Board of Supervisors Approves Fiscal Year 2006 Carryover Review
Fairfax County Office of Public
12000 Government Center Parkway, Suite 551
Fairfax, VA 22035-0065
703-324-3187, TTY 711, FAX 703-324-2010
Sept. 11, 2006
Board of Supervisors Approves
Fiscal Year 2006 Carryover Review
Following a public hearing on Sept. 11, 2006, the Fairfax County Board of Supervisors took action on the Carryover Review for fiscal year 2006, which ended June 30, 2006. In addition, they made necessary carryover adjustments for fiscal year 2007, which began July 1, 2006. While FY 2006 revenues came in higher than anticipated, and disbursements were somewhat below the FY 2006 Revised Budget Plan amount of $3.17 billion, after netting out outstanding encumbrances, unencumbered commitments and net administrative adjustments associated with previously approved Board initiatives or other items of an emergency nature, as well as the required Managed Reserve adjustments, the County Executive’s recommended balance was $19.32 million or 0.6 percent of the total FY 2006 General Fund Disbursements budget. It was based on an additional $34.52 million in General Fund revenues, an increase of just 1.1 percent over the budget estimate, and a net savings of $16.35 million in expenditures after adjusting for outstanding encumbered and unencumbered obligations, partially offset by $31.55 million for necessary administrative adjustments.
Budget Committee Chairman Fairfax County Supervisor Sharon Bulova reminded the Board of the difficult days of the 1990s when property values plummeted and the scarcity of resources made it difficult to fund essential services. Mindful of the County’s slowing revenue growth, Bulova strongly reiterated the need to exercise fiscal caution and the Board concurred, setting aside $26.8 million in reserve for FY 2008. This amount included the addition of $5.0 million to the reserves in Fund 501, County Insurance Fund, to address future requirements, especially those associated with catastrophic events. The Board approved most of the County Executive’s proposed adjustments, particularly those related to needs identified during the FY 2007 budget adoption process such as providing $8.0 million to Fairfax County Public Schools; $0.5 million for an objective review and analysis of the Fairfax-Falls Church Community Services Board’s Mental Health Program; and $0.3 million for health care for unsheltered homeless persons, among other items (see Attachment A). They also made changes to the recommended adjustments including reducing the increase for fuel from $1.5 million to $0.5 million and eliminating $2.5 million in funding for the Providence District Community Center and Supervisor’s Office.
As part of the public hearing on the FY 2006 Carryover Review, the Board heard from a number of speakers, many of whom were concerned about the impact of the reduction of $10.4 million for the Child Care Assistance and Referral (CCAR) program. The Board of Supervisors recognized the precarious position it would put many struggling families in if the services for an estimated 1,700 children had to be terminated effective Oct. 15, 2006. Consequently, the Board directed staff from the Office of Children not to disenroll families receiving subsidized child care services through the CCAR program until funding issues are resolved since work is ongoing at the state level to identify resources that could potentially be used to address the shortfall.
The Board of Supervisors also chose to fund two consideration items including $1.0 million for the Huntington Watershed Flood Damage Reduction Study to be held in reserve pending the County Executive’s certification of the completion and County receipt of the U.S. Army Corps of Engineers’ analysis of the recent flooding in the Huntington community. The Board also directed the County Executive to aggressively pursue funding partnerships with the City of Alexandria, the Virginia Department of Transportation, the federal government, and other agencies that may share responsibility in causes and remedies for the recent flooding. In addition, the Board approved $50,000 in non-recurring funding to provide additional support for the County’s efforts to bring the 2013 Police and Fire World Olympics to Fairfax County. This is expected to generate considerable revenue through the thousands of visitors that would stay in local hotels, as well as eat and shop at County establishments.
The Board of Supervisors’ Final Motions on the FY 2006 Carryover Review follow. In addition, information is also available on the County’s Web site at www.fairfaxcounty.gov/dmb and by calling the Department of Management and Budget at 703-324-2391, TTY 711.
September 11, 2006
FINAL BOARD MOTIONS
FY 2006 CARRYOVER REVIEW
Board approval of the Carryover package including Supplemental Appropriation Resolution AS 07014 and Amendment to the Fiscal Planning Resolution AS 07900 with changes as detailed in (Attachment A), including administrative adjustments, with changes as noted, the establishment of reserves as outlined, the recommended consideration items (see Attachment B for details regarding consideration items) and adjustments to the Managed Reserve to maintain the reserve at two percent of total disbursements based on actions taken by the Board as part of the Carryover Review. As a result of these actions, and the addition of $5.0 million to the reserves in Fund 501 for County self-insurance requirements and liabilities, a reserve of $26.8 million has been identified to address future requirements including FY 2007 Third Quarter Review adjustments or FY 2008 Budget Development.
2. Recognizing the difficult situation in which the loss of subsidized child care services would put many of our struggling families and child care providers in, the Board directs staff from the Office for Children to not disenroll families currently receiving subsidized child care services through the Child Care Assistance and Referral (CCAR) program until state funding issues for this program are resolved. As the Board is aware, the State’s decision to reallocate the federal pass-through funds to address increased TANF/VIEW caseloads statewide is resulting in a loss of CCAR revenue of $10.4 million in FY 2007. As a result of this loss of CCAR funds, services for an estimated 1,900 children could be impacted. The County Executive’s proposed Carryover Budget estimated that 200 would leave the program through attrition, while services for an estimated 1,700 would be terminated effective October 15, 2006.
However, work is ongoing at the state level to identify resources that could potentially be used to address the shortfall and to refine the current allocation estimates based on availability of federal and state funding for child care. Providing more time for these issues to be resolved will also minimize the disruption for families. As a result, the Board instructs staff to not disenroll families from the program while we are awaiting resolution on the state level. The program should continue to contract through attrition. County staff is directed to return to the Board with this issue by October 23, 2006.
3. The Board directs that funding in the amount of $1.0 million for the
Huntington Watershed Flood Damage Reduction Study be held in reserve
pending the County Executive’s certification of the completion and County
receipt of the Army Corps of Engineers’ analysis of the cause of the
recent flooding in the Huntington Community. This information on causal
elements of the recent flooding incident is essential in determining the
appropriate improvement necessary to prevent or lessen the likelihood of
reoccurring flooding. In addition, the Board directs the County Executive
to aggressively pursue funding partnerships with the City of Alexandria,
the Virginia Department of Transportation, the federal government and
other agencies that may share responsibility in causes and remedies to
the recent flooding.
4. The Board understands that the Fire and Rescue Department has prioritized the permanent location of its Candidate‘s Physical Aptitude Test which is necessary to conduct annual Work Performance evaluation testing and candidate evaluations for the department. The Board of Supervisors authorizes the Fire Chief to fund necessary lease and renovation costs within funding available in his FY 2007 budget appropriation and subsequent annual budgets for this high priority requirement.
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