Process

The Board of Health convened a budget ad hoc committee that met on 10/4, 10/16, and 10/30. The committee reviewed proposed revenues and expenditures and gave instruction to staff regarding budget parameters and direction. The parameters, direction, and factors that went into the budget recommendation included:

1. Pending Rucker Building task force recommendation

2. Foundational Public Health Services in the upcoming legislative session

3. No increase in fees

4. Propose a balanced budget

5. Avoid staff reduction

6. Provide the Board with a menu of options.

Proposed Operating Budgets

The budget presented at the Oct. 30 ad hoc had a deficit of $389,752. The committee made tough decisions and settled on a balanced budget recommendation to the Board. However, Board members challenged staff to look for more savings. In response to this challenge, staff convened and took an extremely hard and detailed look at the budget and developed a menu of proposed savings in a second budget option which was presented at the Nov. 6 Board of Health meeting.

Subsequent to the November Board of Health meeting, the Health District was informed of additional revenue reductions. Staff worked with members of the Executive Committee to rebalance the budget. Exhibit A is a balanced budget that incorporates the revenue reductions.

Components of the 2019 proposed budget include:

1. Total expenditure reduction of $1.1 million from 2018, $682,633 of which is non-labor

2. Elimination of 7.8 FTE vacant positions

3. Elimination of 3.0 FTE occupied positions

4. Discontinue 1.0 FTE grant funded healthy community specialist (was set to expire 12/31/18)

5. Discontinue public health accreditation

6. Moratoria on out-of-state travel by SHD employees unless required by grant or contract

7. Conduct a financial performance audit in the first half of 2019

8. Develop a new budget format and budget calendar process for 2020 and beyond

9. Hiring freeze.

Proposed Capital Budget

The Rucker Building task force met on Dec. 7 and recommended the Board approve a Capital Budget of $500,000 in order to effect necessary safety and health assessment and repairs. The recommendation is to fund the capital budget from unreserved fund balance.

Consistent with Resolution 11-36 (12/13/11) and SHD’s “Division of Responsibilities,” the Board of Health sets guidance and approves the budget.

MOVE TO approve Res. 18-27 adopting the 2019 budget.