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Board authorizes up to $10.5 million in general‑fund support to cover Social Services cash‑flow gap
Summary
Health and Human Services officials warned of a cash‑flow shortfall driven by rising entitlement costs and timing of reimbursements; the board approved a temporary general‑fund backstop while staff pursue longer‑term projections and savings.
The Board of Supervisors voted unanimously March 18 to let the county temporarily cover negative cash in the Social Services fund (Fund 140) with general‑fund loans up to $10.5 million while Health and Human Services awaits incoming state and federal reimbursements.
Erin Watts, HHSA branch director, told the board that entitlement program costs — including CalWORKs, CalFresh, foster care and in‑home supportive services (IHSS) — have been growing and that claims and reimbursements are received prospectively. County staff also received a large IHSS maintenance‑of‑effort invoice covering July–February that contributed materially to the current cash‑flow pressure. Watts said the department is pursuing internal cost reductions where possible and will re‑establish forecasting tools to produce multi‑year projections.
“Between fiscal years 2021 and 2024, expenditures rose roughly 21.8% while revenue increased by only about 15.6%,” Watts said, summarizing the structural gap. “This request is for temporary support while we await incoming revenue and implement immediate expenditure controls.”
Auditor‑Controller Nolda Short explained the board’s options and warned that failing to pay mandatory invoices could trigger state recoupment and would risk future credit and cash‑management issues. She recommended a short‑term general‑fund infusion to avoid interruptions to mandated programs.
Supervisor Mike Plummer asked for a five‑year projection and a clearer reconciliation between budgeted amounts and actuals; the board directed staff to return with multi‑year scenarios and options for reducing the structural gap during the county’s budget cycle. The board voted 5‑0 to authorize the temporary general‑fund support and to require staff reporting back with projections and potential policy options.
The loan is expected to be repaid as HHSA submits claims and receives reimbursements; staff said they will provide periodic updates and present a detailed plan during the budget hearing process.
