MEETING DATE
6/26/2014 |
BUREAU SUBMITTING THIS REPORT
Executive Office |
RESEARCHED BY (PRINT NAME)
Stephanie Scofield |
REVIEWED BY (PRINT NAME)
Alan Deal |
REPORT DATE
06/18/14 |
APPROVED BY
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DATE APPROVED
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PURPOSE
Decision Requested |
FINANCIAL IMPACT
Yes
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| ISSUE, BACKGROUND, ANALYSIS, & RECOMMENDATION |
| ISSUE: |
| Should the Commission authorize the Executive Director to reinstate a component of the Budget Expenditure Reduction Plan based on a $3.2 million augmentation to the Commission's FY 2014-15 budget as enumerated in this report? |
| BACKGROUND: |
In February 2013, the Department of Finance (DOF) informed POST that a 5-year decline in revenues to the Peace Officer Training Fund (POTF) was exhausting POST’s reserve account to the point that, if left unchecked, would result in a deficit by the end of FY 2014-15. Due to the declining revenue and greater than expected number of reimbursable trainees in FY 2012-13, the deficit was projected to be $7.8 million.
The unanticipated shortfall is based on a DOF projection that reflects steadily declining revenues to the Peace Officers’ Training Fund and a less-than-robust economic recovery in California. DOF anticipates that POST revenues from the State Penalty Assessment Fund to the Peace Officers’ Training Fund (POTF) will remain relatively flat through FY 2016-17.
To address these concerns staff worked collaboratively with DOF, and an Expenditure Reduction Plan was established and approved by the Commission in October 2013.
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| ANALYSIS: |
The 18-month Budget Expenditure Reduction Plan consists of the following four components that became effective January 1, 2014 and extend through June 30, 2015:
1. Suspend Backfill Reimbursement;
2. Contain Contract Course Costs;
3. Suspend Plan IV Reimbursements with the exception of contract and mandated courses;
4. Suspend some POST workshops and symposia (effective July 1, 2014).
Attachment A is the statewide bulletin that was distributed on October 7, 2013. The revision date reflects May 1, 2014 as additional courses were added to the Plan IV exemption list since the original distribution.
Based on the above reduction plan, staff projected a $4.9 million savings for FY 2013-14. As of May 31, 2014, expenditures for local agency reimbursements total $13.5 million and expenditures for training and support contracts total $19.2 million. Based on these expenditures, cost savings for FY 2013-14 are projected to be $5.1 million, a 4% increase from the initial reported projections. Actual total expenditures and cost savings for the entire FY 2013-14 are currently being analyzed and a full report will be made to the Commission at the October 2014 meeting.
Staff has testified before the Senate and Assembly Budget Subcommittees on this Budget Expenditure Reduction Plan and the significant negative impact to California law enforcement.
On June 15, 2014, the Legislature approved, pending the Governor's signature, a one-time augmentation of $3.2 million from the state's General Fund to the Commission's FY 2014-15 budget. These funds are to be allocated for local assistance to cities, counties and districts pursuant Penal Code section 13523. The local assistance funds that were suspended with the Budget Expenditure Reduction Plan are backfill reimbursement and Plan IV reimbursement with the exception of mandated and contract training courses. The $3.2 million augmentation does not enable the full reinstatement of both backfill and Plan IV reimbursements. Below are two options staff has researched for the Commission to consider in distributing these funds in efforts to lift one of the components of the Expenditure Reduction Plan.
Option A: Reinstate Backfill Reimbursement
Backfill reimburses local agencies for the cost to fill a vacancy created by sending a peace officer to a training course or sending a peace officer to a training course on his/her day off. Based on Commission Regulation, backfill is authorized with Plan I and Plan II courses. There are currently 42 certified Plan I and 686 certified Plan II courses. A majority of these courses involve perishable skill training such as firearms, use of force, and arrest/control. Currently, while backfill is suspended, local agencies can still submit for reimbursement for travel, per diem and tuition costs associated with attendance to these courses.
Option B: Reinstate Plan IV Course Reimbursement relating to Mental Health Training
Plan IV courses reimburse local agencies for travel and per diem costs associated with these training courses. There are currently 1,816 certified Plan IV training courses. The $3.2 million augementation does not enable the full reinstatement of reimbursement for all Plan IV courses.
Consideration should be given to the reinstatement of reimbursement for courses pertaining to law enforcement contacts with persons with mental illness/developmental disabilities and Crisis Intervention training. For the last several years a significant increase in law enforcement interaction with persons with mental illness has been evident. The majority of these contacts are safely and effectively resolved. Some contacts have ended in officer involved shootings or the tragedy of mass killings and campus violence. In light of recent events, the Legislature is looking at law enforcement training as a means to reduce or prevent these high profile encounters. This option would reinstate reimbursement of courses pertaining to a current, critical training need. |
| RECOMMENDATION: |
If the Commission concurs, the appropriate action would be a MOTION to authorize the Executive Director to reinstate a component of the Budget Expenditure Reduction Plan as enumerated in this report.
The Commission's decision would become effective July 1, 2014 and a statewide bulletin will be sent to the field describing the decision. |
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