County Budget Analysis PA730: Managing Budget in the Public Sector

1. County Budget Analysis PA730: Managing Budget in the Public Sector Calaveras County Robin Havens

2. Where’s that? • Founded in 1850 • Population of 45,578 (United States Census Bureau, 2012) • Angels Camp the only incorporated city in the County

3. Is that the Jumping Frog Place? • Yes. Calaveras County was made popular by Mark Twain’s 1865 story, The Celebrated Jumping Frog of Calaveras County • Now, the Mission of Calaveras County is to: “…provide service, infrastructure, leadership, and vision necessary to advance a safe community, maintain a high quality of life, while preserving local history and culture, and to protect the personal liberties of all its citizens (County of Calaveras, California, 2011).”

4. Calaveras County: Auditor Controller

5. Introduction to FY2011 Budget • Line item format, July to June FY • No budget message or narrative • Some Priorities, Goals, Objects of note; • Avoid one-time budget solutions • Balance budget • Maintain costs by controlling personnel expenditures • Minimize general fund contributions to non-general fund programs • Avoids raising fees • Strive for a “healthy” reserve fund • Developing a high quality workforce that provides excellent customer service • Building public-private partnerships • Use technology to streamline processes and improve transparency, • Plan for capital improvements • Developing interdepartmental collaboration

6. Budget Process: Rebecca says… • “The priorities of the Calaveras County depend on localized issues that the Board of Supervisors may face.” • “Currently the priorities of the Board are Public Safety and completing the General Plan.” • “The largest reform was stripping the Board’s ability to make last minute changes in the budget.  • Line item Budget format a fit for their limited resources

7. Expenditure Last Five Years: Expenditure fluctuations due to Recession

8. Expenditure Last Five Years: Expenditure fluctuations due to Recession

9. Expenditure Last Five Years: Expenditure fluctuations due to Recession

10. Expenditure

11. Expenditure: General Department Totals FY2011

12. Revenue • Last 5 years: Also fluctuating with the Recession

13. Revenue

15. Revenue

16. Revenue

17. Revenue

18. Revenue

19. Reserve Fund • Budget Principle #9 of the Calaveras County FY2011 budget call for the County to, “Strive for "healthy" reserves and a 3 to 4% contingency fund” • Callen (2012) noted that the updated target is 5 – 10% or three months of operating funds. • Actual: $725,797.00 = 1% • Year-end general fund balance approach • A formal stabilization fund allocation would be a better fit for long term planning.

20. Evaluation Using GFOA Rating System • “Not Proficient” in all categories except Financial Summaries • Weaknesses: • No Budget Message • No time periods for goals in the Goals, Principal and Objectives • Funds not explained/connected to expenditures • No long-range financial planning • No performance measures or outcomes linked to budget • Strengths: • Details of fund appropriation, revenues and expenditures • Separate Capital Budget

21. Discussion • Weakness of FY2011 budget outweigh strengths • Budget provide the bare minimum required by the small county of Calaveras to function fiscally • No long-term planning or performance measures • Little interpretation • Especially difficult to track relationships between the revenue funds and their full or partial expenditure • Formal, rigid and uninviting • Why not provide level of detail in year-end financial report?

22. Discussion: Forecasting the Future • Smoother Board process with limits • Mid-year forecast of decline in property tax = cuts to FY2012 budget • Meager new local construction trends • Doubt about the stability of federal and state funding = continuing Board contention • Proposition 30 pass avoids trigger cuts to education and the courts

23. Recommendations • Description: Add a clear narrative that describes: 1) The economic context of the county 2) Lay out the interconnectedness and relationships between the budget structure elements 3) Depict year to year and long-term processes and changes with supporting graphics

24. Recommendations • Performance: Show how expenditures support Mission • “…giving the public a clearer view of what the results of government expenditure are and providing some assurance that government agencies are focused on performance and are being held accountable… (Mikesell, 2011, p. 258)” • Citizens could be further empowered to understand and support their county government by the addition of transparent performance budgeting measures.

25. That’s’ it…! So long from "Jim Smiley and His Jumping Frog"