The California Department of Finance (DoF) has completed its
annual “true up” process as required by AB 85 (Chapter 24,
Statutes of 2013), and while a few counties will receive
additional funding from the state, several others will have to
transfer funds from their Health Subaccounts into Family Support
Subaccounts soon, or face significant penalties.
AB 85 requires a “true up” of prior fiscal year diversions of
1991 Health Subaccount funding. The DoF has just completed the
final determinations for the 2014-15 fiscal year. Under this
process, five counties will receive a lump sum repayment of
diverted 1991 Health Subaccount funding by October 1. However,
fourteen counties owe additional Health Subaccount dollars
(counties and amounts are available in this
DoF schedule,) and this funding must be transferred from the
county’s Health Subaccount to the Family Support Subaccount
within three months of receiving the DoF notification letter.
Those notification letters were sent to counties the week of
August 17 (view
a copy here). Please note that the penalties under AB 85 for
failing to transfer the funding within three months include a 50
percent penalty on the amount owed. CSAC, along with the County
Health Executives Association, the California Association of
Public Health and Hospital Systems, and the County Welfare
Directors Association, and with input from the county counsels,
has developed a
memo outlining the process for transferring the funds.
We urge all counties that owe to immediately coordinate with your
Auditor-Controllers for the transfer of the funding; the
penalties for not transferring the required amount in full after
three months are severe. If you have questions, please contact
Farrah McDaid Ting at fmcting@counties.org or (916)
650-8110.
