SUMMARY - FY 2011 Local Funds Spending Pressures

As of March 22, 2011

($ millions)

Appn Title/Agency Low High Description

A. Governmental Direction and Support
Settlements and Judgments (ZH0) $11.0 $11.0 Settlements and Claims - Unbudgeted settlements and claims for two mass
demonstration settlements, and attorney and court-related fees.

Subtotal, Governmental Direction

$11.0 $11.0
and Support
B. Public Safety and Justice
Department of Corrections (FL0) $1.8 $1.8 Increased pharmaceuticals spending.
Reduction in the Corrections Trustee Reimbursement - The revenue
$0.0 $5.0 estimate will decrease due to inmates staying a shorter time in the
Correctional Treatment Facility.

Subtotal, Public Safety and Justice $1.8 $6.8

C. Public Education System

University of the District of Columbia $3.5 $3.5 Community College - The combined operating costs for PR Harris and
(GF0) Backus Schools are estimated to be approximately $3.5 million.

DCPS (GA0) TBD TBD Arbitration Ruling - Arbitration ruling against the District for dismissal of
75 teachers. Ruling is currently under appeal. Exact pressure amount still to
be determined.

Subtotal, Public Education System $3.5 $3.5

D. Human Support Services
Department of Healthcare Finance
(HT0)
$17.3 $17.3 1. $6.5 million: fewer people transitioned from Alliance to Medicaid; delay
in converting the 133% – 200% FPL group to Medicaid; and total Childless
Adult population (Medicaid and Alliance) exceeds the budgeted count.
2. $5.1 million: four savings initiatives have been delayed.
3. $3.7 million: Stevie Sellows assessment will not be received due to
ICF/MR appeals.
4. $2.0 million: unexpected fee-for-service spending growth.

Department of Human Services (JA0) $0.0 $4.0 Residency verification audit - Preliminary audit findings which include
District Medicaid beneficiaries residing in Maryland and District
beneficiaries whose place of residence could not be determined.

Department of Youth Rehabilitation $8.4 $8.4 Increase in residential placements.

Services (JZ0)
Subtotal, Human Support Services $25.7 $29.7
E. Public Works
WMATA (KE0) $0.0 $7.4 Potential increase in the WMATA subsidy - due to increase in WMATA's
budget; audit adjustment for FY 2010 expenditures above budget; and fare
reductions east of Anacostia.

Subtotal, Public Works $0.0 $7.4

TOTAL SPENDING PRESSURES $42.0 $58.4
 FY 2011 Local Funds Spending Pressures
($ millions)
As of March 22, 2011

Committee/Agency Description Low High

Committee of the Whole
University of the District Community College - The combined operating costs for PR Harris and Backus Schools $3.5 $3.5
of Columbia (GF0) are estimated to be approximately $3.5 million.

DCPS (GA0) Arbitration ruling against the District for dismissal of 75 teachers. Ruling is currently TBD TBD
under appeal. Exact pressure amount still to be determined.
Total Committee of the Whole $3.5 $3.5
Committee on Government Operations and the Environment
Settlements and Anticipated unbudgeted settlements and claims processing fees include: $8.0 million for $11.0 $11.0
Judgments (ZH0) two mass demonstration settlements and $3.0 million in attorney and court-related fees.
(managed by the Office of
Risk Management (RK0))

Total Committee on Government Operations and the Environment $11.0 $11.0

2
 FY 2011 Local Funds Spending Pressures
($ millions)
As of March 22, 2011

Committee/Agency Description Low High

Committee on the Judiciary
Department of Corrections Pharmaceuticals spending is forecasted at $3.8 million, which is $1.8 million over $1.8 $1.8
(FL0) current budget of $2.0 million.
Correctional Treatment Facility (CTF) is funded by the Corrections Trustee $0.0 $5.0
Reimbursement SPR Fund. The revenue estimate has decreased from $25 million to $19
million due to inmates staying a shorter time in the CTF. This shortfall is partly offset
by savings due to fewer inmates being housed at the CTF.
Total Committee on the Judiciary $1.8 $6.8
Committee on Health
Department of Healthcare $6.5 million: Childless Adults under 200% of the Federal Poverty Level. As a result of $17.3 $17.3
Finance (HT0) recent program expansions made possible by the passage of the Affordable Care Act at
the federal level, DHCF now covers Childless Adults with incomes at or below 200% of
the federal poverty level (FPL) through Medicaid. Shortfall is due to: 1. Fewer people
transitioned from Alliance to Medicaid. 2. Delay in converting the 133% – 200% FPL
group to Medicaid. 3. Total Childless Adult population (Medicaid and Alliance) exceeds
the budgeted count of 59,360 childless adults under 200% of FPL for the affected
programs. The actual enrollment was 63,018 in total across the affected programs,
which is an increase of 3,658 or 6%. $5.1
million: Most of the savings initiatives in the FY 2011 budget are on track; however,
four initiatives that were supposed to take effect October 1, 2010 have been delayed,
thereby reducing the achievable savings.
$3.7 million: The FY 2011 budget assumed that DHCF would receive $3.7
million in dedicted tax revenue from a tax assessment of ICF/MRs. The ICF/MRs have
appealed the assessment and the $3.7 million of revenue to support the budget will not
be collected.
$2.0 million: unexpected fee-for-service spending growth.

Total Committee on Health $17.3 $17.3

3
 FY 2011 Local Funds Spending Pressures
($ millions)
As of March 22, 2011

Committee/Agency Description Low High

Committee on Human Services
The Department of Youth $8.4 $8.4
Rehabilitation Services The Department of Youth Rehabilitation Services is projecting a spending pressure of
(JZ0) $8.4 million in FY 2011 due to an increase in residential placements. The budget for FY
2011 was formulated to support a committed youth population of 820 youth. To date,
the average committed population is 1,028 youth, with a total FY 2011 projected
increase to 1,052 youth.
Department of Human The Department of Human Services has a potential spending pressure of $4.0 million $0.0 $4.0
Services (JA0) due to preliminary audit findings which include District Medicaid beneficiaries residing
in Maryland and District beneficiaries whose place of residence could not be determined.

Total Committee on Human Services $8.4 $12.4

Committee on Public Works and Transportation
WMATA (KE0) Potential increase in the WMATA subsidy: $0.0 $7.4
$3.1 million: WMATA's proposed FY 2012 budget increased by $23.5 million
(including audit adjustments). Because of the difference in fiscal years, the District's 4th
quarter subsidy will be $5.1 million, $3.1 million above the budgeted amount.
$2.9 million: WMATA's FY 2010 audit reflected $2.9 million of expenditures above the
subsidy.
$1.4 million: Increase subsidy requirement due to fare reduction east of the Anacostia
river.

Total Committee on Public Works and Transportation $0.0 $7.4

TOTAL ADDITIONAL LOCAL FUNDS SPENDING PRESSURES $42.0 $58.4