY SAVINGS RATE AND OTHERS HAVE SOME LEVERAGED FUNDING THE ABILITY TO CLAIM FEDERAL FUNDING.

SO IT'S NOT ALWAYS A ONE FOR ONE.

UM, BUT GENERALLY THESE ARE ALL POSITIONS THAT ARE PROVIDING NET SAVINGS TO THE COUNTY.

AS RYAN MENTIONED, AS YOU'VE HEARD BEFORE, IN OUR MID-YEAR, WE HAVE IMPLEMENTED A STRONGER HIRING FREEZE ACROSS THE COUNTY TO, WITH SOME VERY SPECIFIC CRITERIA.

IT'S NOT A BLANKET FREEZE 'CAUSE IF-IF THERE'S A POSITION THAT'S BRINGING IN REVENUE OR MORE REVENUE THAN IT, THAN ITS COST, WE WANT THAT POSITION TO BE FILLED.

SO WE HAVE A METRIC- A MATRIX THAT ALLOWS US TO EVALUATE EACH POSITION, LOOKING FOR OPPORTUNITIES WHERE WE MIGHT CONTINUE TO HOLD ON AND FREEZE POSITIONS.

'CAUSE THEY'LL ALL PROVIDE AN OPPORTUNITY IN THE OUT YEARS WITH IT.

WE, THIS BUDGET DOES HAVE SOME TARGETED SERVICE REDUCTIONS, AND YOU'LL HEAR THAT IN, IN THE DEPARTMENT PRESENTATIONS TODAY AND TOMORROW.

ON THE REVENUE SIDE, THE, THE BIGGEST SINGLE SOURCE IS COMING OUT OF OUR PROPOSAL, AND WE APPRECIATE THAT FROM HEALTH AND HUMAN SERVICES AND THEIR PPS RATE INCREASE.

AS YOU'LL HEAR, THE-THE APPROVAL OF THE RATE INCREASE MIGHT TAKE TIME, BUT IT'S GENERALLY RETROACTIVE TO JULY 1ST.

AND WE HAVE EVERY REASON TO BELIEVE THE RATE HAS A STRONG PROBABILITY.

BUT AGAIN, HEALTH WILL TALK ABOUT THAT AND WE APPRECIATE THEIR CREATIVITY IN, IN PROVIDING THAT TO THE TABLE.

THERE ARE ALSO SOME OTHER INCREASES OVER TIME THAT WE'VE BEEN LOOKING ON COST SUBSIDIES, ESPECIALLY IN THE PLANNING DEPARTMENT.

AND AS YOU HEAR ABOUT TOMORROW IN THE PARKS, THE PARKING FEE PILOT PROGRAM.

AND IT'S IMPORTANT TO NOTE, WE-WE SAY THIS A LOT AND IT'S IMPORTANT TO NOTE THAT WE, WHEN WE'RE PROJECTING OUT SALES TAX AND PROPERTY TAX AND TRANSIT OCCUPANCY TAX, WE'RE RELYING ON A LOT OF DATA SOURCES IN A WAY THAT INCLUDES BOTH HISTORICAL TRENDS, CURRENT INFORMATION, AND WHERE WE THINK THE INDUSTRY IS GOING OR WHERE SALES TAX IS GOING OR WHERE, UH, VISITORS MIGHT BE COMING.

AND WE, WE, WE FEEL REASONABLY CONFIDENT THAT WE HAVE CREDIBLE PROJECTIONS, NOT CONSERVATIVE, BUT CREDIBLE, BECAUSE WE REALIZE IF WE UNDERVALUE THOSE REVENUE PROJECTIONS, IT JUST MAKES MORE PRESSURE ON REDUCTIONS.

SO WE'RE TAKING, WE'RE, WE'RE NOT ON THAT EDGE OF BEING OVERLY OPTIMISTIC, BUT WE BELIEVE OUR REVENUE PROJECTIONS ARE CREDIBLE.

AND THAT'S WHY WE, WE HAVE SOME PROJECTIONS, ESPECIALLY ON THE PROPERTY TAX SIDE THAT ARE NORTH OF 3%.

WE HAVE SALES TAX GOING FOUR TO 5%.

WE HAVE TOT THAT HAS A HIGHER GROWTH POTENTIAL.

SO WE'RE TRYING TO BE VERY CREDIBLE WITH THOSE PROJECTIONS, RELYING ON HISTORICAL DATA AND TREND DATA.

AND THEN THE ONE-TIME RESOURCES WE'VE TALKED A LOT ABOUT THE $30 MILLION IS ATYPICAL.

WE ALSO HAVE $12.2 MILLION OF ONE-TIME TRUST RESERVES.

SOMETIMES THOSE TRUSTS HAVE ALWAYS BEEN THERE.

WE'RE JUST DOING A BETTER JOB OF, UH, OF HIGHLIGHTING THOSE.

AN EXAMPLE IS IN OUR DISTRICT ATTORNEY OFFICE.

UM, THEY HAVE A CONSUMER PROTECTION PROGRAM THAT THROUGH DIFFERENT WAYS IS ABLE TO PROTECT CONSUMERS AND THEY REAP REWARDS OUT OF THAT REVENUE THAT COMES IN AND THAT COMES INTO A TRUST AND IS USED TO HELP FUND THEIR CONSUMER DIVISION.

SO WE'RE DOING A BETTER JOB OF CALLING IT OUT JUST AS THE USE.

AND OF COURSE, WE'RE-WE'RE-WE'RE STILL WORRIED ABOUT THE H.R.1 IMPACTS AS THEY CONTINUE TO PHASE IN.

SOME ARE ALREADY IN THIS BUDGET AND THEY'LL CONTINUE TO LAYER IN OVER OUR UPCOMING YEARS.

WHEN WE LOOK AT OUR RESERVES, IT'S IMPORTANT TO NOTE THAT WE'VE DECLINED FROM WHERE WE'RE AT IN THE PRIOR YEAR, 12.5%.

IN THIS CURRENT YEAR, WE'LL BE GOING DOWN TO 10.4.

AGAIN, THAT'S ABOVE OUR FLOOR OF 10%, SHORT OF OUR TARGET OF 15.

WHEN WE LOOK AT OUR PEER COUNTIES, WE HAVE A PEER COUNTY COLLECTION THAT WE LOOK AT FOR A LOT OF DIFFERENT REASONS.

THEY'RE CLOSER TO 25 TO 30% OF RESERVE LEVEL.

AND THAT'S WHY IT'S BEEN MUCH EASIER FOR THEM TO LEAN HARDER INTO THAT.

WE'VE HAD A PROBLEM LEANING HARDER INTO THAT.

SO WE'VE HAD TO HAVE A MEASURE WHERE IT'S BALANCED WITH SOME COST REDUCTIONS, IT'S BALANCED WITH SOME REVENUES.

ANYTHING WE'RE NOT ABLE TO HOLD IN THIS BUDGET SEASON WILL COME OUT WITH MORE PRESSURE ON WHAT ELSE MIGHT WE REDUCE IN THIS MOMENT.

SO WE'RE AT A DELICATE BALANCE POINT WHERE WE DON'T HAVE A LOT OF EASY OPTIONS TO GO TO.

I WOULD TURN IT BACK TO NICOLE TO TALK ABOUT AGAIN, WHAT'S COMING NEXT IN OUR, OR THE PILLARS OF WHICH THIS BUDGET HAS BEEN BALANCED.

- THANKS, MARCUS.

SO THROUGHOUT THE BUDGET HEARINGS, YOU'RE GOING TO BE HEARING DIFFERENT IDEAS THAT HAVE BEEN INCORPORATED INTO THE BUDGET THAT TIE BACK TO THE FOUR PILLARS AND THE PRINCIPLES THAT THE BOARD APPROVED.

AND SO FOR INSTANCE, YOU KNOW, WE HAVE ADDITIONAL INVESTMENTS TO MOVE FORWARD THE STREAMLINE SANTA CRUZ COUNTY WORK TO ACHIEVE OUR MAJOR CODE UPDATE.

[00:25:01]

WE ALSO CONTINUOUS VARIOUS INVESTMENTS PER THE BOARD'S DIRECTION UM, BASED ON WHAT WE HEARD FROM YOU ALL.

UM, WE ARE TRYING TO INVEST MORE TO BRING, UM, ECONOMIC DEVELOPMENT TO OUR UNINCORPORATED AREAS.

SO WE'RE EXPLORING THE ESTABLISHMENT OF AN EIFD THAT COULD HELP INVEST IN INFRASTRUCTURE THAT WOULD POTENTIALLY ATTRACT BUSINESS, HOUSING OR OTHER SORTS OF DEVELOPMENT.

UM, SO YOU'RE GOING TO HEAR ABOUT ALL OF THESE IDEAS THROUGHOUT THE HEARINGS AND WE INVITE YOU TO ASK, UM, QUESTIONS.

NEXT FORWARD.

UM, SO I WANT TO TOUCH ON SOME OF THE RISKS, UH, SOME OF WHICH YOU HAVE ALREADY HEARD ABOUT AND ARE AND KNOW ABOUT.

ONE OF, UM, OUR GREATEST RISKS AND PROBABLY THE GREATEST RISK IS JUST H.R.1 IMPACTS AND THE PRESSURES FROM THE LOSS OF FEDERAL FUNDING AND INCREASED COST TO THE COUNTY FROM THE VARIOUS POLICY CHANGES.

UM, WE HAVE ASKED THE STATE LEGISLATURE TO JOIN US IN PROVIDING A LONG-TERM ONGOING SOLUTION FOR THE STATE TO HELP COUNTIES WITH OUR EMERGENCY MEDICAL SERVICES, OUR ELIGIBILITY WORK FOR CALFRESH AND MEDI-CAL THAT WE'RE GOING TO HAVE TO BE DOING AT HIGHER LEVELS THAT REQUIRE EVEN GREATER ACTIVITIES IN OUR HEALTH AND HUMAN SERVICES DEPARTMENTS.

UM, BUT THIS IS A SERIOUS ISSUE FOR US THAT'S AFFECTING ALL COUNTIES.

AND UNFORTUNATELY, HSA AND HSD HAVE HAD TO ABSORB THESE IMPACTS IN THE PROPOSED BUDGET FOR NEXT YEAR UNTIL WE FIND OUT WHAT THE STATE MIGHT BE WILLING TO DO.

UM, WE ARE WAITING TO FIND OUT, UM, AS YOU KNOW, THE GOVERNOR ISSUED AND RELEASED HIS MAY REVISION AT THE BEGINNING OR MIDDLE OF MAY.

UM, WE HAVE BOTH THE STATE AND ASSEMBLY BUDGET FRAMEWORKS.

THEY'RE ACTIVELY NEGOTIATING AN AGREEMENT, WHICH, UM, HOPEFULLY, WE'LL SEE BY THIS FRIDAY.

THE DEADLINE FOR THE STATE BUDGET IS JUNE 15TH.

UM, OTHERWISE, THE LEGISLATURE WILL NOT RECEIVE THEIR SALARIES SO THEY ARE INVESTED IN TRYING TO MEET THAT DEADLINE.

UM, WE ARE HOPING TO SEE MORE FUNDING FOR COUNTIES OUT OF THAT AGREEMENT, HOPEFULLY, ON THE EMERGENCY MEDICAL CARE SERVICES SIDE.

FOR MEDICAL CARE FOR THE INDIGENT, THERE'S, UM, A STATE PROPOSAL CALLED THE PATH PROPOSAL THAT WOULD HELP US.

WE'RE ALSO HOPING TO SEE ADDITIONAL FUNDING FOR ELIGIBILITY WORK, WHICH WOULD HELP OUR HUMAN SERVICES DEPARTMENT BOTH, UM, PROCESSING THAT MEDI-CAL AND CALFRESH ELIGIBILITY.

THERE'S VARIOUS OTHER PROPOSALS IN, UM, VARIOUS, UH, LEGISLATIVE FRAMEWORKS REGARDING GIVING MONEY, GIVING MORE MONEY FOR HOMELESSNESS, HELPING US WITH OUR IHSS COSTS.

SO, UM, THERE'S A LOT OF POSITIVE THINGS THAT WE COULD SEE AND WE'RE EAGERLY WAITING WHAT, UM, THE LEGISLATURE MIGHT NEGOTIATE.

NEXT SLIDE.

IN TERMS OF JUST ADDRESSING THE STRUCTURAL IMBALANCE, YOU'VE ALREADY HEARD ABOUT ALL THE THINGS THAT WE'RE DOING IN THE SHORT TERM THAT ARE PRESENT IN THEIR PROPOSED BUDGET.

ANYTHING FROM THE HIRING AND TRAVEL FREEZE TO, UM, FEWER INVESTMENTS IN CAPITAL.

UM, VARIOUS SERVICES AND STAFFING REDUCTIONS, VARIOUS PROPOSALS TO, UH, MAKE VARIOUS MODIFICATIONS TO HOW WE DEPLOY SERVICES.

UM, WE ARE...

IT'S GONNA CONTINUE TO ADVOCATE FOR MORE FUNDING RELATED TO THE H.R.1 IMPACTS.

UM, I THINK THAT WILL BE AN ONGOING THING AS WE GET A NEW GOVERNOR, UH, WITH POTENTIALLY, DIFFERENT PERSPECTIVES ON THIS.

WE ARE GONNA HAVE TO CONTINUE TO LOOK AT WHETHER IT'S CONSOLIDATIONS OR RESTRUCTURINGS WITHIN THE COUNTY TO, UM, REDUCE OUR COSTS.

WE WILL ALSO HAVE TO LOOK AT VARIOUS REVENUE ENHANCEMENTS.

UM, WE ARE SEEING WHAT OTHER COUNTIES ARE DOING IN TERMS OF BRINGING IN ADDITIONAL SALES TAX REVENUE OR OTHER SORTS OF TAXES TO HELP BOTH WITH ONGOING COSTS AND THE H.R.1 IMPACTS.

AND WE ARE NO DIFFERENT.

WE'RE GONNA HAVE TO BE LOOKING AT THAT TOO.

AND THEN THERE'S THE SALES TAX ALLOCATION REFORM ISSUE THAT WE'RE WORKING ON TO TRY TO SEE IF ANYTHING IS FEASIBLE THERE.

[00:30:01]

SO WITH THAT, UM, I LOOK FORWARD TO, UM, ENGAGING IN A CONVERSATION WITH YOU, HEARING FROM THE PUBLIC AND THE COMMUNITY ABOUT THEIR THOUGHTS ON THE BUDGET AND, UM, UH, PROCEEDING THROUGH THE BUDGET HEARINGS.

WE'RE HAPPY TO ANSWER YOUR QUESTIONS.

- THANK YOU CEO COBURN AND TO YOUR TEAM FOR THIS REALLY, UM, THE THOUGHTFUL PRESENTATION AND ALL OF THE IMPORTANT INFORMATION THAT YOU'RE SHARING.

SO AS I SHARED AT THE BEGINNING, I'M GONNA START WITH, UM, OFFERING MY COLLEAGUES JUST AN OPPORTUNITY IF THEY'RE INTERESTED IN MAKING SOME HIGH LEVEL COMMENTS ON THE BUDGET, UM, OR HAVE ANY SPECIFIC QUESTIONS THAT WEREN'T ANSWERED IN THE PRESENTATION.

UM, AS A REMINDER, WE WILL BE VISITING DEPARTMENT BUDGETS LATER IN THE NEXT TWO DAYS, SO IF YOU HAVE QUESTIONS OR COMMENTS SPECIFICALLY, I'M GONNA ASK THAT YOU RESERVE THOSE FOR THOSE MOMENTS.

UM, BUT DIDN'T WANT TO, UH, MOVE TO PUBLIC COMMENT WITHOUT HAVING AN OPPORTUNITY FOR ANYBODY TO MAKE ANY COMMENTS IF THAT'S SOMETHING THAT THEY WOULD LIKE TO DO.

SO, UM, ANYONE ON MY LEFT? ANYONE ON MY RIGHT? SUPERVISOR CUMMINGS.

- THANK YOU, CHAIR. AND I JUST WANNA THANK STAFF FOR THE PRESENTATION, UM, ON THE BUDGET.

DEFINITELY NOT EASY TIMES, BUT YOU KNOW, HOPEFULLY AFTER NOVEMBER, THERE'S A LIGHT AT THE END OF THE TUNNEL.

UM, BUT TO START, I DID WANT TO ASK, YOU MENTIONED UM, MR. PIMENTEL THAT THE RESERVES ARE AT 10.4%.

I'M WONDERING IF YOU COULD KIND OF BREAK THAT DOWN INTO ACTUAL NUMBERS.

SO LIKE, WHAT IS THAT IN TERMS OF DOLLARS? - THE-THE RESERVES, UM, IN TOTAL WE'RE PROJECTING ABOUT $90 MILLION OF TOTAL RESERVES.

AND WHAT I CAUTION IS MORE THAN HALF OF THAT IS STILL OUR, WHAT WE CALL OUR DEPARTMENTAL RESERVES THAT ARE ASSIGNED TO DEPARTMENTS.

TYPICALLY IN OTHER AGENCIES THOSE WOULDN'T COUNT INTO THE FORMULA FOR THE RESERVES BECAUSE THERE ARE THINGS LIKE UH, RESTRICTIONS ON THE HEALTH FUNDING THAT'S LIMITED TO USES FOR HEALTH SERVICES.

UM, SO OUR BOARD LEVEL FUNDING'S ABOUT 35 MILLION.

THAT'S OUR TOTAL DISCRETIONARY THAT THE BOARD COULD PICK AND CHOOSE AT ANY LEVEL AND ALLOCATE.

SO THAT'S A VERY SMALL AMOUNT.

PART TWO OF THAT IS, AGAIN, AT OUR 10.4%, OUR FLOOR IS 10%, SO THAT LEAVES ABOUT $3.3 MILLION OF CUSHION, UM, ANYTHING BEYOND THAT AND WE'RE DROPPING BELOW OUR-OUR FLOOR.

SO THERE'S JUST NOT A LOT THERE FOR THE NEXT UNEXPECTED MOMENT THAT HITS US.

AND WE'RE, WE'RE, WE HAVE A LOT OF RISKS IN THAT SPACE.

SO I HOPE THAT ANSWERED YOUR QUESTION.

- THAT DID, THANK YOU. - YEAH.

- ACTUALLY, CAN I ASK A FOLLOW UP ON THAT POINT SINCE I KNOW... THEN I'LL GO BACK TO YOUR QUESTIONS.

UM, COULD YOU PUT THAT IN TERMS OF LIKE PAYROLLS? - UH, YEAH, WE'RE, UM, THAT-THAT-THAT I USUALLY HAVE A BETTER SENSE OF THAT TRACKING, BUT WE'RE-WE'RE EFFECTIVELY BELOW TWO PAYROLL CYCLES IN OUR DISCRETIONARY RESERVES, SO IT'S AT A POINT IN TIME WHEN, UM, WE'RE THINNER THAN WE'VE BEEN.

- THANK YOU. - YEAH.

- THANKS SUPERVISOR CUMMINGS FOR LETTING ME FOLLOW UP.

- MM-HMM. - GO AHEAD.

- YEAH, I THINK THAT'S-THAT'S ALL I HAVE FOR NOW. THANK YOU - SUPERVISOR HERNANDEZ.

- YEAH, I HAVE SOME COMMENTS, BUT I DO HAVE A QUICK QUESTION.

NOT NECESSARILY... IT DOESN'T HAVE TO BE ANSWERED NOW, BUT MAYBE SOMETIME DURING THE PRESENTATION, BUT JUST KIND OF GIVEN THE SCENARIOS WITH THE, HOW WE'RE KIND OF ALSO RELYING ON-ON THE STATE'S HELP UH, GIVEN THE THREE DIFFERENT SCENARIOS, THE GOVERNOR'S ASSEMBLY SENATE AT SOME POINT IN THE PRESENTATION IF YOU CAN KIND OF ELABORATE ON THAT AND SEE WHAT CHANGES IT MAKES TO OUR BUDGET AS WELL.

NOT NECESSARILY RIGHT NOW, BUT WHENEVER IT'S APPROPRIATE DURING THE BUDGET HEARING.

UH, WELL FIRST THANK YOU CHAIR FOR, UH, GIVING ME THE OPPORTUNITY, COLLEAGUES AND MEMBERS OF THE PUBLIC.

FIRST OF ALL, WELCOME TO WATSONVILLE.

UH, HOPEFULLY WE CONTINUE HAVING THESE, UH, BUDGET HEARINGS HERE IN SOUTH COUNTY.

I'M EXCITED THAT A LOT OF PEOPLE SHOWED UP HERE TODAY, UH, FOR THESE BUDGET, UH, DISCUSSIONS.

UM, SO AS WE BEGIN THESE DISCUSSIONS, UH, THE PROPOSED 2026-27 COUNTY BUDGET, I WANNA TAKE A MOMENT TO REFLECT ON WHAT THIS BUDGET REPRESENTS.

UM, A BUDGET IS MORE THAN JUST NUMBERS ON THE PAGE.

IT'S A STATEMENT OF OUR VALUES AND OUR COMMITMENT TO THE COMMUNITIES THAT WE SERVE.

DESPITE SIGNIFICANT FISCAL CHALLENGES, THE PROPOSED BUDGET CONTINUES TO INVEST IN THE SERVICES AND INFRASTRUCTURE THAT MATTERS MOST TO OUR RESIDENTS, WHICH IS PUBLIC SAFETY, ROADS, PARKS, HOUSING, COMMUNITY SERVICE, AND ECONOMIC OPPORTUNITY.

AND MOST OF ALL, OUR SAFETY NET.

IT REFLECTS THE HARD WORK OF OUR COUNTY STAFF, DEPARTMENT LEADERS, AND COMMUNITY MEMBERS WHO HAVE HELPED IDENTIFY PRIORITIES WHILE NAVIGATING A DIFFICULT FINANCIAL ENVIRONMENT.

OVER THE PAST YEAR,

[00:35:01]

FROM ROAD IMPROVEMENTS THAT HAVE BEEN COMPLETED OR ARE UNDERWAY ON KEY CORRIDORS SUCH AS MURPHY ROAD, ROGGE LANE, SCURICH ROAD, GREEN VALLEY ROAD, CASSERLY ROAD, PAULSEN ROAD, COLLEGE ROAD, AND HOLOHAN ROAD TO NAME A FEW.

RESIDENTS AND FAMILIES ARE ALSO BENEFITING FROM THE COMPLETION OF THE GREEN VALLEY MULTI-USE TRAIL, LONG AWAITED INVESTMENT THAT IMPROVES SAFETY AND CONNECTIVITY.

WE HAVE CONTINUED INVESTING IN OUR PARKS PUBLIC SPACES THROUGH PROGRESS ON THE VALLE DEL PÁJARO PARK, THE NEWEST COUNTY PARK, UH, IN WATSONVILLE SUPPORT FOR A NEW SKATE PARK AT PINTO LAKE COUNTY PARK.

IMPROVEMENTS TO MESA VILLAGE PARK AND COMMUNITY FACILITIES SUCH AS THIS, THE COMMUNITY, THE GREAT CAPA COMMUNITY ROOM AT THE SOUTH COUNTY GOVERNMENT CENTER.

WE HAVE ALSO EXPANDED OPPORTUNITIES FOR YOUTH ENGAGEMENT AND STRENGTHENED THE ACCESS TO COUNTY SERVICES PERHAPS MOST SIGNIFICANTLY AFTER DECADES AND DECADES OF ADVOCACY AND PLANNING.

CONSTRUCTION HAS BEGUN ON THE NEW LEVEE PROJECT AT CORRALITOS CREEK, WHICH IS PART OF A MORE THAN $700 MILLION PROJECT.

UH, THE PAJARO RIVER FLOOD MANAGEMENT PROJECT IS A HISTORIC INVESTMENT THAT WILL PROVIDE GREATER FLOOD PROTECTION FOR THOUSANDS OF RESIDENTS, BUSINESSES, SCHOOLS AND AGRICULTURAL WORKERS THROUGHOUT THE PAJARO VALLEY.

AND IT REPRESENTS ONE OF THE MOST IMPORTANT INFRASTRUCTURE PROJECTS IN OUR REGION'S HISTORY.

AS WE REVIEW THIS BUDGET IT'S IMPORTANT TO RECOGNIZE THAT THESE ACCOMPLISHMENTS ARE A RESULT OF STRONG PARTNERSHIPS, COMMUNITY ENGAGEMENT, AND STRATEGIC INVESTMENTS.

I LOOK FORWARD TO WORKING WITH MY COLLEAGUES TO ENSURE THIS BUDGET CONTINUES TO REFLECT OUR SHARED COMMITMENT TO SERVING THE PEOPLE OF SANTA CRUZ COUNTY RESPONSIBLY AND EFFECTIVELY AND UNDER THE LENS OF EQUITY.

THANK YOU.

- THANK YOU.

SUPERVISOR KOENIG.

- THANK YOU, CHAIR, AND THANK YOU TO OUR CEO AND STAFF FOR A GREAT PRESENTATION.

VERY THOROUGH.

UM, AND FOR ALL THE WORK THAT YOU'VE DONE TO BALANCE A VERY DIFFICULT SITUATION.

UM, I MEAN, IT'S CLEAR THAT JUST SINCE, UH, THIS PICTURE FIRST EMERGED IN FEBRUARY, THERE HAVE BEEN A LOT OF DISCUSSIONS WITH ALL THE DEPARTMENTS ABOUT HOW, UM, TO PRESERVE SERVICE TO THE PUBLIC WHILE STILL DEALING WITH, UH, THESE CHALLENGES ON ALL FRONTS.

UM, I WILL SAY, I THINK THE, THE GUIDING LIGHT FOR US SHOULD BE TO PRESERVE SERVICE TO THE PUBLIC AND NOT NECESSARILY COUNTY POSITIONS.

UM, WHILE, YOU KNOW, ABSOLUTELY, UM, WE VALUE THE WORK THAT, THAT EVERY COUNTY EMPLOYEE DOES, AND NOT EVERYONE DIRECTLY IMPACTS SERVICE TO THE PUBLIC IN THE SAME WAY.

AND THE FACT OF THE MATTER IS, WE'RE GOING TO HAVE TO ADAPT TO THIS NEW FISCAL REALITY IN THE COMING YEARS.

UM, SO IT'S...

I-I UNDERSTAND WHY WE'RE USING RESERVES TO MAINTAIN POSITIONS BECAUSE WE MIGHT STILL SEE, UH, ADDITIONAL FUNDS COME FROM, UH, THE-THE STATE, UM, OR FROM OTHER FUNDING SOURCES.

AND THAT ULTIMATELY, YOU KNOW, WE ALSO NEED OPPORTUNITIES TO, UH, HAVE THESE DISCUSSIONS DIRECTLY WITH EMPLOYEES.

BUT I THINK THAT ESPECIALLY AS WE GET INTO MORE OF THE OUT YEARS THE GUIDING LIGHT IS PRESERVING SERVICE TO THE PUBLIC.

THE OTHER THING I SEE IN THIS BUDGET, UH, THE MAJOR BLIND SPOT IS THAT, THERE WAS NOT ONE DISCUSSION OR ONE MENTION DURING THE PRESENTATION OF THE RISKS FROM CLIMATE IMPACTS AND DISASTERS.

WE HAVE, UH, THE PROJECTIONS ARE THAT WE'RE GONNA HAVE A SUPER EL NINO EVENT THIS YEAR.

THE LAST TWO EL NINO EVENTS CAUSED ABOUT $130 MILLION WORTH OF DAMAGE, EACH, TO THE COUNTY.

WE'RE NO LONGER IN A PLACE WHERE WE CAN BORROW SIGNIFICANTLY TO MAKE THOSE REPAIRS.

WE'VE FALLEN, UH, FAR ENOUGH BEHIND IN...

I MEAN, WE-WE CAN'T EVEN PUT UP THE LOCAL MATCH TO DRAW DOWN FEMA MONEY TO MAKE REPAIRS FROM THE LAST TWO EVENTS.

AND WE'RE SEEING AN INCREASINGLY HOSTILE FEDERAL GOVERNMENT THAT MAY NOT EVEN RECOGNIZE THESE SORTS OF EVENTS AS EMERGENCIES UH, SO IT IS CONCERNING TO ME THAT ONE OF THE AREAS WHERE WE ARE TRIMMING IS IN OUR ROAD SPENDING.

LAST, IN THE LAST YEAR'S BUDGET, WE SPENT $3.5 MILLION IN DISCRETIONARY GENERAL FUNDS ON ROADS.

AND IN THIS BUDGET WE'RE SPENDING $2 MILLION.

SO THAT'S A 43% REDUCTION.

UH, I WOULD LIKE TO SEE AN EFFORT TO GO OUT AND REPAIR AS MANY OF THE FAILED CULVERTS IN OUR ROAD SYSTEM.

AND THERE'S OVER 500, UH, AS POSSIBLE SO THAT WE ARE NOT DEALING WITH A SITUATION WHERE COME FEBRUARY, UM, WE CAN BARELY CONDUCT BUSINESS

[00:40:01]

SO THAT'S JUST THE GENERAL, UM, GAP THAT I SEE OR BLIND SPOT IN THIS APPROACH.

UH, I DO APPRECIATE ALL THE WORK THAT'S BEEN DONE IN THE, CONTINUING THIS CONVERSATION OVER BUDGET HEARINGS.

THANK YOU.

- SUPERVISOR DE SERPA.

- THANK YOU. WELL, UM, I'VE BEEN DOWN THIS ROAD BEFORE AS A TRUSTEE FOR PAJARO VALLEY UNIFIED IN 2010, UH, WHEN THERE WAS ESSENTIALLY NOTHING LEFT TO CUT IN A BUDGET AND YET WE HAD TO CUT MORE.

UM, THESE ARE VERY DIFFICULT TIMES AND THERE, UM, THERE WILL BE DISAPPOINTMENTS, I THINK, FOR EVERYBODY, INCLUDING OUR-OUR CITIZENS.

THE THINGS THAT I KNOW, UH, IN DISTRICT 2 THAT ARE IMPORTANT ARE ROADS, INFRASTRUCTURE, PARKS, PUBLIC SAFETY.

UM, WE ARE FACING A CRISIS IN HEALTH CARE IN OUR COUNTY, UH, OF WHICH WE'VE NEVER SEEN BEFORE.

WE'VE GOT DIGNITY HEALTH, WHICH HAS LOST MOST OF THEIR PRIMARY CARE PHYSICIANS.

WE HAVE A HOSPITAL HERE IN WATSONVILLE THAT WE NEED TO SURVIVE WHICH IS, UH, HAVING A VERY DIFFICULT TIME, FINANCIALLY.

UM, AND-AND-AND IN ALL WAYS, EVEN IN OUR FQHCS, WE'RE FACING DEFICITS.

SO THIS IS NOT, UM, THIS IS NOT JUST ABOUT OUR COUNTY.

UH, WE'RE FEELING THESE CUTS EVERYWHERE, UH, PARTICULARLY BECAUSE OF H.R. 1, LIKE OUR CEO SAID.

SO, UM, I WOULD CONTINUE TO SUPPORT KEEPING OUR RESERVES ABOVE 10%.

I THINK IT'S VERY IMPORTANT TO HAVE THOSE RESERVES IN CASE WE HAVE ANOTHER EMERGENCY, LIKE MARCUS WAS TALKING ABOUT.

WE HAVE, UH, EXTREME FIRE RISK RELATED TO CLIMATE CHANGE AND, UH, TORRENTIAL RAINS THAT POTENTIALLY WE'RE EXPECTING, UH, THIS WINTER, UHM, SO WE-WE DO NEED TO KEEP OUR RESERVES INTACT AND I LOOK FORWARD TO BUILDING THOSE BACK, UM, AS OUR BUDGETS BECOME BETTER.

UM, MANY OF YOU KNOW THAT, UH, YOUR BOARD OF SUPERVISORS GOES TO SACRAMENTO OFTEN TO ADVOCATE, OR MAYBE NOT OFTEN BUT, UM, WHEN IT'S IMPORTANT, WE GO TO GIVE TESTIMONY, TO ADVOCATE FOR POSITIONS, UM, THAT WILL HELP OUR COUNTY.

WE HAVE ONE OF THE LOWEST REVENUES.

IN THE ENTIRE STATE, OUT OF 58 COUNTIES, WE'RE FIFTH FROM THE BOTTOM IN TERMS OF OUR GENERAL FUND REVENUE.

WE SAY THAT A LOT BECAUSE WE NEED TO KEEP REMINDING PEOPLE OF THAT.

AND WE NEED, AS A COUNTY, TO, UH, ENCOURAGE AND SUPPORT WAYS TO BUILD OUR REVENUE, AND THAT IS ECONOMIC DEVELOPMENT.

SO TO THE EXTENT THAT WE CAN, UM, INCREASE OUR TOT, INCREASE, UM, OUR PROPERTY TAXES, NOT FOR THOSE WHO ALREADY HAVE THINGS, BUT TO CONTINUE BUILDING AND INFILL IN NEIGHBORHOODS WHERE, UH, IT WOULD BE IMPORTANT, UM, FOR, NOT ONLY FOR AFFORDABLE HOUSING, BUT FOR THE COUNTY TO RECEIVE PROPERTY TAXES, WE NEED TO DO THAT SO I THANK OUR, ALL OF OUR STAFF, UM, FOR THEIR HARD WORK.

I KNOW THAT BALANCING THIS BUDGET THIS YEAR WAS NOT EASY.

I AM CONCERNED ABOUT KICKING THE CAN DOWN THE ROAD BECAUSE WE ARE LOOKING AT HUGE DEFICITS NEXT YEAR, SO I DO THINK ANYWHERE WE COULD CONTINUE TO SHAVE BUDGET, UH, THIS YEAR WILL HELP US, UM, IN THE FUTURE.

SO WITH THAT, UH, I'LL TURN IT BACK OVER TO SUPERVISOR MARTINEZ.

- THANK YOU, SUPERVISOR DE SERPA.

UM, I ALSO WANT TO EXTEND MY WELCOME TO EVERYBODY WHO'S JOINING US IN THE ROOM TODAY AND ON, UM, OUR-OUR VIRTUAL SESSION.

UM, WE HAVE A PACKED HOUSE THIS MORNING, AND WE INTENTIONALLY SCHEDULED THIS MEETING IN WATSONVILLE, AND THIS IS WHAT WE WERE HOPING FOR, SO I'M VERY PLEASED TO SEE SO MANY PEOPLE ENGAGING IN THE BUDGET HEARING THIS MORNING.

THANK YOU SO MUCH FOR-FOR BEING HERE AND FOR TUNING IN.

UM, I AGREE WITH SUPERVISOR HERNANDEZ IN SAYING THAT OUR BUDGET IS A REFLECTION OF OUR VALUES, AND WE HAVE A NUMBER OF DIFFICULT DECISIONS BEFORE US AND I WILL BE VERY MUCH GROUNDED IN MY VALUES OF, UM, OF EQUITY AND JUSTICE, AND, YOU KNOW, HONESTLY PRESERVING THE SAFETY NET IN A TIME WHEN OUR SAFETY NET IS UNDER ATTACK AT THE FEDERAL LEVEL, UM, AND IS-IS BEING DISMANTLED IN SO MANY WAYS.

UM, THAT'S CRITICALLY IMPORTANT TO ME.

AND I ALSO WANT TO JUST RECOGNIZE THAT, UM, WE HAVE A WORKFORCE THAT IS WORKING INCREDIBLY HARD

[00:45:03]

WHEN WE SAY THAT WE ARE ELIMINATING VACANT POSITIONS, THAT'S NOT NOTHING.

THAT IS JOBS THAT ARE, THAT WERE THERE FOR A REASON THAT AREN'T GETTING DONE AND THERE'S A WORKFORCE THAT NEEDS TO STEP IN TO FILL THAT GAP.

AND WHEN WE HAVE A HIRING FREEZE AS WELL, UM, IT MEANS THAT EACH ONE OF OUR STAFF MEMBERS HAVE TO STEP UP.

UM, AND-AND I WANT TO EXTEND MY GRATITUDE TO THAT BECAUSE, YOU KNOW, I AGREE THAT PUBLIC SERVICES IS WHAT WE'RE HERE FOR, BUT IT'S VERY HARD TO DO PUBLIC SERVICE WITHOUT COUNTY EMPLOYEES, SO, I'M GOING TO BE WORKING VERY HARD TO PRESERVE OUR WORKFORCE UM, WHILE WE WORK TO COME UP WITH A LONG-TERM PLAN TO FILL OUR BUDGET GAPS.

UM, I AGREE THAT WE NEED TO BE DOING, UM, SOME-SOME RIGHT-SIZING AND SOME PLANNING AROUND OUR LONG-TERM REVENUES.

I, YOU KNOW, AS SUPERVISOR DE SERPA SAID, HAVE BEEN TO SACRAMENTO A COUPLE OF TIMES.

WE'LL BE BACK, UH, BECAUSE WE-WE ARE INCREDIBLY DEPENDENT ON THE DECISIONS THAT HAPPEN AT THE STATE LEGISLATE, IN OUR STATE LEGISLATURE THIS NEXT COUPLE OF WEEKS AND THROUGHOUT THE NEXT COUPLE OF MONTHS.

UM, AND ADDITIONALLY, WE'RE GONNA BE LOOKING AT OTHER WAYS OF FILLING OUR REVENUE GAPS, AND SO, UM, WE'RE DOING THAT WITH OUR, UH, MANDATES IN MIND, SO WE CAN CONTINUE TO DELIVER PUBLIC SERVICE WITH OUR SAFETY NET IN MIND, AS WELL AS OUR INFRASTRUCTURE, UM, YOU KNOW, THE-THE INFRASTRUCTURE THAT EACH ONE OF US NEEDS TO-TO LIVE THE QUALITY OF LIFE IN SANTA CRUZ COUNTY THAT, THAT WE HOPE FOR.

UM, SO WITH THAT, UM, I AGAIN WANT TO EXTEND MY GRATITUDE TO THE CEO'S OFFICE, TO, UM, THE BUDGET TEAM, FOR BRINGING US A BALANCED BUDGET, UH, FOR GETTING CREATIVE TO FIGURE OUT HOW WE CAN, UM, FIT WITHIN THE LIMITED GENERAL FUND THAT WE HAVE TO-TO WORK WITH THIS YEAR AND LOOK FORWARD TO, UM, SOME, UM, IMPORTANT DECISIONS AND DISCUSSIONS IN THE COMING DAYS.

SUPERVISOR CUMMINGS.

- YEAH, I JUST HAD A COUPLE OTHER QUESTIONS REAL QUICK THAT CAME UP WHILE WE'RE HAVING THIS CONVERSATION.

I'M WONDERING, IN THE BUDGET, UM, IN THE PROJECTED DEFICITS, HOW MUCH OF THAT DEFICIT IS ACTUALLY CAUSED BY H.R. 1 VERSUS ACTUAL...

WHAT'S CAUSED BY H.R. 1 VERSUS WHAT WE'D BE SEEING IN NORMAL TIMES? BECAUSE, YOU KNOW, THE-THE-THE PROJECTIONS THAT WE HAVE, IT KIND OF POOLS ALL THAT TOGETHER, AND I THINK IT'S REALLY IMPORTANT ESPECIALLY AS WE'RE CONSIDERING THINGS LIKE TAX MEASURES AND WHAT HAVE YOU, THAT PEOPLE REALLY GET A SENSE OF KIND OF WHAT IS THE ACTUAL COUNTY'S DEFICIT VERSUS WHAT IS THE DEFICIT THAT IS THE RESULT OF SOME OF THE FEDERAL DECISIONS, SOME OF THE DECISION MADE AT THE FEDERAL LEVEL.

- EVERYTHING IS COMPLICATED, BUT I-I WOULD SAY THE FORECAST IS MINIMALLY IMPACTED BY H.R. 1.

WE FEEL IN THIS BUDGET, YOU'VE SEEN THE REDUCTIONS ARE LARGELY IN HEALTH AND HUMAN.

THAT'S LARGELY, UM, A DIRECT CORRELATION TO THE-THEIR CURRENT VALUE OF H.R. 1 AND OTHER IMPACTS THAT THEY'RE HAVING.

SO RIGHT NOW, WE'VE TAKEN THAT INTO CONSIDERATION.

SO IT'S-IT'S NOT THE KEY DRIVER IN-IN OUR FORECAST.

IT'S A MINIMAL IMPACT, AND WE CAN PROBABLY DISCUSS THAT AT, YOU KNOW, FURTHER LENGTH, FOR SURE.

OUR RISK OF FEDERAL FUNDING IS A, IS PROBABLY AN EQUAL VALUE IN OUR FORECAST, MEANING, WHAT ARE, WHAT IS, WHAT IS OUR CREDIBILITY FOR, YOU KNOW, BEING ABLE TO RECOVER FROM FUTURE FEMA , UM, RECOVERIES.

SO IN-IN THE FORECAST, WE-WE VALUE CERTAIN RISKS AND DIFFERENT WAYS, SO I'D SAY, COLLECTIVELY, THE FEDERAL-FEDERAL GOVERNMENT, UM, POSES BOTH AN H.R. 1 RISK, BUT ALSO OTHER FUNDING RISKS.

UM, BUT UNFORTUNATELY, H.R. 1 IS NOT THE KEY DRIVER IN OUR FORECAST.

- SO, I GUESS, WHAT IS THE DRIVER THEN? IS IT... IT'S JUST COST OF LIVING? - YEAH, IT'S-IT'S LARGELY THE COUNTY'S CURRENT SIZE OF OUR OPERATIONS AND-AND SOMEWHAT, I MEAN, WE'RE SEEING EROSION.

WE'VE TALKED ABOUT THE EROSION OF...

THERE'S TWO THINGS RIGHT ON OUR REVENUE SIDE.

THERE'S A, WE ARE SYSTEMATICALLY UNDERFUNDED WHEN IT COMES TO THINGS LIKE OUR PROPERTY TAX, AND WE'RE RECEIVING PENNIES ON THE DOLLARS COMPARED TO OUR PEERS.

UM, A COUPLE YEARS AGO, WE JUST DID A QUICK, NOT A QUICK, ANALYSIS OF WHAT IF, HYPOTHETICALLY, WE HAD MONTEREY COUNTY'S ALLOCATION, NO CHANGE IN HOW MUCH TAXPAYERS ARE PAYING, BUT JUST THE ALLOCATION OF MONTEREY COUNTY'S PROPERTY TAX RATE.

FOR US, THAT'S VALUED AT $30, $35 MILLION ANNUALLY OF REVENUE THAT WOULD BE IN OUR GENERAL FUND.

SO IF WE JUST HAD THE SAME ALLOCATION AS MONTEREY,

[00:50:02]

WE'VE ALSO SEEN EROSIONS IN REVENUE STREAMS BECAUSE OF, UH, CHANGES IN CONSUMERS, RIGHT? SO, SALES TAX IS AN EXAMPLE, AND NOT THE ONLY ONE, WHERE CONSUMERS ARE MAKING A CHOICE TO BUY MORE ONLINE, WHICH CAN OFTEN RESULT IN THREE THINGS.

ONE, THERE'S A SALES TAX THAT'S BEING NOW ATTRIBUTED TO AN ONLINE SALE IN ANOTHER COUNTY, AND THAT'S STAYING THERE, OR A WAREHOUSE WHERE IT'S BEING DELIVERED FROM, AND SO THAT SALES TAX ISN'T COMING TO US, IT'S STAYING WHERE THAT WAREHOUSE LIVES, OR IT'S STAYING IN THE COUNTY BUT WE-WE'RE NOT GETTING IT BECAUSE OF SOME OLD ANTIQUATED METHODOLOGY IN HOW SALES TAX IS ALLOCATED WITHIN COUNTY.

SO, THERE'S EROSION IN THE TAX BASE.

THERE'S EROSION IN, YOU KNOW, HOW WE FUNDED THE RENOVATION OF THE BOARD CHAMBERS WITH PEG FEES THAT ARE LARGELY OLD LEGACY CABLE FRANCHISE FEES.

WHO HAS A CABLE ANYMORE? WHO HAS, YOU KNOW, A PHONE IN THEIR HOUSE ANYMORE? SO A LOT OF THOSE REVENUE STREAMS ARE-ARE BEING DILUTED.

SO THAT'S-THAT'S PART OF OUR CHALLENGE.

- YEAH. NO, IT'S HELPFUL BECAUSE I THINK WHAT IT REALLY HIGHLIGHTS IS THAT WE REALLY NEED TO BE WORKING CLOSELY WITH THE STATE TO FIGURE OUT HOW WE CAN SHIFT REVENUE STREAMS. I MEAN, WE KNOW THAT RETAIL IS GOING DOWN.

WE NO LONGER HAVE CABLE, WE NO LONGER HAVE LANDLINES, AND THAT'S KIND OF WHAT WE WERE DEPENDING ON, HISTORICALLY, AND SO I THINK IT REALLY IS IMPORTANT THAT, YOU KNOW, AFTER THESE BUDGET HEARINGS, WE REALLY... AND MAYBE THIS IS SOMETHING THAT WE CAN PUT ON THE BOARD'S AGENDA FOR US TO FORM A SUBCOMMITTEE OR HAVE SOME KIND OF CONVERSATION AROUND WHAT ARE THESE NEW...

WHAT-WHAT TYPES OF CREATIVE OPPORTUNITIES ARE THERE FOR US TO CREATE NEW STREAMS OF REVENUE AND TAKING THAT TO THE STATE.

BECAUSE WITH STREAMING SERVICES, NOW IT'S SHOPPING ONLINE, WE NEED TO FIGURE OUT HOW WE CAN GET, AND WITH CELL PHONES, WE NEED TO FIGURE OUT HOW WE CAN GET MORE REVENUE BACK IN THE COMMUNITY.

AND GIVEN THAT SOME OF THESE DEFICITS ARE NOT BEING CAUSED BY H.R. 1 LARGELY, IT'S REALLY KIND OF...

IT-IT REALLY EMPHASIZES THAT WE NEED TO START BEING CREATIVE LIKE YESTERDAY.

SO, UM, AND I'LL JUST SAY THAT WHAT I'M HOPING FOR THIS BUDGET IS THAT, YOU KNOW, THERE'S AN OPPORTUNITY FOR US TO, UM, TAKE SOME RISKS.

AND, UM, BECAUSE, YOU KNOW, I-I FEEL IN THE COMING YEARS, UH, HOPEFULLY IN THE COMING MONTHS, WE'LL SEE A SEA OF CHANGE AT THE FEDERAL LEVEL AND, UM, YOU KNOW, WHEN WE HAVE TO MAKE HARD DECISIONS, WE MAY, IF WE CAN PUT THOSE OFF AND-AND GET CREATIVE IN THE SHORT TERM, THAT MAYBE WE CAN SAVE OURSELVES IN THE LONG TERM.

SO, I APPRECIATE THE PRESENTATION AND LOOK FORWARD TO TRYING TO WORK CREATIVELY WITH YOU ALL TO FIGURE OUT HOW WE'RE GONNA KEEP OURSELVES FUNDED MOVING FORWARD.

- AND, CHAIR, IF YOU DON'T MIND, I KNOW SUPERVISOR HERNANDEZ ASKED ABOUT THE IMPACTS OF THE STATE BUDGET AND THE ASSEMBLY BILLS AND THE SENATE BILLS THAT ARE ALL KIND OF COMPETING RIGHT NOW.

AGAIN, I THINK WE-WE'VE SEEN THE VALUE THAT THE ASSEMBLY AND SENATE BILLS HAVE MORE OPPORTUNITY FOR COUNTIES, UM, BUT WE WON'T, WE DON'T KNOW THE DETAILS OF THAT WHAT THAT MEANS FOR SANTA CRUZ COUNTY, AND WE MAY NOT KNOW FOR A COUPLE OF MONTHS.

UH, THE-THE GOVERNOR, THE STATE IS HELD TO ADOPT THEIR BUDGET ON MONDAY, JUNE 15TH, UM, BUT THE REALITIES OF THAT, THAT BUDGET WON'T TELL US ANYTHING YET.

IT'S THE TRAIL OF BILLS IN JULY AND AUGUST THAT WILL INFORM US, AND THE BUDGET JUNIOR BILLS.

UM, SO WE HAVE A PROCESS WHERE WE COLLECTED AND CAPTURED THAT INFORMATION IN AUGUST FROM DEPARTMENTS AND I WOULD EXPECT THIS IS A YEAR WHERE WE'RE DOING A SPECIFIC PRESENTATION ABOUT THAT, UM, EITHER BEFORE THE SEPTEMBER 29TH ACTION OR ON THE SEPTEMBER 29TH ACTION.

SO, UM, I-I WISH WE CAN GIVE YOU BETTER DETAILS ABOUT THE SPECIFICS OF THE MEASURES AND HOW THAT RELATES TO US AS, AT THE COUNTY OF SANTA CRUZ BUT IT'S... THE DEPARTMENTS MIGHT BE ABLE TO GIVE YOU SOME ESTIMATES, BUT RIGHT NOW, WE'RE REALLY LIMITED IN THAT.

BUT IT'S-IT'S A GREAT QUESTION.

- THANK YOU.

SO AT THIS POINT, WE'RE GONNA TRANSITION TO PUBLIC COMMENT,

[PUBLIC COMMENT]

IF YOU'RE HERE TO SPEAK ON A HEALTH AGENDA OR HEALTH BUDGET, HUMAN SERVICES BUDGET, OR THE PUBLIC DEFENDER BUDGET, ALL THREE OF THOSE WILL BE HELD INDEPENDENTLY TODAY, AND THERE WILL BE THE APPROPRIATE TIME TO SPEAK ON THOSE THREE BUDGETS LATER TODAY.

UM, IF YOU ARE HERE TO SPEAK DURING PUBLIC COMMENT, CAN YOU PLEASE RAISE YOUR HAND SO I GET A SENSE OF HOW MANY PEOPLE ARE HERE? AND HOW MANY PEOPLE ARE ON THE PHONE? - CURRENTLY, WE HAVE 66 ATTENDEES, BUT ONLY TWO PEOPLE WITH THEIR HANDS RAISED RIGHT NOW.

- WHAT I MIGHT DO TO KEEP US ON TRACK IS I WOULD LIKE TO STAGGER.

LET'S DO FIVE IN THE ROOM, FIVE ON THE PHONE FOR TWO MINUTES EACH, UM, FOR AN HOUR, AND IF WE END UP GOING BEYOND THAT, WE MAY NEED TO MAKE AN ADJUSTMENT.

SO IF YOU'RE ON THE PHONE, PLEASE RAISE YOUR HAND SO WE KNOW TO CALL ON YOU, AND IF YOU ARE IN THE ROOM TO SPEAK PLEASE JOIN A LINE FIVE AT A TIME.

[00:55:01]

- GO AHEAD. WE WELCOME THE FIRST PUBLIC COMMENTER.

GOOD MORNING.

- GOOD MORNING. UH, MY NAME IS LUCY [INAUDIBLE] I'M THE SUPERVISORS FOR THE PUBLIC DEFENDERS OFFICE.

AND I'M SORRY I CAN'T COME BACK THIS AFTERNOON...- MIC'S...

MIC IS NOT ON. - ... BECAUSE I HAVE TO GO TO OREGON.

- THERE WE GO.

- ... TO PICK UP MY DAUGHTER FROM COLLEGE SO I'M HOPING TO MAKE MY COMMENT RIGHT NOW.

THANK YOU.

UM, SO I CAME TO THIS COUNTY IN, UH, 1998 AND BECAME A PUBLIC DEFENDER IN 1993.

INITIALLY, WHEN I CAME HERE, I WORKED AT THE BIG, AT THE WALLRAFF AND GILMAN FIRM, AND THEN THE BIGGAM CHRISTENSEN AND MINSLOFF FIRM, AND I'VE BEEN IN THIS COUNTY EVER SINCE.

IN 1997, THE BRONX DEFENDERS CREATED THE NATION'S FIRST HOLISTIC OFFICE.

THEIR MODEL ADDRESSED THE FULL RANGE OF CHALLENGES FACING CLIENTS, ADDRESSING THE ROOT CAUSES OF RECIDIVISM.

WHEN SANTA CRUZ COUNTY CREATED ITS NEW PUBLIC DEFENDER'S OFFICE IN 2020, HEATHER ROGERS BROUGHT THAT MODEL HERE.

HEATHER'S GOAL WAS SIMPLE, REPRESENT THE WHOLE PERSON, NOT JUST THE CRIME.

TODAY, HOLISTIC DEFENSE IS NOT A SEPARATE PROGRAM IN SANTA CRUZ, IT'S THE FOUNDATION OF OUR OFFICE.

OUR INTERDISCIPLINARY TEAM OF ATTORNEYS, SOCIAL WORKERS, CLIENT ADVOCATES, INVESTIGATORS, PARALEGALS, ADMINISTRATIVE PROFESSIONALS, AND COUNTY PARTNERS WORK TOGETHER TO ADDRESS THE ISSUES THAT BRING OUR CLIENTS INTO THE CRIMINAL JUSTICE SYSTEM.

IT HAS MADE A WORLD OF DIFFERENCE, AND I'LL GIVE YOU AN EXAMPLE.

I REPRESENTED A CLIENT WHO ENTERED PRISON AT 19 YEARS OLD RIGHT AFTER THE THREE STRIKES LAW WAS ENACTED.

HE SPENT THE NEXT 27 CYCLING IN AND OUT OF PRISONS AND JAILS DUE TO SERIOUS MENTAL HEALTH AND SUBSTANCE USE ISSUES, BUT WE WERE ABLE TO BREAK THAT CYCLE.

OUR SOCIAL WORKERS CONNECTED HIM WITH A LONG-TERM DUAL DIAGNOSIS TREATMENT PROGRAM.

HE SUCCESSFULLY COMPLETED THAT PROGRAM AND BECAME A CERTIFIED DRUG AND ALCOHOL COUNSELOR.

THAT IS WHAT HOLISTIC DEFENSE LOOKS LIKE.

IT SAVES LIVES, IT STRENGTHENS PUBLIC SAFETY, IT STABILIZES FAMILIES, AND IT REDUCES THE COSTLY CYCLE OF INCARCERATION.

I RESPECTFULLY REQUEST THAT YOU PRESERVE OUR FUNDING FOR THESE CRITICAL SERVICES.

IT WOULD BENEFIT NOT ONLY OUR CLIENTS, BUT OUR ENTIRE COMMUNITY.

THANK YOU.

- THANK YOU. IF YOU'RE HERE TO SPEAK IN THE ROOM, I'M, UH, GONNA ASK YOU TO PLEASE FORM A LINE BEHIND THE PODIUM FOR THE SAKE OF TIME. THANK YOU.

- GOOD MORNING.

YOU LET ME KNOW WHEN I GET TO START.

OKAY.

I'M A LITTLE NERVOUS.

OKAY.

YOU STARTED ME ALREADY? UM, OKAY.

MY NAME IS KYLIE KELLER AND I'M HERE, UH, ALSO REPRESENTING HER, LIKE, FOR, WHAT IS IT CALLED, HOLISTIC SOMETHING? I'M HERE FOR THE CLEAN SLATE PROGRAM MOSTLY.

UM, SO A FEW YEARS AGO, THERE WAS, LIKE, PROBABLY, IF YOU WOULD HAVE TOLD ME THAT I'D BE STANDING RIGHT HERE, I WOULD HAVE TOLD-TOLD YOU YOU WERE, LIKE, SEVERELY TRIPPING, BASICALLY.

YOU KNOW, LIKE, THERE'S NO WAY.

LIKE, THAT'S NOT WHAT MY LIFE LOOKED LIKE BEFORE-BEFORE THIS BUT, UM, NEXT MONTH, I'LL HAVE SEVEN YEARS CLEAN AND, UH, MICHELLE LIPPARD HELPED ME GET MY RECORD EXPUNGED, AND NOW I WORK AT JANUS OF SANTA CRUZ.

I'M THE PROGRAM...

OH, I DON'T KNOW IF I WAS SUPPOSED TO SAY THAT, BUT I WORK AT A PROGRAM IN TOWN, UM, AND, UM, UH, I RUN A WHOLE DEPARTMENT.

I GOT MY CERTIFIED ALCOHOL AND DRUG COUNSELING, AND...

HOLD ON, LET ME LOOK AT MY NOTES.

I WAS TRYING TO GO OFF SCRIPT THERE.

SO BASICALLY, YEAH, I STRUGGLED WITH ADDICTION.

OBVIOUSLY, I HAD A CRIMINAL RECORD, AN EXTENSIVE ONE.

I HURT THE PEOPLE I LOVED.

I DISAPPOINTED MYSELF.

I DISAPPOINTED AND I CARRIED, LIKE, A LOT OF SHAME ABOUT IT, BASICALLY.

UM, AND, LIKE, UH, THIS, I DON'T KNOW IF ANY, EVERYBODY, LIKE REALIZES HOW IMPORTANT THIS PROGRAM IS BUT, LIKE, WHEN PEOPLE...

LET'S SEE.

LIKE, WHEN YOU, WHEN YOU GET, WHEN YOU GET SOBER, LIKE, YOU NEED THAT HOPE.

YOU NEED SOMETHING TO WORK TOWARDS.

OTHERWISE, YOU'RE GOING TO BE, LIKE, "I'M-", LIKE, "I'M NOT GONNA KEEP..." I FEEL LIKE I'M OWED NINE SECONDS HERE. HOLD ON.

BASICALLY, IT'S GOING TO COME UP.

EVERY HOUSING APPLICATION, EVERY JOB APPLICATION, WHATEVER YOU NEED TO DO, LIKE, THAT'S GOING TO BE A BARRIER, AND IF YOU DON'T HAVE THAT MOTIVATION, THERE'S NO REASON TO GO BACK FOR IT.

LIKE, THERE'S NO REASON TO, LIKE, GO FOR A NEW LIFE.

YOU CAN GO BACK TO YOUR OLD LIFE.

AND LASTLY, I'LL SAY, LIKE, IF IT'S ABOUT SPENDING AND BUDGET THAT, I'M SURE THAT THE COUNTY OF SANTA CRUZ PROBABLY, SPENT HUNDREDS OF THOUSANDS OF DOLLARS A YEAR AT THE HOSPITAL WHEN I WAS GOING TO THE ER, ALL THE LAW ENFORCEMENT, ALL THE TIMES LAW ENFORCEMENT HAD TO COME AND STOP ME, WHICH WAS, LIKE, EVERY DAY, THE HOS- LIKE THE-THE ER, THE CRISIS SERVICES, ALL OF THAT. SO.

- THANK YOU FOR BEING HERE. - I THINK THAT'S ONE PERSON.

IT'S GOING TO BE A LOT MORE MONEY IF YOU GUYS STOP THIS PROGRAM.

- GOOD MORNING. MY NAME IS DIANA AUGUST.

I'M THE MISDEMEANOR SUPERVISOR AT THE PUBLIC DEFENDER'S OFFICE.

I'M ALSO A DISTRICT 1 CONSTITUENT

[01:00:02]

I SERVED 25 YEARS AT THE PRIOR OFFICE, THE CONTRACT OFFICE, AND NEXT YEAR WILL BE FIVE YEARS.

I ALSO CO-LED THE NEGOTIATIONS WITH YOUR CURRENT CEO TO START THIS OFFICE, AND TOGETHER, SHE HAD A VISION WITH THE PRIOR CEO OF CHANGING WHAT PUBLIC DEFENSE LOOKS LIKE IN THIS COUNTY AND WE ARE DOING THAT.

I'VE SEEN EVERYTHING.

I'M THE LONGEST TENURED PUBLIC DEFENDER IN THIS COUNTY.

I DID 25 YEARS IN AN OFFICE WHERE WE HAD NO SUPPORT, AND WE DID A REALLY GOOD JOB, AND THAT'S BECAUSE WE ARE DEDICATED, HARDWORKING PROFESSIONALS.

ALL OF US COULD BE WORKING SOMEWHERE ELSE, MAKING A LOT MORE MONEY, WORKING IN ANOTHER COUNTY, GETTING PAID A HIGHER SALARY.

AND WE ARE HERE TO SERVE THE RESIDENTS OF SANTA CRUZ COUNTY.

SO, FIVE, FOUR YEARS AGO, THIS COUNTY DECIDED TO DO SOMETHING DIFFERENT.

TRUST THAT VISION.

IT IS WORKING.

KYLIE, IF YOU'RE STILL HERE, THAT WAS MY CLIENT.

I HELPED HER WHEN SHE WAS GOING THROUGH ALL THAT.

SHE IS HERE TODAY TO TALK TO YOU BECAUSE OF THE SERVICES THAT YOU HAVE FUNDED FOR OUR OFFICE.

DON'T STOP THAT NOW.

I'M URGING YOU ALL TO TRUST THE VISION THAT YOUR CEO HAD.

TRUST OUR OFFICE.

WE ARE DOING GREAT WORK FOR YOUR COMMUNITY.

WE ARE HERE TO SERVE THE RESIDENTS.

WE ARE SAVING YOU MONEY.

DON'T STOP IT NOW.

PLEASE MAINTAIN OUR CURRENT FUNDING LEVELS.

THANK YOU.

- GOOD MORNING, EVERYONE.

MY NAME IS MIKE KITRIDGE.

I'M THE HOMELESSNESS, UH, PREVENTION AND INTERVENTION SERVICES DIRECTOR AT THE COMMUNITY ACTION BOARD.

UM, I'M HERE TO GIVE YOU AN UPDATE ON HOPE VILLAGE, UM, OUR-OUR NEW, UH, SHELTER AND LOW-BARRIER NAVIGATION CENTER PROJECT.

UM, MY COLLEAGUE, PAZ PADILLA, WILL BE HERE FOR THE HEARING LATER, BUT I DO NEED TO GET BACK ON-ON-SITE.

SO, I JUST WANTED TO GIVE YOU ALL A QUICK UPDATE.

UH, WE OPENED IN FEBRUARY, AND WE HAVE SERVED OVER 35 INDIVIDUALS.

WE CURRENTLY HAVE 32 IN RESIDENCE, UH, WITH A COUPLE OF SPACES LEFT.

UM, WE HAVE HAD THREE PEOPLE HOUSED.

WE HAVE SIX PEOPLE IN THE PIPELINE TO BE HOUSED VERY SHORTLY.

AND WE ALSO HAVE FOUR PEOPLE THAT HAVE GAINED EMPLOYMENT SINCE WE'VE OPENED.

UM, I DO WANT TO TAKE THIS TIME TO THANK YOU ALL FOR YOUR SUPPORT OF THE HOMELESS COMMUNITY AND OUR WORK WITH THEM AT THE COMMUNITY ACTION BOARD.

I ALSO WANT TO THANK OUR SUPERVISORS AND COUNTY STAFF THAT HAVE COME BY FOR A TOUR.

I WOULD LOVE TO EXTEND THAT INVITATION TO THE ENTIRE, UM, SUPERVISOR BOARD, UM, AS-AS WELL AS ANYONE IN THE ROOM WHO MIGHT BE INTERESTED IN PARTNERING OR WORKING WITH US.

WE-WE BELIEVE VERY HEAVILY IN COLLABORATING WITH OTHER NONPROFITS AND COMMUNITY-BASED ORGANIZATIONS.

UM, AGAIN, THANK YOU FOR YOUR TIME, YOUR SUPPORT, AND JUST A QUICK SHOUT-OUT TO, UM, SUPERVISOR HERNANDEZ, WHO CAME TO OUR RIBBON CUTTING AND SPOKE AT THE EVENT AS WELL.

THANK YOU FOR YOUR SUPPORT.

THANK YOU ALL.

- GOOD MORNING, CHAIR AND MEMBERS OF THE BOARD OF SUPERVISORS.

I WILL BE COMMENTING NOW, UM, AS I WILL BE LEAVING TO DO SOME COMMUNITY SERVICE, UM, OUTREACH.

UM, MY NAME IS NORA, AND I AM FROM THE CALFRESH, UM, SPECIAL- I AM A CALFRESH SPECIALIST FOR THE SECOND HARVEST FOOD BANK.

EVERY DAY, I WORK WITH FAMILIES, SENIORS, STUDENTS, IMMIGRANTS, AND INDIVIDUALS EXPERIENCING HOMELESSNESS TO HELP THEM ACCESS FOOD ASSISTANCE AND OTHER ESSENTIAL RESOURCES THROUGH OUTREACH APPLICATION ASSISTANCE, AND CASE MANAGEMENT.

I HELP CONNECT COMMUNITY MEMBERS TO BENEFITS THAT REDUCE HUNGER AND CREATE STABILITY DURING SOME OF THE MOST DIFFICULT TIMES IN THEIR LIVES.

I'D LIKE TO SHARE ONE STORY THAT ILLUSTRATES WHY THIS WORK MATTERS.

DURING A FOOD DISTRIBUTION AT E.A. HALL MIDDLE SCHOOL, I MET A WOMAN WHO SEEMED HESITANT TO SPEAK WITH ME IN FRONT OF OTHERS.

I OFFERED TO CALL HER PRIVATELY LATER, AND SHE AGREED.

WHEN I SPOKE WITH HER, SHE SHARED THAT SEVERAL- THAT SEVEN YEARS WITH THE SAME EMPLOYER, SHE EXPERIENCED WORKPLACE HARASSMENT, AND LED TO A MENTAL HEALTH CRISIS.

SHE WAS FORCED TO TAKE UNPAID MEDICAL LEAVE AND SUDDENLY FOUND HERSELF WITHOUT INCOME.

SHE HAD NEVER IMAGINED SHE WOULD NEED ASSISTANCE AND ASSUMED SHE WOULD NOT QUALIFY FOR CALFRESH.

AFTER COMPLETING A PRE-SCREENING, I DETERMINED SHE WAS LIKELY ELIGIBLE AND HELPED HER SUBMIT AN APPLICATION.

SHE WAS APPROVED FOR $465 FOR THE APPLICATION MONTH

[01:05:04]

WHEN I CALLED TO TELL HER THE NEWS AND EXPLAIN HOW TO OBTAIN THE EBT CARD, SHE BECAME EMOTIONAL.

SHE TOLD ME SHE HAD COME TO THE FOOD DISTRIBUTION BECAUSE SHE HAD NO FOOD LEFT IN HER HOME AND DID NOT KNOW HOW SHE WAS GOING TO FEED HER CHILDREN.

FOR THE FIRST TIME IN HER LIFE, SHE WAS EXPERIENCING FOOD INSECURITY.

HER STORY IS NOT UNIQUE.

ACROSS SANTA CRUZ COUNTY, MORE FAMILIES ARE FINDING THEMSELVES ONE UNEXPECTED CRISIS AWAY FROM NEEDING HELP.

THESE PROGRAMS DO MORE THAN PROVIDE FOOD, THEY PROVIDE DIGNITY, STABILITY, AND HOPE.

EVERY DOLLAR INVESTMENT HELPS ENSURE THAT ELIGIBILITY- ELIGIBLE RESIDENTS RECEIVE THE BENEFITS THEY HAVE EARNED, REDUCE HUNGER, AND IN OUR COMMUNITY, AND STRENGTHENING THE HEALTH AND WELL-BEING OF FAMILIES THROUGHOUT OUR COMMUNITY.

WHEN CALFRESH OUTREACH IS FUNDED, FAMILIES DON'T HAVE TO CHOOSE BETWEEN PAYING RENT AND BUYING GROCERIES.

PARENTS DON'T HAVE TO WONDER WHERE THEIR NEXT MEAL FOR THE CHILDREN WILL COME FROM, AND FACE, PEOPLE FACING LIFE'S HARDEST MOMENTS CAN FOCUS ON RECOVERING INSTEAD OF HUNGER.

THANK YOU FOR THE TIME, YOUR LEADERSHIP, AND YOUR COMMITMENT TO SUPPORTING THE RESIDENTS OF SANTA CRUZ COUNTY.

- THANK YOU.

SO, IN ORDER TO BE IN COMPLIANCE WITH SB 707, WHICH ENSURES THAT PEOPLE CAN ATTEND PUBLIC MEETINGS, BOTH IN PERSON AND VIRTUALLY, WE ARE GOING TO TRANSITION TO TAKE FIVE REMOTE CALLERS, AND THEN COME BACK TO THE LINE AND TAKE FIVE OF YOU HERE, AND WE'LL CONTINUE TO DO THAT THROUGHOUT THE REST OF THE HOUR THAT WE SET.

- BERNIE, YOUR MICROPHONE IS NOW AVAILABLE.

- UH, GOOD MORNING, CHAIR, BOARD OF SUPERVISORS, STAFF.

UH, BERNIE GOMEZ HERE WITH MILPA.

UH, UNFORTUNATELY, I COULDN'T MAKE IT IN PERSON.

I CAME DOWN WITH A LITTLE BUG OR VIRUS, YOU KNOW, WORKING WITH KIDDOS.

YOU KNOW HOW THAT GOES.

UM, AND I WANTED TO MENTION, UH, I APPRECIATE THE-THE POINT THAT WAS MADE EARLIER ABOUT, UH, BEING VALUES-DRIVEN, RIGHT? UM, SO I HOPE THAT THROUGHOUT THESE DISCUSSIONS, YOU REALLY LOOK DEEP INTO LIKE YOUR MORAL COMPASS AND JUST YOUR ANALYSIS, RIGHT? DO SOME CRITICAL THINKING AND, UM, YEAH, AND JUST ASK QUESTIONS AND GET INFORMATION, RIGHT? AND-AND, UH, LISTEN TO THE PUBLIC AS WELL.

UM, I ALSO WANT TO HIGHLIGHT THE CONSENT AGENDA ITEM NUMBER 36, I BELIEVE IT IS, UH, WHICH HAS TO DO WITH, UM, I'M LOOKING AT IT WITH THE DISTRICT ATTORNEY'S OFFICE.

AND I JUST WANTED TO HIGHLIGHT THAT IT IS A $28 MILLION BUDGET, AND IT'S ON CONSENT, AND THERE IS $1.6 MILLION OF ONE-TIME REVENUES BEING ALLOCATED TO THE DEPARTMENT.

AND I WOULD WANT TO JUST KNOW KIND OF LIKE WHERE'S, WHERE IS THAT GOING, AND WHAT'S LIKE WHAT IS THE CURRENT STATUS OF- OF THE-THE DISTRICT ATTORNEY'S OFFICE, UM, JUST FROM, JUST 'CAUSE IT'S PART OF THE PUBLIC SAFETY DEPARTMENT, AND YOU HAVE EVERY OTHER PUBLIC SAFETY DEPARTMENT DOING ITS PRESENTATION.

SO, UM, BUT I'LL LEAVE IT AT THAT.

THANK YOU, AND LOOKING FORWARD TO HAVING A ROBUST DISCUSSION.

- MARIA, YOUR MICROPHONE IS NOW AVAILABLE.

- GOOD MORNING, BOARD.

THANK YOU FOR COMING TO WATSONVILLE.

UH, MY NAME IS MARIA PEREZ.

I LIVE IN DISTRICT 4, AND WORK FOR REGENERACIÓN PÁJARO VALLEY CLIMATE ACTION.

WE ARE PART OF THE MONTEREY BAY AREA ENERGY JUSTICE COLLABORATIVE, WORKING WITH OTHER COMMUNITY-BASED ORGANIZATIONS IN THE TRI-COUNTY AREA.

UH, WE AS A COUNTY HAVE TO CONTINUE TO SUPPORT PREVENTION AND CLIMATE RESILIENCE PREPARATION.

I URGE YOU TO KEEP THIS AS A PRIORITY.

THERE ARE PREDICTIONS OF AN INTENSIFIED EL NIÑO YEAR DUE TO ADDITIONAL WARMING FROM HUMAN ACTIVITIES.

THIS CAN BRING EXTREME RAINS AND OTHER CLIMATIC EVENTS TO OUR AREA, WHICH, AS WE'VE SEEN BEFORE, HAVE DEVASTATING IMPACTS TO OUR COMMUNITY MEMBERS' HEALTH AND INFRASTRUCTURE.

THANK YOU.

- STEPHANIE, YOUR MICROPHONE IS NOW AVAILABLE.

- HELLO. GOOD MORNING. THANK YOU ALL. STEPHANIE BROWNLOO HERE.

UM, I WOULD LIKE TO URGE YOU TO REJECT THE GENERAL CONCEPT OF PARK FEES, AS WELL AS AI MODERNIZATION.

SANTA CRUZ COUNTY HAS THE OPPORTUNITY TO BE INNOVATIVE AND BE VERY CLEAR IN OUR VALUES AND IN OUR ETHICAL STANCE AND TO REALLY RESTRICT HOW OUR LOCAL GOVERNMENT AND AGENCIES ARE USING TECHNOLOGY.

I ALSO JUST FEEL VERY STRONGLY THAT AI HAS HIGH FAILURE RATES.

[01:10:02]

I MEAN, I CAN HARDLY CALL CUSTOMER SERVICE AND GET A CHATBOT, AND IT'S JUST, IT ROUND AND ROUND IT GOES.

LIKE, WE'RE-WE'RE LOSING OUR-OUR PEOPLE HERE.

UH, REVENUE PROJECTIONS AND HISTORICAL TREND DATA THAT YOU WERE MENTIONING, I MEAN, IT JUST IT REALLY HURTS MY HEART TO THINK THAT THE HARD WORK AND HEART WORK THAT OUR COUNTY PARK AND COUNTY PARK FRIENDS HAS DONE TO BRING DOLLARS INTO OUR REGION AND DOLLARS INTO OUR LOCAL PARKS TO MAKE IT A CASE FOR IT BEING SOMETHING ACCESSIBLE OF, BY, AND FOR THE PEOPLE THAT WE'RE SERVING, AND TO NOW SUDDENLY HAVE TO HAVE THAT BE A JUDGMENT CALL OF $5 FOR GAS, $5 FOR MILK, OR $5 TO TAKE MY CHILD TO A STATE PARK.

I MYSELF AM A, UH, I CONSIDER MYSELF A VERY REASONABLE PERSON AND I ALSO THINK THAT I'M A DREAMER, AND I REALLY THINK THAT AI MODERNIZATION WILL ULTIMATELY LEAD TO UNRECOVERABLE TAXPAYER COSTS.

I THINK THAT THERE IS SOMETHING PIVOTAL ABOUT THIS MOMENT AS WE DON'T EVEN KNOW WHETHER OR NOT WE WILL HAVE DATA BREACHES, WHETHER OR NOT WE WILL HAVE FURTHER ISSUES OF, UM, OF JUSTICE REALLY.

AND SO, I THINK THIS IS A MOMENT WHERE AI IS BEING SHOVED DOWN EVERYBODY'S THROATS FROM HEALTHCARE TO HUMAN SERVICES AND BEYOND.

AND I WOULD HATE TO SEE THAT THIS IS PART OF, YOU KNOW, REPLACING A WORKFORCE AND-AND REALLY AGAIN, JUST WHAT NORMAL TIMES WE'RE LIVING THROUGH IN THIS KIND OF POLICE STATE WHERE WE'RE ALL IN SURVEILLANCE.

SO, THANK YOU.

- AUSTIN, YOUR MICROPHONE IS NOW AVAILABLE.

AUSTIN, WE'RE NOT ABLE TO HEAR YOU.

IF YOU COULD PLEASE TRY RE-UNMUTING YOURSELF.

[SILENCE] AUSTIN, WE'RE STILL UNABLE TO HEAR YOU.

YOU MIGHT NEED TO ADJUST THE VOLUME ON YOUR DEVICE.

CHAIR, I'M GOING TO MOVE ON TO THE NEXT SPEAKER.

PATTY, YOUR MICROPHONE IS NOW AVAILABLE.

- GOOD MORNING. CAN YOU HEAR ME? - YES, WE CAN.

- GOOD MORNING, MEMBERS OF THE BOARD.

MY NAME IS PATTY QUILLAN, AND I'M A RESIDENT OF SANTA CRUZ COUNTY.

I SERVE ON THE ADVISORY BOARD OF SMART JUSTICE CALIFORNIA, AN ORGANIZATION THAT EDUCATES AND EMPOWERS POLICYMAKERS TO CHAMPION MEANINGFUL CRIMINAL JUSTICE REFORMS AND PROMOTE SAFETY, HUMAN DIGNITY, AND HEALTHY COMMUNITIES.

I'M HERE TODAY TO URGE YOU, AS OTHER SPEAKERS HAVE, TO KEEP OUR PUBLIC DEFENDER'S OFFICE HOLISTIC DEFENSE PROGRAM INTACT AS YOU MAKE YOUR BUDGETARY DECISIONS FOR THE COMING FISCAL YEAR.

AS OTHERS HAVE SAID, THIS IS A MODEL FOR WHAT PUBLIC DEFENSE CAN AND SHOULD LOOK LIKE.

THE POSITIVE OUTCOMES FROM WRAP-AROUND SERVICES DON'T JUST CHANGE CLIENTS' LIVES.

THE OUTCOMES RIPPLE OUTWARD AND STRENGTHEN OUR ENTIRE COMMUNITY.

I UNDERSTAND THE FISCAL PRESSURES YOU'RE FACING ARE SERIOUS, AND I'VE READ THAT A FEW DIFFERENT PROPOSALS WERE CONSIDERED, AND I BELIEVE THE CURRENT PROPOSAL FOR AN ALTERNATE PUBLIC DEFENDER'S OFFICE IS THE BEST CHOICE.

THIS WOULD CRITICALLY PRESERVE THE HOLISTIC SERVICES THAT ADDRESS THE ROOT CAUSES OF CRIME RATHER THAN SIMPLY PUNISHING PEOPLE AFTER THE FACT.

THE COUNTY HAS BUILT SOMETHING WORTH PROTECTING, AND I HOPE YOU DON'T LET THE BUDGET PRESSURES UNDO FOUR YEARS OF PROGRESS.

THANK YOU.

- CHAIR, I'M GOING TO RETURN TO THE SPEAKER.

UH, WE HAVE NO OTHER SPEAKERS WITH THEIR HAND RAISED AT THIS TIME.

AUSTIN, YOUR MICROPHONE IS ONCE AGAIN AVAILABLE.

PLEASE ACCEPT THE UNMUTE TO BEGIN MAKING YOUR COMMENTS.

IT APPEARS THE SPEAKER'S UNABLE TO CONNECT.

- THANK YOU. AND WILL YOU CONFIRM THAT THAT'S THE FINAL ONLINE CALLER? - YES, WE HAVE NO ADDITIONAL SPEAKERS ONLINE WITH THEIR HAND RAISED AT THIS TIME.

- THANK YOU. UH, I WELCOME YOU TO PROCEED.

TWO MINUTES.

[01:15:04]

MY NAME IS CLAUDIA MELENDEZ, AND I AM A CASE SPECIALIST AT SECOND HARVEST FOOD BANK, SANTA CRUZ COUNTY.

I WORK DIRECTLY WITH COMMUNITY MEMBERS TO HELP THEM ACCESS SAFETY NET PROGRAMS SUCH AS CALFRESH, CALWORKS, AND MEDI-CAL.

IN A COUNTY WHERE THE COST OF LIVING CONTINUES TO RISE, THESE SAFETY NET PROGRAMS ARE ESSENTIAL IN HELPING INDIVIDUALS AND FAMILIES MEET THEIR BASIC NEEDS.

TODAY, I WOULD LIKE TO SHARE THE STORY OF AN ELDERLY COUPLE I MET WHILE CONDUCTING OUTREACH HERE IN WATSONVILLE.

THIS COUPLE WERE LIVING ON A FIXED INCOME, STRUGGLING TO AFFORD FOOD WHILE ALSO KEEPING UP WITH THEIR MORTGAGE, UTILITIES, AND OTHER EXPENSES.

LIKE MANY SENIORS IN OUR COMMUNITY, THEY FOUND THEMSELVES HAVING TO MAKE DIFFICULT DECISIONS BETWEEN PAYING BILLS AND BUYING GROCERIES.

AT FIRST, THEY WERE HESITANT TO APPLY FOR CALFRESH DUE TO MANY INACCURATE INFORMATION THAT THEY, THAT THEY HAD HEARD OVER THE YEARS.

AFTER MEETING WITH THEM, I HELPED THEM APPLIED FOR CALFRESH BENEFITS AND CONNECTED THEM TO ADDITIONAL RESOURCES AVAILABLE THROUGH OUR COMMUNITY PARTNERS.

THE SUPPORT THEY RECEIVED HELPED RELIEVE SOME OF THE FINANCIAL PRESSURE THEY WERE FACING AND ALLOWED THEM TO ACCESS NUTRITIOUS FOOD WITHOUT SACRIFICING OTHER ESSENTIAL NEEDS.

THIS COUPLE'S STORY REFLECTS THE REALITY OF MANY RESIDENTS HERE IN SANTA CRUZ COUNTY.

EVERY DAY, WHILE CONDUCTING OUTREACH OUT IN THE COMMUNITY I MEET SENIORS, WORKING FAMILIES, VETERANS, INDIVIDUALS WITH DISABILITY, AND PEOPLE WORKING MULTIPLE JOBS WHO ARE STRUGGLING TO MAKE ENDS MEET AND RELY ON THESE PROGRAMS LIKE CALFRESH TO PUT FOOD ON THEIR TABLE.

IT IS IMPORTANT TO REMEMBER THAT MANY OF OUR NEIGHBORS RELY ON THESE SERVICES FOR STABILITY.

I URGE THE BOARD TO CONTINUE INVESTING AND SUPPORTING EFFORTS THAT INCREASE ACCESS TO THESE CRITICAL PROGRAMS. FOR MANY OF OUR NEIGHBORS, THESE SAFETY NET PROGRAMS ARE THE DIFFERENCE BETWEEN STABILITY AND HARDSHIPS.

BY PROTECTING THESE PROGRAMS, WE ARE HELPING OUR NEIGHBORS WITH EACH DIGNITY, SUPPORTING WORKING FAMILIES, AND BUILDING A HEALTHIER AND MORE RESILIENT COMMUNITY.

THANK YOU FOR YOUR TIME.

- THANK YOU.

- GOOD MORNING.

UM, GOOD MORNING.

MY NAME IS SARAI ZAYAS.

I'M A CASE SPECIALIST WITH SECOND HARVEST FOOD BANK.

I'M HERE TODAY ALONG WITH STAFF FOR SECOND HARVEST FOOD BANK JUST TO ASK YOU GUYS ABOUT MAKING SURE- I KNOW BUDGETS ARE TOUGH RIGHT NOW, RIGHT? AND EVERYTHING IS SUFFERING, BUT LET'S REMEMBER ABOUT OUR COMMUNITY MEMBERS, THE PEOPLE THAT WE WORK DAILY.

I HAVE PERSONALLY TAKE THE TIME TO VISIT EACH OF YOUR DISTRICT AND ASSIST COMMUNITY MEMBERS UP THERE, AND THE NEED IS IMMENSE.

AND AS CUTS, I KNOW, YOU KNOW, IT'S BUDGETS ARE TOUGH, BUT WE NEED TO REMEMBER WHO WE SERVE, AND WE SERVE COMMUNITY MEMBERS.

SO, I'M ASKING TODAY, I'M HERE TODAY TO SHARE THE IMPORTANCE OF MY WORK AND MY TEAM'S WORK IN THE COMMUNITY.

AS CASE SPECIALISTS, WE'RE CONSIDERED TO BE THE FIRST RESPONDERS WHEN IT COMES TO COMMUNITY NEEDS AND QUESTIONS RELATED TO CALFRESH, CALWORKS, AND MEDI-CAL.

UM, WE HAVE ESTABLISHED A TRUSTING, UH, RELATIONSHIP WITH COMMUNITY MEMBERS, AGENCY PARTNERS, AND-AND THE SANTA CRUZ COUNTY.

SECOND HARVEST HAS MAINTAINED A PARTNERSHIP WITH THE COUNTY FOR OVER 14 YEARS.

DUE TO, DUE TO FUNDING CUTS, OUR POSITIONS ARE UNCERTAIN AS JULY 1ST OF THIS YEAR.

THIS WILL BE IMPACT OUR COMMUNITY MEMBERS DIRECTLY, AS THE COMMUNITY OFFICE, AS A COUNTY OFFICE, UM, TO MAKE SURE THE MOST VULNERABLE COMMUNITY MEMBERS CAN ACCESS BENEFITS, UM, AND WE CAN CONTINUE TO RECEIVE, UM, TO RECEIVE THESE BENEFITS.

TODAY, I ASK THE SANTA CRUZ, UM, BOARD OF SUPERVISORS TO CONTINUE TO SUPPORT COMMUNITY MEMBERS BY SUPPORTING SECOND HARVEST FOOD BANK TO BE ABLE TO CONTINUE HAVE FUNDING FOR THE CALFRESH TEAM TO BE ABLE TO CONTINUE TO SUPPORT OUR MOST VULNERABLE COMMUNITY MEMBERS.

UM, AND LIKE AGAIN, THANK YOU SO MUCH FOR YOUR TIME, AND PLEASE, UM, HAVE PEOPLE'S, UM, COMMUNITY MEMBERS IN MIND WHEN YOU DO THESE CUTS.

THANK YOU.

- GOOD MORNING. MY NAME IS DANIELA ANAYA, AND I'M THE DIRECTOR OF FAMILY PROGRAMS WITH JACOB'S HEART CHILDREN'S CANCER SUPPORT SERVICES.

I'M HERE TODAY TO EXPRESS MY STRONG SUPPORT FOR RESTORING FUNDING FOR THE SECOND HARVEST BANK'S CALFRESH OUTREACH AND ENROLLMENT TEAM.

AT JACOB'S HEART, WE SERVE FAMILIES WHOSE CHILDREN ARE FIGHTING PEDIATRIC CANCER.

EVERY WEEK, WE DELIVER GROCERIES AND DIAPERS DIRECTLY TO APPROXIMATELY, 110 FAMILIES THROUGHOUT OUR COMMUNITIES.

AS MANY OF YOU KNOW, THE COST OF GROCERIES AND DIAPERS HAS INCREASED SIGNIFICANTLY, CREATING EVEN GREATER FINANCIAL STRAIN FOR FAMILIES ALREADY FACING MEDICAL, EMOTIONAL, AND ECONOMIC HARDSHIPS.

OUR PARTNERSHIP WITH SECOND HARVEST FOOD BANK IS CRUCIAL TO OUR ABILITY TO PROVIDE THE SUPPORT.

THROUGH THEIR FOOD DISTRIBUTION PROGRAMS AND THE WORK OF THE CALFRESH OUTREACH TEAM, FAMILIES RECEIVE ACCESS TO NUTRITIOUS FOOD AND CRITICAL RESOURCES.

I CANNOT TELL YOU HOW MANY TIMES PARENTS HAVE SHARED WITH ME

[01:20:02]

AFTER SPENDING LONG DAYS AT THE HOSPITAL ATTENDING TREATMENT, MEETING WITH DOCTORS, AND CARING FOR A CHILD WITH CANCER, THE LAST THING MANY FAMILIES HAVE THE ENERGY AND RESOURCES TO DO IS GO GROCERY SHOPPING.

KNOWING THAT FOOD AND DIAPERS WILL ARRIVE AT THEIR DOORSTEP PROVIDES RELIEF, DIGNITY, AND ONE LESS BURDEN FOR THE FAMILIES TO CARRY.

THE CALFRESH OUTREACH TEAM DOES MORE THAN CONNECT PEOPLE TO BENEFITS; THEY CONNECT FAMILIES TO-TO STABILITY.

I RESPECTFULLY ASK THAT THE BOARD OF SUPERVISOR RESTORE FUNDING FOR THE SECOND HARVEST CALFRESH OUTREACH AND ENROLLMENT SERVICES THROUGH THE GENERAL FUND.

SECOND HARVEST HAS CONSISTENTLY SHOWN UP FOR OUR COMMUNITY, AND TODAY, I ASK THAT WE SHOW UP FOR THEM.

THANK YOU FOR YOUR TIME AND CONSIDERATION.

- HI, MY NAME IS FERNANDO CARDENAS WITH SECOND HARVEST FOOD BANK.

UM, I AM HERE TO EXPRESS MY SUPPORT FOR OUR CALFRESH, UM, OUTREACH TEAM.

UM, THIS IS A DEDICATED GROUP OF INDIVIDUALS, UM, WHO ARE A LIFELINE FOR OUR COMMUNITY MEMBERS THAT ARE STRUGGLING TO MAKE ENDS MEET.

AS YOU KNOW, FOOD IS A VERY BASIC NEED, AND IF YOU'VE EVER, YOU KNOW, EXPERIENCED SOME SENSE OF HUNGER, EVEN A LITTLE BIT, IT'S HARD TO THINK ABOUT ANYTHING ELSE, RIGHT? UM, AND WE, FOR THIS REASON, WE, UH, URGENTLY NEED CONTINUED FUNDING FOR CALFRESH, UH, TO ENSURE THAT FAMILIES IN OUR COMMUNITY DO NOT FALL DEEPER INTO FOOD INSECURITY.

ANOTHER POINT I REALLY WANT TO EMPHASIZE IS THAT OUR TEAM, UM, IS, UH, DEEPLY TRUSTED WITHIN OUR COMMUNITY, AND THIS TRUST IS ESSENTIAL NOW MORE THAN EVER.

AS WE CONTINUE TO SEE HEIGHTENED, UH, FEAR IN OUR COMMUNITY, UM, WE HAVE BEEN ABLE TO ESTABLISH RELATIONSHIPS, UM, SEE MULTIPLE FAMILY MEMBERS, UM, SO THAT TRUST IS THERE AND WE KNOW THAT WITHOUT THAT, COMMUNITY MEMBERS WILL NOT GO OUT AND SEEK, UM, WHAT THEY ARE ELIGIBLE FOR.

UM, SO I SINCERELY HOPE THAT THE BOARD OF SUPERVISORS WILL UNITE TO SUPPORT THE CALFRESH OUTREACH TEAM AND ULTIMATELY, UH, SUPPORT OUR COMMUNITY MEMBERS.

THANK YOU.

- GOOD MORNING.

MY NAME IS REINA RUIZ.

I'M THE DIRECTOR OF JUVENILE JUSTICE PROGRAMS FOR CASA OF SANTA CRUZ COUNTY.

UM, MY TECH IS FAILING, SO I'M GONNA FREESTYLE TODAY, UM, AND SPEAK FROM THE HEART.

UM, I'VE BEEN IN JUVENILE COURT FOR ABOUT THREE YEARS, UM, BOTH, UM, IN TRUANCY COURT AND DEPENDENT- AND JUVENILE JUSTICE COURT.

UM, WHAT I CAN SAY IS I HAVE, UM, A WORRY ABOUT OUR DEMOCRACY AND A WORRY ABOUT, UM, THE RULE OF LAW.

AND I THINK, YOU KNOW, OUR, UM, COUNTY HAS DONE A GREAT JOB IN TERMS OF YOUTH JUSTICE REFORM AND, UM, I'M HERE TO SPEAK ON BEHALF OF BOTH THE PUBLIC DEFENDER'S OFFICE AND THEIR HOLISTIC PROGRAM.

IT SAVES LIVES AND IT REALLY IS THE WAY TO GO IN TERMS OF, UM, PROVIDING, UM, RIGOROUS DEFENSE FOR FOLKS HERE IN OUR COMMUNITY.

AND I THINK IT INCREASES PUBLIC SAFETY.

UM, ONE OF THE THINGS IS, I'M IN...

YOUTH COURT IS A CONFIDENTIAL PROCEEDING.

UM, AS A CASA, WE'RE ABLE TO BE IN COURT DAY IN AND DAY OUT AND WITNESS NOT JUST ONE CASE, MULTIPLE CASES AND SEE TRENDS.

OUR ALTERNATE PUBLIC DEFENDER'S OFFICE IS ALSO CRITICAL, UM, WITH THE DIVERSIONS WE HAVE.

UM, AND SOME OF THE MOST COMPLICATED CASES ARE MAINTAINED IN THE COURT AND THOSE COMPLICATED CASES, ONE OF THEM IS CONFLICT OF INTEREST.

AND SO I'M SEEING CASES WITH, UM, MULTIPLE DEFENDANTS AND THE NEED FOR ALTERNATE PUBLIC DEFENDERS.

SO THAT'S ONE.

TWO, WE NEED, UM, TO ENSURE THAT, UM, SPEEDY TRIALS AND SPEEDY PROCESS, ESPECIALLY IN JUVENILE COURT.

AND SO I'M HOPING THAT, UM, WE CAN, UM, PRESERVE THE FUNDING BOTH FOR THE PUBLIC DEFENDERS AND THE ALTERNATE PUBLIC DEFENDERS AND NOT BALANCE THE BUDGET ON THE BACKS OF THE MOST MARGINALIZED YOUTH.

AND I SEE YOUTH GOING BACK FROM, UM, DEPENDENCY COURT TO JUVENILE JUSTICE OR VICE VERSA.

AND I'VE ALSO SEEN KIDS IN TRUANCY COURT IN JUVENILE JUSTICE AND VICE VERSA. THANK YOU.

- THANK YOU.

MADAM CLERK, HAS ANYBODY JOINED ON THE CALL? - YES. ONE ADDITIONAL SPEAKER HAS RAISED THEIR HAND.

MIRIAM, YOUR MICROPHONE IS NOW AVAILABLE.

[01:25:03]

UH, MY NAME IS MIRIAM STOMBLER AND I'M HERE IN STRONG SUPPORT OF THE PUBLIC DEFENDER'S OFFICE AND THEIR VISIONARY LEADER HEATHER ROGERS.

I'M A SANTA CRUZ RESIDENT OR RETIRED ASSISTANT COUNTY COUNCIL, A FOUNDING MEMBER OF BOTH THE SANTA CRUZ WELCOMING NETWORK AND THE CHILDCARE SAFETY PLAN COALITION.

UM, THE PUBLIC DEFENDER'S OFFICE HAS BEEN A CRUCIAL PARTNER IN PROTECTING THE RIGHTS, SAFETY, AND DIGNITY OF OUR IMMIGRANT NEIGHBORS AND THE BROADER COMMUNITY.

THEY HAVE BEEN INSTRUMENTAL IN PARTNERING ON A SERIES OF PRO BONO ASYLUM CLINICS AND HAVE PROVIDED GUIDANCE IN OTHER MATTERS RELATING TO IMMIGRANT FAMILY RIGHTS AND SAFETY.

AND I CAN TESTIFY FROM MY OWN EXPERIENCE IN WORKING WITH THEM, THAT THE PUBLIC DEFENDER IS DOING CRITICALLY IMPORTANT WORK THAT SUPPORTS VULNERABLE PEOPLE AND STRENGTHENS OUR COMMUNITY AND WE ARE ALL SAFER AS A RESULT.

SO I BELIEVE IT WOULD BE CATASTROPHIC TO ABANDON THE HOLISTIC DEFENSE MODEL THAT HEATHER ROGERS HAS CREATED, AND WITH THE SOCIAL WORKERS AND CLIENT ADVOCATES WHO MAKE THAT POSSIBLE.

SO IN THE FACE OF THE DIFFICULT DECISIONS THAT YOU MUST MAKE, I URGE YOU TO SUPPORT MS. ROGERS' PROPOSAL AND HER JUDGMENT AS TO HOW BEST TO NAVIGATE THIS DIFFICULT BUDGET YEAR WITH THE LEAST DAMAGE TO WHAT SHE IS BUILDING IN HER OFFICE TO DISMANTLE-DISMANTLE HER GREAT WORK WOULD BE PENNIES WISE AND POUNDS FOOLISH.

THANK YOU.

- WE HAVE NO ADDITIONAL SPEAKERS ONLINE, CHAIR.

- THANK YOU. GO AHEAD.

- GOOD MORNING. I'M HERE TODAY TO ASK THAT YOU MAINTAIN FUNDING FOR SECOND HARVEST CALFRESH OUTREACH TEAM.

EACH YEAR OUR STAFF ARE RESPONSIBLE FOR ENROLLING NEW CALFRESH RECIPIENTS, AS WELL AS HELPING THOSE, UH, ALREADY ENROLLED, MAINTAIN THEIR BENEFITS THROUGH A COMPLICATED AND CONFUSING RENEWAL PROCESS.

I'VE BEEN AT THE FOOD BANK FOR MORE THAN 10 YEARS.

I'VE SEEN THE IMPACT.

UH, ONE EXAMPLE THAT ALWAYS STAYS WITH ME.

WE GOT A CALL FROM AN ELDERLY WOMAN WHO DIDN'T HAVE ACCESS TO THE INTERNET AT HER HOUSE, AND EVERYTHING FOR ENROLLMENT IS BASED ONLINE.

OUR STAFF WENT TO HER HOME, THEY SAT IN HER LIVING ROOM AND HELPED HER COMPLETE HER PAPERWORK, AND SHE LATER CALLED BACK OUR HOTLINE IN TEARS, AND I ANSWERED THE CALL, TO EXPRESS HER GRATITUDE.

SHE WAS ISOLATED AND NEEDED SUPPORT, AND OUR STAFF WERE THERE FOR HER.

THE HUMAN IMPACT OF THE WORK THAT THE CALFRESH TEAM DOES IS HUGE AND THE FISCAL IMPACT IS REAL TOO.

THOSE FEDERAL FUNDS THAT PEOPLE RECEIVE THROUGH CALFRESH ARE SPENT ON OUR LOCAL GROCERY STORES.

EVERY DOLLAR SPENT ON CALFRESH OUTREACH ENROLLMENT RETURNS MANY TIMES OVER IN THE LOCAL COMMUNITY.

I HOPE YOU'LL MAINTAIN THE FUNDING FOR THE AMAZING WORK THAT OUR CALFRESH TEAM DOES. THANK YOU.

- GOOD MORNING. UM, MY NAME IS DIEGO RUBIO AND I'M HERE TO SUPPORT, UH, THE PUBLIC DEFENDER'S OFFICE.

UM, I'M JUST HERE TO SHARE THAT I'VE MADE MISTAKES IN MY LIFE THAT I'M NOT VERY PROUD OF, BUT I'VE ALSO MADE THE DECISION TO CHANGE MY LIFE, YOU KNOW, AND TODAY I'M IN RECOVERY, WORKING EVERY DAY TO REBUILD MY LIFE, STRENGTHEN MY RELATIONSHIPS, AND BECOME A BETTER PERSON AND THE PERSON I WANT TO BE.

RECOVERY HAS TAUGHT ME THAT PEOPLE ARE CAPABLE TO CHANGE, GROWTH, AND TRANSFORM THEIR LIVES.

WHAT I'VE LEARNED IS THAT EVEN IN WHEN SOMEONE IS DOING EVERYTHING RIGHT, STAYING SOBER, SEEKING SUPPORT, FINDING WORK, AND TAKING RESPONSIBILITY FOR THEIR ACTIONS, A CRIMINAL RECORD CAN CONTINUE TO HOLD HIM BACK.

IT CAN MAKE LIFE MUCH HARDER.

AND, UM, IT'S HARDER TO REBUILD YOUR, YOU KNOW, LIFE WHEN YOU HAVE A CRIMINAL RECORD.

SO I KNOW THE IMPORTANCE OF A SECOND CHANCE BECAUSE I'M LIVING IN THE JOURNEY MYSELF RIGHT NOW, YOU KNOW? AND SO I WOULD JUST LIKE TO ASK TO PLEASE CONTINUE TO FUND THE CLEAN SLATE PROGRAM SO THAT WORKING HARD TO TURN THEIR LIVES AROUND, HAVE THE OPPORTUNITY TO SUCCEED.

THANK YOU. YEAH.

- HELLO, MY NAME'S PRESLEY CLARK AND I AM HERE TO ASK THAT WE KEEP THE CLEAN SLATE PROGRAM.

THIS PROGRAM ALLOWS FOR PEOPLES TO GET THEIR CHARGES EXPUNGED.

UM, I THINK IT'S LIKE A FEW YEARS AFTER IT HAPPENS, AND I BELIEVE SOME PEOPLE DESERVE A SECOND CHANCE, AND LATER WHEN THEY TRY TO GET A JOB OR RENT AN APARTMENT OR ANYTHING LIKE THAT, IT MAKES, IT MAKES PEOPLE TURN THEM AWAY AND THERE'S A LOT OF THINGS THAT THEY MISS OUT ON IN LIFE.

AND I WOULD LIKE, I THINK THAT I DO NOT WANT TO BE LOOKED AT AS A CRIMINAL IN THE FUTURE.

AND, UM, I JUST ASK THAT YOU GUYS PLEASE KEEP THE PROGRAM BECAUSE IT WILL HELP ME AND, UM, OTHER PEOPLE.

I WENT TO A REHAB PROGRAM CALLED JANICE AND IT HELPED ME OUT A LOT,

[01:30:02]

AND SO I JUST ASK THAT WE, UH, KEEP THAT PROGRAM GOING.

ALSO, I WANTED TO SAY, UM, LAUREN COX FROM THE PAGE FIRM IS MY PUBLIC DEFENDER, AND SHE'S HELPING ME WITH MY WET AND RECKLESS CASE, AND SHE'S TRULY A GREAT LAWYER.

THANK YOU VERY MUCH.

- GOOD MORNING.

UH, I'M MIKE BEEBE, UH, THE BOARD PRESIDENT OF NAMI SANTA CRUZ.

AND I'M HERE TO PERSONALLY OFFER, UH, MY SUPPORT FOR THE PUBLIC DEFENDER, UH, APDO ALTERNATIVE WHICH I FEEL IS A BETTER OF THE TWO PATHS, BUT WITH A FULL RECOGNITION THAT BOTH ALTERNATIVES ARE GONNA REDUCE OUR DEFENSE AND DIVERGENT CAPABILITIES TO OUR MOST VULNERABLE POPULATIONS.

THE THREE YEAR C- UH, CJC STUDY FOR WHICH WE, UH, RECEIVED NATIONAL RECOGNITION, LOOKED AT THE IMPACT OF OUR JUSTICE SYSTEMS AND THE INDIVIDUALS WITH MENTAL HEALTH CONDITIONS.

UH, THIS CROSS COUNTRY STUDY HIGHLIGHTED BEST PRACTICE APPROACHES FOR INDIVIDUALS WHOSE BEHAVIORS, DUE TO MENTAL HEALTH CONDITIONS, BECAME INVOLVED IN THE JUSTICE SYSTEM.

THESE BEST PRACTICES INCLUDED COLLABORATIVE COURTS, MENTAL HEALTH DIVERSION, UH, HOLISTIC DEFENSE CRISIS TEAMS, AND EXPANDED USE OF PROBATION TIME.

THESE INITIATIVES ARE NOW AT RISK OF BEING SCALED BACK, UH, WITH PREDICTABLE PERSONAL AND ECONOMIC IMPACT FOR THE INDIVIDUALS.

AND WHAT I EXPECT WILL BE A SHIFT TO LONGER DAYS IN CUSTODY, INCREASED INCARCERATIONS AND MAY COST MORE THAN PROVIDING TIMELY AND APPROPRIATE INTERVENTIONS.

EVIDENCE OF THE POSITIVE IMPACT OUR CURRENT APPROACH HAS BEEN, HAS BEEN AN INCREASE IN MENTAL HEALTH DIVERSIONS FROM 12, FOUR YEARS AGO TO 454, LAST YEAR.

60% OF PUBLIC DEFENSE CLIENTS RECEIVED SOCIAL SERVICE SUPPORTS FROM THE HOLISTIC TEAMS. AND RIGHT NOW WE'RE HAVING EIGHT FEWER DAYS IN CUSTODY FOR 400 INDIVIDUALS ELIGIBLE FOR EARLY REPRESENTATION WITH RECOGNITION OF THE SUPPORT AND CONTRIBUTION PAGE AND DUDLEY HAVE MADE FOR MANY YEARS.

THE APDO ALTERNATIVE PRESERVES THE PUBLIC DEFENDERS IN-HOUSE KNOWLEDGE AND INTEGRATION, WHICH HAS DELIVERED THESE GAINS AND WHICH CAN SUSTAIN AS MUCH OF THE BENEFIT AS THE REMAINING STAFF ALLOWS. THANK YOU. - THANK YOU.

- GOOD MORNING. WELCOME TO WATSONVILLE.

HAPPY YOU'RE HERE.

UM, I'M HERE TO SUPPORT SECOND HARVEST FOOD BANK AND THEIR CALFRESH OUTREACH TEAM.

UM, THEIR COMPASSION FOR THEIR NEIGHBORS AND THEIR KNOWLEDGE ON THE SYSTEM IS VERY IMPRESSIVE.

EACH YEAR THIS GROUP IS RESPONSIBLE FOR ENROLLING NEW CALFRESH RECIPIENTS AND KEEPING THEM ENROLLED.

THAT MEANS FEDERAL MONEY COMING INTO OUR COUNTY AND CIRCULATING AMONGST OUR LOCAL GROCERY STORES, FAMILY FARMS AND ROADSIDE STANDS.

AND ANY CALFRESH BENEFITS PEOPLE CAN SPEND IN THESE PLACES MEANS MORE MONEY FOR OTHER EXPENSES TOO, WHICH FURTHER SUPPORTS THE LOCAL ECONOMY.

I HOPE THE BOARD OF SUPERVISORS CAN INCLUDE THEM IN THE BUDGET BECAUSE WE GENERALLY CAN'T AFFORD TO BE WITHOUT THEM.

THANK YOU.

- GOOD MORNING BOARD MEMBERS. MY NAME IS ANDREW.

I'M A LONGSTANDING RESIDENT OF SANTA CRUZ COUNTY.

I DIDN'T QUITE WANT TO GET UP HERE AND SAY ANYTHING THIS MORNING BUT I FEEL A MORAL AND ETHICAL OBLIGATION TO STAND BEFORE YOU AND SPEAK MY MIND BEFORE LEAVING.

UM, I DIDN'T WANT TO LEAVE THIS ROOM AND, UM, FEEL DESPAIR THAT I DIDN'T STAND UP HERE AND SPEAK MY MIND.

SO, UH, AS A LONGSTANDING MEMBER OF THE SOCIETY, UM, YOU KNOW, I WENT THROUGH COLLEGE.

I MADE SOME BAD DECISIONS IN MY LIFE WITH DRINKING, AND IT LED ME DOWN A PATH THAT I WASN'T QUITE PROUD OF.

UM, OVER THE PAST SIX YEARS, I'VE BEEN IN RECOVERY.

I'VE BEEN CHANGING MY LIFE AROUND AND THIS HAS BEEN AN EVERYDAY BATTLE THAT I HAVE TO DEAL WITH.

AND IT'S SOMETHING THAT, AT THIS POINT, I OWN AND I'M OKAY WITH 'CAUSE IT'S-IT'S, UM, IT MADE ME THE MAN THAT I AM TODAY.

I WOULDN'T BE WHO I AM WITHOUT THE STRUGGLES THAT I'VE BEEN THROUGH.

BUT I CAN SAY THAT, UM, WITH TURNING MY LIFE AROUND, I RELY ON THE PUBLIC DEFENDER'S OFFICE AND THE HOLISTIC MODULES THAT THEY HAVE SET IN PLACE TO BE ABLE TO HELP INDIVIDUALS TURN THEIR LIVES AROUND.

UM, AS BEING SOMEBODY WHO'S PART OF THIS COMMUNITY, I-I-I PRIDE MYSELF AS A SANTA CRUZ IN THE SENSE THAT OUR SOCIAL SERVICES THAT ARE AVAILABLE TO US HERE IN THIS COUNTY ARE OF UTMOST IMPORTANCE.

AND, UM, WE ARE PIONEERS IN THE STATE AND IN SOMEWHAT IN THE NATION IN THESE, UM, HOLISTIC AND SOCIAL SERVICES THAT WE HAVE TO OFFER TO THE COMMUNITY.

SO, UM, INCURRING BUDGET CUTS IN THIS DEPARTMENT, UM, WOULD DEFINITELY INCUR QUITE AN IMPACT ON A LOT OF US THAT ARE TRYING TO TURN OUR LIVES AROUND FOR THE BETTER.

AND I-I HOPE THAT YOU-YOU TAKE THAT INTO CONSIDERATION WHEN IN PREPARING FOR YOUR BUDGET CUTS IS NEXT YEAR ROUND.

AND, UH, PLEASE KEEP ALL THIS IN MIND.

WE'RE REALLY TRYING TO TURN OUR LIVES AROUND FOR THE BETTER.

THANK YOU.

- THANK YOU.

SEEING NO MORE PUBLIC COMMENT IN THE ROOM, I'M NOW GONNA CLOSE OUR PUBLIC COMMENT PERIOD- LOOKS LIKE WE HAVE ONE MORE.

IF YOU HAVE ANY FURTHER COMMENTS PLEASE, UM, JOIN THE LINE.

[01:35:02]

- GOOD MORNING. MY NAME IS ALICIA GALLEGOS AND I'M A SOCIAL WORKER IN THE HOLISTIC DEFENSE DEPARTMENT OF THE PUBLIC DEFENDER'S OFFICE.

I'M A NATIVE OF SANTA CRUZ AND I'M A PROPERTY OWNER IN DISTRICT 5.

I WENT TO BAYVIEW ELEMENTARY, MISSION HILL MIDDLE SCHOOL AND GRADUATED FROM SANTA CRUZ HIGH SCHOOL.

I THEN BECAME A LICENSED CLINICAL SOCIAL WORKER IN 2020.

I'M HONORED TO SERVE MY COMMUNITY AND BE PART OF SUCH A GREAT INTERDISCIPLINARY TEAM AT THE PUBLIC DEFENDER'S OFFICE.

MY DAYS START IN THE COURTROOMS WHERE I MEET CLIENTS ON ONE OF THE WORST DAYS OF THEIR LIVES.

I WORK IN THE DOMESTIC VIOLENCE DEPARTMENT WHERE I OFTEN MEET PEOPLE WHO MY I GREW UP WITH OR WENT TO SCHOOL WITH.

MANY FAMILIES IN OUR COMMUNITIES ARE TOUCHED BY THE JUSTICE SYSTEM, WHETHER THEY HAVE A FRIEND OR A LOVED ONE STRUGGLING WITH LEGAL ISSUES.

I AM THERE AS A DEFENSE SOCIAL WORKER AND MY ROLE IS TO FIND OUT WHAT HAPPENED TO THEM AND HOW DID THEY END UP WHERE THEY ARE.

I ASSESS WHAT SUBSTANCE USE OR MENTAL HEALTH ISSUES OR SOCIAL ISSUES, SUCH AS HOUSING AND EMPLOYMENT AMONG OTHER ISSUES THEY'RE STRUGGLING WITH.

I CONNECT THEM TO AGENCIES AND PROGRAMS IN THE COMMUNITIES THAT CAN HELP CONNECT THEM WITH SAFETY NETS AND ATTEMPT TO REMOVE ANY BARRIERS THEY MIGHT BE EXPERIENCING IN ACCESSING THESE SERVICES.

AS MANY OF YOU KNOW, NAVIGATING SYSTEMS CAN BE CHALLENGING, ESPECIALLY IF YOU HAVE ANY DISABILITIES YOU ARE STRUGGLING WITH.

ONE EXAMPLE THAT COMES TO MIND IS, I RECENTLY WORKED WITH A CLIENT THAT HAD PICKED UP FIVE CRIMINAL CASES IN LESS THAN SIX MONTHS FOR MOSTLY NON-VIOLENT, UH, THEFT BURGLARY CHARGES.

SHE IS UNHOUSED AND A MOTHER OF FIVE CHILDREN.

HER-HER KIDS ARE CARED FOR BY HER PARENTS.

SHE WENT TO HIGH SCHOOL WITH MY OLDER SIBLINGS AND WE HAD GROWN UP IN THE SAME APARTMENT COMPLEX.

SHE WAS STRUGGLING WITH SUBSTANCE USE ISSUES AND HAD NOT BEEN IN TREATMENT FOR THE PAST FIVE YEARS.

WHILE IN CUSTODY, I FILLED OUT A CAFES APPLICATION WITH HER, WHICH IS A FUNDING STREAM WITH PROP 47/AB 109 FROM PROBATION.

THE CASE MANAGER SHE MET HELPED COMPLETE AN ASAM SUBSTANCE USE ASSESSMENT AND REFERRED HER TO RESIDENTIAL PROGRAMS. THIS TIME AROUND WHEN SHE WAS RELEASED, IT WAS NOT ONTO THE STREETS, BUT INTO A RESIDENTIAL PROGRAM.

SHE HAS NOT PICKED UP ANY MORE CASES IN THE PAST FIVE MONTHS AND SHE'S LOOKING INTO A SOBER LIVING ENVIRONMENT.

- THANK YOU. - OKAY - THANK YOU VERY MUCH.

I WANNA THANK EVERYBODY WHO CAME TO SPEAK TODAY.

I WANNA RECOGNIZE HOW, UM, MUCH COURAGE IT TAKES TO COME UP AND SHARE PERSONAL STORIES.

SO, SO THANK YOU FOR EVERYONE WHO TOOK THE TIME TO BE HERE.

WITH THAT, I'M GOING TO CLOSE OUR PUBLIC COMMENT PERIOD

[ACTION ON THE CONSENT AGENDA (ITEMS 10-38)]

AS A REMINDER, OUR CONSENT AGENDA TODAY ARE ITEMS 10 THROUGH 38 AND I WANNA START BY ASKING IF ANY OF MY COLLEAGUES WOULD LIKE TO PULL ANY ITEMS FROM THE CONSENT AGENDA BEFORE WE TAKE ACTION? SEEING NONE, I WOULD LIKE TO- - ACTUALLY, I SUGGEST WE PULL ITEM 24, THE CORE BUDGET.

- WE WILL PULL ITEM 24, THE CORE BUDGET, AND WE WILL PLACE THAT AT THE END OF TODAY'S AGENDA, REGULAR AGENDA AS ITEM...

- CHAIR MARTINEZ, I DO HAVE A QUESTION IF CORE'S PULLED AND IT'S WITH HSD, DO YOU WANT TO DO IT AFTER HSD? I DON'T KNOW IF THE QUESTIONS ARE SIMILAR OR RELATED.

- WHERE WOULD YOU PREFER? - I'M FINE WITH EITHER LOCATION, I MEAN, SURE.

LET'S DO IT WITH HSD.

- YEAH, THAT WOULD BE GREAT.

THEN THE DEPARTMENT CAN LEAVE.

- OKAY.

SO WE'LL PUT IT AS 8.1 IN CONNECTION WITH HSD.

THANK YOU.

ANY OTHER, UM, ITEMS TO PULL? SEEING NONE, UM, ARE THERE ANY QUESTIONS OR, UH, COMMENTS ON TODAY'S CONSENT AGENDA? SEEING NONE, I DO HAVE A COUPLE OF QUESTIONS FOR A NUMBER OF BUDGETS.

UM, SO I'LL JUST KIND OF GIVE SOME HEADS UP.

I THINK THERE ARE SOME DEPARTMENT HEADS NEXT DOOR, UM, THAT I HAVE SOME, A COUPLE QUESTIONS FOR ISD, GSD AND POSSIBLY HR.

SO JUST GIVING YOU A HEADS UP.

UM, I'LL START WITH ISD.

IS OUR ISD DIRECTOR HERE? I WELCOME PEOPLE TO MUTE THEIR CHAIRS.

[LAUGH] - SO TAMMY... [LAUGHS] - WELCOME.

- WELCOME. TAMMY WEIGEL.

I AM THE ISD DIRECTOR FOR THE COUNTY OF SANTA CRUZ.

- THANK YOU. I APPRECIATE YOU TAKING A MOMENT JUST TO ANSWER THIS QUESTION, BECAUSE AS I WAS REVIEWING MANY, MANY DEPARTMENT BUDGETS, WHAT I SAW WAS THAT, THERE WERE, UM, MANY DEPARTMENTS THAT HAD ISD RELATED INCREASES IN COSTS AND SERVICES, AND I WAS JUST HOPING YOU COULD HELP US UNDERSTAND, WAS THAT KIND OF A GENERAL COST RECOVERY EFFORT OR WHY ARE WE SEEING, UM, THAT-THAT INCREASE?

[01:40:02]

UM, BASICALLY WHAT WE DID IS, WE CREATED A NEW FUND WHICH WAS AN ENTERPRISE, UH, APPLICATION SERVICES FEE.

AND THIS CENTRALIZES, UM, THE FUNDING, GOVERNANCE, MAINTENANCE AND, UH, SUPPORT OF COUNTY ENTERPRISE SOLUTIONS SUCH AS WORKDAY, SUCH AS, UH, OPENGOV.

AND IT ALSO, UM, CONSOLIDATES, UM, MONEY FOR SERVICES, SUCH AS KEEPING OUR WEBPAGE UP AND RUNNING AND MODERN FOR THINGS LIKE OUR MOBILE APP, FOR INNOVATIVE TECHNOLOGY, UM, SO THAT WE CAN SPREAD THIS COST AND INSTEAD OF HAVING INDIVIDUAL DEPARTMENTS HAVING TO PUT THIS IN THEIR BUDGET AND CARRY IT, WE SPREAD IT ACROSS THE COUNTY BECAUSE WE SEE THAT THESE SERVICES ARE VALUABLE TO EVERY SINGLE DEPARTMENT.

UM, THE OTHER THING THAT I DO WANNA MENTION WITH THAT IS THAT WE DID, UM, SEE, SOME NEGOTIATED, UM, REDUCTIONS IN THE, UH, TECHNOLOGY SERVICE FEE, WHICH IS CHARGED FOR EVERY SINGLE DEPARTMENT WHO HAS A MICROSOFT OFFICE LICENSE.

SO WE'VE DONE SOME HEAVY NEGOTIATIONS, WHICH ACTUALLY, OFFSET SOME OF THOSE COSTS AS WELL.

- THANKS. SO, UM, SO WHAT IT SOUNDS LIKE IS THAT, FUNDS THAT WERE OTHERWISE COVERED IN OTHER BUDGET LINES FOR DEPARTMENTS IS GETTING CONSOLIDATED UNDER AN ISD? - CORRECT.

AND IT CREATES MORE TRANSPARENCY BECAUSE THEN WE CAN SEE HOW THESE ARE BEING ALLOCATED, WHO'S USING THESE PRODUCTS AND BE ABLE TO AGAIN, NEGOTIATE LOWER PRICES.

- MM-HMM. THANK YOU. OKAY.

AND IS, ARE THERE ANY COSTS RELATED TO THE RING PROJECT? - SO NONE TO LITTLE.

SO, UM, THE PAYMENTS FOR THE LEASE FINANCING DON'T START UNTIL 2029.

UM, AS LEASE, UH, PAYMENTS AND OPERATIONS COME ONLINE IN '29-'30 UM, THE CURRENT $1.7 MILLION RADIO SHOP WILL HAVE TO BE ABSORBED INTO THE RING PROGRAM.

AND THEN, UM, WE, IT'S GOING TO OBVIOUSLY, RAISE THE COST FOR RADIO SERVICES, BUT THOSE AGAIN, WILL BE SPREAD THROUGH ALL THE PARTNERS, WHICH RIGHT NOW IS JUST THE COUNTY ALONE.

- GREAT. OKAY. THANK YOU VERY MUCH FOR THAT INFORMATION.

UM, A QUICK QUESTION ABOUT A POSITION CHANGE IN GSD.

DO WE HAVE OUR GSD DIRECTOR HERE? WELCOME.

UM, THIS, IT HAS TO DO WITH OUR, UM, A POSITION CHANGE THAT WE NOTICED RELATED TO PROPOSING TO ELIMINATE THE DIRECTOR OF CAPITAL PROJECTS POSITION, UM, WHILE HOLDING VACANT TWO OTHER POSITIONS DESIGNED TO MANAGE THE PROGRAM.

CAN YOU JUST HELP US UNDERSTAND WHAT'S GOING ON THERE? - YEAH. HI, KIMBERLY FINLEY, DIRECTOR OF GENERAL SERVICES, AND I HAVE TODAY, UH, TED MORTON, WHO'S OUR DEPUTY DIRECTOR OVERSEEING OUR FINANCE DIVISION.

UM, SO THE DECISION TO, UH, DELETE AND GET RID OF THE DIRECTOR OF CAPITAL PROJECTS POSITION WAS PART OF A PLANNED REORGANIZATION THAT HAS BEEN ONGOING FOR ABOUT A YEAR AND A HALF.

WHEN THE CAPITAL PROJECTS AND RURAL PROPERTY DIVISIONS CAME OVER TO GENERAL SERVICES, WE RECOGNIZED A NEED FOR A MORE COMPREHENSIVE EXECUTIVE OVERSIGHT OF THAT, UM, THOSE DIVISIONS.

SO WE CREATED A DEPUTY DIRECTOR POSITION, WHICH WOULD OVERSEE CAPITAL PROJECTS, RURAL PROPERTIES, AND FACILITIES.

UM, WE HAVE ALSO IDENTIFIED THAT THERE IS A GROUND LEVEL, UM, MANAGEMENT GAP THAT WAS LEFT BY HAVING THAT DIRECT OVERSIGHT FROM THE DIRECTOR OF CAPITAL PROJECTS.

WE'RE CURRENTLY WORKING ON, UH, CREATING A NEW POSITION.

IT WILL ACT AS A SENIOR PROJECT MANAGER.

THE TITLE OF THE POSITION WILL BE A CAPITAL IMPROVEMENT MANAGER.

UH, WE ARE WORKING WITH HR AND OUR CEO ANALYST AND WE INTEND TO, UH, BRING A LAST DAY ITEM TO DO AN ADD DELETE TO DO A ONE FOR ONE TO DELETE THAT CAPITAL PROJECTS POSITION AND ADD THAT CAPITAL IMPROVEMENT MANAGER POSITION.

- THANK YOU. SO WOULD THAT NEW HIRING BE SUBJECT TO THE HIRING FREEZE THAT WE HAVE ACROSS OUR ORGANIZATION? - WELL, IT WOULD BE REVIEWED BY MY DEPARTMENT AND SO, BUT POSITIONS THAT HAVE FUNDING IN THE BUDGET AND FOR WHICH WE THINK IT'S GONNA REMAIN THERE, UM, WE ARE APPROVING SOME, BUT WE CRITICALLY LOOK AT EVERY SINGLE HIRE THAT'S REQUESTED.

- GOT IT. OKAY. THANK YOU. THAT'S VERY HELPFUL. THANK YOU.

- THANK YOU. - THANK YOU.

- AND THE NEXT QUESTION'S FOR HR.

HI. WELCOME. COME ON UP.

FOR FOLKS WHO THINK I'M CRUEL, I WARNED EVERY ONE OF THEM THAT I MIGHT HAVE QUESTIONS FOR THEM.

SO NOBODY'S GETTING CAUGHT...

UH, THERE'S NO POP QUIZ FOR ANYBODY. [LAUGH].

UM- - GOOD MORNING.

- GOOD MORNING. THANK YOU FOR BEING HERE.

UM, MY QUESTIONS, UM, YOU KNOW, AGAIN, I'M KIND OF FOCUSING ON GLOBAL BUDGET IMPACTS, UM, LIKE THE IT IMPACT THAT WE WERE SEEING ACROSS THE BOARD.

SAME THING WITH THE WORKDAY IMPLEMENTATION.

UM, IT'S SOMETHING THAT WE'RE KIND OF SEEING SIGNIFICANTLY

[01:45:03]

CAN YOU EXPLAIN, UM, IT-IT SAYS IT'S TAKING UP TO 50% OF YOUR STAFF TIME IN HR, KIND OF HOW THAT'S GOING AND, UM, AND WHAT THAT MEANS.

- SURE. ABSOLUTELY. GOOD MORNING.

AJITA PATEL, HUMAN RESOURCES DIRECTOR.

SO THE WORKDAY PROJECT ITSELF IS, THERE'S A LOT OF PEOPLE WORKING ON IT.

AND THE MAIN DEPARTMENTS THAT ARE ACTIVELY HAVING STAFF PARTICIPATE IS ISD AUDITOR, CONTROLLER AND HUMAN RESOURCES.

SO, MY DEPARTMENT IS THE DEPARTMENT THAT IS RESPONSIBLE FOR ALL THE EMPLOYEE TRANSACTIONS AND ALL THE DATA ENTRY INTO THE PAYROLL SYSTEM.

SO, IF AN EMPLOYEE GETS A RAISE, OUR STAFF DOES THE FIRST PART OF IT, THEN AUDITORS HAS A SECOND PART OF IT.

IF PEOPLE GO ON A LEAVE OF ABSENCE, WE DO THE TRACKING AND THE, UH, TRACKING AND RECORD KEEPING OF ALL OF THAT.

IF SOMEBODY IS, UM, DOING SOME TRAINING, WE ARE TRACKING ALL THAT.

SO WHEN WE SAY THAT 50% OF OUR STAFF ARE ACTIVELY PARTICIPATING, IT MEANS THAT THEY ARE HELPING TO BUILD THE SYSTEM.

THEY ARE TESTING, VALIDATING, AND IT DOES TAKE A SIGNIFICANT AMOUNT OF TIME TO GET IT RIGHT, BECAUSE WHAT WE'RE TRYING TO DO IS TAKE OUR OLD SYSTEM AND DO A COMPLETE CROSSOVER AND HAVE THE NEW ONE FUNCTION THE EXACT SAME WAY, SO PAY IS CORRECT, RECORD KEEPING IS CORRECT.

SO IT'S A GOOD THING.

IT JUST MEANS THAT PEOPLE HAVE HAD TO SHIFT, STAFF WHO NEED TO DIRECTLY WORK ON THAT HAVE BEEN REMOVED FROM THEIR REGULAR DUTIES, AND OTHER PEOPLE IN THE OFFICE ARE PICKING UP WHAT THEY NEED TO DO BECAUSE WE STILL NEED TO DO THE DAY TO DAY.

WE CAN'T JUST SAY, "OKAY, WE'RE NOT GOING TO DO THE REST OF THE WORK." SO THAT'S WHAT WE MEANT BY THAT, THAT 50% OF THE STAFF ARE ACTIVELY PARTICIPATING IN THAT, AND GO LIVE IS JUNE 20TH.

SO THEY'RE ALL AT THE NEAR END, ISD AUDITOR STAFF AND OUR STAFF.

AND THEY'RE VERY EXCITED BECAUSE THIS WILL BE A GREAT IMPROVEMENT TO OUR INFRASTRUCTURE.

- UH, YEAH. THIS SOUNDS EXCITING.

SO I-I KNOW THAT IMPLEMENTATION LIKE THAT'S A LOT OF WORK.

WELL, DO YOU IMAGINE THAT IT WILL IMPACT CHARGES ACROSS ALL OF THE DEPARTMENTS AT SOME POINT? - YEAH, IT ACTUALLY WILL.

AND THERE IS, UM, A CHARGE THAT'S GOING TO BE EMBEDDED, AND I BELIEVE TAMMY WOULD BE THE EXPERT, BUT I BELIEVE IT'S AROUND $60 PER EMPLOYEE THAT WILL BE EMBEDDED INTO EACH DEPARTMENT'S BUDGET.

- SO THAT IS BASICALLY GONNA BE AROUND $69 PER, UM, POSITION IN EACH BUDGET.

- PER YEAR? - YEAH.

- AND IS THAT SOMETHING THAT'S INCORPORATED IN THIS YEAR'S BUDGET? - YES, IT IS. - YES.

- GREAT. THANK YOU.

UM, OKAY. THANK YOU.

AND GOOD LUCK ON YOUR GO LIVE DATE.

- YES, THANK YOU.

- AND THEN MY LAST... THESE ARE JUST COMMENTS.

UM, YOU KNOW, I WAS ON THE FENCE OF PULLING, UM, ONE BUDGET, WHICH IS OUR OR3 BUDGET, MOSTLY BECAUSE THIS IS A DEPARTMENT THAT, UM, HAS A SIGNIFICANT IMPACT ON OUR COUNTY AND IN MY DISTRICT.

UM, SO I ACTUALLY, RATHER THAN PULLING THE ITEM, I JUST WANNA MAKE A FEW COMMENTS.

I WANNA START BY JUST REALLY THANKING YOU FOR ALL OF YOUR GOOD WORK.

UM, I KNOW THAT OUR OFFICE IS CONSTANTLY ASKING OF YOUR TIME, AND WE HAVE FOUND THAT EVERYONE AT OR3 IS REALLY WORTH THEIR WEIGHT IN GOLD.

UM, YOU KNOW, YOU'RE INCREDIBLY KNOWLEDGEABLE AND INCREDIBLY RESPONSIVE, UM, INCLUDING ON CHRISTMAS DAY WHEN OVER HALF MY DISTRICT WAS WITHOUT POWER, AS WELL AS, UM, NOT THAT LONG AGO AT 1:30 A.M., WHEN I WAS TEXTING YOU, BECAUSE WE HAD A 4.9 EARTHQUAKE IN THE CENTER OF SAN LORENZO VALLEY.

UM, SEEMS LIKE THERE'S ALWAYS SOMEBODY ON THE OTHER END OF MY PHONE WHEN THERE'S A DISASTER IN THE SAN LORENZO VALLEY.

AND, UM, WE NEED TO THINK ABOUT OUR RESPONSE.

UM, YOU KNOW, JUST FOR FUTURE CONVERSATIONS, UM, YOU KNOW, MY ONLY CONCERN IS THAT WE RELY ON SIX FULL-TIME STAFFERS.

ONE OF THEM IS ALMOST 100% CONTRIBUTED TO MEASURE Q IMPLEMENTATION.

UM, SO THAT'S ONLY FIVE PEOPLE WHO ARE ENSURING THAT, UM, 270,000 RESIDENTS IN OUR COUNTY ARE PREPARED FOR LIFE-THREATENING DISASTERS.

UM, AND WE'RE ALSO ASKING THE, THESE FOLKS TO COORDINATE WITH OUR FEDERAL, STATE AGENCIES, UM, EVERY, UM, YOU KNOW, INFRASTRUCTURE AGENCY, PG&E, CALTRANS, YOU KNOW, ALL OF THE VARIOUS DISTRICTS THAT, UM, INTERACT WITH OUR COUNTY.

AND, UM, AND NOT ONLY THAT, BUT PREPARE FOR CLIMATE CHANGE, WHICH IS, YOU KNOW, NO LITTLE FEAT.

SO, UM, IT'S HARD TO IMAGINE THAT ONLY, YOU KNOW, TRULY LIKE FIVE PEOPLE ARE DOING ALL OF THAT.

SO, KIND OF GOING BACK TO THE EARLIER COMMENTS ABOUT DISASTER RESPONSE, UM, AND PREPAREDNESS.

UM, I JUST WANNA REALLY UNDERSCORE, UM, MY APPRECIATION AND MY VALUE OF THIS DEPARTMENT

[01:50:02]

SO I JUST WANNA APPRECIATE THAT.

AND THEN MY VERY LAST COMMENT IS, UM, YOU KNOW, WHEN WE SAY THAT WE HAVE A LIST OF 10 THROUGH 38 ON THE CONSENT AGENDA, THAT IS, UM, LEMME DO MY MATH.

28 DEPARTMENT BUDGETS THAT ARE FULL OF, UM, IMPORTANT WORK, CRITICAL WORK, UM, A TON OF PLANNING FOR THIS NEXT YEAR'S BUDGET UM, AND REALLY THE OVERALL OPERATIONS OF THE ENTIRE COUNTY OF SANTA CRUZ, WHICH SERVES ALL OF OUR RESIDENTS.

SO, UM, EVEN IF YOU'RE NOT GETTING CALLED OUT TODAY, KNOW THAT WE, UM, WE LOOKED AT YOUR BUDGET, WE APPRECIATE YOU.

UM, I DON'T KNOW, MAYBE YOU'RE LUCKY THAT YOU DIDN'T GET CALLED OUT TODAY.

WE'RE JUST GONNA PASS YOUR BUDGET IN ONE BIG SWOOP.

UM, BUT JUST THANK YOU FOR ALL OF YOU, ALL THAT YOU DO, UM, AND KEEP UP THE GOOD WORK IN THE COMING FISCAL YEAR.

SO WITH THAT, I WILL ACCEPT A MOTION ON THE CONSENT AGENDA.

- I'D LIKE TO MAKE A MOTION TO APPROVE OUR... - SECOND.

- ... CONSENT AGENDA.

- WE HAVE A MOTION FROM SUPERVISOR DE SERPA.

DO WE HAVE A SECOND? - SECOND.

- WE HAVE A SECOND FROM SUPERVISOR HERNANDEZ.

ANY FURTHER COMMENTS? AND JUST TO BE CLEAR, THIS INCLUDES ALL ITEMS WITH THE EXCEPTION OF THE CORE ITEM.

MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - YES. SUPERVISOR CUMMINGS. - AYE.

- HERNANDEZ. - AYE.

- KOENIG. - AYE.

- DE SERPA. - AYE.

- AND MARTINEZ. - AYE.

MOTION PASSES FIVE TO ZERO.

CONGRATULATIONS, EVERYBODY.

ALL RIGHT. IT IS 11 O'CLOCK

[7. Consider approval of the Proposed 2026-27 Budget for the Health Services Agency, including any supplemental materials, and take related actions, as outlined in the referenced budget documents, and as recommended by the County Executive Officer]

UM, ITEM NUMBER SEVEN IS TO CONSIDER APPROVAL OF THE PROPOSED 2026-27 BUDGET FOR THE HEALTH SERVICES AGENCY, INCLUDING ANY SUPPLEMENTAL MATERIALS AND TAKE RELATED ACTIONS AS OUTLINED IN THE REFERENCED BUDGET DOCUMENTS AND AS RECOMMENDED BY THE COUNTY EXECUTIVE OFFICER.

SO I'M GONNA ASK, UM, THAT EACH SPEAKER TODAY AND TOMORROW INTRODUCE THEMSELF WITH THEIR NAME AND THEIR TITLE, UM, BEFORE YOU BEGIN.

AND I'D LIKE TO WELCOME YOU TODAY.

- GOOD MORNING. I'M CONNIE MORENO-PERAZA.

I'M THE DIRECTOR OF HEALTH SERVICES AGENCY.

IT'S AN HONOR TO BE HERE.

I AM JOINED BY MY GREAT, UH, TEAM HERE TODAY.

JESSICA, INTRODUCE YOURSELF.

- GOOD MORNING EVERYBODY.

I'M JESSICA, DIRECTOR OF ADMINISTRATIVE SERVICES.

- AND WE WILL ALSO HAVE DR. MARNI SANDOVAL.

AND, UM, MS. AMY PEELER JOIN US IN OUR TEAM PRESENTATION.

UM, FIRST, I JUST WANNA TAKE A MOMENT TO JUST, UM, THANK OUR AMAZING SENIOR LEADERSHIP TEAM FOR WORKING ON THIS BUDGET.

UH, WE, UH, USED WHAT IS CALLED COLLABORATIVE BUDGETING, WHICH IS A, UM, BEST PRACTICE WHERE WE CAME TO TOGETHER TO LOOK AT ALL THE NEEDS WE HAD, THE FUNDING SOURCES THAT WE HAD AND HOW WE COULD PLAN THE BUDGET IN A MORE INTEGRATED WAY AS PART OF OUR VISION TO BECOME ONE HSA.

SO I DO WANNA PUBLICLY THANK THEM 'CAUSE IT WAS VERY TOUGH, AND THEY CAME TOGETHER, SUPPORTED EACH OTHER.

ONE OF OUR DIVISIONS EVEN SAID, I'LL GIVE SOME OF MY GENERAL FUND TO X DIVISION.

AND IT WAS VERY NICE TO SEE HOW, UH, AS YOUR NEW DIRECTOR JUST HERE A FEW MONTHS, UH, CLOSE TO A YEAR, UH, I'M VERY HONORED TO HAVE WORKED WITH THEM.

COLLABORATIVE BUDGETING HELPED US TO REALLY STAY TIED TO OUR MISSION AND OUR VALUES, AND IT REALLY HELPED US TO ACHIEVE THE TWO MAIN GOALS, WHICH WAS, NO STAFF LAYOFFS AND NO DISRUPTION IN OUR SERVICES.

SO I'M VERY HONORED AND THANKFUL TO OUR TEAM, ALSO TO OUR LEADERSHIP TEAM, WHICH IS OUR MIDDLE MANAGEMENT, WHO, JOSHUA INCLUDED, UH, CIMA AND SEIU, UH, MEMBERS.

SO I WANT TO THANK OUR-OUR UNION, OUR LABOR UNION, UH, ALSO MEMBERS TOO WHO HELPED.

SO WITH THAT, UM, WE WILL BEGIN A TEAM PRESENTATION.

UM, SO WE'RE GONNA TRY TO MANEUVER THIS HERE.

SO, OKAY.

UM, SO FIRST, UH, JUST OF A HIGH LEVEL OVERVIEW.

WE ARE GONNA GIVE YOU A HIGH LEVEL PRESENTATION.

I KNOW WE [INAUDIBLE] A LOT OF, UH, INFORMATION.

UM, SO WE WANNA KEEP IT VERY, VERY HIGH LEVEL.

WE WANNA GIVE YOU A LITTLE BIT OUR MISSION, OUR DEPARTMENT OVERVIEW.

UH, WE'LL DO OUR BUDGET SUMMARY FOR OUR PROPOSED BUDGET FOR '26-'27, UH, SOME DIVISION DETAIL AND ACCOMPLISHMENTS.

UH, THE MAJOR BUDGET CHANGES, SOME STATE AND FEDERAL RISK AND EMERGING ISSUES.

AND THEN OUR BUDGET REQUEST.

SO, AS IT WAS MENTIONED EARLIER BY, UH, CEO COBURN, UH, WE ARE THE SAFETY NET.

SO OUR HEALTH SERVICE AGENCY, NOT ONLY HAS A MANDATE OF WEALTH AND INSTITUTIONS CODE 17,000 TO SERVE OUR INDIGENT, UH, BUT WE ALSO FOCUS ON PROVIDING, UH, WORK, UH, A LOT OF SERVICES FOR OUR COMMUNITIES IN NEED.

[01:55:02]

UM, THE RIGHT SIDE, VERY HIGH LEVEL.

UH, WE ARE PUTTING IN OUR BUDGET, 638.75 FTES.

UH, WE'RE PART OF COMPREHENSIVE HEALTH AND SAFETY, UH, OUR KEY SERVICES IN PUBLIC HEALTH, BEHAVIORAL HEALTH, OUR HEALTH CENTERS, OUR ENVIRONMENTAL HEALTH DIVISION AS WELL.

AND THEN DEFINITELY, OUR BACKBONE, WHICH IS OUR ADMINISTRATIVE SERVICES DIVISION.

UH, WHEN WE PLANNED OUR BUDGET, WE STAYED FOCUSED ON KEY PRIORITIES, UM, AND DEFINITELY STAYING FOCUSED ON CUSTOMER SERVICE AND OUR CLIENTS HAVING A POSITIVE, UH, CLIENT EXPERIENCE.

WE FOCUS ON ACCESS, QUALITY, COST, EQUITY, AND WORKFORCE.

UH, AS WE, UH, GO TOWARDS BECOMING ONE HSA AS PART OF OUR VISION TO BE MORE INTEGRATED, WELL COORDINATED, UH, FOCUSING ON EFFICIENCIES OUR OPERATIONS AND, UH, THAT CAN HELP US RESULT IN PROVIDING, UH, THE SERVICES NEEDED IN THE COMMUNITY.

SO WHEN WE DID COLLABORATIVE BUDGETING, THE IMPORTANT PART OF THAT WAS THAT, WE INCLUDED OUR STAFF, UH, TO GIVE US IDEAS, UM, SOME OF THE THINGS THAT WE COULD IMPLEMENT.

UM, WE RECEIVED, UH, 40, UH, I THINK IT WAS 42 IDEAS FROM OUR, UH, FOLK IN, AGAIN, WE HAD A SEIU IN THOSE, IN THOSE MEETINGS, AND WE HAD OUR STEWARDS THERE.

SO IT GAVE US SOME GREAT IDEAS THAT FOR US TO LOOK AT, UM, IN OUR AGENCY.

UM, SOME OF THEM, AS YOU CAN SEE HERE, UH, REDUCE PHONE CHARGES.

I MEAN, THERE'S VERY SIMPLE, UH, AND VERY CREATIVE WAYS FOR US TO, UM, MAYBE EXPAND OUR MEDICAL ADMINISTRATIVE ACTIVITIES, UH, REDUCE OUR, UM, AFTER HOURS, UM, ENERGY USE.

SO THEY GIVE US SOME VERY, UH, UM, VERY- WE'RE VERY GRATEFUL FOR THE GREAT IDEAS THEY GAVE US.

SO YOU CAN SEE SOME OF THE DIVISION PRIORITIES, UH, IN BEHAVIORAL HEALTH.

UH, WE WANT TO REDUCE OUR IMD COSTS.

AS YOU KNOW, THAT IS A DAILY FOCUS.

I WANNA THANK OUR-OUR DIVISION DIRECTOR FOR ALWAYS FOCUSING ON THAT.

WE WANNA LOOK AT OUR-OUR CALAIM JUSTICE INVOLVED.

UH, WE WANNA ORGANIZE THAT, UM, SCHEDULE OPTIMIZATION FOR PSYCHIATRIC AND, UH, BEHAVIORAL HEALTH, UH, FQ STAFF IN OUR-OUR PUBLIC HEALTH.

WE WANNA INCREASE OUR MAA PARTICIPATION, OBTAIN MORE INFORMATION REGARDING THE BUDGET IDEAS, UH, TO ACCESS FEASIBILITY, ENVIRONMENTAL HEALTH, UH, RETURN, UH, ONE OF OUR, UH, ONE OR MORE PROGRAMS BACK TO THE STATE, AS MOST COUNTIES ARE DOING IN CALIFORNIA.

AND THEN OUR HEALTH CENTERS.

UM, YOU'VE HEARD ABOUT OUR, UH, PPS RATE AND WANTING IT TO INCREASE IT SO THAT WE CAN GENERATE REVENUE, UH, AS WELL.

AND ALL OUR DIVISIONS, WE ARE FOCUSED ON INCREASING OUR MAA PARTICIPATION.

SO YOU CAN SEE THAT OUR BEHAVIORAL HEALTH DEPARTMENT, UH, PROVIDES, I THINK, UH, DR. SANDOVAL MENTIONED.

I THINK WE HAVE EITHER, 40 OR 70, UH, ONGOING PRIORITIES, UM, WHICH KEEP US VERY, VERY BUSY.

UH, WE WANT TO FOCUS A LOT ON OUR CHILDREN, YOUTH, ADULT, OUR OLDER ADULTS, UH, SERVICES TO OUR MEDI-CAL BENEFICIARIES, TO THE UNINSURED, UM, AND THE UNDERSERVED POPULATIONS.

OUR HEALTH CENTERS, OF COURSE, PROVIDING PRIMARY CARE, DENTAL, BEHAVIORAL HEALTH, UH, SPECIALTY CARE AND PHARMACY SERVICES FOR OUR MEDI-CAL AND MEDICARE BENEFICIARIES, UNINSURED AND UNDERSERVED.

SO ALL OUR PROGRAMS, OUR DIVISIONS WE DO FOCUS ON OUR UNDERSERVED AND OUR, UM, UNINSURED POPULATION.

OUR ENVIRONMENTAL HEALTH, UH, PROTECTING OUR COMMUNITY, UH, THROUGH INSPECTION, SURVEILLANCE, INVESTIGATION ENFORCEMENT, UH, VERY CRITICAL DIVISION FOR US.

AND THEN PUBLIC HEALTH, UM, UH, AGAIN, PROMOTING AND PROTECTING COMMUNITY HEALTH THROUGH DISEASE AND SURVEILLANCE AND PREVENTION, COMMUNICABLE DISEASE RESPONSE EMERGENCY RESPONSE AND PREPAREDNESS, MATERNAL AND CHILD HEALTH PROGRAMS, HEALTH EDUCATION AND EPIDEMIOLOGY.

UH, VERY CRITICAL FUNCTIONS OF OUR DIVISIONS.

AND DEFINITELY, AS I MENTIONED EARLIER, ADMINISTRATION, UH, IS OUR BACKBONE.

UH, WE RECEIVE MANY REQUIREMENTS FROM THE STATE.

MOST, IF NOT ALL COUNTIES CONTINUE TO GET DELEGATED, UH, RESPONSIBILITIES, UH, WITH NO FUNDING AS YOU HEARD, UNFUNDED MANDATES CONTINUE TO BE.

SO OUR DIFFERENT, UH, COMPONENTS IN ADMINISTRATIVE SERVICES LIKE FISCAL OPERATIONS, TECHNOLOGY FACILITIES, UH, AND ALL OF THE BACKBONE IS CRITICAL FOR US TO SUSTAIN AND TO ABLE, TO BE ABLE TO LEVERAGE AND, UH, DRAW DOWN FUNDING AS WELL.

AND THEN, UH, SMALLER DIVISION WE HAVE IS OUR HEALTH BENEFITS DIVISION, UH, SUPPORT ACCESS TO HEALTHCARE COVERAGE SERVICE THROUGH MEDICAL ELIGIBILITY.

WE WORK VERY CLOSELY WITH OUR PARTNER, HSD AND OTHERS, UH, TO KEEP FOLKS UNDER, UH, MEDI-CAL, UH, HEALTHCARE NAVIGATION PROGRAMS, SERVING VULNERABLE AND UNDERSERVED POPULATIONS.

SOME OF THE ACCOMPLISHMENTS, I'M VERY PROUD TO PRESENT SOME OF THE AC... WE HAVE MANY, BUT I WANNA JUST HIGHLIGHT, UH, OUR YOUTH CRISIS CENTER STABILIZATION UNIT.

UH, EVERYBODY'S VERY THANKFUL, VERY HAPPY THAT WE HAVE THIS.

WE HAVE SOME VERY IMPORTANT INFORMATION THAT WAS SHARED, UH, BY DR. SANDOVAL ABOUT, UH, THE KIDS THAT ARE BEING, UH, DIVERTED FROM BEING PLACED AT A COUNTY,

[02:00:02]

AND KEEPING THEM LOCALLY, KEEPING 'EM HOME WITH THEIR FAMILIES IS VERY IMPORTANT TO US.

UH, EXPANDING, UM, THE VULNERABLE CARE, UH, POPUL-, UM, CARE TO OUR POPULATIONS IN THE COUNTY.

UM, BEHAVIORAL HEALTH SERVICES ACT, AS YOU HEARD A PRESENTATION YESTERDAY, IT'S A GREAT FUNDING SOURCE THAT WE LEVERAGE TO FILL SOME OF THE SERVICE GAPS, EVEN THOUGH THERE WERE REDUCTIONS.

UH, IT STILL ALLOWS US TO PROVIDE A COMPREHENSIVE, UM, PROGRAM.

UM, OVERDOSE PREVENTION.

UH, VERY ACTIVE IN REDUCING OVERDOSES, UM, WITH NARCAN AND MANY OTHER INTERVENTIONS, UH, TO REDUCE, UM, OVERDOSES OF, UH, FENTANYL OR ANY OTHER, ANY OTHER DRUG.

UH, WATER QUALITY MONITORING.

UH, WE'RE VERY, UH, THANKFUL TO ENVIRONMENTAL HEALTH DIVISION TO CONTINUE STAYING FOCUSED IN THAT, UM, ACCOMPLISHMENT THAT THEY DO EVERY TIME.

I'M VERY PROUD OF THEM.

AND THEN INCREASING ACCESS AND PRODUCTIVITY.

UH-UH, WHEN I CAME TO WORK HERE, I WAS ASKED TO REALLY FOCUS ON OUR OPERATIONS AND FIND WAYS TO INCREASE PRODUCTIVITY AND REVENUE.

AND I'M VERY, UM, HONORED AND-AND THANKFUL TO OUR-OUR TWO KEY DIVISIONS, UH, HEALTH CENTERS AND BEHAVIORAL HEALTH, UM, THE OTHER ONES AS WELL.

BUT THOSE TWO HAVE DEMONSTRATED, WHICH YOU'LL HEAR IN JUST A MINUTE, SOME KEY STRATEGIES TO CONTINUE TO STREAMLINE ANY PROCESSES WE HAVE, UH, TO FIND WAYS TO INCREASE, UH, REVENUE AND DEFINITELY, TO ALIGN TO, UH, THE PRODUCTIVITY STANDARDS THAT ARE EXPECTED IN EACH OF THOSE DIVISIONS.

WITH THAT, I'LL PASS IT OVER TO, UH, JESSICA, GO OVER THE BUDGET.

- GOOD MORNING BOARD.

I'M THE LUCKY PERSON WHO GETS TO GO OVER ALL THE FUN NUMBERS, SO I'LL DIVE IN.

BUT BEFORE I DO, I WANNA GIVE A SHOUT OUT.

UM, TO COMPILE A $300 MILLION BUDGET IS A HUGE LIFT.

AND WHILE I'M UP HERE AND THE VOICE, AND THE FACE FOR OUR STAFF, UM, THEY DO AMAZING LIFT.

WE OBVIOUSLY, WE HAVE OUR DIVISION CHIEFS HERE, WE HAVE ADMINISTRATIVE SERVICES MANAGERS WITHIN EACH DIVISION THAT WE WORK VERY CLOSELY WITH.

WE HAVE OUR CHIEF OF FISCAL SERVICES WHO I CANNOT SAY ENOUGH GOOD THINGS ABOUT.

THIS WOMAN WORKS ENTIRELY FOR THIS AGENCY.

SO SHOUT OUT 'CAUSE IT'S-IT'S NO EASY FEAT TO GET THESE NUMBERS TOGETHER.

SO, UM, NEXT SLIDE.

I... ALL RIGHT. I'M HAPPY...

I DUNNO IF THERE'S A MOUSE.

OKAY.

OKAY. UM, SO THIS COVERS OUR PROPOSED BUDGET, WHICH INCLUDES, UM, WE'VE KIND OF ALLUDED TO A TOTAL REDUCTION OF 28.70, UH, VACANT FTES.

I JUST WANNA CLARIFY THAT DOES INCLUDE 5.6 FTES FROM MID-YEAR 'CAUSE YOU GUYS LAST YEAR, UH, WE DELAYED SOME OF THE LAB POSITIONS.

SO IT'S NOT A TOTAL, UM, OF 28.70 FOR NEXT FISCAL YEAR.

SOME OF THESE WERE MID-YEAR CHANGES AS WELL.

UM, SO THE TOTAL FOR THIS YEAR IS 23.10 POSITIONS.

AND IF YOU LOOK AT OUR...

I KNOW THERE'S BEEN A LOT OF DISCUSSION OF ONE TIME FUNDS.

SO IF YOU LOOK AT OUR ONETIME FUNDS, WE ACTUALLY ARE GOING DOWN FOR NEXT FISCAL YEAR FROM 18 MILLION TO 17 MILLION.

NEXT SLIDE PLEASE.

SO I'M GONNA DIVE IN A LITTLE BIT MORE OF THE USE OF ONE-TIME FUNDS.

'CAUSE I KNOW THERE'S BEEN A LOT OF QUESTIONS ABOUT THOSE.

UM, AS YOU CAN SEE FROM THE SLIDE HERE, OUR ONE-TIME FUNDING COMES FROM OUR INTERGOVERNMENTAL TRUST FUND, WHICH WE CALL IGT.

UM, WE ALSO HAVE OUR DEFERRED MAINTENANCE TRUST, AND LASTLY, OUR REALIGNMENT AND OUR SB 900 TRUST.

UM, AS YOU CAN SEE HERE, WE BUDGETED 2.5 MILLION FOR OUR CAPITAL PROJECTS.

UM, AND THAT'S JUST TO GIVE US APPROPRIATIONS IN CASE WE NEED THEM FOR EMERGENCY SERVICES.

WE MAINTAIN OVER 20 FACILITIES, INCLUDING FOUR RESIDENTIAL CARE FACILITIES, SO OFTEN EMERGENCIES OR, UH, REPAIRS ARISE, AND THIS JUST GIVES US THE OPPORTUNITY TO ADDRESS THEM QUICKLY.

UH, HOWEVER, THERE'S NOTHING...

YOU KNOW, IF THERE ARE NO EMERGENCIES, KNOCK ON WOOD, OCCUR, THEN WE WILL NOT BE UTILIZING THOSE ONE-TIME FUNDS, SO IT'S JUST THERE, UM, TO OPERATIONALIZE EMERGENCY RESPONSE.

UM, WE'VE ALSO, AS YOU CAN SEE, BUDGETED 4 MILLION IN HEALTH CENTERS, AND THAT IS TO OFFSET, UM, THE, THE HEALTH CENTER EXPENSES.

WE ARE HOPEFUL AND ANTICIPATE THAT WE WILL NOT HAVE TO USE THAT FUNDING ONCE THE PPS RATE, UM, GETS APPROVED.

BUT JUST TO, TO BALANCE THE BUDGET AND TO NOT ASSUME THAT THE PPS RATE WILL BE, UM, APPROVED, WE HAVE JUST BUDGETED THAT OUT OF IGT.

UM, WE DID OFFSET, UH, GSD BUILDING COSTS AND OUR INSURANCE INCREASE COST OF 2.9 MILLION TO THE DIVISIONS UTILIZING IGT.

THAT'S 'CAUSE THEY'D ALREADY ABSORBED A LOT OF INCREASES WITH ISD AND GSD AND OBVIOUSLY, SALARY AND BENEFITS.

SO WE, UM, WE'RE TRYING TO PROVIDE THEM ASSISTANCE.

AS I'D MENTIONED EARLIER, STAFF DID A TREMENDOUS JOB AT TIGHTENING THEIR BELT AND TO MAKE THIS BUDGET.

UM, SO WE TRIED TO AT LEAST...

THAT C-, WAS KIND OF CAME IN AFTERWARDS, SO WE WERE, UM, WE'RE, ARE OFFSETTING IT WITH IGT.

AND LASTLY, YOU CAN SEE WE'RE BUDGETING, UH, 873,000 FOR THE ONE-TIME USE FUNDS OF, UH, THE MENTAL HEALTH ELECTRONIC HEALTH RECORD, WHICH I THINK THERE'S A COUPLE BOARD ITEMS COMING, UM, ON THOSE CONTRACTS.

UH, NEXT-NEXT SLIDE.

SO TO GO IN A LITTLE BIT MORE OF IGT FOR EVERYBODY, UM, IT IS A FUNDING THAT CAN BE USED TO HELP CLO-, OR IT IS SUPPOSED TO BE USED TO HELP CLOSE THE GAPS ON COST AND THE MEDI-CAL RATES.

UM, IT IS AN ONGOING SOURCE OF FUNDING FOR HSA.

WE'VE HAD THIS FUNDING SINCE, UH, FISCAL YEAR 2012.

AND SO THIS IS JUST TO GIVE YOU A HISTORICAL USE OF WHAT, UM, WE'VE UTILIZED THAT IGT FUNDING FOR.

UM, AND AGAIN, JUST TO...

IT IS A, AN ONGOING SOURCE OF FUNDING.

[02:05:02]

UM, LET'S SEE, 81 PERC-, AS YOU CAN SEE, 81% OF THE IGT FUNDING HAS SUPPORTED OPERATIONS AND CAPITAL PROJECTS HISTORICALLY.

AND I ALSO WANNA HIGHLIGHT THAT WATSONVILLE COMMUNITY HOSPITAL IS NOW GONNA BE RECEIVING IGT FUNDS, SO, AS THE FUNDING SHIFTS DIRECTLY TO SUPPORTING THE HOSPITAL THAT WILL, UH, REDUCE SOME OF OUR IGT FUNDING.

UH, NEXT SLIDE, PLEASE.

OKAY, THIS SLIDE SHOWS WHERE HSA'S RESOURCES ARE INVESTED ACROSS OUR DIVISIONS.

THE PROPOSED BUDGET TOTALS $324 MILLION, AND THAT REPRESENTS A 4.6 INCRE-, UH, 4.6% INCREASE.

BEHAVIORAL HEALTH CONTINUES TO BE, UH, TO REPRESENT OUR LARGEST SHARE OF THE HSA EXPENDITURES AT OVER 188 MILLION WHICH IS ABOUT 58% OF OUR AGENCY'S TOTAL BUDGET, AND THIS JUST REFLECTS THE DEPTH, UH, OR THE BREADTH OF MENTAL HEALTH, SUBSTANCE USE DISORDER HOUSING, AND COMMUNITY SUPPORT SERVICES PROVIDED THROUGHOUT THE COUNTY.

THE HEALTH CENTERS IS OUR SECOND-LARGEST DIVISION AT OVER 63 MILLION, AND THE LARGEST, UH, THE LARGEST 15% INCREASE IN INCREASE NOTED ON THE HEALTH CENTERS IS DUE TO DIENTES' NEW LOCATION COMING ONLINE AT PENNY LANE.

UH, NEXT SLIDE.

IS IT THE PRIMARY... OKAY, YES.

THE-THE PRIMARY COST DRIVERS IN THE PROPOSED UM, THE PROPOSED BUDGET AS WE'VE KIND OF DISCUSSED EARLIER ARE THE SALARY AND BENEFIT COST INCREASES.

THAT IS UP ALMOST 9%.

UH, THE INCREASES IN COST FOR SERVICES AND SUPPLIES, SUCH AS THE MALPRACTICE INSURANCE, PROPERTY AND LIABILITY INSURANCE, GSD AND ISD CHARGES ARE UP 15.3% FOR OUR, UH, DEPARTMENT BUDGET.

SO JUST THOSE TWO LINE ITEMS ALONE ARE 24% YEAR OVER YEAR, UM, JUST TO COVER THE N-, UH, THE NECESSARY MAINTENANCE OF SERVICE DELIVERY.

SO THAT SHOWS YOU HOW MUCH WORK THE DIVISIONS HAVE DONE TO REALLY TRIM THEIR BELTS AND TO, UM, LEANING TO OPERATIONAL EFFICIENCIES.

UH, NEXT. PER-PERFECT.

HSA SERVICES ARE PRIMARILY FUNDED THROUGH STATE AND FEDERAL REVENUE, SUPPLEMENTED BY PATIENT SERVICE REVENUE AND A RELATIVELY SMALL GENERAL FUND CONTRIBUTION.

THE PROPOSED BUDGET INCLUDES 301 MILLION IN TOTAL REVENUES, WHICH IS AN INCREASE OF 4.7% YEAR OVER YEAR, AND WE REMAIN HIGHLY DEPENDENT ON INTERGOVERNMENTAL REVENUES, WHICH TOTAL OVER 216 MILLION AND REPRESENT ABOUT 72 PER-, 72% OF ALL HSA REVENUES.

CHARGES FOR SERVICE, UH, REPRESENT THE SECOND-LARGEST REVENUE SOURCE AT OVER 75 MILLION, REFLECTING REIMBURSEMENTS FROM PATIENT CARE SERVICE, PROGRAM FEES, AND OTHER RELATED REVENUES.

UH, SO TOGETHER, INTERGOVERNMENTAL REVENUES AND CHARGES FOR SERVICE ACCOUNT FOR NEARLY 97% OF ALL AGENCY, OF ALL OUR AGENCY REVENUES.

UM, ONE OF THE KEY CHALLENGES FOR HSA IS THAT MANY OF OUR LARGEST FUNDING SOURCES ARE RESTRICTED AND TIED TO SPECIFIC PROGRAMS AND SERVICES.

SO WHILE REVENUES ARE INCREASING OVERALL, MUCH OF THE GROWTH IS ASSOCIATED WITH DESIGNATED STATE AND FEDERAL FUNDING AND CANNOT ALWAYS BE USED TO OFFSET THE, UH, RISING OF OPERATING COSTS IN OTHER AREAS.

OKAY, NEXT SLIDE.

- NOW WE'RE GONNA, UH, SWITCH TO OUR DIVISION DETAIL, DR. SANDOVAL AND AMY PEELER.

- ALRIGHT.

GOOD MORNING, CHAIR.

GOOD MORNING, BOARD.

UM, BEHAVIORAL HEALTH DIRECTOR, HAPPY TO SEE YOU AGAIN.

UH, SO FOCUSING ON OUR BEHAVIORAL HEALTH PROPOSED BUDGET, UM, I WANNA SHARE THAT OVER THE PAST FIVE YEARS, OUR BEHAVIORAL HEALTH SYSTEM HAS EXPERIENCED SIGNIFICANT GROWTH BOTH IN REVENUE AND RESPONSIBILITY, WITH OUR REVENUES INCREASING BY ABOUT 51%.

BUT THAT GROWTH REPRESENTS THE SIZE AND COMPLEXITY OF THE SYSTEM WE'RE NOW RESPONSIBLE FOR, NOT ACTUAL EXTRA CAPACITY.

UH, DURING THE SAME PERIOD, MEDI-CAL REIMBURSEMENT RATES HAVE REMAINED INSUFFICIENT, WITH MINIMAL ANNUAL ADJUSTMENTS, WHICH MEANS THAT THE REAL COST OF DELIVERING CARE CONTINUES TO RISE FASTER THAN THE RATE STRUCTURE THAT FUNDS IT.

SO EVEN WITH REVENUE GROWTH, WE'RE WORKING WITHIN TIGHTER REIMBURSEMENT CONDITIONS, SO THAT'S A VERY DIFFICULT POSITION TO BE IN WHEN WE'RE TRYING TO MEET THE NEEDS OF THE SAFETY NET FOR MENTAL HEALTH AND SUBSTANCE USE.

AT THE SAME TIME, OVER THE FIVE YEARS, THE COUNTY'S GENERAL FUND CONTRIBUTION TO BEHAVIORAL HEALTH HAS NEARLY DOUBLED, AND THAT REFLECTS A REAL STRONG COMMITMENT BY THE COUNTY FOR BEHAVIORAL HEALTH AND SUBSTANCE USE CARE.

BUT THAT REPRESENTS STILL A VERY SMALL PORTION OF OUR OVERALL BEHAVIORAL HEALTH BUDGET.

SO BECAUSE OF THAT, OUR ABILITY TO SERVE ALL THE MEDI-CAL CLIENTS

[02:10:02]

SO IT-, IT'S-IT'S A COMPLEX SYSTEM, BUT IT'S REALLY IMPORTANT TO TRY AND HELP-HELP THE BOARD AND THE PUBLIC UNDERSTAND THAT IN BEHAVIORAL HEALTH, WE MUST HAVE LOCAL DOLLARS IN ORDER TO LEVERAGE FEDERAL MATCH DOLLARS.

SO WHILE THE SIZE OF OUR SYSTEM HAS GROWN, WE'VE ACTUALLY REDUCED AND RESTRUCTURED POSITIONS TO MANAGE RISING LABOR COSTS AND NEW STATEWIDE MANDATES.

OUR BEHAVIORAL HEALTH DIVISION IS A SYSTEM THAT'S GROWING IN RESPONSIBILITY AND EXPECTATIONS, BUT OPERATING WITH MORE CONSTRAINTS ON STAFFING, FUNDING, AND REIMBURSEMENT.

SO THE BUDGET YOU SEE HERE REFLECTS ALL OF THAT.

THE SUPPLEMENTAL BUDGET ADJUSTMENTS ARE LARGELY DRIVEN BY MAJOR STATEWIDE INITIATIVES, OUR BEHAVIORAL HEALTH BRIDGE HOUSING, THE BH CONNECT DEMONSTRATION WAIVER, AND EXPANDED CALWORKS MENTAL HEALTH AND SUBSTANCE USE DISORDER SERVICES.

SO THESE CHANGES ENSURE OUR BUDGET'S ALIGNED WITH ACTUAL PROGRAM EXPECTATIONS THAT THE STATE HAS NOW PUT IN PLACE.

IT IS CRITICAL TO NOTE THAT WE'RE ADDING CAPACITY THROUGH SOME STAFFING SUPPORT MEASURES.

WE'RE USING EXTRA HELP TO BRING ON INTERNS AND CONTRACTED SERVICES STRATEGICALLY TO MEET SHORT-TERM HOUSING NAVIGATION, SUPPORTS, AND BRIDGE HOUSING WHILE MAINTAINING OUR STABLE LONG-TERM WORKFORCE.

THESE ADJUSTMENTS ALSO HIGHLIGHT SOMETHING REALLY ESSENTIAL.

OUR LOCAL MATCH DOLLARS DO UNDERPIN OUR ENTIRE ABILITY TO DRAW DOWN FEDERAL FUNDING.

SO GENERAL FUND REALIGNMENT AND OUR BEHAVIORAL HEALTH SERVICE ACT DOLLARS ALLOW US TO LEVERAGE MEDI-CAL REIMBURSEMENT, INCLUDING THE ANNUAL INTERGOVERNMENTAL TRANSFER, OR IGT, WHICH IS REPLENISHED EVERY YEAR AND COVERS UNREIMBURSED MEDI-CAL COSTS LIKE CLIENT-RELATED TRAVEL AND DOCUMENTATION EFFORTS THAT OUR STAFF ARE REQUIRED TO COMPLY WITH.

SO WITHOUT THESE LOCAL FUNDS, WE REALLY CANNOT SERVE THE NUMBER OF MEDI-CAL BENEFICIARIES THAT WE'RE ACTUALLY MANDATED TO SEE.

SO VERY IMPORTANT.

CALIFORNIA HAS UNDERGONE THE LARGEST BEHAVIORAL HEALTH REFORM THAT WE HAVE SEEN IN DECADES HERE IN CALIFORNIA.

THESE EFFORTS, THEY ARE AIMED AT IMPROVING OUTCOMES, BUT THEY HAVE DRAMATICALLY EXPANDED WHAT COUNTIES ARE REQUIRED TO DELIVER.

UH, PLAN ADMINISTRATION DEMANDS CONTINUE TO GROW THROUGH CALAIM, PAYMENT REFORM, BH CONNECT, UH, PROPOSITION 1, WHICH IS OUR BEHAVIORAL HEALTH SERVICES ACT AND THE PLAN INTEGRATION FOR SPECIALTY MENTAL HEALTH SERVICES AND OUR DRUG MEDI-CAL ORGANIZED DELIVERY SYSTEM.

SO THESE ARE ALL GOING TO INCREASE THE FULL PLAN RESPONSIBILITY FOR PLAN-LEVEL OVERSIGHT, INFRASTRUCTURE, AND ACCOUNTABILITY, AS WELL AS THE ACTUAL SERVICE DELIVERY SYSTEM.

SO THE ADMINISTRATIVE IMPACTS ON BEHAVIORAL HEALTH PLANS IS QUITE SIGNIFICANT.

UM, AT THE SAME TIME, CARE REFORM EFFORTS LIKE THE CHILD AND YOUTH BEHAVIORAL HEALTH INITIATIVE, EVIDENCE-BASED PRACTICES, FULL-SERVICE PARTNERSHIP PROGRAMS THE SCHOOL-BASED MENTAL HEALTH, JUSTICE-INVOLVED REFORMS AND FOSTER CARE REDESIGN ARE RESHAPING HOW WE SERVE CLIENTS ACROSS THE ENTIRE LIFESPAN.

SO COMPLIANCE AND REPORTING EXPECTATIONS HAVE ALSO MULTIPLIED, UH, WITH ROUGHLY 70 CURRENT REPORTING REQUIREMENTS AND MORE ON THE WAY, UH, THROUGH SB43 AND BH CONNECT EVIDENCE-BASED PRACTICES.

AND THEN, OF COURSE, WE HAVE THE BHSA OUTCOME AND TRANSPARENCY REPORTING FRAMEWORK THAT WE'LL IMPLEMENT AT THE START OF THE FISCAL YEAR.

SO LAYER UPON LAYER OF ADMINISTRATIVE OVERHEAD AS PLAN ADMINISTRATORS.

UH, AND MANY OF THE SYSTEM OF CARE MANDATES, UH, SUCH AS CARE COURT AND SB43, THEY ALL COME WITHOUT FUNDING WHICH I KNOW YOU'VE HEARD BEFORE, BUT IT'S JUST IMPORTANT TO HIGHLIGHT THAT AGAIN.

UM, COMBINED WITH WORKFORCE SHORT-, SHORTAGES, LOW REIMBURSEMENT RATES, AND THE HIGH COST OF LIVING, THESE PRESSURES ARE REALLY MAKING MAINTAINING, UH, SYSTEM STABILITY A REAL CHALLENGE IN BEHAVIORAL HEALTH DEPARTMENTS ACROSS THE STATE.

SO IN RESPONSE, LAST YEAR WE LAUNCHED THE SYSTEM EVOLUTION FRAMEWORK.

THIS INITIATIVE FOCUSES OUR WORK ON FOUR LONG-TERM STRATEGIC PRIORITIES: SYSTEM INTEGRATION, ACCESSIBLE QUALITY SERVICES, REGULATORY COMPLIANCE, AND FISCAL SUSTAINABILITY.

UH, THESE PRIORITIES ALIGN WITH BEHAVIORAL HEALTH SERVICES AND THE STATEWIDE BEHAVIORAL HEALTH TRANSFORMATION AND POSITION US TO BUILD A STRONGER, MORE RESILIENT BEHAVIORAL HEALTH ECOSYSTEM HERE IN SANTA CRUZ COUNTY.

SO, UH, IN-IN THIS BRIEF PERIOD OF TIME TO ENSURE THAT MY COLLEAGUE HAS ADEQUATE TIME AS WELL, I-I HAVE ATTEMPTED TO HIGHLIGHT FOR YOU THAT THE BEHAVIORAL HEALTH SYSTEM IS GROWING, THE MANDATES ARE GROWING, THE EXPECTATIONS ARE GROWING, AND WE'RE RESPONDING WITH DISCIPLINE, PLANNING, AND A CLEAR STRATEGIC DIRECTION.

THE BEHAVIORAL HEALTH PROPOSED BUDGET

[02:15:02]

OUR SYSTEM EVOLUTION PRIORITIES GIVE US THE STRUCTURE WE NEED TO MEET THESE STATEWIDE DEMANDS WHILE CONTINUING TO SUPPORT THE BEHAVIORAL HEALTH NEEDS OF OUR COMMUNITY.

THANK YOU.

- GOOD MORNING BOARD.

I AM PLEASED TO BE HERE TO REPRESENT OUR DIVISION, HEALTH CENTERS DIVISION.

I'M AMY PEELER, CHIEF OF HEALTH CENTER SERVICES.

AND THERE ARE SO MANY THREATS TO PROVIDING HEALTHCARE, ESPECIALLY FOR THOSE WHO ARE MOST IN NEED.

SO IN ORDER TO BE PREPARED FOR WHAT IS TO COME OR WHAT WE EXPECT TO COME, THE HEALTH CENTERS DIVISION HAS WORKED IN THREE PRIMARY AREAS.

ONE OF WHICH IS TO INCREASE OUR REVENUE, UM, THAT INCLUDES BEING PRODUCTIVE.

OUR... AND WE'VE DONE THAT IN THE WAYS YOU CAN SEE HERE BY STANDARDIZING OUR PROVIDER TEMPLATES AND INCREASING OUR ABILITY TO HAVE DASHBOARDS TO SEE EXACTLY HOW WE'RE DOING.

WE ALSO ARE ENSURING THAT THERE IS NO MONEY LEFT ON THE TABLE THAT IS OWED TO US, AND WE DO THAT BY IMPROVING OUR SYSTEMS. AND IN THE CENTER THERE YOU CAN SEE THAT THERE ARE VARIOUS FISCAL KEY PERFORMANCE INDICATORS THAT WE'VE BEEN WORKING ON.

AND THEN ALSO INCREASING THE RATE THAT THE STATE PAYS US PER MEDI-CAL VISIT FOR OUR SERVICES SO THAT WE CAN KEEP UP WITH THE INFLATION.

SO ALL OF THESE INNOVATIONS THAT WE'VE BEEN WORKING ON AND PUTTING INTO PLACE WILL ALLOW US TO TRANSITION MORE TOWARDS, UH, SELF-RELIANCE AND REDUCING THE WORK THAT IS DONE OUTSIDE WITH CONSULTANTS AND VENDORS.

SO A FEW EXAMPLES OF THAT, UH, ONE IS OUR DATA DASHBOARDS, WHICH WE PREVIOUSLY HAD BEEN PAYING TO HAVE A VENDOR DO FOR US AND NOW WE ARE ABLE TO HAVE THEM, UH, IN-HOUSE WITH OUR IT TEAM WHO ARE DOING AN AMAZING JOB WITH THAT.

ANOTHER EXAMPLE IS THAT WE ARE OFFERING TRAINING AND CERTIFICATION TO OUR BILLING STAFF TO BECOME, UM, BILLING CODERS, WHICH WILL ALSO REDUCE THE NEED FOR AN OUTSIDE VENDOR.

UH, AI HAS QUICKLY BECOME INTEGRATED INTO OUR ELECTRONIC HEALTH RECORD, WHICH DOES RELIEVE SOME OF THE CLINICIANS' BURNOUT AND ALSO INCREASES OUR EFFICIENCY.

AND THEN ADDITIONALLY, THERE ARE SOME, UM, DETAILS HERE ON OUR STRATEGY FOR THIS YEAR'S BUDGET, WHICH IS SIMILAR TO THE LAST SLIDE IN THAT WE ARE REALLY DIGGING INTO IT WAYS TO ADVANCE OUR ANALYTICS AND-AND AUDITS, UM, AND INCREASING THE EFFICIENCY OF ALL OF OUR SYSTEMS. SO WE'VE BEEN TALKING, VARIOUS PEOPLE HAVE BEEN TALKING ABOUT OUR RATE STUDY AND WHAT THAT IS EVERY QUALIFIED SERVICE THAT WE PROVIDE TO A MEDI-CAL PATIENT, WE GET WHAT IS EVERY PROVIDER'S STANDARD RATE, AND THEN WE GET AN ADDITIONAL SUM OF MONEY, UH, BECAUSE WE ARE A FEDERALLY QUALIFIED HEALTH CENTER WHO IS CHARGED WITH PROVIDING SERVICES TO PEOPLE IN OUR CATCHMENT AREA REGARDLESS OF THEIR ABILITY TO PAY.

SO OUR ENHANCED MEDI-CAL RATE IS WHAT ALLOWS US TO DO THAT, AND THAT RATE IS DETERMINED BY THE STATE.

SO AFTER DECADES OF NOT REQUESTING A RATE STUDY THOUGH OUR CHARGES AND EXPENSES HAVE CONTINUED TO RISE, WE HAVE TRIGGERED THE EVENT, WHICH IS TO PROVIDE SERVICES WITH A MARRIAGE AND FAMILY THERAPIST.

UM, THAT IS A TRIGGERING EVENT IN THE STATE'S EYES WHICH WILL ALLOW THEM TO-TO REVIEW OUR RATE AND WE EXPECT TO GET A SIGNIFICANTLY HIGHER RATE FOR THOSE SERVICES WHICH IS THE, IS THE STRATEGY THAT WILL ALLOW US TO ABSORB THE INCREASING SALARY AND SUPPLY COSTS.

THIS IS SOME MORE DETAIL FOR YOU ABOUT THAT PPS RATE.

PPS STANDS FOR PROTECT PRO-...

- PROSPECTIVE.

- PROSPECTIVE PAYMENT SYSTEM.

SO WHEN YOU HEAR RATE, IT'S A PPS RATE.

UM, AND OUR CURRENT RATE IS $438 PER VISIT.

WE ARE CONSERVATIVELY EXPECTING OUR NEW RATE TO BE AROUND $535 PER QUALIFYING VISIT.

AND IT'S IMPORTANT TO ALSO UNDERSTAND THAT WHILE THIS WILL HAVE A SIGNIFICANT INCREASE ON REVENUE

[02:20:01]

SO IT IS A WIN-WIN IN THAT WAY.

SO AS YOU CAN SEE, WE'VE DONE A LOT OF WORK ON INCREASING OUR REVENUE FROM LAST FISCAL YEAR TO THIS FISCAL YEAR.

UM, REALLY SIGNIFICANTLY, UH, INCREASE IN REVENUE AND ALSO A SIGNIFICANT INCREASE IN OUR EXPENSES, WHICH IS THE SALARIES OF OUR STAFF, WHICH IS WHY WE'RE GOING FOR THE PPS RATE OPTIMIZATION.

UM, YOU'LL SEE THAT WE ARE COMING IN WITH FEWER FTES THIS YEAR WHILE WE ARE STILL, UM, SEEING MORE PATIENTS AND INCREASING OUR REVENUE.

AND, UH, ALWAYS I CALL A FUN FACT IN OUR DIVISION IS THAT WE ALSO PROVIDE CARE, MEDICAL CARE TO THE JUVENILE HALL POPULATION.

SO I JUST WANNA THANK YOU VERY MUCH FOR SUPPORTING OUR OUTSTANDING STAFF AS THEY CONTINUE TO PROVIDE THESE ESSENTIAL SERVICES FOR OUR COMMUNITY, AND I APPRECIATE YOUR SUPPORT.

AND WE'LL TURN IT BACK TO JESSICA AND DIRECTOR CONNIE.

- THANK YOU.

- GO AHEAD.

- ALL RIGHT, SO I'LL BRIEFLY GO OVER JUST THE MAJOR, UM, BUDGET CHANGES.

UH, ACROSS NEARLY EVERY DIVISION...

WHOOPS, DID IT... YEAH.

ACROSS NEARLY EVERY DIVISION, THE PRIMARY COST DRIVERS ARE SALARY AND BENEFIT INCREASES, RISING COSTS FOR CONTRACTED SERVICES AND SUPPLIES, AND INCREASING INTERNAL SERVICE CHARGES.

UH, YOU CAN SEE HERE THE FTES FOR EACH DIVISION.

HEALTH CENTERS HAS A REDUCTION OF 6.2 FTES, BEHAVIORAL HEALTH HAS 11.75 FTES, AND I WILL HIGHLIGHT THIS IS THE LOWEST STAFFING LEVELS IN BEHAVIORAL HEALTH IN A DECADE WHEN I DID A TREND ANALYSIS OF THE LAST 10 YEARS.

SO THEY ARE WORKING VERY, UM, VERY, VERY HARD.

ADMINISTRATIVE, UH, DIVISION IS DOWN 1.35 FTES, PUBLIC HEALTH IS DOWN 3.4 FTES, ENVIRONMENTAL HEALTH, 2 FTES, AND HEALTH BENEFITS IS DOWN, UH, 4.0 FTES.

UH, LET'S SEE HERE.

I'VE LOST MY PAGES.

OKAY.

PERFECT.

THIS SLIDE SUMMARIZES THE OVERALL NET IMPACT OF THE MAJOR BUDGET CHANGES ACROSS HSA.

UH, OBVIOUSLY, WHILE COSTS CONTINUE TO RISE, HSA HAS WORKED TO LIMIT THE IMPACT ON COUNTY RESOURCES.

THE NET INCREASE IN GENERAL FUND CONTRIBUTION IS 756,000 OR 3.5%, WHICH IS BELOW THE OVERALL EXPENDITURE GROWTH RATE.

UH, THE PROPOSED BUDGET REFLECTS A NET REDUCTION OF 28.7% POSITIONS OR APPROXIMATELY 4.3% OF HSA STAFFING, DEMONSTRATING THAT AGENCY'S EFFORTS TO ALIGN ALL, UH, EXPENDITURES WITH AVAILABLE RESOURCES WHILE MAINTAINING CORE SERVICES.

UH, SO THE KEY TAKEAWAY IS THAT, HSA CONTINUES TO FACE INCREASING PERSONNEL AND SERVICE DELIVERY COSTS, BUT THROUGH REVENUE GROWTH, OPERATIONAL EFFICIENCIES AND STRATEGIC STAFFING REDUCTIONS, THE AGENCY HAS BEEN ABLE TO LARGELY ABSORB THOSE PRESSURES WHILE MINIMIZING THE IMPACTS TO THE GENERAL FUND.

THE BUDGET REFLECTS OUR ONGOING EFFORTS TO BALANCE FISCAL RESPONSIBILITY WITH MAINTAINING ACCESS TO CRITICAL HEALTH, BEHAVIORAL HEALTH, AND PUBLIC HEALTH SERVICES FOR SANTA CRUZ COUNTY RESIDENTS.

AND I'LL PASS IT BACK TO CONNIE.

- I'M GONNA DO JUST SOME... OH.

I'M GONNA DO SOME HIGHLIGHTS ON SOME OF THE STATE AND FEDERAL RISKS AND SOME OF THE EMERGING ISSUES IN HSA.

SO, UM, LET ME SEE.

SO VERY HIGH LEVEL, UH, YOU'VE HEARD ABOUT H.R.1, AS OUR FEDERAL OUR MEDI-CAL CHANGES COMING, UH, THROUGH WORK, UH, REQUIREMENTS AND MANY OTHER, UH, FUNDING CHANGES.

SO WE ARE MONITORING ALL THE H.R. 1 IN CONJUNCTION WITH OUR CEO'S OFFICE, AND WE ARE RESPONDING TO FEDERAL POLICY CHANGES THROUGH CONSTANT ADVOCACY AND STAYING IN CONTACT WITH OUR ASSOCIATIONS, BEING IN SACRAMENTO AS WELL, UH, WHEN WE NEED TO ADVOCATE.

UM, THE STATE FUNDING, UH, YOU'VE HEARD ABOUT BHSA, BEHAVIORAL HEALTH SERVICES ACT, PRESENTATION YESTERDAY AND TODAY.

EVEN THOUGH THERE WAS REDUCTIONS, UH, THEY...

UH, THE TEAM STILL CONTINUES TO PROV-...

TO PLAN FOR THE SERVICES TO THE POPULATION WE SERVE.

UH, SOME OF THE FUNDING WAS, UH, FROM...

PREVENTION WAS MOVED FROM BEHAVIORAL HEALTH TO PUBLIC HEALTH SO CDPH, UH, IS MANAGING THOSE FUNDS, UH, WHICH WILL HELP, UH, WITH A VERY SMALL ALLOCATION THAT WILL COME TO PUBLIC HEALTH.

THE MAJORITY WILL GO TO COMMUNITY-BASED ORGANIZATIONS THAT CAN DO PREVENTION SERVICES IN THE STATE OF CALIFORNIA.

AND AGAIN, THAT ONE, WE ARE ALIGNING OUR SERVICES, UM, AND WITH THE NEW FUNDING REQUIREMENTS TO-TO MITIGATE.

AND THEN, JUST ON THE PROGRAM, UH, POLICY,

[02:25:02]

AND BEHAVIORAL HEALTH IS EVALUATING THE OPERATIONAL AND ASSESSING IMPACTS AS WELL.

SO, JUST SOME HIGHLIGHTS ON THE EMERGING ISSUES.

UH, UH, YOU'VE HEARD US, UH, SAY HOW WE ARE RESPONSIBLE FOR SERVING OUR INDIGENT, BUT ALSO WE SERVE OUR UNINSURED AND UNDERINSURED.

THAT'S AN EMERGING ISSUE, AND WE CONTINUE, UH, TO MONITOR IT.

UH, YOU HEARD ABOUT THE HEALTH CENTERS, UH, FINANCIAL SUSTAINABILITY AND REVENUE ALIGNMENT THAT THEY'RE WORKING ON, NOT ONLY WITH THE PPS RATE, UH, STUDY BUT MANY OTHER, UH, CHANGES AND IMPROVEMENTS IN THE DIVISION.

UH, THE MEDI-CAL TELEHEALTH POLICY UNCERTAINTY, WE'RE NOT GONNA KNOW TILL 2027, UM, HOW THOSE FKCS CAN DO THAT.

UM, YOU'VE HEARD ABOUT MEDI-CAL BEHAVIORAL HEALTH INTEGRATION, UH, IT'S COMING UP, UH, IN 2027, UH, COMING DUE, UH, TO HELP UH... BEHAVIORAL HEALTH HAS TO INTEGRATE MENTAL HEALTH AND SUBSTANCE ABUSE, THE ADMINISTRATIVE, UH, SERVICES THERE, SO THAT'S COMING.

THEN, OF COURSE PUBLIC HEALTH CAPACITY AND THE EMERGING THREATS: OUR PUBLIC HEALTH DIVISION CONSISTENTLY MONITORS.

I THINK WE'VE, UH... YOU KNOW, THEY'RE MONITORING EBOLA.

THEY'RE MONITORING ANY, UH, ISSUES THAT ARE COMING UP, UH, IN THE COMMUNITIES.

SO JUST TO WRAP UP, UH, YOU, UH...

WE ARE HERE TO PRESENT OUR PROPOSED BUDGET FOR FISCAL YEAR 26-27.

UH, WE'RE ASKING YOU, UH, FOR YOUR SUPPORT WITH A $301,521,354, UH, WITH SOME OF THE EXPENSES OF $324000, $324 MILLION...

I'M SORRY, WITH THE EXPENSES OF $324,300,466.

THE GENERAL FUND CONTRIBUTION OF $22,367,557, UM, AND THEN YOU HAVE THE...

WE HAVE THE DISTRICT SALES TAX CONTRIBUTION OF $400,000.

AND THEN THE OTHER FUND CONTRIBUTIONS ARE $11,575 TO FUND OUR STAFFING OF 638.75 FTES.

AGAIN, HSA BEING THE HEALTH, UH, WE ARE THE SAFETY NET, UH, WE ARE HERE TO SERVE THE MOST VULNERABLE, THE MOST CHRONIC POPULATIONS IN THE COUNTY, AND WE ARE HERE TO SERVE WITH A VERY DEDICATED WORKFORCE AND I'M VERY HONORED TO BE YOUR DIRECTOR OF HEALTH SERVICES AGENCY.

THANK YOU.

- THANK YOU FOR THE BUDGET PRESENTATION.

BY WAY OF PROCESS, I'M GONNA RETURN TO THE BOARD FOR QUESTIONS ON THE HSA BUDGET, THEN I'LL OPEN IT UP TO PUBLIC FOR PUBLIC COMMENT, AND THEN I'LL RETURN TO THE BOARD FOR DELIBERATION AND A MOTION.

SO TO B-... TO BEGIN WITH, WOULD ANY OF MY COLLEAGUES LIKE TO ASK QUESTIONS ON THE HSA BUDGET? SUPERVISOR HERNANDEZ.

- THANK YOU. WELL, FIRST OF ALL, I'D LIKE TO THANK OUR HSA DIRECTOR FOR, YOU KNOW, A LOT OF THESE UH, FOR THIS PRESENTATION AND SOME OF THE THINGS...

THE ACTIONS THAT YOU'VE TAKEN TO STREAMLINE, UH, INCREASE PRODUCTIVITY, INCREASE REVENUES, AND PPS RATE OPTIMIZATION, AND JUST OPERATIONAL EFFICIENCIES.

I KNOW THAT WHEN YOU HAD JU-...

OR BEFORE YOU HAD JUST COME IN, WE HAD GONE THROUGH SOME BUDGET SCENARIOS AND, YOU KNOW, YOU MENTIONED THE LABS AND DIFFERENT DEPARTMENTS THAT ARE ESSENTIAL TO, UH, SOUTH COUNTY'S HEALTH CENTER, UH, WERE UNDER THREAT OF BEING CUT AND, UH, SOME FTES BEING CLOSED AS WELL.

I HAD DONE A TOUR, UH, ME AND MY STAFF DID A TOUR OF-OF THE, UH, WATSONVILLE HEALTH CENTER, AND WE TALKED TO EVERYONE THERE, FROM ADMINISTRATION TO SOME OF THE DOCTORS THAT WERE THERE, AND OF COURSE, LONGTIME EMPLOYEES, AND THEY ILLUSTRATED HOW IMPORTANT A LOT OF THOSE, UM...

HOW ESSENTIAL A LOT OF THOSE DEPARTMENTS AND EVERYTHING THAT THEY DO IS TO THE ENTIRE HEALTHCARE SYSTEM THERE AT...

IN WATSONVILLE AND HOW IT MAKES IT MORE EFFICIENT.

AND A LOT OF THEM DESCRIBED SOME OF THE THINGS ABOUT BILLING QUESTIONS ABOUT BILLING, HOW THEY CAN MAXIMIZE THAT.

AND SO, WHEN YOU CAME ALONG, WE HAD THAT MEETING ABOUT, YOU KNOW, ADDRESSING SOME OF THESE ISSUES THAT-THAT BOTH, UH, SEIU AND SOME OF THE EMPLOYEES, DOCTORS, ADMINISTRATION BROUGHT UP.

AND I'M GLAD TO SEE HERE TODAY THAT YOU'RE ABLE TO RESOLVE ALL THOSE ISSUES AND ACTUALLY STREAMLINE THE CENTER AND MAKE IT MORE PRODUCTIVE AND, YOU KNOW, OPTIMIZE THE-THE PAY...

THE PAYMENT REIMBURSEMENTS AS WELL, UH, AND OPERATIONAL EFFICIENCIES.

UM... YOU KNOW, I... AND I WAS WONDERING TOO IF, HAVE WE LOOKED AT, UM, EMELINE AS WELL? 'CAUSE WHATEVER WE DID AT WATSONVILLE HEALTH CENTER, IT'D BE GOOD TO SEE IF WE CAN SEE REVENUE GROWTH EVERYWHERE, AND OF COURSE, CAN WE REPLICATE THAT AT EMELINE? UM, AND ONE OF THE THINGS THAT I HAD A QUESTION ABOUT IS, HAVE WE...

ONE OF THE THINGS THAT THEY HAD TALKED ABOUT, FEW OF THEM TALKED ABOUT, NOT ALL OF THEM, IS, UM, GIVING THE OPPORTUNITY FOR WALK-INS TO-TO COME IN, AND THAT'S A, THAT'S A REIMBURSEMENT THAT WE COULD DO.

ARE WE DOING THE WALK-INS NOW?

[02:30:02]

UM, RECENTLY, I READ A SHORT ARTICLE ABOUT AI IN HEALTHCARE, AND HOW THEY'RE DOING A LOT MORE THAN JUST, UH, I GUESS, UH, DATA EFFICIENCIES, BUT THEY'RE DOING A LOT OF, UH, I GUESS, PROGRAM EFFICIENCIES, AND HOW DEPARTMENTS, UH, E... CAN BE MORE EFFICIENT WITH AI.

HAVE WE LOOKED INTO LOOKING, EH, USING AI FOR ADDITIONAL THINGS IN HEALTHCARE THAT CAN H-HELP STREAMLINE THE PROCESS EVEN FURTHER? UM, AND I GUESS MY THIRD ONE IS, UH, I NOTICED ENVIRONMENTAL HEALTH ONLY HAD LIKE A MINUS $500,000 BUDGET.

YOU KNOW, THERE'S A LOT OF THINGS THAT THEY DO, UH, ASSIST WITH AND HELP WITH, AND ONE OF THE THINGS THAT I'VE BEEN INTERESTED IN IS, UH, WHEN I DID THE-THE TOUR OF, UH, HEALTHCARE, I-I NOTICED A MAP THAT THEY HAD.

IT HAD ALL THE WATERWAYS IN OUR COUNTY, AND THEY HAD THE HEALTH OF THESE WATER SYSTEMS IN OUR COUNTY, AND IT GOES FROM YELLOW, I THINK, GREEN TO YELLOW TO RED.

MOST OF THE RED ONES, ALL OF THE RED ONES, WERE IN SOUTH COUNTY.

AND I THINK IN THE FUTURE, YOU KNOW, IN COLLABORATION WITH MEASURE Q, I THINK, BECAUSE MEASURE Q ALSO ADDRESSES HEALTHY WATER.

UM, AT SOME POINT, WE WOULD HAVE TO INCREASE THAT BUDGET IN THE FUTURE TO MAKE SURE THAT WE HAVE HEALTHY WATER IN WATSONVILLE.

AND, YOU KNOW, I THINK THAT'S SOMETHING THAT IT CAN'T BE ALL ON...

OF COURSE, OBVIOUSLY, ALL ON ENVIRONMENTAL HEALTH'S BUDGET, BUT HOPEFULLY, WE COULD USE MEASURE Q TO CLEAN UP OUR WATERWAYS, UH, TO MAKE THEM HEALTH AND SAFETY, UH, HEALTH AND SAFE.

UM, I KNOW WE'RE ADDRESSING PINTO LAKE RIGHT NOW, UH, TO CLEAN UP PINTO LAKE, UH, BUT I THINK ALL OUR WATERWAYS NEED THAT HELP AS WELL.

BUT YEAH, THOSE ARE MY, UH...

THAT WAS JUST A SUGGESTION, BUT THE OTHER QUESTIONS ABOUT THE WALK-INS, ABOUT, UH, EVERYTHING THAT WE DID AT, UH, THE WATSONVILLE HEALTH CENTER, ARE WE GONNA REPLICATE IT AT EMELINE? AND JUST THE AI EFFICIENCIES AND EXPANDING THAT CAPABILITY OF AI.

- SO SUPERVISOR HERNANDEZ, THANK YOU SO MUCH FOR, UH, ALL THOSE QUESTIONS.

SO I HAVE HERE SOME OF THE OPERATIONAL EFFICIENCIES THAT WE'VE BEEN TALKING ABOUT AND REPLICATING, UH, THE SAME SERVICES IN OUR DIFFERENT PROGRAMS HAS BEEN OUR FOCUS, BUT I'D LIKE TO HAVE, UM, THE, UM...

AMY, UH, COMMENT ON THE TWO POINTS YOU ASKED ABOUT.

AMY? - SURE. SO WHEN WE DID ALL OF THE INNOVATIONS AND THE WORK AROUND ACCESS, THAT WAS ACROSS ALL OF OUR HEALTH CENTERS.

SO EMELINE SAW A...

DID A LOT OF WORK AND SAW A-A VERY SIGNIFICANT INCREASE IN THEIR ACCESS AND PRODUCTIVITY, AS WELL AS OUR HOMELESS PERSONS' HEALTH PROJECT.

IN TERMS OF WALK-INS, ALL OF OUR CLINICS HAVE WALK-IN SLOTS AND DESIGNATED WALK-IN SLOTS ON THE PROVIDERS' SCHEDULES.

WATSONVILLE HAS A VERY HIGH NEED FOR WALK-IN SLOTS AND THEY HAVE A DESIGNATED TRIAGE PHYSICIAN AS WELL AS NURSING STAFF WHO SEE WALK-INS ALL DAY LONG.

UM, SO YES, WE-WE ENCOURAGE WALK-INS.

UM, IT... AT OUR HOMELESS PERSONS HEALTH PROJECT, IT IS EXTREMELY IMPORTANT TO HAVE SPOTS FOR WALK-INS BECAUSE FOR THAT POPULATION THAT WE SERVE, UH, MEETING THEM WHERE THEY ARE AND WHEN THEY CAN COME IN IS REALLY ESSENTIAL.

- AMY, CAN YOU ALSO COMMENT ON THE-THE EVENING AVAILABILITY AND [INAUDIBLE]? - SURE. SO AT OUR WATSONVILLE HEALTH CENTER, WE DO HAVE EVENING AVAILABILITY, AND WE ARE ALSO DESIGNATED WITH THE CENTRAL CALIFORNIA ALLIANCE FOR HEALTH, FOR URGENT CARE FOR CHILDREN, REGARDLESS OF IF THEY ARE, UM, ASSIGNED TO US OR NOT.

SO THAT'S ANOTHER EXPANSION THAT WE'VE DONE IN THE LAST YEAR.

- SO OUR-OUR GOAL IS TO REPLICATE, UH, THE SAME STAFFING PLANS IF POSSIBLE IN BOTH.

UM, 'CAUSE EMELINE IS A CAMPUS WITH MANY SERVICES, SO WE ARE LOOKING AT THE FEASIBILITY OF, AS YOU AND I HAVE TALKED ABOUT, THE NEED FOR US TO REPLICATE AND TO ENSURE THAT EMELINE IS AS PRODUCTIVE AND, UH, IF NOT ACTING SIMILARLY AS IN WATSONVILLE.

SO AND THEN WITH AI, YOUR QUESTION ABOUT THE USE ON HEALTHCARE, WE ARE... UM, I KNOW BEHAVIORAL HEALTH AND ALL OUR DIVISIONS, WE ARE LOOKING AT AI.

UH, THERE'S A LOT OF DILEMMAS OUT THERE ABOUT SOME ETHICS IN RELATION TO AI AND THEN HOW IT CROSSES OVER TO HEALTHCARE.

SO WE WANNA BE VERY THOUGHTFUL IN-IN ALIGNMENT WITH THE COUNTY POLICY.

UH, I THINK AMY, UH, SHE DID MENTION SOME OF THE AI EFFORTS.

UH, DID YOU WANNA HIGHLIGHT THOSE IN THE HEALTH CENTERS? - SURE. SO THE AI EFFORTS THAT WE ARE USING HAVE COME FROM THE OPERATOR OF OUR ELECTRONIC HEALTH SYSTEM.

SO REALLY HELPING OUR CLINICIANS WITH, UM... IT...

YOU MIGHT HAVE EXPERIENCED IN YOUR OWN DOCTOR APPOINTMENTS, UM, A SCRIBE WHO IS IN THE OFFICE TYPING WHAT THE PATIENT SAYS AND WHAT THE PROVIDER SAYS OR THE CLINICIAN SAYS.

AND SO AI HAS BEEN ABLE TO ENHANCE THAT.

AND ALSO SOME, UM, IMPROVEMENTS WITH OUR BILLING TEAM AS WELL.

[02:35:01]

SO, UH, IT DOES SEEM LIKE IT'S HAPPENING FAST, BUT WE ALSO WANNA BE SURE THAT WE'RE USING IT RESPONSIBLY.

- THANK YOU. AND THANK YOU FOR EVERYTHING THAT YOU DID, YOU KNOW, WITH THE WALK-INS, UH, EVENING HOURS, UH, BECAUSE I THINK IN... UH, EVERYWHERE, NOT JUST SOUTH COUNTY EVEN THE INDIGENT POPULATION, EVERYBODY, UM, I THINK WHEN THEY COME IN, AND THEY'RE TURNED AWAY, THEY PROBABLY WON'T COME BACK.

AND THAT'S ONE BILLING REIMBURSEMENT THAT WE'RE MISSING ON THINKING OF IT IN TERMS OF, LIKE, REVENUE, RIGHT? UH, BUT IN TERMS OF HEALTH, IT'S ALSO DEVASTATING TO OUR COMMUNITY WHEN THEY CAN'T...

THEY GET TURNED AWAY.

SO THANK YOU FOR THE EVENING HOURS.

THANK YOU FOR THE, UH... FOR THE, UH... THE WALK-INS, RIGHT? IT'S GONNA INCREASE OUR REVENUE AS WELL.

SO, UM, AND WITH-WITH AI, YOU KNOW, IT'D BE GOOD TO SEE, EXPLORE WHAT WE COULD DO.

I THINK IN THAT SAME ARTICLE, IT TALKED ABOUT AI INCREASING, YOU KNOW, THE EFFICIENCY, STREAMLINING, PRODUCTIVITY, AND JUST OPTIMIZATION, BUT MAKING SURE THAT WE KEEP OUR STAFF, THAT, YOU KNOW, IT'S STILL, UH... IT'S-IT'S... HEALTHCARE IS A PEOPLE BUSINESS.

SO IT... WE HAVE TO KEEP EVERY-EVERY... OUR STAFF.

THANK YOU.

- THANK YOU.

SUPERVISOR KOENIG.

- THANK YOU FOR THE PRESENTATION.

UM, VERY THOROUGH.

I THINK THE, UH, POTENTIAL INCREASE IN OUR PROSPECTIVE PAYMENT SYSTEM IS PROBABLY SOME OF THE BEST NEWS IN OUR ENTIRE BUDGET.

UM, SO THANK YOU FOR PURSUING THAT.

AND, UM, SO IF I UNDERSTAND CORRECTLY, IT WOULD BE RETROACTIVE SO IT DOESN'T MATTER WHEN IT'S ACTUALLY APPROVED.

WE CAN CONFIDENTLY APPLY IT TO THE ENTIRE YEAR'S BUDGET BECAUSE WE-WE'VE ALREADY APPLIED. IS THAT RIGHT? - THAT IS CORRECT, TO JULY 1ST, 2026, WHICH IS THIS YEAR.

- RIGHT. - YES.

- RIGHT, THE BEGINNING OF THE FISCAL YEAR.

UM, OKAY.

AND-AND BASICALLY, I MEAN, WHILE IT...

WHILE IT IS A WIN AB-, ABOUT $7 MILLION INCREASE IN REVENUES, THAT IT SORT OF, IT OFFSETS THE COST, THE INCREASED STAFF COST, BASICALLY, WITHIN THE DEPARTMENT. IS THAT RIGHT? SO, UM, WHICH IS GREAT, BUT IT'S NOT, YOU KNOW, WE'RE NOT LOOKING AT A HUGE BUMP IN REVENUE.

I MEAN, NET REVENUE.

UM, NEVERTHELESS, BECAUSE OF THE PROSPECTIVE PAYMENT SYSTEM INCREASE AND THE, UH, GENERAL EFFICIENCIES AND-AND SEEING MORE, UM, MORE CLIENTS, IS THERE ANY OPPORTUNITY TO BRING BACK, UH, REVENUE-GENERATING POSITIONS IN THE NEAR, MAYBE IN... IF NOT IN THIS BUDGET, THEN IN FUTURE BUDGETS? I MEAN, I'M THINKING OF THE CLINICAL PSYCHOLOGIST POSITIONS THAT WE ELIMINATED, YOU KNOW, A COUPLE OF THIS YEAR.

DO YOU SEE ANY OPPORTUNITY LIKE THAT ON THE HORIZON? - YES, AS, UH... AS FAR AS-AS OUR CEO MENTIONED, THOSE WILL BE, UH, THOROUGHLY, UH, REVIEWED AND SCREENED BY...

UH, TOGETHER WITH OUR CEO, AND WE ARE LOOKING AT SOME ARE REVENUE GENERATING POSITIONS THAT WE NEED TO C..., UH, BRING BACK.

SO WE'LL BE WORKING CLOSELY WITH OUR CEO'S OFFICE.

- WOULD THAT BE SOMETHING WE LOOK AT IN-IN MID-YEAR REVIEW OR IN THE NEXT-NEXT YEAR'S BUDGET? - UM, WE'RE GONNA, WE'RE STARTING TO WORK ON OUR BUDGET ALREADY SO BETWEEN NOW AND MID-YEAR.

UH, SO OUR-OUR DIVISION DIRECTORS ARE ACTIVELY WORKING.

WE LITERALLY HAVE... WE'RE GONNA START WORKING ON WHAT WE'RE GONNA NEED IN THE NEXT SIX MONTHS. YES.

- OKAY. THANK YOU.

- SUPERVISOR DE SERPA.

- THANK YOU.

THANK YOU FOR THAT COMPREHENSIVE REPORT, EVERYBODY.

UM, ONE OF THE BEST I'VE SEEN, ACTUALLY, IN A WHILE.

THANK YOU SO MUCH.

UM, OKAY, SO I HAVE JUST A COUPLE OF QUESTIONS FOR YOU.

I... YOU KNOW, I WAS LOOKING ON THE CONTRACT LIST, YOU KNOW, LINE BY LINE, AND I SAW THAT CARILLON STILL HAS A, APPEARS, UM, $549,000.

AND SINCE WE'RE NOT USING CARILLON, IS THAT JUST SORT OF LEFTOVER BILLING THAT WE EXPECT TO COME IN OR IS THAT SOMETHING ELSE? - IT'S ACTUALLY SOMETHING ELSE.

WE UTILIZE CARILLON AS A CONTRACTED VENDOR TO DO A REVIEW OF OUR AUTHORIZATIONS FOR OUR SUBSTANCE USE DISORDER LEVEL OF CARE SERVICES, AS WELL AS OUR HOSPITAL ADMISSIONS CONCURRENT REVIEW, WHICH IS REQUIRED.

UH, SO THEY'RE PROVIDING THOSE SERVICES FOR US.

WE WOULD OTHERWISE HAVE TO HAVE ADDITIONAL ADMINISTRATIVE STAFF WITHIN THE DIVISION TO DO THOSE FUNCTIONS, WHICH THE RATE WOULD LIKELY BE HIGHER.

- OKAY. UM, AND THEN I SAW ANOTHER LINE ITEM THAT I WAS SCRATCHING MY HEAD ABOUT WAS ADVOCATES FOR HUMAN POTENTIAL, $3.7 MILLION.

WOULD ANYONE...

CAN ANYONE EXPLAIN WHAT THAT IS? - SO, UH, THE...

- [WHISPERS].

- YES, THOSE ARE...

THAT'S RELATED TO, UM, A GRANT THAT WE'RE RECEIVING, AND SO THEY ARE CONTRACTED WITH THE STATE TO ADMINISTER THAT GRANT.

- OKAY. THANK YOU. THAT-THAT'S SUPER HELPFUL.

SO MY UNDERSTANDING OF, UM, THE PPS INCREASE IS THAT IT'S NOT GUARANTEED, AND IN FACT, THERE ARE PROBLEMS WITH THAT NOW,

[02:40:02]

- AMY'S BEEN MORE DIRECTLY INVOLVED IN THAT. - YEAH.

PPS IS UNDER HEALTH CENTERS, UM...

- SO I'M JUST WONDERING IF YOU COULD...

'CAUSE WE SHOULDN'T BE COUNTING ON THAT AT ALL, 'CAUSE I UNDERSTOOD THAT POTENTIALLY IT-IT WOULD...

IT WAS VERY, VERY DIFFICULT...

RIGHT NOW TO HAVE OUR PPS RATE INCREASED.

- HMM.

I-I'M NOT SURE EXACTLY WHAT THAT INFORMATION IS.

WE'VE BEEN WORKING VERY CLOSELY WITH A CONSULTANT FIRM CALLED WIPFLI, THAT WORKS WITH OTHER COUNTY FEDERALLY QUALIFIED HEALTH CENTERS, AS WELL AS PRIVATE SECTOR, FEDERALLY QUALIFIED HEALTH CENTERS TO ENSURE THAT, UH, AND THANK YOU TO CHRISTINE'S TEAM, WHO HAVE WORKED TIRELESSLY WITH, UH, BEING VERY CLEAR ABOUT WHAT OUR EXPENSES ARE.

UM, AND THEY ARE HELPING WALK US THROUGH THIS PROCESS WITH THE STATE.

SO WE DON'T HAVE ANY INDICATION THAT... UM, THAT...

- YOU HAVEN'T HEARD THAT THEN? - ... THAT WE WILL COME OUT WORSE. YEAH - OKAY, WELL, GOOD.

- YEAH. AND-AND IT HAS BEEN...

THIS IS THE FIRST TIME, SO FOR MANY OTHER HEALTH CENTERS, THEY HAVE DONE A RATE STUDY, UM, MULTIPLE TIMES, SO I THINK FOR US, THIS WILL BE EVEN MORE CLEAR-CUT.

- THAT'S GREAT. THANK YOU, AMY.

UM, AND THEN IN TERMS OF CAPTURING MAA FUNDING THAT WE ARE NOT CURRENTLY CAPTURING, CAN YOU TALK A LITTLE BIT ABOUT THAT? WHERE WILL THAT COME FROM? HOW MUCH CAN WE EXPECT IN SORT OF MONEY THAT IS BEING LEFT ON THE TABLE CURRENTLY? - IT'S MONEY THAT'S BEING LEFT ON THE TABLE? - YEAH, LIKE...

- SO, OUR MAA... I WISH WE HAD A SLIDE.

WE TYPICALLY DO A SLIDE, BUT IT HAS GROWN EXPONENTIALLY OVER THE LAST NUMBER OF YEARS, AND I ANTICIPATE TO CONTINUE THAT.

WHEN YOU TALK ABOUT ADDING POSITIONS, THAT IS SOMETHING WHERE I JUST TALKED TO MY MAN...

MAA MANAGER, UH, THIS WEEK, AND, YOU KNOW, IF WE CONTINUE TO GROW AT THIS RATE, WE WILL HAVE TO ADD CAPACITY THERE 'CAUSE THEY DO THE WHOLE BILLING, AND THIS IS NOT JUST AN ADVANTAGE OF THE COUNTY.

IT'S ALSO FOR A LOT OF OUR LOCAL CBOS.

SO, UM, WE ARE ALWAYS OPEN TO WORK WITH ANY CBO AND KIND OF EVALUATE IF WHAT THEY'RE DOING IS APPLICABLE TO MAA.

AS I SAID, WE'VE GROWN MILLIONS OVER THE LAST...

I DON'T KNOW, CHRISTINE, IF YOU KNOW THE NUMBERS OFF THE TOP OF YOUR HEAD, BUT, UM, WE'RE ALWAYS HAPPY TO CONTINUE TO WORK IN THAT AREA AND GROW.

AND AGAIN, IT'S HELPED OTHER COUNTY DEPARTMENTS, SUCH AS PROBATION, AS WELL.

- AND SUPERVISOR, UM, ANYTIME A, UH, A PERSON WHO GETS HIRED, UH, THAT ALSO HAS THE PARTICULAR LICENSE, WE ALSO, UH... AS SOON AS THEY GET LICENSED, UH, THE, UH, RATE THAT WE CAN CLAIM FOR INCREASES.

SO WE'RE LOOKING AT THOSE AS WELL.

OUR PAJARO VALLEY COLLABORATIVE TEAM MEMBERS EXPRESS INTEREST IN BILLING MAA, SO WE'LL BE WORKING CLOSELY WITH OUR MAA COORDINATOR TO INCLUDE THEM.

- THAT'S GREAT.

UM, AND SO ARE WE, ARE WE UTILIZING AN INTERN PROGRAM IN BEHAVIORAL HEALTH AND IN THE CLINICS, YEAH? - YES. THERE'S BEEN AN ACTIVE, UH, INTERNSHIP PROGRAM FOR NUMEROUS YEARS.

AND WE DO PROVIDE, UM, APPROPRIATELY STIPENDS TO OUR INTERNS.

AND SO WITH-WITH SOME BUDGET CUTS, THAT BECAME A LITTLE BIT OF A CHALLENGE FOR US TO DETERMINE HOW WE MIGHT BE ABLE TO CONTINUE THAT.

BUT THANKFULLY, WITH OUR BH CONNECT INCENTIVE FUNDING, AS LONG AS WE'RE CONTINUING TO MEET OUR DELIVERABLES AND WE'RE RECEIVING THOSE INCREMENTAL INCENTIVE PAYMENTS WE'VE ALLOCATED TO UTILIZE SOME OF THAT FUNDING, UH, FOR, UH, INTERN STIPENDS.

SO WE'LL BE ABLE TO CONTINUE A SMALL INTERN PROGRAM THIS YEAR AS WELL.

- THAT'S GREAT. AND THEN, UH, THOSE INTERNS AFTER, I MEAN, THAT'S SORT OF A WORK FOR-, WORKFORCE DEVELOPMENT.

- THAT IS HOW WE GROW OUR OWN.

- GREAT. AND THEN THEY... - YES, ABSOLUTELY.

- ... GET, UM, LICENSE HOURS TOO? - ABSOLUTELY. - YEAH.

THAT'S GREAT. SO, THEN THEY CAN BILL MAA.

- YEAH, AND SUPERVISOR, WE'RE ALSO, UC SANTA CRUZ HAS APPROACHED US TO ALSO HAVE MEDICAL STUDENTS PLACE, SO WE'LL BE DISCUSSING LATER THIS FALL TO SET-SET... - FOR ROTATIONS. - ... THE INFRASTRUCTURE YEAH, FOR OUR... - I LOVE IT.

THAT'S GREAT. - ... FOLKS IN PUBLIC HEALTH, TOO.

- UM, SO IN OTHER COMMUNITIES, UM, THEY USE A CONTRACT AGENCY, UM, I'M SURE THERE'S MANY.

ONE OF THEM THAT I KNOW ABOUT IS CALLED HEALTH CARE IN ACTION AND I ACTUALLY WAS TALKING TO DR. RATNER ABOUT THIS IDEA.

IT'S ESSENTIALLY STREET MEDICINE, RIGHT? SO YOU'RE GOING OUT TO PLACES WHERE PEOPLE, TYPICALLY, WON'T COME IN FOR CARE BUT YOU'RE ABLE TO BILL, UM, YOU KNOW FOR, UM, EPISODES, RIGHT? YOU-YOU CAN BILL FOR, UM, A VISIT, OR WOUND CARE, OR TREATMENT OR A LOT OF OTHER THINGS, SO I'M WONDERING, HAVE WE THOUGHT ABOUT THAT? ARE WE, I DON'T THINK WE'RE UTILIZING IT TO THE EXTENT THAT WE COULD, BUT I WAS WONDERING IF WE COULD TALK ABOUT THAT A MINUTE? - SURE. SO WE ACTUALLY ARE DOING IT.

WE HAVE A MOBILE VAN WHICH IS REALLY A MOBILE CLINIC AND WE HAVE, EVEN BEFORE WE HAD THAT VAN,

[02:45:03]

SO, THEY GO OUT WEEKLY TO THE LEVY IN WATSONVILLE, TO AREAS IN WATSONVILLE WHERE, UH, PEOPLE ARE.

UM, WE ALSO HAVE WHAT SOMETIMES WE CALL BACKPACK MEDICINE, WHERE OUR TEAMS OF NURSES, SOMETIMES MEDICAL ASSISTANTS, SOMETIMES MEDICATION ASSISTANT TREATMENT STAFF, AND A CLINICIAN PUTS ON THEIR BACKPACK GOES IN TO ENCAMPMENTS, UM, DURING TIMES OF PUBLIC HEALTH CRISES LIKE COVID AND HEP A.

OUR STAFF HAVE GONE IN, INTO ENCAMPMENTS WHERE THERE ARE TENTS AND THEY ARE GIVING PEOPLE VACCINATIONS IN THE TENTS ETC.

AND YES, YOU'RE ABSOLUTELY CORRECT, WE CAN BILL FOR THOSE.

- AND DO YOU FEEL LIKE WE'RE UTILIZING THOSE SERVICES TO THE EXTENT THAT WE COULD BE CAPTURING...? - I AM CERTAIN THAT WE COULD, THAT THERE'S MORE NEED OUT THERE. - AND NOT JUST FOR, TO BRING MONEY IN BUT TO ACTUALLY, YOU KNOW.

- YES, I AM CERTAIN THERE IS MORE. - PRIMARILY TO HELP PEOPLE, RIGHT? - YES. THERE IS MORE NEED, UM, THAN WE HAVE CAPACITY TO SERVE.

- THAT'S ONE OF THE STRATEGIES TO INCREASE ACCESS TO NEW CLIENTS.

- YEAH. I THINK, I MEAN WHAT HAS HAPPENED IN WATSONVILLE, UM, HAVING AN URGENT CARE THERE AND DROP-INS, I WOULD LOVE TO SEE THAT REPLICATED UP HERE, UM, AND OR NOT UP HERE, IN THE SANTA CRUZ AREA TOO, AT EMMELINE.

I THINK THAT WOULD BE GREAT.

UM, AND THEN IN TERMS OF CODING, YOU KNOW, I COME FROM A HEALTH CARE BACKGROUND AND, YOU KNOW, WE HAVE A VERY, AT SALINAS VALLEY IN PARTICULAR AND, WELL IN ALL THE HEALTH CARE SYSTEMS I'VE WORKED AT, WE HAVE, OUR CODING DEPARTMENT IS REALLY IMPORTANT.

SHARP, SHARP PEOPLE THERE AND NOW WITH AI IT'S EVEN, I THINK, UM, EASIER, RIGHT, BECAUSE THEY, YOU KNOW, THEY CAN ACTUALLY LOOK THROUGH THE TRANSCRIPTION AND SPECIFICALLY CODE, LIKE, AUTOMATICALLY TO THINGS BUT WE, I MEAN WE OFTEN WOULD EVEN HAVE, UM, HAVE THAT LOOKED OVER AND IF THE CODERS FELT LIKE THERE WAS SOMETHING THERE THAT COULD ACTUALLY GET A HIGHER BILLING CODE OR WHATEVER, THEY WOULD ASK THE DOCTOR TO ACTUALLY CHANGE THE LANGUAGE, RIGHT, TO BE ABLE TO, UM, BILL AT A HIGHER RATE FOR THE SERVICES THAT WERE RENDERED.

SO, ARE WE, DO WE HAVE SOMETHING LIKE THAT HERE? I MEAN, I HEARD YOU SAY YOU'RE GETTING PEOPLE CERTIFIED FOR CODING, BUT, I MEAN, THAT'S ONE OF THE REASONS THAT BIG HEALTH CARE SYSTEMS ARE SO SUCCESSFUL, IS BECAUSE THEY UNDERSTANDING IT'S LIKE, IT'S A GAME REALLY.

- ABSOLUTELY. IT IS A GAME THAT I WOULD VENTURE TO GUESS MOST OF OUR CLINICIANS WISH THEY DIDN'T HAVE TO PLAY.

UM, THEY LIKE TO PROVIDE CARE FOR THE PEOPLE IN FRONT OF THEM AND NOT HAVE TO WORRY ABOUT THIS INCREDIBLY COMPLEX CODING SYSTEM THAT RESULTS IN WHETHER OR NOT WE GET PAID.

SO, THAT IS WHY WE WANTED TO CERTIFY BECAUSE YOU DO NEED TO BE CERTIFIED TO MAKE SOME CHANGES IN AN ELECTRONIC HEALTH RECORD.

AND SO WE WANTED TO OFFER THAT OPPORTUNITY TO OUR STAFF AND IT HAS BEEN WELL RECEIVED AND WILL CERTAINLY, UM, HELP US KEEP STABLE REVENUE.

- OKAY.

- AND THAT ALSO APPLIES FOR, I WANTED THE BEHAVIORAL HEALTH, UH, ALSO, DR. SANDOVAL, IF YOU WANT TO COMMENT ON.

IT'S A LOT OF QUALITY CONTROL.

THERE'S, LIKE, ENSURE THAT WHATEVER CODE WAS USED AND IF THERE'S TRAINING NEEDED TO ENSURE THE RIGHT CODE WAS USED FOR THE RIGHT SERVICE.

I KNOW BEHAVIORAL HEALTH IS HIGHLY INVOLVED.

- YEAH. SIMILAR TO WHAT AMY MENTIONED, I WOULD JUST WANT TO INDICATE THAT OUR STAFF HAVE TO BE WAY IN THE WEEDS WITH THIS FAR MORE THAN THEY WOULD ENJOY OR CHOOSE TO BE.

UH, BUT WE HAVE AN INCREDIBLE ADMINISTRATIVE TEAM THAT IS BEHIND THE SCENES EVERY DAY, REVIEWING EVERY SINGLE CLAIM THAT COMES THROUGH TO ENSURE THAT IT IS CODED TO AN ALLOWABLE AND PROPER CODE FOR THE SERVICE THAT WAS PROVIDED AND THAT'S ESSENTIAL, NOT JUST FOR THE ACTUAL ABILITY TO SUCCESSFULLY ADJUDICATE CLAIMS, BUT BECAUSE WE ARE SUBJECT TO REGULAR AUDITS FROM THE DEPARTMENT OF HEALTH CARE SERVICES.

AND IF THERE ARE PROBLEMS WITH THE WAY THAT WE ARE CODING AND CLAIMING, THEN WE ARE AT RISK OF HAVING TO PAY BACK SUBSTANTIAL AMOUNTS OF MONEY TO THE STATE.

SO, THERE'S A TWO-FOLD REASON WHY THIS IS INCREDIBLY IMPORTANT AND WHY OUR ADMINISTRATIVE STAFF ARE SO KEY BEHIND THE SCENES.

UM, AS WE MOVE INTO IMPLEMENTATION OF OUR UP, UH, NEW ELECTRONIC HEALTH RECORD SYSTEM IN THE FALL, THERE'LL BE SIGNIFICANT ENHANCEMENTS IN THIS AREA OF THE BACK-END BILLING, AND CLAIMING AS WELL.

SO, WE'RE LOOKING FORWARD TO THAT BENEFIT.

- THANK YOU, EVERYBODY, FOR KEEPING YOUR EYES ON ALL OF THAT AND I APPRECIATE ALL THE WORK THAT WENT INTO THE PRESENTATION TODAY.

- ANY FURTHER QUESTIONS FROM THE BOARD? UM, THEN I'LL ASK JUST REALLY BRIEFLY, YOU ACTUALLY ANSWERED A LOT OF THE QUESTIONS I HAD, SO THANK YOU SO MUCH FOR BEING SO THOROUGH.

UM, ONE, JUST SORT OF A LITTLE MORE GLOBALLY,

[02:50:01]

- UM, SO ONE, COULD YOU ELABORATE A LITTLE BIT ON THAT, KIND OF, YOU KNOW, THAT, SORT OF, HOW MUCH IN, IN THE COMING YEARS AND, UM, HOW THAT MIGHT IMPACT THE DEPARTMENT BUDGET, UM, AND THEN ALSO, JUST ELABORATE, UM, YOU KNOW, WE KNOW WATSONVILLE COMMUNITY HOSPITAL HAS, YOU KNOW, REALLY BEEN STRUGGLING FINANCIALLY, UM, AND WE ARE ALSO SEEING OVERFLOWING EMERGENCY ROOMS AND, AT DOMINICAN HOSPITAL AND, KIND OF, YOU KNOW, HOW THAT IMPACTS THE CLINICS, HOW THAT'S IMPACTING YOUR-YOUR-YOUR CLINIC, UM, PATIENT NUMBERS OR YOUR ABILITY TO PROVIDE CARE? - I THINK WE'RE JUST BEGINNING TO SEE THE IMPACT, UM, AND WE HAVE STARTED TO EXPERIENCE SEEING FEWER PEOPLE WHO ARE UNINSURED COME TO OUR CLINICS BECAUSE OF THEIR FEAR AND THEN WHAT HAPPENS DOWN THE WAY IS THAT PEOPLE DON'T CARE FOR THEIR CHRONIC ISSUES OR EVEN A-A NON-CHRONIC ISSUE AND THEN THEY GET SICKER AND SICKER AND END UP IN THE HOSPITAL.

SO THAT IS, IN SOME WAYS, WHAT WE DO ALL THE TIME, IS TRYING TO KEEP PEOPLE OUT OF THE HOSPITAL.

UM, AND-AND IT IS A REAL CONCERN THAT THAT WILL NOT IMPROVE AS WE, IF WE GET MORE AND MORE RESTRICTED IN TERMS OF WHO WE ARE ALLOWED TO SEE.

- AND, UM, AND WAS THAT PART OF WHAT WAS BEHIND OPENING THE URGENT CARE AT THE CLINIC IN WATSONVILLE? I HADN'T, I DIDN'T KNOW YOU HAD OPENED THAT.

- UM, IT-IT IS AND AS WE WERE, AS WE WERE PUSHING PRODUCTIVITY AND OUR SCHEDULES BECAME MORE AND MORE TIGHTENED UP, UM, WE AND THERE WERE MORE KIDS WHO NEEDED URGENT CARE IN THE COMMUNITY IN WATSONVILLE, THE MAJORITY OF THE KIDS THAT WE DO SEE IN OUR HEALTH CENTERS ARE IN WATSONVILLE, SO OUR HEALTH CENTER DIRECTOR THERE TOOK IT, HIS OWN INITIATIVE TO REALLY WORK WITH ALLIANCE TO MAKE THAT HAPPEN.

- GREAT. THANK YOU.

UM, AND THEN JUST ONE MORE, OH, YEAH, CAN YOU TALK A LITTLE BIT ABOUT THE, UM, IGT FIRST? - SURE. JUST TO CLARIFY, IT'S NOT WATSONVILLE COMMUNITY HOSPITAL.

I SHOULD HAVE SAID PAJARO VALLEY HEALTH CARE DISTRICT BECAUSE THEY ARE ANOTHER PUBLIC ENTITY AND SO THAT'S WHAT QUALIFIES THEM TO NOW RECEIVE THAT.

UM, AND SO WHEN WE'VE MET WITH THE ALLIANCE, I THINK THE ESTIMATE, THEY'RE KIND OF RAMPING UP SO AS WE MENTIONED YOU HAVE TO DO A MATCH AND WE'VE ACTUALLY BEEN HELPING PAJARO VALLEY BECAUSE WE WANT THEM TO BE SUCCESSFUL HELPING THEM WITH THAT MATCH ON, IN THE, THIS FISCAL YEAR, UM, BUT LONG TERM, I THINK IT WAS GOING TO BE AROUND $4 MILLION THAT WOULD BE GOING, POTENTIALLY, TOWARDS THE HOSPITAL VERSUS TO THE COUNTY FUNDS.

BUT AGAIN, IF YOU LOOKED AT OUR HISTORICAL TRENDS OF OUR IGT, WE I THINK PULLED $5 MILLION IN THE PAST TO SUPPORT THE HOSPITAL SO OBVIOUSLY, WE'RE, YOU KNOW, WE'RE BEING GOOD PARTNERS WITH THEM AND WANT THEM TO BE SUCCESSFUL.

SO LONG TERM, I THINK WHEN WE RAN THE NUMBERS IT WAS ABOUT 4 MILLION BUT THAT WAS, IT WAS A COUPLE YEARS OUT WHERE WE WENT, TO-TO GET THERE.

- OKAY. THANK YOU.

UM, AND THEN LAST QUESTION JUST, YOU HAD MENTIONED THAT, UM, MAKING AN MFT'S TIME BILLABLE WAS THE TRIGGER, UM, SO THAT'LL BE, POTENTIALLY, GOOD NEWS FOR YOUR WORKFLOW OR-OR WORKFORCE, RIGHT, IF YOU CAN MAYBE RECRUIT MORE, UM, CLINICIANS THAT ARE MFTS.

IN THE MEANTIME, CAN, ARE THERE ANY OTHER, KIND OF, LICENSES OR PROFESSIONALS THAT YOU CAN ADD TO MAKE, YOU KNOW, BILLABLE WHILE YOU'RE OPENING UP THE PPS RATE FOR REEVALUATION? - IF WE WERE TO ADD ANY OTHERS, AT WHICH WE MIGHT WANT TO DOWN THE LINE, AND WE'RE LOOKING AT WHAT THOSE LINES OF SERVICES COULD BE IF WE WANT TO REEVALUATE OUR RATE AGAIN NEXT YEAR, FOR EXAMPLE.

UM, SO YES, IT, IN MY OPINION IS THE STATE FINALLY CATCHING UP TO ITSELF IN TERMS OF ALLOWING MFTS TO GET PAID FOR MEDICAL PATIENTS THAT IS NEW.

UM, AND IN THE FUTURE WON'T NEED TO BE A TRIGGERING EVENT BUT THAT IS THE ONE THAT WE USE THIS TIME AND IT IS GREAT FOR OUR WORKFORCE AND OUR ABILITY TO RECRUIT.

- GREAT. OKAY. THANK YOU.

UM, WELL THAT CONCLUDES MY QUESTIONS.

UM, I WILL NOW OPEN IT UP TO PUBLIC COMMENT.

IS THERE ANYONE HERE WHO WOULD LIKE TO SPEAK ON THE HSA BUDGET? WELCOME.

PLEASE FORM A LINE BEHIND HER AND, UM, IF YOU'RE ON THE PHONE, PLEASE RAISE YOUR HAND.

- GOOD MORNING OR WHAT'S LEFT OF IT.

MY NAME IS EMILY FONTANA.

I'M AN ORGANIZER WITH SCIU AND I REALLY WANT TO COMMEND, UH, HSA ON THIS BUDGET.

WE HAVE BEEN WORKING REALLY HARD WITH THEM OVER THE LAST YEAR AND THE CEO'S OFFICE AND, UM, I WANT TO GIVE A SPECIAL THANK YOU TO CONNIE FOR EVEN MENTIONING HOW MUCH THE WORK WITH OUR STEWARDS HAS BEEN WORKING TO HELP BRING A MORE, UH, GLOBAL LOOK AND SOLVING THE CRISIS WE HAVE FOR HSA AND THE CLINICS.

UM, WE LOOK FORWARD TO SEEING MORE REVENUE GENERATE

[02:55:01]

THANK YOU.

- THANK YOU. ANYBODY ELSE IN THE ROOM? SEEING NONE, IS THERE ANYONE ON THE PHONE? - YES, THERE IS.

CALL IN USER 634, YOUR MICROPHONE IS NOW AVAILABLE.

- HELLO? - YES, WE CAN HEAR YOU. PLEASE BEGIN YOUR COMMENT.

- I'M JEFFREY ARIT, THE SECRETARY OF THE SANTA CRUZ COUNTY BEHAVIORAL HEALTH ADVISORY BOARD.

THANK YOU, ALL, FOR YOUR SERVICE TO OUR COMMUNITY.

I ASK THAT THE COUNTY CONTINUE ITS WORK TO SCALE BEHAVIORAL HEALTH SERVICES TO MEET THE NEEDS OF OUR COMMUNITY.

BEHAVIORAL HEALTH RELATED CONDITIONS ARE THE LEADING CAUSE OF PREVENTABLE DEATHS IN OUR COUNTY, THAT'S AT A SCALE OF 5 TIMES THE DEATHS THAT ARE CAUSED BY TRAFFIC ACCIDENTS.

AGAIN, I THANK YOU FOR YOUR DEDICATION AND SERVICE.

- CATHY, YOUR MICROPHONE IS NOW AVAILABLE.

- HELLO. MY NAME IS CATHY LASS.

I LIVE IN APTOS, UM, AND I ALSO WANT TO BASICALLY DO A "ME, TOO" COMMENT OF REALLY SUPPORTING THE, UM, HEALTH SERVICES DEPARTMENT, AND THEIR BUDGET, AND THE WORK THAT THEY'VE DONE AND, UM, I, TOO, WANT TO CONTINUE THE COUNTY TO CONTINUE TO SCALE TO HELP, UM, MEET THE NEEDS OF OUR COUNTY IN THE HEALTH SERVICES DEPARTMENT.

SO, I JUST WANT TO REALLY URGE THAT, UM, HEALTH SERVICES AND, UM, MENTAL HEALTH AND BEHAVIORAL HEALTH ARE-ARE IMPORTANT AND THEY ARE WHAT KEEP US SAFE.

THANK YOU.

- LOUISA, YOUR MICROPHONE IS NOW AVAILABLE.

- HI, THERE. MY NAME IS LOUISA MCGARIAN.

UM, SANTA CRUZ HAS BEEN MY HOME FOR OVER 3 DECADES AND I LOVE IT HERE AND I LOVE THAT WE ARE CREATIVE AND THAT WE CARE FOR EACH OTHER.

AND I-I LIKE WHAT I HEARD TODAY ABOUT THE WAY THE HEALTH SERVICES AGENCY HAS REALLY BEEN APPROACHING THIS DIFFICULT TIME WITH CREATIVITY AND I WOULD LIKE TO SEE US AS A COMMUNITY APPLY THAT EVEN FARTHER BECAUSE THE WORK THEY DO IS SO IMPORTANT.

UM, THE MENTAL HEALTH SERVICES AND EVERYTHING IS SUPER IMPORTANT AND IS UNDER SUCH PRESSURE RIGHT NOW, UM, AND IS REALLY CRITICAL.

AND I WANT TO SEE US SPREAD THE BURDEN OF THE CUTS THAT ARE COMING DOWN FROM THE FEDERAL GOVERNMENT MORE EQUITABLY AMONGST DEPARTMENTS, BECAUSE WHAT IT LOOKS LIKE TO ME IS, HEALTH AND HUMAN SERVICES ARE REALLY BEARING THE BRUNT OF IT, UM, AND I THINK THAT SOME OF OUR, UM, CARCERAL DEPARTMENTS ARE-ARE NOT HAVING TO MAKE AS DEEP OF CUTS AND COULD SHARE THAT BURDEN AND OUR COMMUNITY WOULD BE BETTER OFF FOR IT.

THANK YOU.

- KH, YOUR MICROPHONE IS NOW AVAILABLE.

- UH, GOOD AFTERNOON.

MY NAME IS KATHERINE HEDGES.

I LIVE IN LIVE OAK.

UM, AND I'D LIKE TO AGREE WITH WHAT THE PREVIOUS SPEAKERS HAVE BEEN SAYING BECAUSE A THRIVING COMMUNITY IS A SAFER COMMUNITY.

UM, SO MANY PEOPLE ARE INVOLVED IN THE CARCERAL SYSTEM AS A RESULT OF UNTREATED BEHAVIORAL HEALTH ISSUES AND IF WE CAN STRENGTHEN OUR BEHAVIORAL HEALTH SYSTEM THAT WILL HELP RELIEVE THE BURDEN ON THE CARCERAL SYSTEM.

AND IT'S ALSO TROUBLING HOW MANY PEOPLE WHO ARE INCARCERATED ARE BEING TREATED FOR MENTAL HEALTH ISSUES.

THAT'S JUST NOT A GOOD SYSTEM.

AND I AGREE THAT, IF WE SPENT MORE MONEY ON PREVENTION AND KEEPING PEOPLE HEALTHY AND THRIVING, WE WOULD NEED LESS SPENDING ON THE CARCERAL SYSTEM.

SO, KEEP UP THE GOOD WORK.

I HOPE YOU CAN PUSH BACK AND GET MORE FUNDING. THANK YOU.

- BERNIE, YOUR MICROPHONE IS NOW AVAILABLE.

- YEAH. GOOD AFTERNOON, UH, CHAIR AND BOARD.

UH, YEAH, I JUST WANTED TO, KIND OF, JUST SAY THAT I'M REALLY APPRECIATIVE OF SUCH A DETAILED AND ROBUST PRESENTATION BY THE HSA.

[03:00:01]

AND I ENCOURAGE THIS COUNTY TO CONTINUE TO DO WHAT IT CAN TO SUPPORT, UM, THE [INAUDIBLE].

THANK YOU.

- ZOOM USER, YOUR MICROPHONE IS NOW AVAILABLE.

- HI, THERE. CAN EVERYBODY HEAR ME? - YES, WE CAN.

- OKAY, PERFECT.

UM, I WILL SEND YOU GUYS, UM, THIS PIECE OF INFORMATION BUT I JUST WANTED EVERYBODY HERE AT THE BOARD TO KNOW THAT, UM, BY GOVERNMENT DOCUMENTATION, ONE, BY THE WECC, WHICH IS THE WESTERN, UM, SOMETHING ELECTRIC GRID, THEY, UM, DID A REPORT BACK IN DECEMBER MENTIONING THAT THE BISTRO POWER PLANT WAS CONDUCTING A STRESS, UH, IT'S CALLED THE SOS, UM, A STRESS BATTERY TEST, THE DAY OF THE FIRE AND NOT ONLY THAT, BUT THEY, NEGLIGENTLY, HAPPENED TO DO THE STRESS TESTING ON THE 2 WORST DAY OF THE YEAR THAT NOAH AND THE SPACE STATION HAD DECLARED THAT THERE WAS GOING TO BE SOLAR FLARES.

PEOPLE CALL IT HERE FOR SOME REASON, UM, SOMETHING ELSE, BUT THERE WAS 2 SOLAR FLARES, BIG, AND THEY HAPPEN TO DO IT JUST RIGHT ON THE WINDOW WHERE THEY SHOULDN'T HAVE BEEN DOING THAT.

UM, AND THAT'S ALL DOCUMENTED BY THE WECC, UM, THE REPORT ON THE SOLAR FLARES THAT'S SOMETHING THAT I ACTUALLY FOUND OUT MYSELF.

UM, AND I'LL SEND YOU, GUYS, A COPY OF THAT AND I JUST WANTED YOU GUYS TO KNOW SOMETHING VERY IMPORTANT, THAT THE AEROS-, WHEN THE HEAVY METALS BECOME AEROSOLIZED, THEY BECOME SO THIN THAT IT GOES STRAIGHT TO YOUR LUNGS.

LIKE, IT WILL GO RIGHT PAST ANY MASK, UM, THAT IS WHY ALL THE, UM, ALL THE EQUIPMENT WASN'T ABLE TO, UM, READ THE HEAVY METALS.

AND WHAT I JUST WANTED TO LEAVE YOU GUYS WITH IS THIS, THEY CANNOT TURN ON THE NEW BATTERIES BECAUSE ALL THE METALS, THEY'RE GOING TO BE ARCING INSIDE.

THEY NEED LIKE A LAB GRADE, UM, WHERE SEMICONDUCTORS ARE BEING DONE, FOR THEM TO PROPERLY CLEAN IT.

IF THEY JUST TURN IT ON LIKE THAT, WE'RE GOING TO HAVE ANOTHER FIRE.

- I SEE NO FURTHER SPEAKERS ONLINE, CHAIR.

- THANK YOU. I WILL NOW RETURN TO THE BOARD FOR COMMENTS, DELIBERATION, AND A MOTION.

SUPERVISOR CUMMINGS.

- THANK YOU, CHAIR.

I JUST WANT TO THANK STAFF, UM, FOR THE PRESENTATION AND REALLY JUST APPRECIATE ALL THE AMAZING WORK YOU ALL ARE DOING, UM, AND ESPECIALLY FOR YOU, DIRECTOR MORENO PARAS, COMING IN AS A NEW DIRECTOR AND TRYING TO HELP US RESOLVE MANY OF THE ISSUES THAT WE HAD LAST YEAR.

I MEAN, WE WERE LOOKING AT SHUTTING DOWN OUR RADIOLOGY.

WE'VE BEEN ABLE TO PRESERVE THAT AND LOOKS LIKE WE'RE GOING TO CREATE A REVENUE STREAM FOR THAT MOVING FORWARD.

UM, WE'RE LOOKING AT MH KHAN SHUTTING DOWN AND YOUR STAFF HAS DONE AN AMAZING JOB WORKING WITH OUR OFFICE AND WITH, UM, OTHER MEMBERS, THE NEW MEMBERS OF THEIR BOARDS, SOME OF WHOM ARE COUNTY STAFF, TO PRESERVE THOSE SERVICES WHICH ARE VERY MUCH NEEDED IN OUR COMMUNITY AND, YOU KNOW, CREATE A REVENUE STREAM FOR THAT WHICH IS JUST AMAZING.

UM, YOU KNOW, GETTING THE YOUTH BEHAVIORAL HEALTH FACILITY UP AND RUNNING WHICH IS SOMETHING OUR COMMUNITY VERY MUCH WANTS TO HAVE AND, AND WE'RE SO FORTUNATE THAT WE WERE ABLE TO GET THAT THING MOVING ESPECIALLY BEFORE ALL THE TARIFFS AND EVERYTHING HAPPENED.

UM, AND, YOU KNOW, I CONTINUE TO HEAR IMPROVEMENTS AROUND ENVIRONMENTAL HEALTH ESPECIALLY AS IT RELATES TO, YOU KNOW, DOING INSPECTIONS ON PEOPLE'S PROPERTY FOR SEPTIC AND WHEN PEOPLE ARE TRYING TO BUILD.

THE ONLY ISSUE I, I HAVE TO DATE AND, AND I JUST WANT TO SAY BASED ON YOUR BUDGET THERE'S AMAZING WORK THAT'S BEING DONE, UM, IS THAT LAST YEAR AND I'LL JUST BRING UP THE MOTION REAL QUICK.

UM, BUT THE BOARD PROVIDED TO, THE FOLLOWING DIRECTION, WHICH WAS, DIRECT STAFF TO APPLY THE TEMPORARY FOOD FACILITY ANNUAL FEE ONLY TO FARMERS MARKET OPERATORS, RATHER THAN CHARGING FOR EACH INDIVIDUAL MARKET LOCATION.

AND DIRECT STAFF TO WORK WITH THE FARMERS MARKET ASSOCIATION TO COME UP WITH A FEE SCHEDULE THAT'LL BE MUTUALLY AGREED UPON BETWEEN THE FARMERS MARKET OPERATORS AND COUNTY STAFF.

UM, MY UNDERSTANDING TO DATE WITH OUR INTERACTIONS WITH THE FARMERS MARKET IS, THOSE CONVERSATIONS NEVER HAPPENED.

AND SO HERE WE ARE AGAIN, YOU KNOW, RATES ARE GOING UP, UM, THE FARMERS MARKETS STILL HAVE THE S-, SAME ISSUE.

AND SO, UM, I'M GONNA MOVE THE RECOMMENDED ACTIONS AND INCLUDE THE FOLLOWING, WHICH IS ESSENTIALLY TO PROVIDE THE SAME DIRECTION WE PROVIDED LAST YEAR.

BUT FOR THE ENVIRONMENTAL HEALTH FEE SCHEDULE, CHARGE ONLY,

[03:05:01]

AND DIRECT STAFF TO WORK WITH THE FARMERS MARKET ASSOCIATION TO COME UP WITH A FEE SCHEDULE THAT'LL BE MUTUALLY AGREED UPON BETWEEN THE FARMERS MARKET OPERATORS AND COUNTY STAFF BEFORE PROPOSING ANY CHANGES.

OR, NO, I'LL JUST LEAVE IT AT THAT, SO.

UH, SO AND THEN RETURN TO THE BOARD AT, UH, THE MID-YEAR BUDGET FOR AN UPDATE ON THOSE CONVERSATIONS AND RECOMMENDATIONS.

- WE HAVE A MOTION ON THE FLOOR. IS THERE A SECOND? - I'LL SECOND.

- AND I'LL, AND JUST FOR CLARITY, I MEAN, THIS IS JUST, THIS IS THE SAME DIRECTION WE PROVIDED LAST YEAR.

THERE WAS A FOUR TO ONE VOTE ON THIS, SO YOU KNOW, THERE WAS OVER, YOU KNOW, A MAJORITY VOTE OF THE BOARD WHO WANTED THIS.

AND SO, YOU KNOW, MY HOPE IS THAT, BY PROVIDING THIS DIRECTION, WE CAN AGAIN HAVE THOSE CONVERSATIONS HAPPEN AND WE CAN GET SOME RECOMMENDATIONS BACK AND, UM, AND SO I'LL JUST LEAVE MY COMMENTS THERE. THANK YOU.

- DO YOU MIND IF I, I ADD A LITTLE BIT TO THAT? IS IT POSSIBLE TO HAVE THE DISCUSSION WITH, UH, ALL THE FARMERS MARKET OPERATORS? 'CAUSE YOU KNOW, WE HAVE TWO THAT ARE SEPARATE FROM EACH OTHER IN, IN SOUTH COUNTY.

AND ONE OF THE THINGS THAT THEY KIND OF, ONE OF THE CONCERNS THEY BROUGHT UP IS, LIKE, THEY'RE DOING ONE FEE AND MAKING A CERTAIN AMOUNT OF REVENUE, BUT YOU PAY ONE FEE OVER HERE, AND YOU MAKE SIX TIMES THE REVENUE.

UH, JUST SO, JUST YOU HAVE THAT CONVERSATION WITH THEM TO VET THAT OUT WITH THEM.

- YES. IS... I WANNA HAVE, UH, ANDREW STRADER COMMENT, AND DEFINITELY WE CAN.

- UH, GOOD AFTERNOON BOARD.

UH, ANDREW SCHRADER, DIRECTOR OF ENVIRONMENTAL HEALTH.

CAN YOU HEAR ME? YEAH.

UH, I APPRECIATE YOUR COMMENTS, JUSTIN.

UH, THAT IS OUR EXACT PROPOSAL TO CONTINUE THINGS INTO THIS N-, UH, NEXT YEAR UNCHANGED.

IT IS TRUE THAT WE DIDN'T GET A CHANCE TO DIRECTLY, UH, SPEAK WITH THE C-, CERTIFIED FARMERS' MARKETS.

UH, THAT WAS PRIMARILY DUE TO THE, UH, UH, ONGOING AND LENGTHY PROCESS OF OUR IMPLEMENTATION OF OUR DATA MANAGEMENT SYSTEM, UH, AS WELL AS OUR WORK ON STREAMLINE SANTA CRUZ COUNTY.

UH, SO WE JUST SIMPLY DIDN'T GET THAT.

UH, SINCE WE DIDN'T, WEREN'T ABLE TO DO THAT, WE DECIDED TO CONTINUE WITH THE BOARD'S DIRECTIVE INTO THE NEXT YEAR.

SO THE ONE PERMIT FEE PER OWNER STILL APPLIES AND IS PART OF THE, THIS PROPOSAL FOR THIS CURRENT BUDGET.

SO WE DID NOT, UH, REVERT BACK TO, UH, ANY OLD, OLDER F-, UM, FEE MECHANISMS. UH, THE ONLY THING THAT'S DIFFERENT FROM I-, IS THE 4% FEE, UH, A-, ACROSS THE BOARD THAT'S APPLIED TO ALL OF OUR, UH, THAT'S THE ONLY PR-, ONLY CHANGE IN THE PROPOSAL.

- AND, AND I'LL JUST SAY THAT WE, UH, THE DIRECTION PROVIDED DOES NOT CHANGE THAT 4% INCREASE.

IT REALLY FOCUSES ON JUST MAKING SURE THAT THERE'S THE ONE PERMIT OR OPERATOR, UM, FOR THE CERTIFIED OWNS.

- THE TEMPORARY EVENTS OR ORGANIZERS.

- THE TEMPORARY EVENTS AND THE ONE CHARGE FOR THE, UM, THE MARKET FEE.

SO, AND IT'S PER OPERATOR, NOT PER SITE.

AND SO IF IT'S CONSISTENT, I JUST THINK THAT IT'S REALLY IMPORTANT THAT IT'S IN THE RECORD SO THAT WE DON'T, YOU KNOW, FORGET THAT THIS IS WHAT THE BOARD HAS DIRECTED.

AND HOPEFULLY, AND THEN BY PROVIDING THE DIRECTION TO COME BACK AT MID-YEAR, MY HOPE IS THAT WE'LL GET AN UPDATE ON IT AND THAT THAT WILL BE A PART OF THE WORK PLAN THIS YEAR.

- CORRECT. - OKAY.

- YES. WE'RE NOT CHANGING ANYTHING FROM THE BOARD'S DIRECTIVE AND WE INTEND TO CONTINUE WITH THAT PROCESS.

- OKAY, THANKS.

- SO JUST TO CONFIRM WHAT I'M HEARING, THE, UM, W-, YOU KNOW, NUMBER OF FEES PER OWNER, THAT, THAT IS CONSISTENT WITH THE PRACTICE OF THE LAST FISCAL YEAR, AND BEING RECOMMENDED TO BE CONSISTENT IN THE COMING FISCAL YEAR.

IS THAT CORRECT? - YES, CORRECT.

- 'CAUSE I, I WAS, I, I BELIEVE I WAS THE LONE DESCENDING VOTE ON THAT AT THAT TIME.

UM, GIVEN THAT IT'S THE EXISTING PRACTICE, UM, I, I, I THINK I'D BE OKAY WITH IT.

UM, HOWEVER, I'M NOT SURE THAT IT NEEDS TO BE CALLED OUT SPECIFICALLY SINCE IT'S ALREADY BAKED INTO THE BUDGET THAT WE ARE APPROVING.

- IT'S IMPORTANT THAT IT'S ON THE RECORD, ESPECIALLY SINCE IT DIDN'T HAPPEN LAST YEAR.

- WELL, I THINK THE PART IS THE M-, THE MEETING WITH PEOPLE IS THE PART THAT MAYBE DIDN'T HAPPEN, BUT THE FEE ITSELF DID HAPPEN.

IS THAT CORRECT? - YEAH, SO THE FEES ARE ALREADY ATTACHED TO THE BUDGET ITEM, AND THERE'S NO CHANGE IN THE FEES, AND YOU'RE GOING TO CONSIDER THE UNIFIED FEE SCHEDULE ON JUNE 24TH.

SO NO CHANGE IN THE FEES.

IT SOUNDS LIKE SUPERVISOR CUMMINGS WANTS TO DOCUMENT THAT THE COORDINATION OCCURS BETWEEN THE ENVIRONMENTAL HEALTH AND, UM, THE, THE PROVIDERS, THE, THE VENDORS.

- SO IT, IT WILL BE ALL THE VENDORS, RIGHT? NOT JUST...

- YEAH. - OKAY. - YES.

- YEAH, ALL THE VENDORS.

- 'CAUSE MAYBE WE CAN ENCOURAGE THE SOUTH COUNTY ONES TO MERGE TOGETHER AND PAY ONE FEE

[03:10:02]

- SO WE HAVE A MOTION ON THE FLOOR AND A SECOND.

WOULD YOU LIKE TO CLARIFY SOMETHING, OR DO YOU HAVE ANY COM-, FURTHER COMMENTS? - UH, JUST TO CLARIFY THAT ABSOLUTELY, WE WOULD BE INCLUDING ALL THE CFM OWNERS, UH, IN THAT NEGOTIATION.

- SO TO GET CLARITY ON THE MOTION, UM, DO YOU WANNA REPEAT YOUR MOTION, OR DO YOU WANNA MAKE ANY EDITS BASED ON THE CLARIFICATION FROM CEO COBURN? - NO, I MEAN, I'LL, I'LL JUST KEEP IT THE SAME.

SO, SO IT'S THE, MOVE THE RECOMMENDED ACTIONS AND ALSO INCLUDE THE FOR ENVIRONMENTAL HEALTH FEE SCHEDULE, CHARGE ONE CERTIFIED FARMERS MARKET FEE TO THE MARKET MANAGER NOT FOR EACH MARKET SITE.

CHARGE ONE TEMPORARY FOOD FACILITY FEE FOR EACH MARKET MANAGER, NOT FOR EACH SITE.

AND DIRECT STAFF TO WORK WITH ALL THE FARMERS MARKET ASSOCIATIONS FOR THE COUNTY TO COME UP WITH A FEE SCHEDULE THAT WE MUTUALLY AGREED UPON BETWEEN THE FARMERS MARKET OPERATORS AND COUNTY STAFF, AND RETURN AT THE MID-YEAR BUDGET FOR AN UPDATE.

- THAT'S FINE.

- OKAY.

FURTHER DISCUSSION FROM THE BOARD? I'LL JUST MAKE A COUPLE COMMENTS THEN.

UM, ONE, Y-, I APPRECIATE ALL THE, THE CALLERS WHO, UM, AND PUBLIC COMMENT TODAY, WHO REALLY SPOKE TO THE VALUE OF, UM, BEHAVIORAL HEALTH SERVICES, OF PREVENTION SERVICES, AND REALLY, UM, YOU KNOW, JUST DOING THE WORK THAT IT TAKES TO KEEP PEOPLE HEALTHY AND KEEP THEM OUT OF OUR EMERGENCY SYSTEMS OR OUR CRIMINAL JUSTICE SYSTEM.

UM, A LOT OF INCREDIBLE WORK HAPPENS AT, UH, THE HEALTH SERVICES AGENCY, SO THANK YOU FOR THAT.

UM, YOU KNOW, WE'VE GOT, OF COURSE, WE HEARD A LOT FROM BEHAVIORAL HEALTH AND THE CLINICS TODAY.

WE ALSO HAVE OUR PUBLIC HEALTH TEAM, OUR ENVIRONMENTAL HEALTH TEAM, AND JUST A LOT OF FRONTLINE WORKERS WHO, UM, REALLY ARE, ARE LOCAL HEROES, IN MY OPINION.

SO I'M INCREDIBLY GRATEFUL FOR YOUR WORK, AND UNDERSTAND THAT THIS BUDGET IS TIGHT.

IT IS ELIMINATING POSITIONS THAT YOU'VE DEPENDED ON.

UM, AND APPRECIATE YOUR FLEXIBILITY TO BE ABLE TO CONTINUE TO MEET THE NEEDS OF OUR PUBLIC WHILE, UM, HELPING US BRING FORWARD A BALANCED BUDGET.

UM, AND I, UM, YEAH, WANNA COMMEND THE, THE CEO'S OFFICE FOR WORKING WITH HSA, UM, AND OUR, OUR NEW LEADERSHIP TO, UM, GET US TO A REALLY DIFFERENT CONVERSATION THAN WE WERE HAVING LAST YEAR.

AND, UM, I KNOW THAT THERE'S SOME ONE-TIME FUNDS IN THERE THAT PLUGS THE HOLES, AND WE MAY BE HAVING MORE, UM, DIFFICULT CONVERSATIONS IN THE COMING MID-YEAR OR NEXT YEAR.

UM, BUT IN THIS MOMENT, I'M, I'M REALLY PLEASED TO, TO, UH, SUPPORT THE BUDGET THAT YOU PRESENTED. THANK YOU.

SO WITH THAT, MADAM CLERK, WILL YOU PLEASE CALL THE ROLL? - SUPERVISOR DESERPA? - AYE.

- KOENIG? - AYE.

- HERNANDEZ? - AYE.

- CUMMINGS? - AYE.

- AND MARTINEZ? - AYE.

MOTION PASSES FIVE TO ZERO.

SO WITH THAT, IT IS 12:18.

WE'RE GONNA TAKE A LUNCH BREAK, AND WE'RE GONNA RECONVENE AT 1:00 TO BEGIN OUR REVIEW OF THE HSD BUDGET.

WE'LL SEE YOU AT 1:00.

WELCOME BACK.

WE WILL NOW RETURN TO OUR BUDGET HEARINGS,

[8. Consider approval of the Proposed 2026-27 Budget for the Human Services Department, including any supplemental materials, and take related actions, as outlined in the referenced budget documents, and as recommended by the County Executive Officer]

SO WELCOME BACK.

UM, AS ALWAYS, PLEASE INTRODUCE YOURSELF AND YOUR DEPARTMENT BEFORE YOU GET STARTED, AND LOOK FORWARD TO YOUR PRESENTATION.

- OKAY. GOOD AFTERNOON.

I AM RANDY MORRIS, AND I'M THE DIRECTOR OF THE HUMAN SERVICES DEPARTMENT.

I AM JOINED BY DEPUTY DIRECTOR KIMBERLY PETERSON TO MY FAR LEFT AND TRISH DANIELS, WHO'S THE DIRECTOR OF OUR ADMINISTRATIVE SERVICES OFFICE AND OVERSEES OUR BUDGET.

THAT'S WHY SHE'S HERE WITH US.

AND I JUST WANNA SAY GOOD AFTERNOON, CHAIR MARTINEZ, BOARD MEMBERS, CEO COBURN.

UM, I ALSO, BEFORE I FORMALLY START AND GO THROUGH THE SLIDES, UM, THIS IS MY SIXTH YEAR HERE IN SANTA CRUZ COUNTY, SIXTH TIME I'VE PRESENTED A BUDGET, AND EVERY YEAR, I REALIZE HOW MUCH WORK THAT THE COUNTY HUMAN SERVICES FISCAL OFFICE, CONTRACTS OFFICE, AND OUR PARTNERS IN THE CEO OFFICE WORK AND DO COUNTLESS HOURS OF WORK THAT PUBLIC NEVER UNDERSTANDS.

AND I JUST WANNA PAUSE AND SAY I GET TO BE THE FACE AS THE DIRECTOR BUT THANK YOU TO EVERYBODY WHO DID THE WORK TO GET THIS BUDGET BUILT UP AND BALANCED.

UM, I ALSO WANNA RECOGNIZE THAT IN THE ROOM IS ALL THE DIVISION LEADS IN MY, UM, DEPARTMENT.

AND IN CASE YOU HAVE SOME QUESTIONS OR PUBLIC COMMENT THAT GENERATE SOME QUESTIONS, WE HAVE ALL OF OUR LEADS HERE TO BE ABLE TO BE RESPONSIVE.

SAW A LOT OF GREAT QUESTIONS THIS MORNING AND HOPE YOU'LL, YOU'LL, UM, INDULGE US WITH ANY QUESTIONS YOU HAVE AS WELL.

I AM, BEFORE I GO THROUGH THE FORMAL SLIDES, UH, I WANNA TAKE A MINUTE JUST REFLECTING UPON SOMETHING I'VE HEARD OUR CEO OFFICE SAY OVER AND OVER.

WE'RE IN A INFLECTION POINT AS A PUBLIC SYSTEM IN OUR COUNTRY

[03:15:04]

SO I JUST WANNA KINDA CREATE A FRAMEWORK.

THEY'RE SORT OF A THROUGH LINE THROUGH THIS, THE FORMAL BUDGET PRESENTATION.

I JUST WANNA TAKE A T- MOMENT TO MENTION THEM.

FIRST, HUMAN SERVICES IN CALIFORNIA IS ALMOST NINETY PERCENT FUNDED BY FEDERAL AND STATE FUNDING STREAMS, AND WE'RE REGULATED BY THOSE FEDERAL AND STATE FUNDING STREAMS. AND OF THE ABOUT TEN PERCENT OF GENERAL FUND THAT WE'RE ASKING YOUR BOARD TO APPROVE EACH YEAR, ALMOST ALL OF IT IS MANDATED MATCH TO DRAW THAT FEDERAL AND STATE FUNDING STREAM.

SO IT'S A LITTLE BIT OF AN, UH, INTERESTING PARADOX TO BE HERE ASKING YOUR BOARD TO APPROVE SOMETHING THAT REALLY IS MANDATED BY THE FEDERAL AND STATE GOVERNMENT THAT WE MUST DO.

SO THERE'S ACTUALLY NOT A LOT OF DISCRETION.

MOST YEARS, IN MY CAREER, BUT FOR THE GREAT RECESSION AND MY FIRST YEAR HERE, WHEN THE PANDEMIC HIT, WE HAVE COST INCREASES WHICH ARE PREDICTABLE, STAFFING COSTS, OTHER COSTS, AND WE HAVE REVENUE INCREASES AT THE LOCAL LEVEL, THE STATE LEVEL, AND THE FEDERAL LEVEL.

AND IN AVERAGE YEARS, THOSE REVENUE INCREASES ARE IN LINE WITH THE COST INCREASES, AND WE'RE SORT OF STATUS QUO.

BUT IN MANY YEARS IN THE PAST COUPLE OF DECADES, WE ACTUALLY GET SIGNIFICANT ENHANCEMENTS, ENHANCEMENTS OF FEDERAL STATE MONEY.

SO WE COME TO YOU EACH YEAR AND SAY, "PLEASE APPROVE THIS BUDGET AND THESE ENHANCEMENTS." AND THAT IS THE BEST PART OF WHAT WE DO, AND THAT'S WHY WE'RE IN THIS WORK TO TRY TO HELP EXPAND THE SAFETY NET AND BETTER SERVE OUR COMMUNITY.

THIS YEAR IS A TIPPING POINT.

OUR COSTS CONTINUE TO GO UP, AND NOT ONLY ARE MOST OF OUR REVENUES' FLAT, BUT MANY OF THEM, AS REFERENCED IN THE CEO'S, UH, OVERVIEW THIS MORNING, ARE BEING REDUCED.

SO WE'RE AT A TIPPING POINT WHERE WE HAVE TO FIGURE OUT HOW TO PROPOSE A BALANCED BUDGET, WHICH WE'RE REQUIRED TO DO, WHEN WE HAVE COST INCREASES, BUT WE HAVE REDUCED REVENUES.

SO THAT'S THE MOMENT WE'RE IN, AND WHAT DO WE DO? I WANT TO SHARE WITH YOU THREE BIG TAKEAWAYS FROM MY EXPERIENCE IN THE FIELD OVER 30 YEARS THAT I HOPE ARE HELPFUL FRAMEWORKS FOR YOU AS A BOARD AND THE COMMUNITY LISTENING.

THE FIRST, I'M NOT SURE EVERYONE IS AWARE, THAT THOSE FEDERAL AND STATE FUNDING STREAMS AND REGULATIONS THAT BRING THAT NINETY PERCENT DOLLAR TO US MANDATE THAT ALMOST EVERYTHING WE DO IS PROVIDED BY COUNTY WORKFORCE.

THERE ARE STATE REGULATIONS CODIFIED IN WELFARE INSTITUTION CODES THAT ARE BUILT UPON FEDERAL MANDATES, THAT THE SOCIAL WORK THAT WE DO AND THE ELIGIBILITY WORK WE DO CANNOT BE CONTRACTED OUT TO NONPROFIT ORGANIZATIONS.

IN THOSE GOOD YEARS, WE EXTEND THE FUNDING WE HAVE TO PROVIDE THEM TO NONPROFIT ORGANIZATIONS BECAUSE THEY OFTEN DO EXCELLENT WORK AND SOMETIMES BETTER WORK THAN WE CAN DO AS A PUBLIC SYSTEM BECAUSE THE TRUST COMMUNITY MEMBERS HAVE WITH US.

BUT AT THIS TIPPING POINT WE'RE AT, A LOT OF WHAT IS DRIVING OUR PROPOSED BUDGET IS HAVING TO SORT OF RETRENCH BACK TO THE MANDATES WE HAVE, WHICH IS THE FUNDING WE HAVE, WHICH IS TO INVEST IN OUR WORKFORCE BECAUSE THOSE ARE THE REGULATIONS AND THE FUNDING STREAMS THAT WE HAVE.

THE SECOND THAT I HAVE NEVER SEEN IN MY CAREER IN HUMAN SERVICES IS, WE NOW HAVE A CONFLUENCE OF ONE STATE AND ONE FEDERAL FINANCIAL PENALTY THAT IS NOW IMPOSED UPON COUNTY HUMAN SERVICES IF WE DO NOT PRODUCE.

THAT HAS NEVER BEEN SOMETHING I'VE SEEN IN MY CAREER, AND I WANNA NAME THIS TO YOU BECAUSE A LOT OF THE BUDGET THAT WE ARE PRESENTING TO YOU IS TO TRY TO PREPARE FOR AVOIDING NEXT YEAR COMING TO YOU AND SAYING, "I NEED TO BUILD AN X AMOUNT OF NEW GENERAL FUND TO PAY FOR PENALTIES," THAT WE'VE NEVER HAD TO DO BEFORE.

OUR PROGRAMS ARE HEAVILY REGULATED. THEY'RE HEAVILY AUDITED.

WE HAVE OVER 30 AUDITS A YEAR WE DEAL WITH TO SHOW WE'RE IN COMPLIANCE.

THEY HAVE NEVER INVOLVED FINANCIAL PENALTIES.

THOSE TWO FINANCIAL PENALTIES, THE STATE PENALTY IS IN THE IN-HOME SUPPORTIVE SERVICES PROGRAM.

I'M NOT GONNA GET INTO DETAILS UNLESS YOU HAVE QUESTIONS YOU WANNA ASK ME, BUT ABOUT A LITTLE LESS THAN HALF OF OUR CASELOAD GETS ENHANCED FEDERAL FUNDING.

AND IF WE DO NOT COMPLY WITH THE YEARLY RENEWAL FOR THOSE CASES, THE STATE, FOR A DECADE, HAS BEEN ABSORBING THAT FINANCIAL PENALTY FROM THE FEDERAL GOVERNMENT.

AND CURRENT FISCAL YEAR, LAST YEAR'S STATE BUDGET, THEY PASSED ON 50% OF THAT PENALTY TO COUNTIES, AND NEXT FISCAL YEAR, PENDING THE RESOLUTION OF THE CURRENT STATE BUDGET, 100% PERCENT OF THAT PENALTY, IT LANDS ON COUNTY HUMAN SERVICES.

SOME OF MY COLLEAGUES IN THE STATE ARE PAYING HUNDREDS OF THOUSANDS OF DOLLARS OF GENERAL FUND A MONTH FOR BEING OUT OF COMPLIANCE WITH THE REQUIREMENTS OF THE IHSS PROGRAM.

I WANT TO DO ALL I CAN TO NOT BE IN FRONT OF YOU IN A YEAR ASKING YOU TO GIVE ME GENERAL FUND TO PAY FOR PENALTIES.

HOW DO WE DO THAT? WE ARE MANDATED TO DELIVER THAT SERVICE

[03:20:02]

WE NEED MORE COUNTY STAFF.

WE DON'T HAVE MONEY.

THAT'S CHALLENGE NUMBER ONE.

THE SECOND IS HR1.

IT IS NOT IN FRONT OF YOU TODAY, BUT I WANT TO HIGHLIGHT UNDER THE CALFRESH SNAP AT THE FEDERAL LEVEL, CHANGES UNDER HR1, EFFECTIVE OCTOBER 2027, UNLESS THINGS CHANGE, AND THEY COULD, WE HAVE TO PAY FISCAL PENALTIES FOR ERRORS IN OUR WORK IN CALFRESH.

IF WE OVERPAY OR UNDERPAY OUR CLIENTS, WE HAVE AN ERROR.

THOUGH THERE ARE MANY VARIABLES STILL IN PLAY, THE FINANCIAL EXPOSURE FOR SANTA CRUZ COUNTY IS NEXT YEAR, I MIGHT HAVE TO BE ASKING YOU TO GIVE ME UP TO $11 MILLION TO ABSORB THOSE FINANCIAL PENALTIES UNLESS THERE'S A CHANGE.

IT TAKES US A YEAR TO GET AN ELIGIBILITY WORKFORCE ESTABLISHED.

WE HAVE A TRAINING CLASS, THANKS TO THE CEOS AND THE HIRING FREEZE PERMISSION TO HIRE A NEW TRAINING CLASS 'CAUSE OF THE NEED TO HAVE A WORKFORCE.

IT TAKES SIX MONTHS OF TRAINING, THREE MONTHS OF ON-THE-JOB TRAINING, SO IT'S NOT UNTIL NINE MONTHS THAT THEY'RE ACTUALLY DOING ENOUGH WORK TO GET AHEAD OF THIS.

SO I WOULD BE REMISS IF I DIDN'T SAY ONE OF THE PRIMARY DRIVERS OF OUR CONCERN IS TO BUILD UP OUR ELIGIBILITY WORKFORCE, BACK TO MY INTRODUCTORY COMMENTS, BECAUSE ONLY A COUNTY ELIGIBILITY WORKER CAN DETERMINE ELIGIBILITY FOR MEDI-CAL AND CALFRESH AND CALWORKS.

THIS GETS TO MY THIRD POINT.

IT WAS MENTIONED IN THE CEO'S BUDGET PRESENTATION, THIS IS THE MOST EXTREME I HAVE SEEN IN MY CAREER IN THE STATE BUDGET BETWEEN THE GOVERNOR'S MAY REVISION TO HIS JANUARY PROPOSED BUDGET AND WHAT THE STATE ASSEMBLY AND SENATE HAVE PROPOSED.

THIS IS THE POINT I WANT TO MAKE 'CAUSE THIS ALSO FEEDS THROUGH OUR PRESENTATION TODAY.

IF BY CHANCE THE GOVERNOR'S PROPOSED MAY REVISION, WHICH WILL BE OVERRIDDEN BY THE STATE ASSEMBLY AND SENATE ON THEIR JUNE 15TH PROPOSAL, THEY WILL RECOMMEND REJECTING CUTS.

THEY WILL RECOMMEND GIVING MORE MONEY TO, UH, HUMAN SERVICES ELIGIBILITY WORKFORCE, BUT THE GOVERNOR HAS THE AUTHORITY TO VETO THAT.

UNTIL WE KNOW HOW THE STATE BUDGET SETTLES, IF THE MAY REVISE IS WHAT LANDS, I HAVE TO COME BACK TO YOU IN THE FALL AND ASK YOU TO CUT MORE MONEY FROM MY BUDGET.

I HOPE THAT DOESN'T HAPPEN.

THE STATE LEGISLATURE HAS MADE PUBLIC COMMENTS.

THEY ARE NOT... THEY DO NOT WANT TO DO THAT, BUT WE DO NOT KNOW.

SO IN ADDITION TO THOSE FISCAL PENALTIES IN A YEAR, THE IHSS PENALTIES COULD HAPPEN NOW IF WE START FALLING OUT OF COMPLIANCE.

I ALSO HAVE TO CONTEND WITH THE NEED TO SHARE WITH YOU, WE COULD HAVE TO MAKE MORE CUTS THAN WHAT'S ALREADY IN FRONT OF YOU IF THE STATE BUDGET SETTLES IN A WAY THAT'S NOT TO OUR ADVANTAGE.

SO I WANTED TO FRAME ALL THAT BECAUSE THAT IS THE COMPLEXITY OF THE MOMENT.

WE ARE PROPOSING A BUDGET AT THIS POINT IN TIME, AND WE DON'T KNOW WHAT THE STATE BUDGET WILL BE.

WE DO KNOW WHAT'S COMING AT THE FEDERAL HR1 LEVEL, AND IT'S NOT AN ENJOYABLE TIME.

THIS IS THE FIRST TIME I HAVE BEEN AT A POINT WHERE I HAVE TO SAY WE HAVE TO CUT AND REDUCE OUR ABILITY TO SERVE COMMUNITY.

THIS IS NOT WHY I SIGNED UP FOR THIS LINE OF WORK, BUT THIS IS WHAT WE'RE RESPONSIBLE TO SHARE WITH YOU BASED ON THESE CHANGES AT THE FEDERAL AND STATE LEVEL.

I HOPE THOSE INTRODUCTORY COMMENTS WERE HELPFUL.

I HOPE YOU CAN SORT OF CARRY THOSE THROUGH AS THE THROUGH LINE, WHICH WILL NOW GO THROUGH THE FORMAL PRESENTATION AND WALK THROUGH WHY, UH, GIVEN EVERYTHING I JUST SAID, THE BUDGET IS AS PROPOSED IN FRONT OF YOU TODAY FOR CONSIDERATION.

THANK YOU.

- OKAY - OKAY. I'M NOT GONNA READ THROUGH ALL THESE ONE BY ONE, BUT ESSENTIALLY, I'M GONNA WALK THROUGH THE MISSION AND OVERVIEW OF THE DEPARTMENT.

I'M THEN GONNA TURN IT TO KIMBERLY PETERSON, OUR DEPUTY DIRECTOR WHO'S GONNA DO SOME ACCOMPLISHMENTS.

WE ARE VERY PROUD OF WHAT WE HAVE DONE.

WE DO MAKE A DIFFERENCE IN THIS COMMUNITY.

WE MIGHT HAVE TO MAKE LESS OF A DIFFERENCE GOING FORWARD 'CAUSE OF REDUCED RESOURCES, BUT WE WANT TO MAKE SURE TO CELEBRATE THE GOOD THINGS WE HAVE BEEN DOING.

WE'RE THEN GONNA, UH, TURN IT TO TRISH, WHO OVERSEES OUR FISCAL OFFICE, TO WALK THROUGH A LOT OF DETAILS, AND THEN I WILL CLOSE IT OUT GOING THROUGH SOME OF THE STATE AND FEDERAL RISKS AND SOME OF THE BIG ISSUES WE'RE TRACKING.

THIS IS OUR MISSION.

I'M NOT GONNA READ IT.

WHAT I WANNA REALLY HIGHLIGHT IS, IF YOU LOOK TO THE RIGHT, WE HAVE BEEN UP IN THE 580-PLUS EMPLOYEES.

AS WILL BE DISCUSSED IN THE REST OF THE PROPOSAL, WE HAVE PAINFULLY BEEN ON A SOFT HIRING FREEZE THAT GREW INTO A HARD FIRING-, HIRING FREEZE KNOWING WE WERE GONNA BE IN THIS BUDGET TIMES, AND WE HAD TO PROPOSE A DELETION OF ALL VACANT POSITIONS.

EVERY ONE OF THOSE POSITIONS, THE DIVISION DIRECTORS IN THIS ROOM FOUGHT HARD TO FILL AND HAD GOOD REASON TO FILL, AND IN DIFFERENT BUDGET TIMES WE WOULD HAVE FILLED.

SO THIS IS LANDING ON THE BACKS OF THE REST OF OUR WORKFORCE

[03:25:02]

SO THE CURRENT PROPOSAL, IF YOU LOOK ON THE RIGHT, IS 555 POSITIONS, UM, WHICH IS A SIGNIFICANT REDUCTION FROM THE 580 PLUS.

BUT I THINK WHAT I REALLY WANNA HIGHLIGHT IS THE BOTTOM RIGHT.

WE TOUCH ONE IN THREE PEOPLE IN THIS COMMUNITY.

WE HAVE A VERY BIG IMPACT, AND THAT'S PREDOMINANTLY THROUGH OUR MEDI-CAL AND CALFRESH PROGRAM.

AND THAT IS PROGRAMS THE FEDERAL AND STATE GOVERNMENT FUND TO HELP THE LOWEST INCOME IN OUR COMMUNITY HAVE HEALTHCARE AND HAVE FOOD.

BUDGET AND SERVICE DIVISIONS.

THERE'S ACTUALLY TWO DIFFERENT WAYS TO DESCRIBE DIVISIONS IN COUNTY BUDGET SPEAK, SO WE ARE GONNA MERGE THE TWO.

THIS IS THE DIRECT SERVICE DIVISIONS.

EVERYTHING THAT WE'RE PROPOSING FOR YOU IS ULTIMATELY TO FUND OUR ADMIN INFRASTRUCTURE THAT IN TURN SUPPORTS OUR FOUR DIRECT SERVICE DIVISIONS.

THE EMPLOYMENT AND BENEFIT SERVICE DIVISION IS WHERE OUR CALWORKS, GENERAL ASSISTANCE, MEDI-CAL, AND CALFRESH PROGRAMS LIVE.

THAT'S OUR BIGGEST DIVISION.

ADULT AND LONG-TERM CARE IS WHERE OUR IHSS, APS, PUBLIC GUARDIAN, AND VETERAN SERVICE OFFICES ARE HOUSED.

OUR FAMILY AND CHILDREN'S SERVICES DIVISION IS THE PUBLIC CHILD WELFARE DIVISION.

AND LAST, UM, THANKS TO THIS COUNTY AND THIS BOARD, WE STOOD UP A NEW DIVISION, HOUSING FOR HEALTH, S-, UH, SENT A YEAR AFTER I GOT HERE, AND WE'RE NOW IN OUR FIFTH YEAR OF THE HOUSING FOR HEALTH DIVISION, WHICH IS AN ORGANIZING BODY WHO'S DONE A REALLY GREAT JOB GETTING FEDERAL AND STATE FUNDING AND HELP ORGANIZING PARTNERSHIP WITH THE COMMUNITY AND, AND CITIES TO TRY TO ADDRESS THE HOMELESS CRISIS THAT WE'RE ALL FACING.

THIS LAST SLIDE ON DIVISIONS, UM, THIS IS A VERY INSIDE, UM, GOVERNMENT SPEAK.

THE WAY OUR MONEY FLOWS, IT FLOWS IN BUDGET DIVISIONS.

SO I JUST WANNA... FOR THOSE OF YOU WHO READ ALL THIS OR GO BACK ONLINE AND READ, WE HAVE DIFFERENT BUDGET DIVISIONS INCLUDING THE PUBLIC GUARDIAN OFFICE AS A PARTNERSHIP WITH THE COUNTY'S HEALTHCARE AGENCY, AND THEY GIVE AN IN-OFFICE TRANSFER OF FUNDS, AND THEN WE HAVE THE STAFF IN OUR OFFICE.

THE WORKFORCE INNOVATION OPPORTUNITIES OR WORKFORCE DEVELOPMENT BOARD, THAT IS A SEPARATE STANDALONE FUNDING STREAM IN ITS OWN BUDGET DIVISION.

THE VETERAN SERVICE OFFICE IS ITS OWN STANDALONE BUDGET DIVISION STATE-FUNDED ONLY.

AND THEN THIS LAST ONE IS CALLED ENTITLEMENTS, IF ANYBODY READS THE BUDGET, AND THAT IS WHERE ALL THE DIFFERENT CASH PAYMENTS THAT PAY IHSS PROVIDERS, FOSTER PARENTS, ADOPTIVE PARENTS, IS KIND OF ALL ORGANIZED UNDER SOMETHING CALLED ENTITLEMENTS.

AND THAT'S JUST TO ORIENT PEOPLE IF YOU'RE READING OUR ONLINE BUDGET.

I AM NOW GONNA PAUSE TO JUST TAKE A QUICK MOMENT BEFORE I TURN THIS TO KIMBERLY PETERSON.

UM, SOME PEOPLE IN THIS ROOM, PROBABLY ELECTED OFFICIALS KNOW SOME COMMUNITY MEMBERS KNOW, BUT I WANNA TAKE A MOMENT TO, UM, CONGRATULATE KIMBERLY, WHO WAS PROMOTED BY MY BOSS, THE CEO, TO BE A NEW DEPUTY CEO, EFFECTIVE END OF THIS MONTH, SO THIS IS HER LAST PUBLIC PRESENTATION AS A HUMAN SERVICES DIRECTOR, FORMER MAYOR OF THIS GREAT CITY OF WATSONVILLE.

UM, AND WE, TO BE QUITE FRANK, THOUGHT IT WOULD BE APPROPRIATE TO ALLOW KIMBERLY, AS SHE STEPS AWAY TO HELP OUR EXECUTIVE OFFICE, TO BE THE ONE TO SHARE SOME OF THE GREAT WORK THAT, UH, THE DEPARTMENT HAS BEEN DOING UNDER HER LEADERSHIP WELL BEFORE I GOT HERE.

SO KIMBERLY, CONGRATULATIONS AND PASSING THE BATON.

- THANKS. THANKS, RANDY.

UH, AND THANK YOU FOR ALLOWING US TO TAKE A MOMENT TO ACKNOWLEDGE WHAT THE DEPARTMENT HAS ACCOMPLISHED THIS PAST YEAR AND SOME PRIOR YEARS.

UH, RANDY MENTIONED BRIEFLY THAT OUR DEPARTMENT MOTTO IS DEDICATED TO MAKING A DIFFERENCE.

AND JUST AT A GLANCE HERE, YOU CAN SEE THAT WE DO MAKE A DIFFERENCE IN THE COMMUNITY.

I'M GONNA TAKE A COUPLE MINUTES JUST TO HIGHLIGHT A HANDFUL OF THE MANY ACCOMPLISHMENTS THAT WE HAVE MADE, UM, FROM ACROSS THE DEPARTMENT.

SO IF YOU'RE LOOKING AT THE UPPER LEFT CORNER, UH, THAT REPRESENTS OUR EMPLOYMENT AND BENEFIT SERVICES DIVISION.

YOU CAN SEE THAT WE SERVE OVER 90,000 PEOPLE A YEAR IN THAT DIVISION.

IN FACT, BY THE END OF THIS FISCAL YEAR, WE EXPECT THAT WE HAVE... WILL, WILL HAVE SERVED OVER 98,000 PEOPLE THIS FISCAL YEAR.

THIS DIVISION ADMINISTERS MEDI-CAL, CALFRESH, CASH AID, AND EMPLOYMENT SERVICES.

AND THESE BENEFITS, IN MANY WAYS, ARE GATEWAYS TO OTHER SERVICES, INCLUDING CHILDCARE, EMPLOYMENT TRAINING, HOUSING, AND IN-HOME SUPPORT SERVICES, MANY OF WHICH CONTRIBUTE MILLIONS OF DOLLARS INTO THE LOCAL ECONOMY.

EACH MONTH, OVER 6,000 PEOPLE VISIT OUR LOBBIES, AND WE GET OVER TH-, 10,000 PHONE CALLS A MONTH TO OUR CALL CENTER.

AND THIS PAST YEAR, AS WE'VE BEEN PREPARING FOR HR1 AND STATE POLICY CHANGES, THE DIVISION HAS PROVIDED OVER 20 PRESENTATION TO COMMUNITY GROUPS AND DIRECTLY TO CLIENTS TO COMMUNICATE ABOUT THE CHANGES.

AND IF YOU LOOK AT THE MIDDLE TOP, UM, IMAGE, THIS REPRESENTS OUR ADULT AND LONG-TERM CARE SERVICES DIVISION.

AND THERE HAS BEEN A LOT OF CASELOAD GROWTH IN THIS DIVISION.

AS YOU KNOW, OLDER ADULTS ARE THE FASTEST GROWING POPULATION,

[03:30:02]

FOR OUR IN-HOME SUPPORT SERVICES CASELOAD, WE'VE SEEN AN AVERAGE OF 7% PER YEAR GROWTH IN THE LAST FOUR YEARS.

BY THE END OF THIS FISCAL YEAR, OUR AVERAGE MONTHLY CASELOAD FOR IHSS IS LOOKING AT ABOUT 3,800 CASES.

WITHIN VETERAN SERVICES, WHICH IS ALSO IN THIS DIVISION, UH, THE TOTAL NUMBER OF VETS ASSISTED EACH YEAR HAS ALSO INCREASED 6% EACH YEAR OVER THE LAST FEW YEARS.

AND THEN LASTLY, I WANT TO ACKNOWLEDGE THE COLLECTIVE PARTNERSHIP BETWEEN, UM, HUMAN SERVICES, ADULT SERVICES, UM, THE COUNTY AND OTHER LOCAL JURISDICTIONS AND COMMUNITY PARTNERS IN THEIR AGE WELL SANTA CRUZ EFFORTS TO DEVELOP A MASTER PLAN FOR AGING SO THAT, UH, PEOPLE OF ALL AGES AND ABILITIES CAN THRIVE.

UH, LAST AUGUST, THE COMMUNITY NEEDS ASSESSMENT RELATED TO THE MASTER PLAN FOR AGING WAS PUBLISHED.

SO THEN GOING TO THE, THE NEXT IMAGE REPRESENTING OUR HOUSING FOR HEALTH DIVISION.

EVEN WITH INCONSISTENT FUNDING STREAMS AND CHANGING POLICIES, THERE ARE MEASURABLE IMPROVEMENTS FROM OUR HOUSING FOR HEALTH WORK.

LAST YEAR, OF THE INDIVIDUALS WORKING WITH HOUSING FOR HEALTH, OUR PARTNERS, THOSE PEOPLE WHO EXITED HOMELESSNESS TO HOUSING, 51% EXITED TO PERMANENT HOUSING.

THIS HOUSING FOR HEALTH DIVISION HAS ALSO WORKED WITH, UM, OTHER ORGANIZATIONS TO SUPPORT OVER 10 HOUSING PROJECTS IN THE LAST FIVE YEARS, INCLUDING THE HOPE VILLAGE PROJECT, WHICH RECENTLY OPENED IN WATSONVILLE, AND THE LIVE OAK LANDING AND BEHAVIORAL HEALTH BRIDGE, UH, HOUSING PROJECTS, WHICH WILL BE OPENING SOON.

AND THEN FINALLY, BETWEEN 2024 AND 2026, THE POINT IN TIME COUNT HAS REDUCED 11%.

AND JUST A COUPLE MORE.

FOR WIOA, OUR WORKFORCE INVESTMENT OPPORTUNITY ACT, LAST YEAR THEY SERVED, UH, 321 PARTICIPANTS, AND 178 PEOPLE EXITED THE PROGRAM.

OF THOSE THAT EXITED, 70 TO 80% WERE STILL EMPLOYED ONE YEAR AFTER EXIT.

AND AS AN EXAMPLE OF THE POTENTIAL WAGE IMPACTS, WE HAD PARTICIPANTS GRADUATING FROM CABRILLO COLLEGE WITH WAGES OVER $75 AN HOUR.

AND THEN FOR FAMILY AND CHILDREN'S SERVICES, IT'S THAT, UM, AND ON THE BOTTOM ROW, MIDDLE PICTURE.

UH, IN ALIGNMENT WITH STATEWIDE, A STATEWIDE EFFORT THAT BEGAN IN 2025, FAMILY AND CHILDREN'S SERVICES IS COLLABORATING WITH THE CHILD, YOUTH AND FAMILY WELLBEING PARTNERSHIP INITIATIVE WHICH INCLUDES ALSO A NUMBER OF COMMUNITY PARTNERS AND EDUCATORS TO SHIFT FROM A HISTORIC MANDATED REPORTING MODEL FOCUSED ON INVESTIGATIONS FIRST, TO A COMMUNITY SUPPORTING MODEL APPROACH WHICH IS REALLY FOCUSED ON PREVENTION AND SUPPORTING FAMILIES.

AND THEN FINALLY, UH, AND ON THAT NOTE, UM, THERE'S ALSO SOME VIDEOS THAT HAVE BEEN POSTED ONLINE AS A CAMP-, AS PART OF THE CAMPAIGN TO COMMUNICATE ABOUT THIS NEW APPROACH.

AND THEN FINALLY, WE ALSO HAVE A DATA DASHBOARD ON OUR WEBSITE THAT SH-, PROVIDES INFORMATION REGARDING WHO YOU'RE, WHO WE'RE SERVING THROUGHOUT THE COUNTY WHAT PROGRAMS ARE IMPACTING COMMUNITY MEMBERS, AND THAT THERE'S AN INTERACTIVE TOOL WHERE PEOPLE CAN FILTER BY SUPERVISORIAL DISTRICT SCHOOL DISTRICT, AND PROGRAM.

AND SO... AND WE ARE ALSO WORKING WITH HR, UM, SANTA CRUZ DATASHARE TO PROVIDE INFORMATION THAT REGARDING HR1 IMPACTS.

SO WITH THAT, THANK YOU ALL.

THANK YOU, RANDY, AND I'LL TURN IT BACK TO YOU.

- WE ARE GONNA MISS YOU, KIMBERLY. GREAT CHOICE, NICOLE.

UM, SO I'M GONNA WALK THROUGH THIS SLIDE, WHICH IS OUR BEST EFFORT IN ONE PICTURE TO EXPLAIN TO YOU THE BUDGET IN FRONT OF YOU, AND THEN I'M GONNA TURN IT OVER TO TRISH, WHO IS GONNA WALK THROUGH SOME OF THE BUDGET DETAILS.

I SAID IN MY INTRODUCTORY COMMENTS THAT WE ALWAYS FACE COST INCREASES, AND WE OFTEN HAVE REVENUE INCREASES THAT ALIGN WITH THOSE COST INCREASES, AND SOMETIMES IN THE BEST YEARS, EVEN MORE REVENUES THAN COST INCREASES SO WE CAN EXPAND.

THIS IS WHY WE HIT OUR INFLECTION POINT.

THE LEFT IS OUR BEST EFFORT TO BE AS TRANSPARENT AS WE CAN BE, WHAT THE DRIVERS ARE OF THE COST INCREASES, WHICH TOTAL $25.9 MILLION, WHICH TO SUBMIT A PROPOSED BALANCED BUDGET WE HAD TO OFFSET, WHICH IS ON THE RIGHT.

SO ON THE LEFT.

IF YOU LOOK ON THE BIGGEST SLICE ON THE RIGHT, IF YOU GO BACK TO MY INTRODUCTORY COMMENTS THAT WE ARE PROHIBITED FROM CONTRACTING OUT THE MAJORITY OF WHAT WE DO, ONE OF OUR LARGEST BUDGET ITEMS IS OUR STAFF SALARY AND BENEFITS.

SO 550 PEOPLE RECEIVED A COST OF LIVING INCREASE, AND HEALTH BENEFIT COSTS HAVE GONE UP, AND WHEN WE EFFECTUATE ALL OF THOSE,

[03:35:02]

WE VERY OFTEN, THE COUNTY HAS ENOUGH GENERAL FUND, AND THE STATE AND FEDERAL GOVERNMENT GIVES US NEW REVENUES WE CAN COVER THAT.

THIS YEAR WE HIT THE TIPPING POINT, WE CANNOT.

IF YOU GO TO THE LOWER LEFT, HR1, THERE WAS A QUESTION EARLIER, I THINK IT WAS FROM ONE OF THE BOARD MEMBERS WHEN THE CEO GAVE THE PRESENTATION, HOW IS HR1 DIRECTLY IMPACTING? THE BIGGEST DIRECT IMPACT, THERE'S MANY DIRECT IMPACTS, IS HUMAN SERVICES CALFRESH ADMINISTRATION.

THE WAY CALFRESH WORKS IS THERE'S TWO PARTS TO IT.

THE BENEFITS THAT GET IN THE POCKETS OF PEOPLE IN THIS COMMUNITY WHO GET CALFRESH IS ONE HUNDRED PERCENT FEDERALLY FUNDED AND THEY GET THAT MONEY, AND THERE'S ABOUT 77 MILLION DOLLARS OF MONEY THAT COMES IN THIS COMMUNITY FOR PEOPLE WHO ARE ENROLLED IN CALFRESH TO TURN AROUND AND PURCHASE FOOD IN OUR COMMUNITY.

THE OTHER FUNDING STREAM IS WHAT'S CALLED ADMIN.

BECAUSE THE FEDERAL AND STATE GOVERNMENT MANDATE THAT ELIGIBILITY DETERMINATIONS BE DONE TO ENSURE PEOPLE ARE ELIGIBLE ENROLLED, THERE'S FUNDING TO PAY FOR OUR STAFF, WHICH IS OUR ELIGIBILITY STAFF.

UNDER HR1, THE FEDERAL GOVERNMENT, FOR MANY, MANY DECADES, PAID 50 CENTS ON THE DOLLAR AND STATES HAD TO PICK UP THE BALANCE.

CALIFORNIA HAS STATUTE THAT SAYS THE STATE WILL COVER 35 CENTS ON THE DOLLAR AND COUNTIES HAVE TO PICK UP 15 CENTS ON THE DOLLAR.

THAT HAS TURNED INTO A CALCULUS IN OUR BUDGET EVERY YEAR THAT'S PREDICTABLE.

HR1, EFFECTIVE OCTOBER 2026, THE FEDS PULL BACK FROM 50% FUNDING TO 25% FUNDING.

THE STATE, BASED ON STATUTE, HAS TO TURN OVER TO COUNTIES THE PROPORTIONATE INCREASE, AND FOR US, THAT'S ALMOST FIVE MILLION DOLLARS.

I WANNA BE CLEAR, BACK TO THE TIMES WE ARE IN, THIS IS FOR A COUNTY FISCAL YEAR WHEN THIS FIVE MILLION DOLLARS IS EFFECTUATED BY THE FEDERAL FISCAL YEAR EFFECTIVE OCTOBER 2026.

SO WHEN WE'RE IN FRONT OF YOU NEXT YEAR, THIS GROWS AT LEAST 25% MORE THAT WE HAVE TO ABSORB INTO OUR BUDGET TO PAY FOR A FULL FIF-, COUNTY FISCAL YEAR, AND IT'S GONNA GROW SIGNIFICANTLY.

IF YOU LOOK AT THE LEFT, COUNTY ADMIN, THAT HAS TWO BUCKETS.

ONE IS THE COST FOR OTHER COUNTY SERVICES THAT WE PAY FOR, GENERAL SERVICES, IT, COUNTY COUNCIL, JASON'S TEAM THAT WE PAY FOR TO REPRESENT US IN COURT AND PROVIDE LEGAL ADVICE.

ALL OF THEIR COSTS HAVE GONE UP, SO THAT SHOWS UP IN OUR BUDGET 'CAUSE WE HAVE TO PAY FOR THOSE INCREASED COSTS.

BUT THE OTHER IS THE BUILDING WE'RE SITTING IN, 500 WESTRIDGE.

THIS IS A WONDERFUL SERVICE TO SOUTH COUNTY.

THE COSTS, THE CONSTRUCTION COSTS, HOW IT LANDED, WE ARE THE PRIMARY TENANT, HUMAN SERVICES DEPARTMENT IN THIS BUILDING.

OUR COST TO PAY OUR SHARE OF BEING HERE HAS GONE UP, AND WE HAD TO ABSORB THAT IN OUR BUDGET.

AND THE LAST, UM, FOR ANYBODY WHO FOLLOWS COUNTY BOARD ITEMS, UH, IN CLOSED SESSION, YOU WILL OFTEN SEE LEGAL SETTLEMENT, AND THERE'S A NAME OF SOMETHING, AND IT'S A CONFIDENTIAL DISCUSSION WITH THE BOARD.

IN CALIFORNIA, THERE WAS A CHANGE IN LAW THAT A STATUTE OF LIMITATIONS WAS ELIMINATED A FEW YEARS AGO THAT CHILDREN WHO WERE IN THE FOSTER CARE SYSTEM IN CALIFORNIA, AFTER A CERTAIN NUMBER OF YEARS, COULD NOT FILE A CLAIM AGAINST THE COUNTY IF THEY BELIEVED THEY WERE MISTREATED.

THAT STATUTE OF LIMITATIONS WAS ELIMINATED, AND ACROSS THE STATE OF CALIFORNIA, FORMER FOSTER YOUTH, SOMETIMES 30 YEARS LATER, HAVE FILED CLAIMS, AND MANY COUNTIES HAVE TO SETTLE IMMEDIATELY 'CAUSE WE HAVE NO RECORDS, WE HAVE NO EMPLOYEES AROUND, AND THEIR CLAIMS ARE VERY RIGHTEOUS AND DISTURBING AND GOOD FOR THEM TO GET THEIR MOMENT AND THEIR PAYMENT, BUT WE HAVE TO ABSORB THIS BY ADDING MONEY TO THE RISK POOL BECAUSE WE HAVE NOT HISTORICALLY BEEN SUED VERY MUCH FOR MANY THINGS, BUT NOW WE HAVE TO PREPARE.

LA COUNTY HAS HAD TO PAY OUT OVER A BILLION DOLLARS IN CLAIMS. SO WE HAVE TO BUDGET FOR THE PROSPECT OF FUTURE CLAIMS FILED AGAINST US, WHICH NOW IS LAW THAT PEOPLE CAN.

SO THAT'S THE 25.9 MILLION PROBLEM WE HAD TO SOLVE, AND ON THE RIGHT IS HOW WE PROPOSE TO SOLVE IT.

IF YOU SEE THE LARGEST SLICE, 7.4 MILLION IS REDUCING OUR WORKFORCE, REDUCING OUR OVERTIME, REDUCING OUR EXTRA HELP HIRES, WHICH ARE OFFER RE-, RE-, OFTEN RETIREES THAT DEEPEN OUR BENCH AND AN ADJUSTMENT IN OUR SALARY SAVINGS FORMULA, WHICH IS A LITTLE BIT BUDGET MATH, WHICH IS $7.4 MILLION BY DELETING ALL OF THOSE POSITIONS.

IF YOU GO TO THE UPPER RIGHT ORANGE, WE HAD TO PROPOSE INITIALLY TO ALSO LAY OFF 26 FULL-TIME EQUIVALENT EMPLOYEES BECAUSE WE COULD NOT BALANCE THE BUDGET WITHOUT ALSO ADDING LAYOFFS.

OUR CEO HAS PROPOSED TO YOUR BOARD FOR YOUR CONSIDERATION TO PULL FROM THE RESERVES.

I DO WANNA SHARE WITH YOU THIS RESERVE IS A SUB-ACCOUNT OF THE COUNTY RESERVES.

I THINK MARCUS PIMENTEL MENTIONED THIS EARLIER TODAY.

[03:40:02]

SO IT'S FROM THAT SUB-ACCOUNT.

PREVIOUS BOARD APPROPRIATED MONEY TO HUMAN SERVICES THAT DIDN'T GET SPENT.

THAT IS ULTIMATELY YOUR BOARD AND THE CEO'S MONEY BUT IT CAME FROM OUR SUB-ACCOUNT, NOT FROM LIKE A DISASTER FUND.

AND IF THAT IS EFFECTUATED, WE CAN SAVE 26 POSITIONS, AND THAT LEADS TO THE QUESTION, HOW ARE YOU GONNA SOLVE FOR THAT IN THE FUTURE? THIS IS ONE TIME, AND IT'S BASICALLY, WE HOPE THE STATE BUDGET SETTLES, AND WE'RE GONNA HAVE TO CONTINUE A HARD FREEZE IF THE STATE BUDGET DOESN'T GET BETTER.

ALLOCATION INCREASES, I MENTIONED WE OFTEN GET LARGE ALLOCATION INCREASES.

WE GOT A FEW, WHICH ADDED UP TO 4.5 MILLION, WHICH HELP US BALANCE THE BUDGET.

IF YOU SEE THE NEXT ONE, IF YOU GO AROUND 1.7 IN NET CONTRACT REDUCTIONS, WE ACTUALLY HAD ABOUT AN EVEN EXCHANGE OF DIRECT SERVICE CONTRACTS.

WE HAD TO ELIMINATE ABOUT TWO MILLION DOLLARS OF DIRECT SERVICE CONTRACTS ONLY DUE TO BUDGET PRESSURES.

BUT WE HAD ABOUT FOUR MILLION DOLLARS IN CONTRACT INCREASES BECAUSE MOSTLY HOUSING FOR HEALTH PROGRAMS. AND SO THE NET BALANCE WAS A REDUCTION OF 1.7.

AND THEN UNDER OTHER PROJECTS, THIS IS PREDOMINANTLY ITEMS WE HAD FOR, UH, PR-, UH, FACILITY PROJECTS THAT HAVE ZEROED OUT THIS YEAR.

WE COMPLETED THEM, AND SO THEY'RE NO LOSS, AND A COUPLE WE HAD TO DELAY.

AND THE LAST ONE IS CLIENT PAYMENTS.

UH, KIMBERLY SAID IN HER ACCOMPLISHMENT SLIDE, SHE TALKED ABOUT THE DEMOGRAPHIC SHIFT OF AGING POPULATION GROWING.

THE CHILDREN'S POPULATION IS DECREASING.

OUR FOSTER CARE CASELOADS ARE DECREASING.

THE AMOUNT OF PAYMENTS WE MAKE TO FOSTER PARENTS AND CAREGIVERS IS DECREASING.

SO THAT IS HOW WE PROPOSE TO BALANCE THE BUDGET, AND HOPEFULLY, THAT'S A HELPFUL FRAMEWORK.

AND NOW ALL THE DETAILS THAT FOLLOW FROM TRISH WHOSE TEAM DOES ALL THE WORK, KINDA BUILD UP INTO THIS ONE PICTURE.

SO THIS... TR-, TRISH.

- THANK YOU, RANDY.

UM, I'LL START WITH, UH, THE OVERALL PROPOSED BUDGET FOR THE DEPARTMENT.

AT A HIGH LEVEL, THIS IS PRETTY CLOSE TO A STATUS QUO BUDGET, AND IT WAS BALANCED, UM, WITH THE REASONS THAT RANDY STATED ON THE PREVIOUS SLIDE.

REVENUES ARE ESSENTIALLY FLAT, AND OUR EXPENSES ONLY INCREASE BY LESS THAN 1%.

THE GENERAL FUND CONTRIBUTION DOES INCREASE BY APPROXIMATELY $4.6 MILLION, AND THAT DOES INCLUDE THE $4.2 MILLION IN USE OF ONE-TIME RESERVE FUNDS.

AND THEN OVERALL, OUR STAFFING IS ALSO REDUCED BY THE 24.5 THAT RANDY REFERENCED, BRINGING HSD TO 555.5 FUNDED FTE.

AND JUST AS A NOTE, ON A LIKE FOR LIKE BASIS, EXCLUDING HOUSING FOR HEALTH AND PUBLIC GUARDIAN UM, THAT REDUCES IT TO AROUND 531 POSITIONS, AND THAT IS OUR LOWEST LEVEL IN SOCIAL SERVICES SINCE BEFORE THE PANDEMIC.

NEXT SLIDE.

UH, NEXT, THIS SLIDE SHOWS HOW COSTS ARE SPREAD ACROSS OUR MAJOR SERVICE AREAS.

THE MAJORITY OF OUR EXPENSES ARE IN SOCIAL SERVICES AT APPROXIMATELY 128 MILLION DOLLARS OR 63% OF THE BUDGET.

UM, THAT REFLECTS THE SCALE OF BENEFITS, CHILD WELFARE, ADULT SERVICES, AND RELATED OPERATIONS, AND THE COST TO PROVIDE THOSE SERVICES.

HOUSING FOR HEALTH TOTALS ABOUT 20 MILLION DOLLARS.

ENTITLEMENTS, WHICH IS PRIMARILY THE CASH AID PAYMENTS TO ELIGIBLE CLIENTS, THAT'S ABOUT 47.8 MILLION.

AND THEN WIOA VETERAN SERVICES AND PUBLIC GUARDIAN TOGETHER, TOTAL ABOUT 5.8 MILLION DOLLARS.

UH, TURNING TO EXPENSES BY TYPE, SALARY AND BENEFITS ARE BY FAR THE LARGEST CATEGORY ABOUT 47% OF OUR BUDGET AT 94.4 MILLION DOLLARS.

THAT'S AN INCREASE OF 6.4 FROM THE PRIOR YEAR.

THE SECOND LARGEST CATEGORY IS OTHER CHARGES, AND THAT'S DRIVEN PRIMARILY BY THOSE ENTITLEMENT PAYMENTS AND SUPPORTIVE SERVICES FOR ELIGIBLE CLIENTS.

SERVICES AND SUPPLIES TOTAL 35.8 MILLION, AND INTRA FUND TRANSFERS ARE 4.5 MILLION.

THE KEY J-, KEY COST DRIVERS REMAIN SALARY AND BENEFIT INCREASES PROPERTY AND LIABILITY RISKS, EXPOSURE INCREASE, THOSE INTERNAL COSTS, UM, FOR OUR INTERNAL, UH, DEPARTMENTS AND THE CALFRESH ADMINISTRATION SHARING RATIO CHANGE.

NEXT, I'LL TURN TO REVENUES.

OUR TOTAL REVENUES ARE ONLY DOWN BY APPROXIMATELY, 0.2% AND, UH, TOTAL $168 MILLION.

AND THE GENERAL FUND CONTRIBUTION SHOWN HERE IS 33.6 MILLION.

HSD REMAINS HEAVILY DEPENDENT ON INTERGOVERNMENTAL FUNDING.

AS RANDY INDICATED, IT IS ABOUT 98% OF THE DEPARTMENT'S REVENUE, UM, WITH THE OTHER REVENUE OF 2.9%, UM, AND THAT'S PRIMARILY RELATED TO A HOUSING FOR HEALTH PROGRAM THAT WAS APPROVED BY THE BOARD YESTERDAY, IN FACT.

UM, BUT THE RELIANCE ON FEDERAL STATE REVENUES CREATES BUDGET EXPOSURE WHEN STATE OR FEDERAL FUNDING RULES CHANGE.

[03:45:05]

OKAY, NOW I'M GONNA MOVE INTO DIVISION LEVEL DETAIL JUST A COUPLE OF SLIDES, AND THEY SHOW HOW THE DEPARTMENT-WIDE BUDGET PICTURE TRANSLATES INTO THE TWO MAJOR OPERATING DIVISIONS.

SO I'LL FIRST START WITH SOCIAL SERVICES, WHICH I SAID IS THE LARGEST DIVISION.

APPROXIMATE EXPENSES OF 128 MILLION AND REVENUES OF 117 MILLION.

GENERAL FUND CONTRIBUTION DOES INCREASE TO $10.8 MILLION, WHILE FUNDED STAFFING DECREASES FROM 545, UH, 544 TO 522.5.

AND THE MAJOR PRESSURES, AGAIN, ARE CALFRESH ADMINISTRATION COST SHIFT, HIGHER OPERATIONAL COST, AND NEGOTIATED SALARY AND BENEFIT INCREASES.

AND THEN MOST IMPORTANTLY, I DO WANNA POINT OUT THAT THE USE OF THE FOUR MILLION DOLLARS IN ONE-TIME RESERVES DID HELP US PRESERVE THOSE 26 POSITIONS AND AVOID LAYOFFS.

OKAY, NEXT I'LL MOVE OVER TO HOUSING FOR HEALTH, AND THEIR PROPOSED EXPENSES DECREASE FROM $23.8 MILLION TO $20 MILLION, WHILE REVENUES DECREASE FROM 15.3 TO 14.7 MILLION.

AND THE DIVISION ALSO REDUCED THEIR STAFFING FROM 20 TO 17 FTE.

AND THE MAIN DRIVERS IN THIS BUDGET ARE REDUCED GRANT REVENUE AND THE COMPLETION OF FUNDING FOR ONE-TIME PROJECTS, INCLUDING LIVE OAK LANDING AND THE FREEDOM HEALTH YOUTH PRO-, UM, FREEDOM HOUSE YOUTH PROJECT IN SOUTH COUNTY.

- YEAH.

- I GAVE MY STAFF.

OKAY, SO, UM, OH, MAJOR BUDGET CHANGES.

SORRY. SORRY. LOST MY, LOST MY PLACE THERE.

OKAY, SO THIS IS A TABLE THAT JUST BASICALLY OUTLINES THE IMPACTS OF OUR BUDGET PROCESS.

I'M NOT GONNA GO THROUGH ALL OF THE NUMBERS, BUT AS YOU CAN SEE, UM, IT'S ALL OF THE MAIN REASONS THAT I'VE BEEN DISCUSSING PREVIOUSLY ON THE PREVIOUS SLIDES AND IT'S JUST ALL KINDA CONSOLIDATED IN THIS ONE SLIDE.

AND WITH THAT, I AM GOING TO TURN IT BACK OVER TO RANDY, TO GO OVER THE STATE AND FEDERAL POLICY AND FUNDING RISKS.

- OKAY, ALMOST THERE. IT'S BEEN A LONG DAY.

SO I JUST HAVE TWO LAST SLIDES.

UM, OUR CEO TEMPLATE ASKED US TO MAKE SURE TO COVER THE BIG STATE AND FEDERAL POLICY AND FUNDING SHIFTS SINCE WE'RE SO HEAVILY INFLUENCED BY STATE AND FEDERAL ACTIVITY.

ON THE LEFT, I TALKED ABOUT THIS EARLIER, CALFRESH, AND THEN BELOW THAT IS MEDI-CAL, THAT'S HR1.

BUT THE CASCADING EFFECT OF THE IMPACT OF THESE COST SHIFTS HAS CAUSED THE S-, CAUSED THE STATE TO HAVE TO MAKE CHANGES.

FOR EXAMPLE, IN THE MEDI-CAL SPACE, CALIFORNIA WAS ABLE TO FULLY FUND ON ITS DIME MEDI-CAL SERVICES FOR UNDOCUMENTED IMMIGRANTS, AND THEY HAD TO STOP THAT PART IN RESPONSE TO THE CASCADING EFFECT OF HR1 CAUSING THE STATE TO HAVE TO ABSORB MORE COSTS.

BUT TO START WITH CALFRESH, YOU MAY BE AWARE, AND THIS IS THE GOAL OF THE CURRENT FEDERAL ADMINISTRATION, TO MAKE IT HARDER FOR PEOPLE TO GET ON AND RETAIN THEIR CALFRESH AND MEDI-CAL BENEFITS.

THIS IS THE ABSOLUTE GOAL.

THEY'RE DEFUNDING US ADMINISTRATIVELY.

THEY'RE MAKING IT HARDER TO DO, AND THEY KNOW THIS WILL CAUSE A LOT OF CHAOS, AND IT'LL CAUSE THESE BUDGET PRESSURES WE'RE DEALING WITH TODAY.

BUT THIS IS A SUMMARY OF WHAT'S HAPPENING.

TWENTY-SIX PERCENT OF OUR CASELOAD, WHICH IS OVER 30 THOUSAND PEOPLE, ARE GONNA BE SUBJECT TO NEW WORK REQUIREMENTS, AND THAT'S A WHOLE CONVERSATION, UNLESS THEY MEET SOMETHING CALLED EXEMPTIONS.

THEY HAVE A CONDITION WHERE THEY ARE EXEMPT FROM WORK RULES.

SO THAT'S A BIG WORKLOAD THAT WE'RE DEALING WITH THAT JUST WENT INTO EFFECT THIS MONTH.

I TALKED ABOUT THE ADMINISTRATIVE COST SHARE, WHICH IS GOING TO GROW SIGNIFICANTLY NEXT YEAR, BUT WE ALREADY HAVE TO ABSORB THIS YEAR.

AND THEN I TOLD YOU EARLIER, WE HAVE AN ERROR RATE PENALTY THAT UNLESS THERE'S A CHANGE AT THE FEDERAL LEVEL, WE HAVE TO FOREVER FORWARD BE DEALING WITH.

AND I'M HAPPY TO ANSWER QUESTIONS ABOUT WHAT THAT MEANS.

BUT IN ESSENCE, A PROGRAM THIS BIG AND THIS COMPLICATED IS ALWAYS GONNA HAVE ERRORS.

THERE IS NO STATE THAT'S NOT WITHOUT ERRORS, AND CALIFORNIA'S ERROR RATE IS ALREADY ABOUT 5% ABOVE THE HIGH THRESHOLD WHERE WE'D HAVE TO PAY THE MAXIMUM ERROR.

SO THERE'S A LOT OF WORK BEING DONE IN THE STATE AROUND THAT.

I DO WANNA SAY ONE MORE THING ABOUT CALFRESH.

CALFRESH HAS ALWAYS HAD A FEDERAL FUNDING STREAM THAT IS CALLED AN ENTITLEMENT, AND THAT MEANS FOR AS MUCH WORK AS A STATE DOES IN CALFRESH FOR STAFFING, THE FEDERAL GOVERNMENT PAYS 50 CENTS ON THE DOLLAR, NOW TO BE 25 CENTS ON THE DOLLAR.

AND JUST A COUPLE MONTHS AGO, FOR THE FIRST TIME EVER, THE FEDERAL GOVERNMENT IMPOSED A CAP ON THAT ENTITLEMENT.

SO WE ARE BEING PINCHED FROM EVERY LEVEL.

WE HAVE AN ERROR RATE PENALTY.

THEY'RE REDUCING THEIR ADMINISTRATIVE COST CONTRIBUTION, AND THEY HAVE CREATED A CAP, WHICH CALIFORNIA IS CONSIDERING LEGAL ACTION AGAINST THE FEDS.

IN THE MEDI-CAL SPACE, THIS CURRENT FEDERAL ADMINISTRATION IS VERY COMMITTED TO UNDOING OBAMA'S AFFORDABLE CARE ACT, WHICH EXPANDED ELIGIBILITY FOR MEDICAID BY ALMOST 50%.

SO ABOUT THAT PERCENTAGE OF THE MEDI-CAL CASELOAD IS GOING TO BE SUBJECT TO SIMILAR WORK REQUIREMENTS

[03:50:03]

AND THEY HAVE DOUBLED THE ELIGIBILITY DETERMINATION.

EVERY YEAR, SOMEBODY ON PUBLICLY FUNDED MEDICAID, CALIFORNIA MEDI-CAL, HAS TO GO THROUGH A REDETERMINATION.

THE FEDERAL GOVERNMENT NOW MANDATES THAT YOU HAVE TO DO IT TWICE A YEAR.

DOUBLE THE WORKLOAD, LESS MONEY, THAT FALLS ON THE BACK OF OUR ELIGIBILITY STAFF TO DO.

AGAIN, THE GOAL IS THE CHAOS, THE UNDERFUNDING, AND TO NOT HAVE TAXPAYERS' MONEY PAYING FOR THESE SERVICES.

THAT IS THEIR GOAL. IT'S LANDING.

UM, AND THIS DIRECTLY TIES TO WHY IN THE CALFRESH AND MEDI-CAL SPACE WE HAVE PROPOSED REDUCTIONS IN CONTRACT SERVICES BECAUSE WE HAVE LOST ALL OUR FUNDING STREAM AND WE DO NOT EVEN HAVE ENOUGH ELIGIBILITY STAFF TO KEEP UP WITH THIS INCREASED WORKLOAD.

THE LOWER ONE, HOUSING, THIS IS THE WORK IN THE HOUSING FOR HEALTH DIVISION.

WE'VE HAD PRESENTATIONS ON THIS, BUT I JUST WANNA SUMMARIZE.

THE FIRST BULLET POINT IS OUR PARTNERSHIP WITH THE HOUSING AUTHORITY.

I, FOR, UNTIL FIVE YEARS AGO WHEN WE STOOD UP THIS OFFICE, DID NOT REALIZE HOW MUCH THE SOLUTION TO THE HOMELESS CRISIS IN COMMUNITY IS BRIDGING THE GAP BETWEEN SOMEBODY'S INCOME AND THE COST OF RENT.

ALL THE EFFORTS TO TRY TO SAY HOMELESSNESS CAN BE SOLVED BY SOMETHING ELSE, UNLESS YOU CAN FIND A WAY TO HELP SOMEBODY BE ABLE TO AFFORD RENT, IT IS JUST A SHORT-TERM INTERVENTION.

AND THANKS TO THE PARTNERSHIP WITH THE HOUSING AUTHORITY AND THE FEDERALLY FUNDED HOUSING VOUCHERS THE HOUSING AUTHORITY HAS THAT PARTNERS WITH THAT, THAT IS WHY WE HAVE BEEN SO SUCCESSFUL.

THE FEDERAL GOVERNMENT HAS REDUCED THE NUMBER OF HOUSING VOUCHERS WE HAVE, AND WE'RE STARTING TO SEE THE IMPACT 'CAUSE PEOPLE ON WAIT LISTS ARE WAITING, GONNA WAIT LONGER.

AT THE FEDERAL LEVEL, MONEY THAT COMES STRAIGHT TO US, THE CONTINUUM OF CARE, REFERRED TO AS THE COC, WE'RE THE ADMINISTRATOR OF THAT IN THE HOUSING FOR HEALTH DIVISION.

THEY ARE SHIFTING SIGNIFICANTLY THEIR APPROACH TO HOUSING FIRST PRINCIPLES, WHICH IS TO HELP PEOPLE GET OUT OF HOMELESSNESS AND INTO PERMANENT HOUSING, TO INCARCERATION, INSTITUTIONALIZATION, SHELTERS, AND THEY'RE CHANGING THEIR FUNDING STREAM, WHICH HAS BEEN PART OF OUR SECRET SAUCE THAT HAVE HELPED US REDUCE THE HOMELESS COUNT SO MUCH.

AND THEN THE LAST ONE IS AN ACRONYM AND STATE FUNDING IS OUR PRIMARY STATE GRANT.

THE STATE OF CALIFORNIA HAD ONE BILLION DOLLARS IN THIS ALLOCATION LAST FISCAL YEAR.

THEY ZEROED IT OUT CURRENT FISCAL YEAR, AND THE STATE PROPOSAL IS TO PUT IT IN HALF AT HALF A BILLION NEXT YEAR.

THAT IS MONEY THAT WE SPREAD OUT OVER MULTIPLE YEARS TO PAY FOR PROGRAMMING.

AND WITH THAT MUCH OF A REDUCTION, ALL OF THIS ADDED UP, OUR CAPACITY TO CONTINUE TO IMPROVE THE CRISIS IS GOING TO BE COMPROMISED, AND WE ARE LIKELY GONNA SEE INCREASES, MOST UNFORTUNATELY, IN THE, OUR HOMELESS COUNTS BECAUSE OF THESE CHANGES.

ON THE RIGHT, THESE ARE THREE ISSUES IN THE GOVERNOR'S MAY REVISE. I MENTIONED EARLIER, IF THE MAY REVISE HOLDS AND THE GOVERNOR, UH, VETOES THE STATE LEGISLATURE'S PROPOSAL TO NOT IMPLEMENT THESE CUTS IN THE ADULT PROTECTIVE SERVICES SPACE, PLEASE KNOW THERE IS NO FEDERAL FUNDING.

IT'S A STATE-FUNDED PROGRAM ONLY.

THERE IS 102 MORE TIMES FEDERAL FUNDING IN CHILD WELFARE THAN THERE IS IN ELDER JUSTICE PROGRAMMING.

IT'S HORRIBLE.

THE CASELOAD IS GROWING BY 14% AND THE GOVERNOR'S PROPOSING TO REDUCE FUNDING TO COUNTIES AT THE TIME WHEN THE CASELOADS ARE BALLOONING.

IT, IT'S UNCONSCIONABLE.

IF THE STATE PASSES THIS, WE ARE GONNA HAVE TO REDUCE OUR, UH, APS WORKFORCE.

THIS IS GETTING LOST IN THE DISCUSSION OF HR 1 AND ELIGIBILITY SO I WANNA HIGHLIGHT THIS.

IN-HOME SUPPORTIVE SERVICES, IS ONE OF THE MOST EXPENSIVE PROGRAMS WE ADMINISTER.

WHEN WE PUT THE 3500 PLUS PEOPLE ON THE PROGRAM, THEY HIRE PROVIDERS TO COME PROVIDE IN-HOME CARE TO KEEP THEM FROM GOING INSTITUTIONS.

CURRENT FISCAL YEAR, THAT'S 110 MILLION DOLLARS OF WAGES GOING TO IN-HOME CARE PROVIDERS, HELPING SANTA CRUZ RESIDENTS STAY IN THEIR HOME.

THE STATE CAN'T AFFORD THIS, SO THEY HAVE PROPOSED IN THE STATE BUDGET TO SHIFT A LOT OF THE COST TO COUNTIES WHICH WE CANNOT AFFORD.

IF THE GOVERNOR VETOES THIS AND MAKES THIS COST SHIFT HAPPEN, I AM BACK IN FRONT OF YOU IN THE FALL, TELLING YOU HOW MUCH WE HAVE TO CUT TO ABSORB THIS COST SHIFT.

IT IS VERY, VERY DISTURBING IF THIS PASSES.

AND THE LAST IS A SMALL BUT VERY IMPORTANT ISSUE THAT CALIFORNIA IMPLEMENTED 30 YEARS AGO.

FEDERAL FUNDING TO PAY PEOPLE FOR THEIR TUITION TO GET AN MSW DEGREE TO COMMIT TO TWO YEARS IN WORKING IN PUBLIC CHILD WELFARE IN CALIFORNIA HAS BEEN THE PIPELINE FOR OUR WORKFORCE.

THIS WORK IN CHILD WELFARE IS VERY, VERY DIFFICULT, VERY COMPLICATED, AND THE FEDS HAVE QUESTIONED THE WAY THE STATE IS USING TITLE IV-E AND ARE PROPOSING TO REDUCE THEIR FUNDING.

AND AS OF NOW, THERE IS NO TITLE IV-E PROGRAM NEXT YEAR, WHICH IT STOPS OUR PIPELINE, AND THE STATE IS TRYING TO WORK WITH THE FEDS TO ADJUST FUNDING TO KEEP IT GOING AGAIN.

IF THIS HAPPENS, WE HAVE A SIGNIFICANT WORKFORCE PROBLEM IN PUBLIC CHILD WELFARE IN CALIFORNIA, AND I JUST WANNA GET THAT ON PEOPLE'S RADAR SCREEN.

[03:55:01]

REMEMBER WE ARE MANDATED TO DELIVER THE SERVICE OURSELVES.

WE CANNOT CONTRACT OUT THE VAST MAJORITY OF WHAT WE DO, AND THERE ARE PROFOUND WORKLOAD INCREASES COMING WITH A DIFFICULT BUDGET, AND WE CANNOT, NOT ONLY INCREASE OUR WORKFORCE, WE HAVE TO REDUCE IT.

THIS IS A DILEMMA WITH NO REAL SOLUTION.

THE DEMOGRAPHIC CHANGES, WE HAVE AN AGING COMMUNITY.

WE DO NOT HAVE AN INFRASTRUCTURE TO ABSORB AND SUPPORT HEALTHY AGING.

SO WE HAVE A LOT OF WORK TO DO TO DEAL WITH THAT DEMOGRAPHIC SHIFT.

I TALKED IN THE PRIOR SLIDE ABOUT THE SIGNIFICANT HOUSING SUPPORT STARTED DECLINING, AND THIS IS GONNA ROLL FORWARD OVER THE NEXT FEW YEARS, AND WE'RE GONNA START TO SEE THE HOMELESS CRISIS GROW UNLESS WE CAN GET FEDERAL AND STATE CHANGES.

THE NEXT ONE, THIS IS A FANCY TERM FOR A STATE WAIVER WITH THE FEDERAL GOVERNMENT TO USE MEDICAID CREATIVELY TO FUND A WHOLE HOST OF SERVICES THAT MANY CBOS IN THIS COMMUNITY ARE USING TO HELP PROVIDE SERVICE TO PEOPLE IN THE SAFETY NET.

AND THE FEDERAL GOVERNMENT, JUST IN THE LAST FEW MONTHS, HAS CLAMPED DOWN ON THIS.

OUR LOCAL MANAGED CARE PLAN IS HAVING TO LAY OFF THEIR OWN EMPLOYEES AND THEY ARE PUTTING TIGHTER CONTROLS ON THE USE OF THIS FUNDING STREAM, WHICH IS A SIGNIFICANT ISSUE THAT WILL CONTINUE TO DECREASE FUNDING TO THE SAFETY NET.

THE SECOND TO LAST IS ONE OF THE PROGRAMS THAT YOUR BOARD HAS FULL CONTROL OVER.

IT REQUIRES A VOTE OF THE BOARD AND A PUBLIC HEARING TO CHANGE THE GENERAL ASSISTANCE PROGRAM.

THIS IS CASH FOR INDIGENTS WHO DON'T HAVE FAMILY.

THIS PROGRAM HAS NOT CHANGED IN 30 YEARS.

THE PROGRAM IS GROWING SIGNIFICANTLY.

THE BUDGET'S GROWING SIGNIFICANTLY.

IT'S A HUNDRED PERCENT GENERAL FUND, AND WE WILL BRING BACK TO YOUR BOARD IN THIS COMMUNITY IN THE FALL A PROPOSAL TO ADDRESS, NOT JUST THE BUDGET ISSUES BUT WAYS TO MAKE THE PROGRAM MORE HUMANE.

AND SO WE'LL HAVE THAT AS A PUBLIC HEARING, UH, IN THE FALL.

BUT WE WANNA LET YOU KNOW WE MENTION THAT IN OUR BUDGET, 'CAUSE THE BUDGET IS GROWING SIGNIFICANTLY, AND THERE'S CURRENTLY NO COST CONTAINMENT.

UM, AND THEN THE LAST IS BACK TO THE CHILD WELFARE SYSTEM.

BACK IN 1997, THE CHILD WELFARE SYSTEM WENT FROM PAPER TO A COMPUTER, AND FOR FIFTEEN YEARS, THEY'VE BEEN PLANNING TO UPGRADE THAT SYSTEM, AND IT'S GOING TO GO LIVE OCTOBER OF 2026, AND THIS IS A SIGNIFICANT LIFT FOR CALIFORNIA AND FOR EVERY COUNTY FOSTER CARE SYSTEM.

AND SO THAT IS A MAJOR ISSUE WE'LL BE DEALING WITH.

IF YOU NEVER HEAR ABOUT THIS AGAIN, WE DID OUR JOB QUIETLY.

YOU MIGHT HEAR ABOUT IT. I HOPE NOT.

OKAY, UM, I'M NOT GONNA READ THESE.

THIS IS WHAT'S IN THE MATERIALS.

WHAT'S IN FRONT OF YOU IS A REQUEST TO, UM, SUPPORT OUR PROPOSED BUDGET.

THE DETAILS ARE IN FRONT OF YOU, AND WE ARE LOOKING FORWARD TO ANSWERING QUESTIONS.

THIS IS A VERY DIFFICULT BUDGET. AND, UM, THANK YOU.

- THANK YOU FOR YOUR PRESENTATION.

UM, I'LL NOW RETURN TO THE BOARD FOR QUESTIONS, AND THEN GO TO PUBLIC COMMENT, AND THEN RETURN TO THE BOARD FOR DELIBERATION AND A MOTION.

WHICH OF MY COLLEAGUES WANNA START WITH QUESTIONS? SUPERVISOR KOENIG.

- WELL, IT'S TOUGH TO ASK ANY QUESTION THAT CAN, UH, HONOR THE SERIOUSNESS OF YOUR PRESENTATION AND EVERYTHING THAT, THAT YOU JUST SHARED.

UM, FIRST QUESTION IS AROUND THE CALFRESH ERROR RATE.

I MEAN, AND YOU WERE TALKING ABOUT HOW WE ALREADY BASICALLY, STRUCTURE PAYMENTS TO, UH, BENEFICIARIES IN A WAY THAT, UH...

AND, AND THAT A LOT OF THE, THE ERROR RATE IS BASICALLY, FROM PEOPLE GETTING, UH, NEW EMPLOYMENT NOT REPORTING IT, UM, RIGHT AWAY MAYBE.

UM, THEN WE CONTACT THEM AND THEY UPDATE THEIR EMPLOYMENT, BUT IT TURNS OUT THEY WEREN'T ELIGIBLE FOR AS MUCH IN BENEFITS OVER A PERIOD OF TIME, AND NOW THERE'S AN ERROR.

BUT TYPICALLY, WE CORRECT FOR THAT WITH THEIR FUTURE PAYMENTS.

UM, AND NOW THE FEDERAL GOVERNMENT IS PUTTING A PENALTY ON TOP OF THAT EVEN THOUGH WE'VE ALREADY CORRECTED FOR IT.

I MEAN, IS THERE, IS THERE ANY WAY TO FIGURE OUT SOME SORT OF, LIKE, COST-SHARING METHOD? I MEAN, NOT THAT IT'S...

UH, WITH THE BENEFICIARIES THEMSELVES OF THE PENALTIES? - SO IF I UNDERSTAND YOUR QUESTION CORRECTLY, I WANNA JUST CONFIRM I HEARD YOU REFLECT BACK WHAT I MIGHT HAVE SHARED WITH YOU, WHICH IS, ERRORS ARE OFTEN CORRECTED.

THEY CAN BE AN OVERPAYMENT OR AN UNDERPAYMENT, OR, UM, A MISAPPROPRIATION OF THE FUNDS THAT GET CORRECTED.

TO WHAT I THINK IS YOUR QUESTION IS, IT IS BAKED INTO HR 1 LAW.

IT WOULD REQUIRE WHAT HAPPENS NOVEMBER 3RD WITH THE MIDTERM ELECTIONS.

IT WOULD REQUIRE AN ACT OF CONGRESS TO CHANGE WHAT IS NOW BAKED IN LAW, WHICH IT'S A ERROR RATE BASED ON A CERTAIN THRESHOLD, AND EVERY STATE HAS TO PAY IT.

- RIGHT. NO, UH, OBVIOUSLY, WE'RE NOT GONNA CHANGE HR 1.

UM, IS THERE ANYTHING WE CAN DO AS FAR AS, LIKE, TIMING OR, LIKE MORE PROACTIVE EVEN COMMUNICATION WITH CALFRESH BENEFICIARIES?

[04:00:01]

THEY GET A TEXT EVERY MONTH, "HEY, DID YOUR EMPLOYMENT CHANGE THIS MONTH? PLEASE LET US KNOW." UH, WE'LL GET YOU A FI-, WE'LL GET YOU A $5 STARBUCKS GIFT CARD IF YOU, IF YOU TELL US BECAUSE THE DIFFERENCE IS MORE MATERIAL THAN THAT TO US.

- IF... PLEASE LET ME KNOW IF THIS IS RESPONSIVE.

UM, WE ARE HEAVILY DEPENDENT UPON OUR STATE ADMINISTRATOR, CALIFORNIA DEPARTMENT OF SOCIAL SERVICES, WHO'S STILL IN THE PROCESS OF NEGOTIATING WITH THE FEDERAL GOVERNMENT ON HOW THIS WILL LAND, UP TO AND INCLUDING THEY MIGHT PUSH A DELAY.

IF AGREEABLE, IT IS GOING TO BE A YEAR BETWEEN NOW AND OCTOBER 2027 WHEN THIS GOES LIVE, WHERE I THINK A LOT OF THOSE QUESTIONS WILL BE ANSWERED.

THEY WILL VERY LIKELY BE ANSWERED BY STATE POLICY.

I WOULD RECOMMEND, IF THE BOARD AGREES, WE NEED TO HAVE THIS CONVERSATION WELL BEFORE A YEAR FROM NOW IN BUDGET HEARINGS, AND I THINK THAT WOULD PROBABLY BE THE TIME WHERE WE WOULD BE ABLE TO BETTER ANSWER, AND PROBABLY INFORMED BY STATE POLICY.

BUT SO IN, I'M BASICALLY SAYING THOSE ARE GREAT QUESTIONS, AND THEY'RE BEING DELIBERATED NOW, AND I DON'T THINK WE HAVE ANSWERS.

THAT'S WHAT'S UNDER DISCUSSION.

- WHAT YOU'RE SAYING IS THAT EVEN THOUGH THE, THE, WE HERE AT THE COUNTY ARE LEFT TO PAY THE BILL, WE WOULD HAVE TO ADHERE TO STATE POLICY WITH HOW TO COMMUNICATE WITH BENEFICIARIES AND, AND HOW TO...

- SO I AM TRYING TO HESITATE TO NOT CALL MY DIVISION DIRECTORS UP TOO SOON, BUT I DO WANNA QUEUE UP IRMA MARQUEZ, OUR DIRECTOR, IN CASE SHE WANTS TO ADD TO THIS OR YOU HAVE FOLLOW-UP QUESTIONS.

WE DO HAVE LOCAL CAPACITY TO SEND A MASS TEXT TO ALL OF OUR BENEFICIARIES, AND WE DO THAT SOMETIMES.

SO THAT TOOL EXISTS IN OUR TOOLKIT NOW.

WHAT WE WOULD SAY IS THE QUESTION, AND WHAT I WOULD, IF YOU WANNA ASK MORE QUESTIONS, I THINK I MIGHT NEED IRMA TO COME UP.

I AM NOT SO SURE IT IS HOW A BENEFICIARY INTERACTS WITH US.

I THINK IT'S HOW WE PROCESS, AND I THINK THE POINT I WAS ATTEMPTING TO MAKE IS IF WE DON'T HAVE ENOUGH INTERNAL WORKFORCE, THAT'S WHERE ERRORS HAPPEN.

AND I WANNA SAY THE FOLLOWING CAREFULLY.

90 TO 95% OF DETERMINING ELIGIBILITY IS DONE BY THE COUNTY WORKFORCE, NOT BY NONPROFIT PARTNERS, WHO ARE VERY HELPFUL IN SUBMITTING APPLICATIONS AND GETTING PAPERWORK TO US.

BUT 90, 95% OF THE WORK BY LAW IS DONE BY US.

THAT'S WHERE THE ERRORS OCCUR.

SO UNLESS IRMA WANTS TO JUMP UP AND DISAGREE, W-, I TH-, DID I GET IT? - YOU GOT IT.

- YEAH, SO I'M NOT SURE BENEFICIARY TEXTING INFORMING THEM OF THIS WOULD CHANGE WHAT THE REAL ISSUE IS.

WE DON'T HAVE ENOUGH INFRASTRUCTURE TO HANDLE VOLUME.

AND THAT'S A STATEWIDE ISSUE.

YEAH? OKAY, GO O-, YEAH.

- YEAH. UM, IRMA MARQUEZ, DIVISION DIRECTOR OVER EMPLOYMENT AND BENEFIT SERVICES.

UM, AS RANDY MENTIONED, THIS IS A STATEWIDE, UM, PENALTY, SO IT'S NOT JUST DIRECTLY OUR COUNTY.

IT'S A STATEWIDE, UM, PENALTY THAT THE STATE IS WORKING ON ASSISTING COUNTIES IN REDUCING THAT PAYMENT ERROR RATE.

UM, THAT WE'RE LOOKING AT, WHAT ARE THOSE ERRORS? HOW CAN WE PREVENT THEM? THE MAJORITY OF OVERPAYMENTS AND UNDERPAYMENTS ARE EITHER COLLECTED OR, UM, ISSUED TO BENEFICIARIES WHENEVER THEY ARE IDENTIFIED.

IN TERMS OF PASSING THAT PENALTY ON TO OUR CLIENTS, UM, I DON'T KNOW HOW THAT WOULD HAPPEN.

HOWEVER, MEASURES TO PREVENT THEM IS WHAT WE'RE FOCUSING ON.

SO FOR EXAMPLE, PROCESSING TIMELINESS.

UM, YOU KNOW, THERE WAS A REFERENCE OF CLIENTS NOT REPORTING.

WELL, THEY MAY HAVE REPORTED, BUT IT WASN'T COMPLETE.

WE ONLY HAD MINIMAL INFORMATION.

BY THE TIME WE GOT TO IT, BENEFITS HAD ALREADY BEEN ISSUED.

SO THERE'S DIFFERENT SITUATIONS THAT CONTRIBUTE TO THE PAYMENT ERROR RATE THAT, AGAIN, WE'RE FOCUSING ON PREVENTING TO NOT HAVE THAT IMPACT BE SO MUCH ON US.

AND, AND AGAIN, OUR COUNTY IS ONE THAT CONTRIBUTES TO THE ENTIRE STATE, SO IT'S... A-, ALL COUNTIES ARE, I'M GONNA USE THE WORD RESPONSIBLE FOR REDUCING IT.

WE HAVE A ROLE IN IT.

- AND SUPERVISOR KOENIG, JUST TO PIGGYBACK, IT IS NOT RESOLVED OR DECIDED AT THE STATE LEVEL HOW THEY WOULD DISTRIBUTE THAT STATEWIDE ERROR PENALTY.

I THINK THAT'S GONNA BE A VERY COMPLICATED DISCUSSION THAT'S GONNA PLAY OUT BETWEEN OUR STATE ASSOCIATION AND THE STATE.

I THINK THE BIGGER GOAL IS HOPING THAT, TO BE, AT THE RISK OF BEING TOO POLITICAL, THERE'S A MIDTERM ELECTION SWING, AND THE NEW CONGRESS JUMPS IN AND MAKES SOME FEDERAL INTERVENTION ON THIS.

AND BUT IF THAT DOESN'T HAPPEN, THIS NEXT YEAR WILL BE A VERY DRAMATIC YEAR TALKING ABOUT HOW THAT PENALTY WILL LAND.

IS THAT RESPONSIVE, SUPERVISOR, TO...

- YEAH, NO, THAT, THAT'S HELPFUL.

I MEAN, YOU'RE SAYING IT'S, THERE'S A STATEWIDE ERROR RATE, AND THEN IN THEORY, THE STATE ALLOCATES THAT BASED ON ACTUAL ERRORS RATHER THAN JUST PEOPLE ENROLLED IN CALFRESH PROPORTIONALLY YOU KNOW, PER COUNTY? I MEAN, IT WOULD... DO, WE HAVE THE ABILITY TO HAVE A COUNTY-BY-COUNTY ERROR RATE [CROSSTALK]? - BUT YES, POTENTIALLY.

AND I'M NOT TRYING TO MAKE LIGHT OF SOMETHING VERY SERIOUS.

THE STATE WILL PROBABLY WANT THE COUNTIES TO ABSORB THE ENTIRE PENALTY, BUT IT WOULD NOT BE BEYOND THE COUNTIES TO ASK THE STATE TO ABSORB THE PENALTY.

SO I THINK IT'S GONNA BE A VERY RIGHTEOUS CONVERSATION.

IT'S, BUT THE ULTIMATE GOAL IS TO STOP THE CAUSE OF THIS, WHICH IS THE HR1 PENALTY RATE, WHICH IS RIGHT NOW FEDERAL LAW.

[04:05:05]

THE, THE, I UNDERSTAND THE STATE IS IMPROVING THE BENEFITS SYSTEM THAT WE USE.

I MEAN, IS THERE, FOR, FOR TRACKING, YOU KNOW, WHO'S ELIGIBLE FOR WHAT? IS THERE ANY HOPE THAT THAT COULD BE IMPROVED AS, TO SUCH A POINT THAT WE WOULDN'T HAVE THESE BACKLOGS IN UPDATING PEOPLE'S STATUS? - UH, I, THIS IS A BIG CON-, THIS IS THE QUESTION, WHAT, WHAT EFFICIENCIES CAN BE MADE IN A MASSIVE SYSTEM WITH TECHNOLOGY ADVANCEMENTS AND AI, AND THIS IS THE DISCUSSION PLAYING OUT WITHOUT CLEAR ANSWERS YET, BUT IMMA...

- YEAH. I, I CAN ADD A LITTLE BIT, UM, IN TERMS OF WHAT THE STATE IS DOING TO SUPPORT COUNTIES WITH PREVENTING THESE ERRORS.

THERE'S FUNCTIONALITY GOING INTO OUR SYSTEM THAT WILL HELP, UM, AS A REMINDER TO FOLLOW UP.

FOR EXAMPLE, I MOVED, I REPORTED A CHANGE IN ADDRESS.

WE'LL ASK THE QUESTION, DID THE RENT CHANGE? IS THERE A CHANGE IN YOUR EXPENSES? SO THAT THAT CAN BE UPDATED AT THE SAME TIME AND PREVENT UNDERPAYMENT OR OVERPAYMENTS THAT WILL CONTRIBUTE TO THAT ERROR RATE.

WE'RE, WE'RE... THEY'RE BEING REFERRED TO AS NUDGES, A LITTLE REMINDER FOR THE STAFF TO ASK THE QUESTION, TO ASK THE FOLLOW-UP QUESTION.

AND AS, AS TIME IS MOVING ALONG, THERE'S OTHER THINGS THAT ARE, ARE BEING DISCUSSED TO ALSO CONTRIBUTE, UM, IN, IN SUPPORTING COUNTIES TO REDUCE THOSE OR PREVENT THOSE ERRORS.

- OKAY. THANK YOU. LAST QUESTION IS JUST ABOUT, UH, HHAP, THE, UH, HOMELESS ASSISTANCE FROM THE, FROM THE STATE.

SO WE WENT FROM A BILLION DOLLARS IN LAST FISCAL YEAR TO ZERO.

WELL, ACTUALLY IT WAS TWO, 'CAUSE WE'RE AT ZERO IN THIS FISCAL YEAR, AND 500 MILLION NEXT FISCAL YEAR.

I MEAN, SO BASICALLY, IF I UNDERSTAND CORRECTLY, THAT'S A, BASICALLY A QUARTER OF THE PAST FUNDING, RIGHT? INSTEAD OF ONE BILLION, WE HAVE 500,000, OR FIVE HUNDRED MILLION OVER TWO YEARS, SO A QUARTER OF THE TOTAL FUNDING.

- YEAH, SO WHAT WAS ONE BILLION, ONE BILLION, ONE BILLION, THAT WOULD BE THREE, AND IT'S INADEQUATE.

BUT LET ME BE CANDID ABOUT THE GOVERNOR'S SORT OF NARRATIVE HE CREATED.

"I'VE GIVEN YOU ENOUGH MONEY. NOW SOLVE IT." AND YOU JUST LEFT LOCALS TO FIGHT, CITIES AND COUNTIES, AND HE, UH, WITH ALL DUE RESPECT, HE DID NOT GIVE ENOUGH MONEY.

IT WAS ONE TIME, DIDN'T SOLVE THE AFFORDABLE HOUSING CRISIS.

BUT AS PART OF THAT NARRATIVE, YES, IT WENT FROM ONE, ONE, ONE, WHICH WOULD'VE BEEN THREE BILLION, TO ONE, ZERO, HALF, SO IT WAS CUT IN HALF.

AND, YOU KNOW, WE CAN HAVE DR. RATNER COME UP TO SPEAK TO THIS BUT THE WAY WE BUDGET IS, WE SPREAD THOSE FUNDS AROUND AROUND OVER MULTIPLE YEARS.

IT'S REALLY HARD TO ASK A COMMUNITY-BASED ORGANIZATION TO TAKE A CONTRACT FOR ONE YEAR.

SO WE USE THAT MONEY AND WE SPREAD IT OUT, AND WE'VE BEEN PUTTING A LOT OF PROGRAMMING IN, BUT THAT MONEY IS DRYING UP.

AND SO THIS IS THE PROBLEM TO SOLVE WHICH SOME OF THESE PROGRAMS WE'VE STOOD UP DON'T NECESSARILY HAVE SUSTAINABLE OPERATING COSTS.

AND BACK TO HOUSING VOUCHERS, THERE IS NO BRIDGE YET ACROSS THIS COUNTRY TO BRIDGE PEOPLES WHO ARE ON LOW INCOME, SSI, LESS THAN 1,000 A MONTH, TRYING TO PAY MARKET RATE RENT, WHETHER IT BE IN A FACILITY WHERE YOU HAVE TO PAY FOR THE COST OF THAT FACILITY AND THE BED IN THAT FACILITY, OR...

SO THIS IS A VERY COMPLEX ISSUE, BUT THAT SIGNIFICANT REDUCTION IN STATE FUNDING IS A SIGNIFICANT VARIABLE ON TOP OF THE FEDERAL FUNDING, ALL GOING THE WRONG DIRECTION.

- YEAH, WITH, OF COURSE, ALL THE ADDITIONAL ADDED COMPLEXITY TOO THAT WE'VE TALKED ABOUT BOTH IN THE BEHAVIORAL HEALTH SYSTEM, WHICH IS OF COURSE, ADJACENT TO THIS, SO ALL THE ADDITIONAL REPORTING REQUIREMENTS PUT ON THE COUNTY UM, AND CHALLENGES IN, IN PLANNING FOR THE BU-, WITH THE BUDGET AS YOU SAID.

UM, ALL RIGHT.

THANK YOU SO MUCH FOR THE, FOR ALL THE WORK, FOR ALL THE GOOD WORK THAT YOU HAVE DELIVERED IN THE LAST YEAR AND THAT I'M SURE WE WILL DELIVER AGAIN THIS COMING YEAR, UH, DESPITE THE CHALLENGES.

- SUPERVISOR HERNANDEZ.

- THANK YOU. WELL, FIRST OF ALL, THANK YOU GUYS FOR ALL YOUR HARD WORK IN THIS, UH, STATUS QUO BUDGET FOR US.

IT'S, UH, PLEASING DURING THESE TOUGH, UH, TOUGH BUDGETARY TIMES UM, BUT I WANTED TO CHECK IN.

UM, IS THERE DIFFERENT SCENARIOS THAT WE COULD SEE GIVEN THE, THE, UH, ASSEMBLY PLAN AND THE SENATE PLAN, OR MORE SO THE ASSEMBLY PLAN, WHICH IS BETTER, MORE BENEFICIAL TO COUNTIES, UH, THAT WOULD CHANGE THINGS? AND I'M, YOU KNOW, WE GOT FOLKS HERE THAT ARE FROM NONPROFITS, UH, THAT, YOU KNOW, WANNA HAVE SOME CONCERNS, AND I WANTED TO SEE IF THERE'S A POSSIBILITIES THAT WE CAN, UH, CORRECT OR FUND THESE PROGRAMS THAT ARE BENEFICIAL TO OUR, OUR RESIDENTS.

UM, NOW OR GIVEN THE, THE, UH, ASSEMBLY PLAN IN THE NEAR FUTURE, SEPTEMBER, UH, WHAT, WHAT COULD WE DO TO HELP OUT SOME OF THE NONPROFITS THAT ARE HELPING US WITH OUR ELIGIBILITY WORK, UH, IN OUR COMMUNITIES? - WELL, JUST TO FRAME THIS, I WANNA MAKE SURE SO THERE'S A FULL UNDERSTANDING, UM, AND I HOPE THIS IS HELPFUL.

THERE ARE... LAST WEEK'S QUERY, THE CALSAWS SYSTEM,

[04:10:05]

SO OF THOSE, LET'S SAY FOR OUR ARGUMENT IT'S 20, TWO OF THEM WE FUND.

THE OTHER 18 DO IT IN KIND JUST BECAUSE IT FITS WITHIN THEIR PROGRAMS, THEY'RE TOUCHING PEOPLE, AND THEY'RE REGISTERED TO HELP.

SO I JUST WANNA MAKE SURE THERE'S AN UNDERSTANDING, THERE'S ALMOST 20 CBOS WHO DO THIS.

THE TWO WE FUND ARE IN THE MEDI-CAL SPACE COMMUNITY ACTION BOARD WE HAD MEDI-CAL ADMINISTRATIVE DOLLARS THAT WERE TRENDING OVER AND ABOVE OUR STAFFING COSTS, AND WE GOT BOARD APPROVAL A COUPLE YEARS TO GO INVEST SIGNIFICANTLY IN COMMUNITY ACTION BOARD, SIGNIFICANTLY, FOR UNDOCUMENTED IMMIGRANTS WHO HAD EVERY REASON TO BELIEVE, "I DON'T WANNA PUT MY NAME IN A GOVERNMENT DATABASE." AND CAB AS A PARTNER DID AN EXCELLENT JOB.

THE MEDI-CAL MONEY HAS DRIED UP, AND IN OUR BUDGET WE'VE PROPOSED TO ELIMINATE IT.

THE SECOND IS, SECOND HARVEST FOOD BANK, AND THEY WERE HERE AND MADE PUBLIC COMMENT.

IF I WAS THEM, I JUST WANNA SAY TO ERICA, WHO'S A GREAT PARTNER, WE WOULD DO THE SAME THING SHE'S DOING. THEY DO GREAT WORK.

AT THE TIME, WE CUT IT BACK TO ORIGINAL LEVELS, WE THOUGHT WE HAD FEDERAL ENTITLEMENT FUNDING TO FLOW IN TO AT LEAST ALLOW US TO NOT CUT IT LIKE WE DID THE CAB CONTRACT.

WE NOW HAVE LOST THAT MONEY.

SO WE'RE IN A TOUGH DILEMMA, AND IF I CAN JUST THEN GET TO WHERE TO GO WITH IT.

WE BENEFIT FROM THOSE 20 CBOS HELPING APP ASSIST, BUT STATE AND FEDERAL LAW MANDATES THAT ONLY COUNTY HUMAN SERVICES ELIGIBILITY STAFF CAN THEN DO THE WORK, WHICH IS ABOUT 90 TO 95% OF THE ACTUAL WORK.

THE APP ASSISTANCE IS HELPFUL. COMMUNITY ACTION BOARD, SECOND HARVEST FOOD BANK, TO WHAT I THINK IS YOUR QUESTION.

IF WE HAVE THE BEST CASE SCENARIO OF A MASSIVE INFUSION OF STATE MONEY TO INVEST IN OUR CALFRESH AND OUR MEDI-CAL ALLOCATIONS, I ANTICIPATE, AND I'M LOOKING AT MY CEO TO CONFIRM THIS, WHAT WE WOULD BE CONFRONTED WITH IS, DO WE TAKE THAT MONEY AND HELP OFFSET THE PULL FROM RESERVES, OR DO WE TAKE THAT MONEY, WE WOULD NEED TO ARGUE, TO INVEST IN INCREASING OUR ELIGIBILITY STAFF BECAUSE WE DON'T HAVE ENOUGH STAFF TO HANDLE VOLUME? I THINK COMMUNITY AND BOARD WOULD BE SAYING, "WHAT ABOUT BALANCING THAT A LITTLE BIT?" AND THEN WE HAVE THE RESERVES WE PULLED FROM.

I THINK THAT'S THE DISCUSSION WE WOULD HAVE TO HAVE.

BUT I THINK TO YOUR QUESTION, WE SURE HOPE WE GET A BIG INFUSION OF ELIGIBILITY MONEY, AND HOW MUCH OF IT DICTATES, HOW DO WE SPREAD THAT AROUND? THAT WOULD BE ANOTHER PUBLIC MEETING, I THINK, BUT I WANT TO JUST CONFIRM WITH CEO COBURN.

- YEAH, NO, I THINK WE WERE HOPING FOR THAT SCENARIO SO THAT WE CAN ENVISION, UM, PUTTING MONEY BACK INTO THOSE CONTRACTS BECAUSE IT'S SO IMPORTANT TO US.

SO, UM, I... WE'RE WAITING TO SEE WHAT THOSE FINAL NUMBERS ARE AND WE KNOW THE BIG OVERALL NUMBERS THAT THE LEGISLATURE IS PUTTING FORWARD, BUT WE DON'T KNOW HOW MUCH THAT'S GONNA BREAK DOWN BY COUNTY AND WHAT THE FINAL NUMBERS ARE GONNA BE.

- DOES THAT ANSWER YOUR QUESTION, SUPERVISOR? - WELL, KIND OF. IT'S, UH, I GUESS WE'RE SAYING IT'S A ROLL OF DICE FOR THE FUTURE...

SEE IF WE GET IT OR NOT.

- WELL, I THINK IF I MAY, 'CAUSE I, I BELIEVE THIS IS ON POINT, MY INTRODUCTORY COMMENTS WERE INTENDED TO SAY, JUST FROM MY EXPERIENCE, THIS IS THE MOST VOLATILE STATE BUDGET BEHIND THAT FEDERAL CUTS I'VE EVER SEEN.

I WOULD BE REMISS IF I...

I MEAN, I THINK YOU WOULD BE IN GOOD STANDING IF I CAME BACK TO YOU IN THE FALL AND SAID, "I NEED YOU TO CUT ANOTHER MANY MILLIONS OF DOLLARS," AND I DIDN'T GIVE YOU FAIR WARNING AS YOU'RE DELIBERATING TODAY WHAT TO DO, THAT I MIGHT HAVE TO COME FORWARD WITH MORE CUTS IF THE STATE BUDGET LANDS WITH WHERE THE GOVERNOR LANDED IN THE MAY REVISE.

THAT'S TO BE DETERMINED.

IF THE ASSEMBLY VERSION COMES FORWARD, WE WILL HAVE A BIG INFLUX OF MONEY, AND WE'LL HAVE THE BENEFIT OF COMING BACK TO FIGURE OUT HOW TO SPREAD IT.

I WAS JUST SHARING YOU MY BEST THINKING IS THERE'S, THERE'S THREE WAYS.

DO WE OFFSET RESERVES? WE NEED TO ASK TO INVEST IN OUR ELIGIBILITY WORKFORCE 'CAUSE WE DO NOT HAVE ENOUGH STAFF TO PROCESS VOLUME, AND THE CBOS ARE DOING THEIR JOB SAYING, "PLEASE REINVEST IN US BECAUSE WE HELP IN WAYS..." AND I WANNA GIVE CREDIT TO CAB, SECOND HARVEST, AND THE OTHER 18 THERE ARE WAYS IN WHICH OUR COMMUNITY PARTNERS TALK TO COMMUNITY MEMBERS THAT IS THE MOST EFFECTIVE WAY TO TALK TO COMMUNITY MEMBERS 'CAUSE THEY'RE NOT GOVERNMENT, SO WE VALUE THAT PARTNERSHIP.

IT IS A SCARCITY MODEL WHEREIN WHERE WE DON'T HAVE ENOUGH, AND IT'S AN UNCOMFORTABLE CONVERSATION.

DOES THAT AN-, I, I MEAN, JUST PROCESS.

WE DON'T KNOW. WE WILL SEE IN THE FALL.

- NOT TO GET OFF ON A TANGENT, BUT I'D REALLY SUGGEST THAT OUR, THAT WE PUSH CSAC TO PUSH FOR THIS ASSEMBLY BILL.

THE ASSEMBLY BUDGET, I MEAN.

- YEAH, THEY, THEY SENT A LETTER THIS WEEK REGARDING THE FRAME, VARIOUS FRAMEWORKS, AND THEY ARE IN FAVOR OF WHAT THE ASSEMBLY IS ASKING FOR.

AND SO WE'RE HOPING TO SEE SOMETHING CLOSE TO THAT,

[04:15:02]

- AND IF ANY OF OUR, UH, NONPROFIT PARTNERS, UH, HAVE A LEGISLATIVE ARM, UH, IT'D BE GOOD TO SUPPORT, LETTER OF SUPPORT TO THE GOVERNOR'S OFFICE FOR THE ASSEMBLY BUDGET AS WELL.

YEAH.

- SUPERVISOR DESERPA.

- THANK YOU. UM, THANKS RANDY FOR YOUR CANDOR.

IT'S A DIFFICULT, UH, YEAR.

UM, I THINK YOU'VE ANSWERED MY QUESTIONS REGARDING, UM, THE PENALTIES FOR IHSS.

I JUST DON'T UNDERSTAND W-, HOW THE STATE THINKS THAT THIS, THAT COUNTIES CAN AFFORD ANY MORE COST SHARING WHEN IT COMES TO IHSS, ESPECIALLY KNOWING, UM, THAT PEOPLE REALLY WHO ARE SO...

LIKE, YOU KNOW, FOR EXAMPLE, YOU KNOW THIS, BUT JUST FOR THE GENERAL PUBLIC, I MEAN, I SERVE THE 450 PEOPLE WITH QUADRIPLEGIA IN THIS COUNTY, MANY OF THEM LIVING AT HOME BECAUSE OF THE EFFORTS THAT MYSELF AND OTHERS MAKE, BUT THEY CANNOT LIVE AT HOME WITHOUT HELP.

THEY CAN'T. THEY CANNOT MOVE THEIR BODIES WITHOUT HELP.

SO, UM, AND I JUST THINK ABOUT PEOPLE WITH DEMENTIAS THAT ARE, MAYBE HAVE THEIR OWN LITTLE APARTMENT, BUT THEY REALLY RELY ON THEIR IHSS CAREGIVER TO GET THEM TO APPOINTMENTS, AND GO SHOPPING FOR THEM, AND TAKE THEM TO THEIR DOCTOR'S APPOINTMENTS, AND PICK UP THEIR MEDICATIONS, AND TH-, THESE, UH, PROGRAMS ARE JUST SO, UH, IMPORTANT.

OKAY. SO, UM, QUICK QUESTION FOR YOU, AND MAYBE YOU GUYS HAVE ALREADY COVERED THIS 'CAUSE I'VE BEEN GOOGLING DIFFERENT THINGS HERE.

BUT I, UM, THE, THE FEDERAL GOVERNMENT WITHHELD, LIKE, IS IT $1.3 BILLION? - YES.

- FROM MEDICAID. - OF MEDICAID OF WHICH 1.1 BILLION WAS CALIFORNIA IHSS MONEY.

UM, I DON'T WANNA BE TOO POLITICAL.

I'M NOT AN ELECTED, I'M TALKING TO ELECTEDS, BUT THIS IS A PATTERN OF BEHAVIOR OF THE CURRENT FEDERAL ADMINISTRATION TO POKE BLUE STATES.

THE EASIEST TRICK IN THE BOOK IS TO SAY FRAUD.

MEDICAID IS A VERY BIG, EXPENSIVE PROGRAM THAT THE CURRENT ADMINISTRATION DOESN'T LIKE TAXPAYERS' MONEY FUNDING AND SO THEY SAID, "WE ARE GONNA FREEZE 1.3 BILLION OF CALIFORNIA'S MEDICAID ALLOCATION," 1.1 BILLION IS IHSS.

SO THAT WILL PLAY OUT POLITICALLY.

- YEAH. OKAY. NEXT QUESTION.

WHY IS, WHY IS THE GENERAL, THE GA BUDGET GROWING? LIKE, THAT WAS A SURPRISE TO ME WHEN I SAW THAT.

IS THAT JUST BECAUSE WE'VE GOT A BUNCH OF, LIKE, PROMOTORES AND, UH, AGENCIES OUT THERE CONTACTING LOTS OF DIFFERENT PEOPLE AND THEN HELPING THEM GET SIGNED UP? OR WHAT DO YOU THINK, WHAT DO YOU ATTRIBUTE THAT TO? - I DO HAVE A THEORY.

UM, I WELCOME COMMUNITY MEMBERS AND THE TWO DIVISIONS THAT WORK WITH US MOST CLOSELY, AND THAT'S EBSD AND IRMA YOU JUST HEARD FROM.

BUT I ACTUALLY THINK ONE OF THE WAYS COUNTIES HAVE HISTORICALLY IN VERY DIFFICULT BUDGET TIMES, MANAGED GENERAL ASSISTANCE PROGRAMS, IS THEY HAVE MADE IT VERY, VERY HARD FOR PEOPLE TO GET ON AND STAY ON.

SO IT IS A VERY HIGH-BARRIER PROGRAM FOR A VERY COMPLEX POPULATION WHO, WITHOUT THIS CASH GRANT, DOESN'T HAVE INCOME.

- DOESN'T HAVE ANY INCOME, RIGHT? - NONE. I THINK IT IS...

- AND IT'S NOT A LOT OF MONEY, LET'S JUST PUT IT THAT WAY.

RIGHT? IS IT 300 OR $500 A MONTH OR SOMETHING? - IT'S CLOSER... IT'S TIED TO THE CALWORKS MONTHLY PAYMENT.

WHERE'S IRMA? YEAH.

THIS IS DUE TO A LAWSUIT OVER 30 YEARS AGO, AND WE HAVE THE HIGHEST CASH GRANT OF ANY BAY AREA COUNTY.

- HMM.

- AND IT'S STILL NOT ENOUGH.

BUT I THINK, TO BE CANDID WITH YOUR ANSWER, UM, THE LAST FIVE, SIX YEARS WE'VE HAD AN INFUSION OF MONEY AND WE STARTED THE HOUSING FOR HEALTH PROGRAM.

AND I THINK THE HOUSING FOR HEALTH PROGRAM AND ALL OF THE NON-PROFIT PARTNERS AND MANY, MANY CBOS HERE HAVE COME TOGETHER AND WE'VE WORKED VERY EFFECTIVELY TO NAVIGATE OUR OWN RULES, WHICH ARE VERY COMPLICATED, AND THE CASELOAD HAS GONE UP ABOUT 30%, AND THEREFORE, THE CASH GRANTS HAVE GONE UP A LOT, AND IT'S 100% GENERAL FUND.

SO WE ARE DOING THE RIGHT THING BY A VERY VULNERABLE POPULATION AND WE CAN'T AFFORD IT, HENCE WHY WE'RE COMING BACK TO YOU IN THE FALL TO TRY TO BALANCE LIKE, MAKE IT EASIER, LOOK AT WHETHER OR NOT WE CAN AFFORD THE HIGHEST CASH GRANT IN ALMOST ALL OF CALIFORNIA, AND THAT'S GONNA BE A, A DIFFICULT DISCUSSION AND WE'LL MAKE THAT A PUBLIC ONE.

BUT YES, OUR EFFECTIVE WORK WITH COMMUNITY PARTNERS, INTERNAL WITH HOUSING FOR HEALTH, WE HAVE GOTTEN MORE AND MORE PEOPLE ON.

- I THINK THERE'S A RULE WITH, LIKE, IF YOU, UM, ARE ELIGIBLE FOR A HOUSING VOUCHER, YOU HAVE TO HAVE SOME FORM OF INCOME, SO MAYBE THAT GA IS TIED TO THE, YOU KNOW.

[04:20:01]

YEAH. SO IRMA, DO YOU WANNA SPEAK TO THE HOUSING PIECE OF IT? - IT, YEAH, AS LONG...

- YEAH, AND JUST INTRODUCE YOURSELF, JIM, IN CASE THEY DON'T KNOW YOU.

- BUT I THINK THAT IS A, A REASON WHY, 'CAUSE WE'RE HOUSING PEOPLE, BUT THEY HAVE TO HAVE INCOME IN ORDER TO BE ELIGIBLE, I THINK, FOR THE VOUCHER.

- JIM DALE. I'M THE ASSISTANT DIVISION DIRECTOR FOR EMPLOYMENT AND BENEFIT SERVICES.

SO I DON'T, I CAN'T SPEAK TO THE VOUCHER PROGRAM.

I DON'T KNOW IF ROBERT MIGHT BE ABLE TO SPEAK TO THAT.

BUT THERE'S, THERE IS A HOUSING COMPONENT WITHIN THE GENERAL ASSISTANCE GRANT.

SO THE GRANT IS BROKEN DOWN INTO PERSONAL NEEDS AND HOUSING, AND SO A COMPONENT OF THE GRANT IS A HOUSING COMPONENT, AND THAT PUSHES THE GRANT TOTAL UP TO CLOSER TO $800 FOR A SINGLE PERSON.

SO ABOUT $500 FOR PERSONAL NEEDS AND FOOD AND THEN AN EXTRA, ROUGHLY, $300 FOR A HOUSING, UH, SUPPORT COMPONENT.

AND THAT, THAT HAS INCREASED IN, IN LINE WITH THE CALWORKS GRANT OVER S-, LAST SEVERAL YEARS.

AS THE STATE HAS REINVESTED IN THE CALWORKS GRANT, THAT'S ALSO SEEN AN INCREASE IN THE AMOUNT OF, UH, THE GRANT FOR CAL-, FOR GENERAL ASSISTANCE.

- OKAY. BUT, OKAY. THANK YOU.

UM, THIS LEADS INTO MY NEXT QUESTION, BECAUSE MOST PEOP-, S-, IN MY EXPERIENCE MANY PEOPLE THAT, UH, NEED, UH, GENERAL ASSISTANCE, UH, ARE PEOPLE THAT CANNOT WORK BECAUSE THEY HAVE SOME FORM OF A DISABILITY, AND THAT LEADS TO MY NEXT QUESTION ABOUT HDAP.

SO IF, UM, WE STILL HAVE AN HDAP PROGRAM, CORRECT? - CORRECT.

- YEAH. OKAY, BECAUSE HDAP IS A PROGRAM THAT HELPS PEOPLE WHO NEED IT APPLY FOR SOCIAL SECURITY DISABILITY.

AND IF AND WHEN IT'S FUNDED, TYPICALLY, IT GOES RETROACTIVE BACK TO THE DATE IT WAS APPLIED FOR, AND THERE IS A BIG LUMP SUM, AND SOME OF THAT COMES BACK TO THE COUNTY.

THE COUNTY GETS REIMBURSED FOR ALL THE GA.

SO I'M WONDERING, MY QUESTION IS, HOW ROBUST IS OUR HDAP PROGRAM SO THAT WE CAN ACTUALLY GET PEOPLE WHO DESERVE IT AND WHO ARE ENTITLED TO IT ONTO SOCIAL SECURITY? - JIM, I CAN GIVE YOU A PASS, UNLESS YOU WERE EAGER TO ANSWER THIS.

- WELL, MAY-, YEAH, MAYBE YOU'RE NOT THE RIGHT PERSON.

- I'M, I'M NOT THE RIGHT PERSON ABOUT HDAP, BUT I WOULD JUST SAY THAT, EVERY YEAR WE, WE ABSOLUTELY ARE FOCUSED ON, UM, APPLICATIONS FOR SOCIAL SECURITY INSURANCE AND THAT DOES OFFSET THE TOTAL COST OF GENERAL ASSISTANCE.

BUT HDAP IS A SPECIFIC COMPONENT AND A SPE-, SPECIFIC PROGRAM THAT I, I THINK OUR HOUSING FOR HEALTH WOULD BE MAYBE BETTER PLACED TO SPEAK TO.

- YEAH, YOU, YOU, YOU GAVE ME A SHOUT-OUT FOR BEING CANDID SO I'M GONNA KEEP BEING CANDID.

IT IS INADEQUATE.

IT IS SUPER COMPLICATED TO NAVIGATE THE FEDERAL SOCIAL SECURITY ADMINISTRATION, GET ON SSI.

IT HAPPENS SOMETIMES.

WE HAVE INVESTED IN A CONTRACT AT SENIOR...

SENIOR LEGAL SERVICES TO HAVE THEM HELP PEOPLE GET ON, AND PART OF WHAT WE'RE GONNA COME BACK TO IN THE FALL.

'CAUSE WHAT MOST COUNTIES HAVE DONE, WHO HAVE TRIED TO BALANCE MAKING THIS PROGRAM MORE HELPFUL, DEALING WITH THE BUDGET CONSTRAINTS, IF THEY INVEST MORE TO PAY FOR ITSELF LATER TO HELP PEOPLE GET ON SSI, UNLESS YOU'RE ON WHAT'S CALLED AN UNEMPLOYABLE TRACT.

WELL, IF YOU'RE EMPLOYABLE, THEN YOU DO MORE TO TRY TO HELP PEOPLE GET OFF OF GA AND, YOU KNOW, ON AN EMPLOYMENT TRACK.

AND IF NOT, YOU TRY REALLY HARD TO GET THEM ON SSI WITHOUT A LOT OF INTERVENTION, WHICH I THINK YOU KNOW, FROM ALL OF YOUR WORK EXPERIENCE, IS A VERY HARD...

SO I JUST WANNA BE CANDID.

IT'S NOT ROBUST OR ADEQUATE 'CAUSE WE DON'T HAVE THE RESOURCES AND THAT'S PART OF WHAT WE'RE GONNA TRY TO BALANCE WHEN WE COME BACK IN THE FALL WITH A PROPOSAL FOR CONSIDERATION.

- THIS A TOTALLY NITPICKY THING, BUT, UM, I'M SORRY, NITPICKY THING, BUT ON, UH, I, I LOOKED AT, UM, THE, THE CONTRACTS AND I SAW A CONTRACT WITH DOCTORS ON DUTY FOR DRUG SCREENS.

IT'S LIKE 200,000, NOT THAT MUCH.

BUT WHY AREN'T WE DOING THOSE WITH OUR COUNTY TO REDUCE THE COST OF THOSE? LIKE, WHY ARE WE PAYING SALINAS VALLEY TO DO OUR DRUG SCREENS WHEN WE COULD BE PAYING OUR OWN COUNTY? - I AM... I DON'T KNOW IF THE CAMERA'S ON ME, BUT I'M LOOKING TO MY TEAM TO SEE WHO HOLDS THE CON-, IT'S A CHILD WELFARE CONTRACT.

SO OUR, OUR CHILD WELFARE LEADERSHIP IS HERE, SO I, I DON'T KNOW IF YOU HAVE THE HISTORY, GLORIA OR CLAUDIA ABOUT HOW WE CONTRACTED WITH THEM, BUT...

- MAYBE 'CAUSE THEY'RE OPEN IN THE EVENING, OR, YOU KNOW, AND OUR C- AND OUR COUNTY CLINIC ISN'T.

BUT WHAT I HEARD IS THAT WATSONVILLE'S OPEN IN THE EVENING, AND MAYBE WE'LL BE OPEN IN THE FUTURE, BUT IT SEEMS LIKE WE SHOULD BE PAYING OUR OWN COUNTY INSTEAD OF PAYING DOCTORS ON DUTY.

- YEAH, THESE, UM... GLORIA CARROLL, CHILD WELFARE DIRECTOR.

THESE ARE LONG-STANDING CONTRACTS THAT WE RIGHT-SIZED TO MAKE THEM SMALLER BECAUSE WE WEREN'T, UM, USING THEM FULLY.

BUT WE CAN ABSOLUTELY OPEN IT UP AND DO A PROCUREMENT FOR IT, [CROSSTALK] UM, GOING FORWARD.

- YEAH, MAYBE JUST LOOK INTO IT. TALK WITH AMY PEELER.

- YES. - YEAH. - YEAH. - OKAY. THANKS, GLORIA. - YEAH.

- UM, OKAY. NEXT IS THE USE OF PER DIEM,

[04:25:02]

I KNOW IN THE PAST YOU'VE HAD EXTRA HELP IN, IN THE AGENCIES AS MAYBE YOU'VE HAD A SWELLING OR THERE'S AN EXTRA NEED.

UM, THAT'S A WAY TO KEEP COSTS DOWN, RIGHT? 'CAUSE YOU'RE NOT PAYING BENEFITS.

UH, I, I'M JUST WONDERING HOW OFTEN WE'RE EMPLOYING EXTRA HELP INSTEAD OF HAVING AN FTE? - SO, WELL, MY CANDOR IS WE'VE NEVER HAD ENOUGH FTES.

SO IT IS, HOW DO WE SUPPLEMENT THE BENCH, AND IT'S USUALLY WHEN WE HAVE ENOUGH REVENUE TO NOT HAVE TO COME TO THE BOARD TO HIRE ADDITIONAL FULL-TIME STAFF.

WE THEN SUPPLEMENT THE BENCH WITH EXTRA HELP, WHICH IS OFTEN RETIRED ANNUITANTS, OR YOU'RE CALLING THEM PER DIEM IN YOUR FORMER WORK.

I WILL TELL YOU ONE EXAMPLE OF WHERE WE'VE BEEN VERY HELPFUL IN DOING THAT, IS THAT, IS, IN THE IN-HOME SUPPORTIVE SERVICES PROGRAM.

THAT IS HOW WE, IN PART, GOT AHEAD OF THE FISCAL PENALTIES THAT STARTED THIS YEAR BECAUSE WE WERE ABLE TO, AND I THINK IF ALICIA'S STILL HERE, WE HAD FIVE, I THINK, FOUR OR FI-, WE HAD FIVE EXTRA HELP, SUPERVISOR DESERPA WHICH WERE PEOPLE WHO HAD WORKED IN THE IHS PROGRAM WHO WOULD BE ABLE TO BRING  ON BOARD.