COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

MAY 7, 1996

 

ATTENDANCE:

 

B& A MEMBERS: Swanson, Wishnie, Delfino, Young, LaMotte, Darcy, Abinanti

 

OTHERS: C.E.’s Office: Gina Angiulo, Jamie Hastings; Budget Dept.: Joe Phelan, Leslie Bennett; LWV: Ann Nelson; CBAC: George Hosey, Barbara Strauss; Legislator Carsky; BOL: Dan Rodriguez, Robert J. Boland, Glenn Guzi, Tina Seckerson

 

 

Co-Chairs Swanson and Wishnie called the meeting to order at 1:50 p.m.

 

DISCUSSION: (There is a cassette tape on file for more detailed information):

 

Year End Transfers (1995):

 

  • Savings on expenditures of $31 million
  • Savings in DSS relief accounts of $14.4 million (net)
  • Savings were made in salaries (RIF-savings of $1.4 million; exceeded target)
  • Co-Chair Swanson asked how much of the salary savings were due to people not hired by the Health Department? Mr. Phelan will get back to the Committee with this information.
  • OPS- shortfall of $690,000 due to overtime at the Department of Corrections; County Clerk is $216,000
  • Workers Compensation Fund - shortfall of $1,950,000
  • Mr. Boland asked if the 1996 budget contains any provision for this shortfall. Mr. Phelan responded that there is a shortfall posted against 1996 accounts for this fund. Mr. Boland stressed his concern that we will be faced again in 1996 with a shortfall in the Workers Compensation fund.
  • Mr. Boland noted that Cooper’s & Lybrand picked up the fact that we have not been reserving assessments. He stressed his concern with the auditors who did the audit report (DeLoitte & Touche).
  • Mr. Phelan cautioned that the discussion of 1995 should not be mixed with 1996. He stated that on a GAAP basis the number has been reduced to a $1.3 million delta and will be closed out in a future year. He stated that 1995 and prior years stand on their own.
  • Mr. Abinanti stated that 4 years ago Mr. Boland stated that the 6J fund was underfunded and he now sees that it is true. Mr. Phelan responded that this fund has never been run on a deficit basis; there is no cash deficit. He continued that there is a misconception that we are required to fund this on a full GAAP basis.
  • Mr. Wishnie asked for the GAAP deficit in 1994 and 1995 with relation to the Workers Compensation Fund.
  • Mr. Abinanti summarized that at the present time we have $7 million worth of charges that will have to be paid sometime in the next five years. If they all were to come payable immediately we would have a $1.3 million deficit. Mr. Phelan agreed and indicated that circumstance was not likely. Mr. Boland corrected the liability number which, at present value, is $11.5 million.
  • Mr. Phelan stated that the bottom line is that there is a positive fund balance based on an accrual basis.

 

COMMITTEE ON BUDGET & APPROPRIATIONS

MINUTES - MAY 7, 1996

PAGE 2

 

 

  • Mr. Wishnie summarized that what the Committee has heard is that after the transfers there will be a $1.3 million deficit (not a cash deficit). He continued that Mr. Boland has stated his concern that part of the deficit was built over time due to the auditors failure to build up assessments.
  • Mr. Phelan stressed that all liabilities have been accounted for.
  • It was asked why not make this whole all at once. Mr. Phelan responded that we don’t have to and feel it is more beneficial to stabilize the fund balance between 1994 and 1995.
  • Positive result in sales tax: $886,000 exceeded collections against the budget.
  • Mr. Phelan will provide the detail on the Departmental revenue shortfall of $1.6 million. Mr. Abinanti stated that he remembered that a big part of this is due to the County Clerk’s Office. Mr. Phelan agreed. Mr. Abinanti stated that the County Clerk’s Office is costing the taxpayers $1.5 million for 1995. Mr. Phelan stated that the County Clerk’s Office required more tax levy because corrective action was taken in 1996. The County Clerk’s revenue was down $1.3 million and therefore over budget by $1 million.
  • Mr. Delfino asked what the Budget Department does with regard to corrective measure when it becomes apparent that a department is overspending and thus creating a shortfall in their annual budget.
  • Co-Chair Wishnie requested a list of the roll-forwards.
  • Education and transportation: there has been an increase in 1,000 enrollees. In 1994 the state promised an increase of reimbursement from 50% to 55% to 59% - we never received it. Mr. Phelan stated that cumulatively the state owes us $19 million.
  • Mr. Abinanti stated that the Budget Department should have been coming back to the Board periodically all last year if the Board and Administration are indeed a partnership as Mr. Phelan stated. Mr. Phelan stated that they would have loved to come back to the Board but this could not have been predicted and was late breaking news.
  • Legislator LaMotte suggested that as Legislation Committee Chairman Mr. Abinanti might want to take this in a different direction; go back to Albany to change the program to make it more reasonable.
  • Restricted fund balance $2.6 million based on the auditors findings that the State will not reimburse the County on a timely basis for the Education and Transportation Program. Therefore, the auditors recalculated the receivable down from 59% to 50%. This adjustment represents $2.6 million. The auditors findings are based on the State’s historical commitment to the program.
  • Mr. Phelan stated that they have accrued all of the 1995 labor contracts to year end 1995, therefore, no 1995 charges will hit against 1996.
  • Legal Services: there is a billing lag that requires a transfer of $300,000.
  • Corrections: budgeted $3.2 for overtime; projected last year at end of first quarter of $8 million; took corrective action in 1995 and year end number turned out to be $2.1 over budget.
  • Mr. Abinanti requested a new budget detail sheet for the County Clerk’s Office. Mr. Phelan will provide.
  • Due to time and the fact that there were other committee meetings discussion of the transfers will be continued at another meeting.

 

There being no further items for discussion, on motion of Legislator Abinanti, seconded by Co-Chair Swanson, the meeting was adjourned at 3:15 p.m.