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AI- 3324   12. B. 3.    
BOC Regular
Meeting Date: 09/17/2020  
PA2 Budget for FY20/21
Submitted For: Kelli Scott
FROM: Kelli Scott, Administrator/Controller, Administration
Department: Administration  

Information
RESOLUTION:

Resolved the Calhoun County Board of Commissioners does hereby approve the Calhoun County PA2 Alcohol Tax Budget for Substance Abuse Prevention and Treatment services for FY20/21 in the amount of $393,699 in expenses.

RECOMMENDATION:
Administration recommends approval of the Calhoun County PA2 Alcohol Tax Budget for Substance Abuse Prevention and Treatment Services for FY20/21 in the amount of $393,699 in expenses.
BACKGROUND:
The PA2 Alcohol Tax budget, together with State Block Grant funds through the Michigan Department of Health and Human Services (MDHHS), supports residential and outpatient treatment, and prevention services for Calhoun County residents to address and prevent substance use disorders. Oversight of the programming is provided by our coordinating agency, Southwest Michigan Behavioral Health (SWMBH), who contracts directly with the provider agencies in Calhoun County and other counties within parameters and budgets approved by the County Boards of Commissioners.

The PA2 revenues for Calhoun County residents are budgeted at $332,415 for FY20/21, based on the estimated level of alcohol tax receipts from the State.  The County's beginning balance in available funds from prior year(s) carryover is estimated to be $345,593.

The expected level of PA2 revenues for FY21 as forecast by the State Department of Treasury is approximately even with the FY20 final estimate.  The County is required to forward half of these revenues to SWMBH for substance use programs.  Next year's revenues will remain at approximately 50% less than the annual amount we had received until the sunset at 12/31/15 of legislation calling for a 4% liquor tax that was distributed to counties across the state since 2008.

It has been necessary to start to substantially reduce our baseline PA2 budget starting with FY19/20 and again in FY20/21 so that it is at a sustainable level based on expected future PA2 revenues and the need to maintain a responsible carryover reserve balance.  This reduction will negatively impact the County's treatment providers, including the Calhoun County Courts' Sobriety and Drug Treatment Courts. Calhoun County's PA2 budget for future years is expected to remain at approximately $300,000-$350,000 per year based on actual receipts.

The proposed budget for FY20/21 continues to provide some funding for the 37th District Circuit Drug Treatment Court, the 10th District Drug Sobriety Court, and the 10th District Veteran's Court programs, as well as treatment services in the County's jail and juvenile home.

Summit Pointe is included in the FY20/21 PA2 budget as provider for the County's juvenile home and jail program treatment services. The Haven of Rest Ministries Life Recovery Programs are also included again for FY20/21 PA2 funding.

The proposed PA2 budget was developed in a collaborative process, with input from SWMBH and its Substance Use Disorder Oversight Policy Board (SUDOPB), including Commissioners Kathy-Sue Vette and Gary Tompkins representing the Calhoun County Board of Commissioners, and requests from substance abuse providers.  

The SUDOPB met on September 9, 2019, and approved Calhoun County's proposed PA2 budget as presented.




 
ALTERNATIVES:
The Board must approve the PA2 budget for SWMBH to carry out their function under state guidelines of ensuring the County's alcohol tax is used appropriately and efficiently. The Board could modify the recommended allocation of PA 2 dollars between line items. This is not recommended by Administration, as the budget as presented reflects SWMBH's input based on actual usage trends in our county, best industry practices and Michigan Department of Health and Human Services guidelines. The budget will be presented to the Southwest Michigan Behavioral Health Board and was approved on September 14 by its Substance Use Disorder Oversight Policy Board.
SUMMARY:
Approval is recommended for the Calhoun County PA2 Alcohol Tax budget for Substance Abuse Services for FY 20/21 in the amount of $393,699 in total expenditures.

Fiscal Impact
BUDGETARY IMPACT:
The County is required by state statute to pass through 50% of its total Alcohol Tax revenues received for spending on substance abuse treatment and prevention services within the county. The remaining 50% stays within the County's General Fund budget to supplement property tax revenues in funding county operations. This proposed PA2 budget for October 2020 through September 2021 will provide $393,699 in restricted funding to local providers for the benefit of County residents who need substance abuse services. This approval of the PA2 budget is contingent on the final adoption of the County's 2021 budget later this year when the official appropriation is made.
Attachments
PA2 Budget FY20/21
PA2 FY20/21--proposals

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