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Human Services Agency previews roughly $700 million budget, says revenue strategies will cover mayor’s reduction targets
Summary
HSA Director Trent Rohrer told the Budget & Finance Committee the agency’s FY 2012–13 budget proposal is about $700 million and that the department expects to meet mayoral general‑fund reduction targets largely through revenue shifts (Community First Choice, Medi‑Cal eligibility alignment), contract savings and vacancy‑driven salary savings; the mayor’s office has not yet agreed to count the $5 million in Community First Choice revenue toward HSA’s target.
Trent Rohrer, director of the Human Services Agency, told the San Francisco County Budget & Finance Committee that the agency’s proposed budget for fiscal year 2012–13 is roughly $700 million and that funding is roughly one‑third federal, one‑third state and one‑third general fund.
Rohrer said about $240 million of the agency’s budget comes from the city general fund and estimated roughly $100 million of that is discretionary. He told the committee the mayor’s current‑year contingency for HSA is $2.5 million and that the reduction targets for FY 2012–13 and FY 2013–14 total $5 million in general‑fund savings.
“To the extent we meet our targets, we’re doing that largely through revenue,” Rohrer said, pointing to a federal option known as the Community First Choice program that could shift reimbursements for in‑home supportive services to federal and state funds. Rohrer said the state Department of Social Services has submitted an application to the Centers for Medicare & Medicaid Services and that approval could be retroactive; the department is conservatively not yet booking revenue for the current year.
Rohrer described other measures intended to meet targets without cutting services: drawing salary savings from more than 200 current vacancies, a proposed $500,000 position ‘‘flex down’’ that pauses automatic position increases, capturing some contract savings the agency says historically appear after year‑end closeout, and a mayoral directive to reduce general‑fund FTE by about 1% (roughly seven positions for HSA).
The agency also outlined administrative changes that could generate revenue. Rohrer said HSA is exploring merging eligibility determination for county adult assistance with Medi‑Cal eligibility work so the administrative function can draw federal/state reimbursements — an approach Rohrer estimated could save the county more than $1 million. He also flagged an expected caseload increase when single adults 19–64 become eligible for Medi‑Cal under federal healthcare reform and said the department is examining business‑process and technology changes to manage higher volumes without large new staffing commitments.
Rohrer told supervisors the JobsNow subsidized employment program is proposed at about $7 million per year; the program has placed roughly 1,037 participants this year, including about 217 private‑sector placements, and the agency’s internal tracking shows about a 45% retention rate after the subsidy ends. Rohrer said AB 98 allows creative use of CalWORKs funds to help pay wages that support the program.
Supervisors raised several operational questions. Rohrer said the department’s CAP office at 1235 Mission carries an annual lease cost the agency estimates at about $1,250,000 in general fund; through consolidation and technology the agency is exploring closing that lease and moving services into existing HSA facilities. In response to Supervisor Cohen, Rohrer said a recent Facilities Commission decision to reprogram space at 1800 Oakdale could force HSA to find replacement space in the Southeast sector, and staff estimated market rent increases could add several hundred thousand dollars (staff cited a preliminary estimate of $500,000–$600,000) to HSA costs if relocation is required.
Several speakers cautioned that the mayor’s budget office had not yet agreed to allow HSA to count the Community First Choice revenue toward its target. Cindy Serwin of the mayor’s budget office said discussions were ongoing and the administration continued to look for additional savings across departments.
During public comment, Ken Raggio of Episcopal Community Services, speaking for provider networks, thanked the department’s revenue approach but warned that the committee should not lose sight of the consequences if revenue is not approved. Raggio cited alternative‑plan numbers discussed by providers — including cuts in the range of several hundred thousand to a million dollars to shelter and supportive housing programs — and said such reductions would be “nothing short of disastrous.”
The committee continued the item to the call of the chair for further action. The mayor’s office and the department continued budget negotiations ahead of the formal June budget submission.
