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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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.
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.
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.