Contra Costa Supervisors to consider COVID-related budget issues, Measure X fund allocations during Tuesday retreat

Source: CCC

Administrator to recommend delaying allocation of $59 million in federal American Rescue Plan funds; projects 6% increase in property tax revenues

To hear presentation on “The Post COVID New World Order”

By Daniel Borsuk

Citing bureaucratic red tape, Contra Costa County Administrator Monica Nino will propose the Contra Costa County Board of Supervisors postpone spending $59 million in federal American Rescue Plan funds until at least January 2023 in her presentation during their retreat focused on COVID-19 era budget issues, Tuesday.

The retreat will be televised live starting at 9 a.m. on Comcast Cable 27 and WAVE Channel 32 and online.

“The challenge in lining up funds to maximize cost recovery requires constant monitoring (coordination) between departments,” County Administrator Nino stated in documents recommending the partial funding postponement.

At the same time, Nino will also recommend $53 million in American Rescue Plan funds be allocated to the Contra Costa Health Services Department to improve response to the COVID-19 pandemic during the upcoming 2022/2023 fiscal year.

Supervisors are also expected to learn that for the upcoming fiscal year, $107 million of Measure X sales tax revenues will be allocated for the budget and 15 percent of the county’s labor contracts, including the California Nurses Association contract, which will be up for renewal on June 30. The 2022/2023 fiscal year budget will mark the first time Measure X funds will be spent.

County Administrator Nino is also expected to announce property taxes are to increase six percent for fiscal year 2022/2023, 3.44 per cent for the county and 3.82 percent for the Contra Costa County Fire Protection District.

“County property taxes declined over 11 percent between 2009 and 2012 and then grew significantly between 2014 and 2019. Projecting an increase of 6 percent for fiscal year 2022/23,” Nino’s report states.

“The budget will be built on assumption of a 6 percent increase in assessed valuation. Fiscal year 2022/23 is projected to be significantly higher than normal,’ she wrote in the background document.

At the retreat, Dan Geiger will offer a presentation by the Contra Costa Budget Justice Coalition, consisting of 34 non-profit organizations focused on county fiscal accountability issues, that will showcase how the organization will monitor the supervisors’ budgetary process especially when in the 2022/2023 fiscal year $110 million of Measure X sales funds will be added to the general fund for the first time.

During their budget discussion, Supervisors will also receive departmental presentations from the Sheriff-Coroner, District Attorney, Public Defender, Health Services Director, Employment and Human Services Director and Animal Services Director.

Contra Costa County voters passed the Measure X countywide, half-cent sales tax increase on the November 2020 ballot.

The supervisors will also receive a report on Capital Projects, the Facilities Condition Assessment and the Facilities Master Plan.

The Post COVID New World Order presentation

Supervisors will also hear a report entitled, “The Post COVID New World Order – It’s a seller’s market for now,” delivered by Dr. Christopher Thornberg of independent economic research and consulting firm Beacon Economics. Thornberg predicts unemployment in the county should be 3.4 percent by the end of 2022, which is currently pegged at 4.6 percent.

“Labor tightness sets off an investment boom,” he will predict, but the economist will also warn, “Expect a sugar crash to come, combination of a tight federal budget and inflation.”

Allen D. Payton contributed to this report.                                            

the attachments to this post:

The American Rescue Plan art

COVID mask money

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