Social Services

At the conclusion of the legislative session, the issue of lost VLF money was not taken up by lawmakers, so Orange County’s fight for $48 million continues. The state grabbed the VLF revenues from local governments under SB 89 and Orange County officials warn that without such funds, as many as 250 county employees could lose their jobs. In addition, cuts to critical public health programs including community clinics and social services may be necessary. Consequently, Orange County has now reportedly hired the law firm Best, Best & Krieger to pursue whatever legal options the local government may have to reclaim the $48 million. Supervisor Shawn Nelson commented that “We want to find a way to get all or at least some of the money back. But no one is itching to pick a fight with the state Legislature just to pick a fight.” The OC Register provides background on the county’s budget dilemma:

“County supervisors in June approved a $35 million increase in spending as part of the $5.6 billion 2011-2012 budget. The 2.7 percent spending boost came at a time when many other counties were making drastic cuts and laying off employees to survive rough economic times. Hours later, Orange County lawmakers got word that the state budget proposal was targeting $48 million that Orange County receives from California vehicle license fees as part of a guarantee while the county pays off its bankruptcy debt. What was a balanced budget suddenly threatened to be $48 million in the hole. To put it in perspective, the county would have to make a 5.48 percent cut across the programs it pays for to make up the $48 million.”

On September 20th, the Board of Supervisors will hear from the firm about its options. Vice Chairman John Moorlach had strong words about the loss in VLF revenue, stating that “It’s a dysfunctional relationship where we are a subdivision of the state and the state decides when and if it wants to pay us for the services rendered. Now do we not only have nonpayment but we have theft.”

And on a related note, Supervisors out in Riverside County have commented that the cities of Menifee, Wildomar, Eastvale and Jurupa Valley will need help because the loss in VLF revenues means the state’s newest cities will struggle to find their footing. Supervisor Marion Ashley recently stated that “We're all in this together and have to work this out together. These cities are losing a tremendous amount of funds. Will they be able to survive, or will they disincorporate and come back to the county? We're going to have to engage in discussions with each city and evaluate their status.” Collectively these cities will lose $14 million. For more, see here.

The Mendocino County Board of Supervisors, as well as most city councils and school boards in the county, are supporting a one-eighth cent sales tax that will support the area’s struggling library system by raising $1.3 million annually in revenue. Voters will get a chance to have the final say in November and two-thirds approval will be necessary if the sales tax increase is going to be implemented. If the tax is approved, it would sunset after 16 years. Supporters hope it will pass because the library system has a $160,000 shortfall. The Ukiah Daily Journal reports on the severity of the system’s finances:

“The library has since cut hours and jobs, and exhausted its reserve to avoid operating in a deficit, according to Mendocino County Librarian Melanie Lightbody. With the impending threat of more state funding cuts next year, Lightbody estimates the shortfall over funding two years ago is closer to $600,000. The portion of local property taxes that went to the county library system in the 2010-11 fiscal year was just more than $1.2 million, according to Mendocino County Auditor-Controller Meredith Ford.”

As it currently stands, many of the county’s libraries are only open for 3 days a week and there has been a 43% decrease in hours since 2007-08. Warnings have been issued that if voters don’t approve the sales tax measure, simply more cuts will have to be made or branches may have to be closed.

Back in March, the governing board of Alameda County’s Associated Community Action Program, referred to as ACAP, voted to dissolve the program, as it could not meet its payroll costs and the former executive director and grants manager were on administrative leave due to grave concerns about mismanagement and abuse of funds. Now the extent of that mismanagement has come to light thanks to a county audit of the now-dissolved organization. Perhaps most alarming are the highly suspect expenses, as reportedly funds were used on alcohol, massages, and questionable travel. The misuse of grant money is one of the findings that led to the dissolution of the countywide assistance program. The Oakland Tribune reports that oversight issues were problematic as well:

“The audit of the Associated Community Action Program, commonly called ACAP, also confirms what former employees had asserted -- a complete lack of oversight by the program's governing board. That board was made up of one county supervisor and one elected official from every city in the county, excluding Berkeley and Oakland. […] The audit states that there was ‘significant noncompliance with laws and regulations’ concerning the program's contracts and grant agreements, and that ACAP's accounting records were incomplete.”

The governing board of the program had 13 members and while it was supposed to meet every 90 days, during 2010 it only met twice. In addition, fiscal mismanagement was discovered in audits in 2008 and 2009, but another audit was not scheduled for 2010, even though one was supposed to take place every year. The Tribune also points out that “the county and the 12 cities that participated in ACAP agreed to pay $1.9 million to former employees for back wages and to cover legal costs as the program winds down.”

Los Angeles County’s Department of Children and Family Services has been plagued by a stream of problems, such as case management errors that reportedly led to the deaths of over 70 children due to abuse or neglect. Concerns about the welfare of children led to a probe that was initiated by the Legislature; however, the board of supervisors has decided to defy a subpoena for records that involved the deaths of children. A state auditor is now warning the county that withholding the records is a crime, but the county is arguing that certain documents cannot be handed over due to attorney-client privilege. The county has provided some records and social workers have been interviewed about cases. The investigation extends to other counties as well, namely Alameda, Fresno and Sacramento; however, officials from these counties have provided the requested records. In response to L.A’s stance, the Times reports:

“As a result, state officials said they would be forced to issue an audit that addresses only the three other counties while they fight for access in Los Angeles. ‘But make no mistake, we will not relent in accomplishing our mission of performing the audit that we were directed to perform by the Legislature,’ wrote Sharon Reilly, chief legal counsel for state auditor Elaine Howle, noting that her office now intends to investigate Los Angeles even more deeply and broadly. In order to do so, the state withdrew the subpoena for Los Angeles County documents in early July and is crafting a new one.”

The state will likely take the county to court in order to enforce the subpoena. Supervisors are apparently fearful that disclosure could lead to further litigation over failing to provide proper child welfare services. The County’s attorney, Daniel P. Barer, wrote a letter to the Times about the local government’s stance on the subpoena, which can be read here.

Los Angeles County’s Department of Children and Family Services has been plagued by a stream of problems, such as case management errors that reportedly led to the deaths of over 70 children due to abuse or neglect. Concerns about the welfare of children led to a probe that was initiated by the Legislature; however, the board of supervisors has decided to defy a subpoena for records that involved the deaths of children. A state auditor is now warning the county that withholding the records is a crime, but the county is arguing that certain documents cannot be handed over due to attorney-client privilege. The county has provided some records and social workers have been interviewed about cases. The investigation extends to other counties as well, namely Alameda, Fresno and Sacramento; however, officials from these counties have provided the requested records. In response to L.A’s stance, the Times reports:

“As a result, state officials said they would be forced to issue an audit that addresses only the three other counties while they fight for access in Los Angeles. ‘But make no mistake, we will not relent in accomplishing our mission of performing the audit that we were directed to perform by the Legislature,’ wrote Sharon Reilly, chief legal counsel for state auditor Elaine Howle, noting that her office now intends to investigate Los Angeles even more deeply and broadly. In order to do so, the state withdrew the subpoena for Los Angeles County documents in early July and is crafting a new one.”

The state will likely take the county to court in order to enforce the subpoena. Supervisors are apparently fearful that disclosure could lead to further litigation over failing to provide proper child welfare services. The County’s attorney, Daniel P. Barer, wrote a letter to the Times about the local government’s stance on the subpoena, which can be read here.