SUMMARY - FY 2011 Local Funds Spending Pressures

As of March 22, 2011 ($ millions)
Appn Title/Agency A. Governmental Direction and Support Settlements and Judgments (ZH0) Subtotal, Governmental Direction and Support B. Public Safety and Justice Department of Corrections (FL0) $11.0 $11.0 Settlements and Claims - Unbudgeted settlements and claims for two mass demonstration settlements, and attorney and court-related fees. $11.0 $1.8 Increased pharmaceuticals spending. Reduction in the Corrections Trustee Reimbursement - The revenue $5.0 estimate will decrease due to inmates staying a shorter time in the Correctional Treatment Facility. $6.8 Low High Description

$11.0 $1.8 $0.0

Subtotal, Public Safety and Justice C. Public Education System University of the District of Columbia (GF0) DCPS (GA0)

$1.8

$3.5

$3.5 Community College - The combined operating costs for PR Harris and Backus Schools are estimated to be approximately $3.5 million. 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. $3.5 $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.

TBD

Subtotal, Public Education System D. Human Support Services Department of Healthcare Finance (HT0)

$3.5 $17.3

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. $8.4 Increase in residential placements. $29.7 $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. $7.4 $58.4

Department of Youth Rehabilitation Services (JZ0) Subtotal, Human Support Services E. Public Works WMATA (KE0)

$8.4 $25.7 $0.0

Subtotal, Public Works TOTAL SPENDING PRESSURES

$0.0 $42.0

FY 2011 Local Funds Spending Pressures ($ millions) As of March 22, 2011
Committee/Agency Description Low $3.5 High $3.5

Committee of the Whole
University of the District Community College - The combined operating costs for PR Harris and Backus Schools 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 under appeal. Exact pressure amount still to be determined. Total Committee of the Whole

TBD $3.5 $11.0

TBD $3.5 $11.0

Committee on Government Operations and the Environment
Settlements and Anticipated unbudgeted settlements and claims processing fees include: $8.0 million for 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 $1.8 $0.0 High $1.8 $5.0

Committee on the Judiciary
Department of Corrections Pharmaceuticals spending is forecasted at $3.8 million, which is $1.8 million over (FL0) current budget of $2.0 million. Correctional Treatment Facility (CTF) is funded by the Corrections Trustee 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 $17.3

Committee on Health
Department of Healthcare $6.5 million: Childless Adults under 200% of the Federal Poverty Level. As a result of 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. $17.3

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 $8.4 High $8.4

Committee on Human Services
The Department of Youth The Department of Youth Rehabilitation Services is projecting a spending pressure of Rehabilitation Services $8.4 million in FY 2011 due to an increase in residential placements. The budget for FY (JZ0) 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 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

$0.0

$4.0

$8.4 $0.0

$12.4 $7.4

Committee on Public Works and Transportation
WMATA (KE0) Potential increase in the WMATA subsidy: $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 TOTAL ADDITIONAL LOCAL FUNDS SPENDING PRESSURES

$0.0 $42.0

$7.4 $58.4

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