Financial details scarce amid news of ongoing budget shortfall at Shasta’s largest agency
Health and Human Services Agency Director Christy Coleman offered scarce information about a budget deficit of many millions in the agency’s social services fund. The board’s discussion included a focus on federal and state issues without questioning the lack of information provided regarding the current shortfall.
Yesterday, illegal immigrants, the state of California and the Big Beautiful Bill were all blamed for financial issues at the county’s largest agency. The board’s wide-ranging discussion focused on almost everything but the specifics of the budget itself.
The conversation occurred after Health and Human Services Agency Director Christy Coleman presented to the board, broadly acknowledging a significant budget shortfall in the county’s social services fund without outlining details of what had led to it, falling back instead on generalities. She said the county’s cost for mandated services has risen by 16% over the last four years while the state’s reimbursement rate, through what is known as realignment funding, has risen by only 8.8% over the same time period.
HHSA’s chief fiscal officer, Vicki Thompson, did not address the board, but Administrative Branch Director Erinn Watts did, sharing only the vaguest of explanations for the budget shortfall.
“Cash flow remains a challenge,” Watts said, “due to the reimbursement structure of many of our revenue sources, as well as revenue not keeping pace with expenditures.”
Neither Coleman nor Watts mentioned the current amount of the budget shortfall in their comments to the board, but Supervisor Matt Plummer said after the meeting that the deficit has risen to $8.5 million in the last few weeks. The board’s agenda packet cited a much lower number of $4.2 million.
Amid mostly bad news, Coleman also delivered what she and board members saw as positive news about cost-cutting. She said HHSA has been able to reduce expenses by $1.4 million on average per month since October, although most of those cost-savings have resulted from a hiring freeze that has left positions vacant.
Coleman also shared potential future cost-saving measures with the board, most of which were focused on reducing labor costs, including a proposal for a mandatory monthly furlough day, which would equate to a 5% reduction in pay. Agency savings would amount to $3.7 million monthly.
Coleman said an email survey had been sent out to all HHSA staff, asking who would be interested in voluntary work schedule changes as a potential alternative to a mandatory agency-wide furlough approach. The email resulted in 220 positive responses with some employees expressing interest in moving to either half- or three-quarter-time schedules, or taking one or two voluntary furlough days each month. Based on survey responses, Coleman said, voluntary labor changes could result in an estimated savings of $1.5 million monthly. Board members expressed concern about what impact staff furloughs might have on services, something Coleman said she hoped to address by staggering furlough days.
County CEO David Rickert spoke briefly during the board’s discussion, applauding Coleman and Watts’ work and emphasizing caution with labor changes. He stated that HHSA budget shortfalls are mostly the result of state and federal issues while claiming that “a lot of other counties are in the same boat.” Coleman cited two counties, Yolo and Santa Clara, saying news articles shows those counties are also facing budget challenges.
The board eventually voted 4-1 for Coleman to present her labor-related cost-saving ideas to employee unions and then return to the board for further discussion this fall. The board also agreed to increase a loan of the county’s general fund dollars from $7 million up to $10 million and extend it through October, to help cover current cash flow shortfalls at HHSA. Coleman said it’s unknown whether HHSA will be able to pay back the loan funds in October, noting the pending county impacts of H.R. 1, also known as the Big Beautiful Bill.
Plummer cast the lone dissenting vote after asking the board to take more definitive steps to reduce HHSA costs quickly, something no other board members agreed to do.
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“The California State Association of Counties, which predicts dramatic increases to county costs to provide health care, dramatic losses to public hospital system revenue, and dramatic increases to workforce costs in counties across the state. The total anticipated cost to counties statewide is $6 billion to $9 billion.”
What? The whole state?
“When is the upper Administration going to see that Christy is just covering butt and she does not have the brain to do her job?”
Coleman said a decrease in the federal share of funds used to pay for CalFresh will result in a $1.2 million increase to Health and Human Services Agency costs in the 2027 fiscal year.
Any of you people who won’t use your names got a solution for this? What would Erin do?
🤣
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Because ‘Rent Free’ is such a real name, eh?
You are godawful at gaslighting. Stop
“You are godawful at gaslighting. Stop…”
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LMAO, ain’t that the truth! Nick thinks he is getting some good ones in when the reality is that they are just weak.
“When is the upper Administration going to see that Christy is just covering butt and she does not have the brain to do her job?”
Coleman also said that, between 2021 and 2025, Health and Human Services Agency costs increased 40% while revenues only increased 8%
How can you blame the supervisors? Crye Kelstrum and Harmon in particular.
You sound defensive.
It’s pretty funny that most of the people blaming California for our counties problems, probably also want the State of Jefferson which would cut us off from all of the help, they want.
Morons
Wait, you mean that the State of Jefferson and the militia aren’t going to help us out of this one?
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Dang it.
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Guess I’m going to just listen to local radio talkshows and complain. There’s a good program I listen to, small audience, but it is growing everyday. We’re up to about 10 listeners now!
What is also not mentioned in this discussion is that cuts to labor that is already underfunded and shortstaffed will ultimately lead to a greater budget shortfall. Starting in 2027(part of the BBB) states and therefore counties become responsible for a portion of the CalFresh benefits based on their error rate. The State’s error rate is currently 10.98 percent which would leave us on the hook for 10% or approximately 1.3 billion dollars. Decreases in staff can only lead to an increase in that rate which will lead to less federal money. Shasta county already suffers from chronic staff shortages largely due to paying a wage for lower than most counties for comparable work. Further cutting back on this is likely to lead to an even greater problem.
When is the upper Administration going to see that Christy is just covering butt and she does not have the brain to do her job??
She needs to be replaced with a more intelligent person. Her, not to be able explain the short fall is ridiculous and blame game is old.
If she can’t do the job it’s time to replace her…..
No one with knowledge is left in the department and vacant positions causes more work for everyone else, who are already stressed to the point retirement is looking better and better when the last 2 employees with the experience go that’s going to be fun to watch the department really go to 💩………
They had their chance to hire someone with the knowledge and experience needed bit they were an outsider and Mr. Crye wanted a yes person so he wanted and got Christy. They think the can plop anyone in these high positions and everything will be fine because anyone can do the job. I mean all you gotta do is look at Mr. Curtis and see what a wonderful job he is doing with no experience. Oh and how is your choice for County Council doing Mr. Crye?
OK, her we go again! As I have stated over and over, all of what Christie and Erin are expressing is a bunch of BS. Realignment has ALWAYS been less than Social Services expenses. The State and Federal reimbursement to help subsidize the realignment differences has been cut, mismanaged by upper management and/or not been billed out accordingly because of lack of knowledge by newer HHSA Admin Accounting staff that Erin has hired over the last four years. PERIOD. Since the time of Laura Burch’s hire, and her nepotism bringing on Christie Coleman, Erin Watts, and Trisha Boss, they have several times tried to force seasoned HHSA Admin accountants to adjust the way accounts are handled; whether that has to do with billing reimbursement or how programs are financially ran. Their lack of knowledge of budgets, their unwillingness to learn from seasoned accountants as to how budgets actually work, and their constant harassment of seasoned accountants has resulted in a mass exodus of said accountants; whether it be via retirement, transferring to different departments, seeking other jobs outside of the county or going out on stress leave after years of devotion to the county. Their mismanagement of funds and lack of knowledge has caused this problem today. None of said above accountants who see this in the news are surprised. But, once again, the Board of Services is going to sweep this under the carpet and not mention the SEVERAL Federal and State audits that HHSA are currently in or have been in over the last two years.
I’ve seen state audits and worked for one county that had to pay back millions. When was the last Shasta County Human Services audit by the state? I don’t have much faith the folks at human services know what’s going on when there’s such a decrepency between HHSA’s numbers and Matt Plummer’ number’s. I fear that soon the defects will be in the millions each month.
Can someone help out with background? A person hired as a HHS accountant raised red flags and was then promptly fired. About a year ago. That episode might explain the current mess.
They target a person they want gone no matter their experience or job performance.
And hound them to death until they quit or they fire them for some made up reason and nobody will stand with that person for fear of retaliation…
Steve – if we are talking about the same person – they went out on stress leave right before they were going to be fired for filing a Whistleblower complaint. And then, a year ago, had to take a forceable retirement due to medical issues.
HHSA staff have tried to raise red flags for years. Many people over multiple years have been listened, to and then patted on the head or pushed out the door. Line staff and management. So many are gone.
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Does anyone remember the guy hired to be CFO who seems to have lifted up too many rocks then dared to speak up, only to find himself unemployed?
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Does anyone remember the report that J. Disney (who joined Housing after Laura and Christy moved up to DCSS) contacted the State about an audit, only to find herself unemployed?
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Are the dots connecting yet? Anyone?
The person I remembered sounds like the CFO that you mentioned. As I vaguely recall, a very qualified person who was hired to assume a leadership position, asked some difficult questions and was then fired. All within a month or two. Does anyone recall a name and details?
Steve: This is the story I think you are referencing. https://shastascout.org/former-shasta-county-hhsa-chief-fiscal-officer-says-he-was-terminated/
Yes, that is the person. Thank you Annelise for the link. Sounds like the problem has just gotten worse but it’s been around for many years.
Christy Coleman said the county’s cost for mandated services has risen by 16% over the last four years while the state’s reimbursement rate, through what is known as realignment funding, has risen by only 8.8% over the same time period.
Erin “Cash flow remains a challenge,” Watts said, “due to the reimbursement structure of many of our revenue sources, as well as revenue not keeping pace with expenditures.”
Says it all
Even based on what you’re saying, Nick, would you agree that the county’s budget is, in fact, not balanced as Kelstrom stated in his campaign advertisement and as Crye has repeatedly claimed in recent discussions?
You’re certainly free to reinterpret or clarify their statements, but many of us are interested in hearing how those comments align with the facts being presented. When the evidence appears to be right in front of us, explanations and context matter.
Of course they’re scarce because we have a big local election coming up and the appearance that everything is rosey is paramount for two of the BOS candidates running the asylum. After the election we will really see what a mess Shasta County is in.
YES! We have to pass the bill to see what’s in it.
This is the manner of both parties. Remember the ACA (906 pages at the time & is currently at 20,000) was passed without anyone having read the full content. It was released to the legislature 48 hours prior to being voted on in 2009. This even after the Obama administration confirmed it was incomplete, would need revisions and some aspects would need to be removed but it had to get passed immediately or it would not be passed following the midterm elections. It is better to have a passed an act that is not developed than to fail at passing your signature legislation to uphold your legacy.