Proposal:

Adopt the Executive Officer’s FY 1997-98 AQMD Budget and Work Program

Synopsis:

The Executive Officer's Budget for FY 1997-98 represents the input over the past several months from staff, Board members, and the public. This year's process included meetings of the Budget Advisory Committee; a public hearing on February 14, 1997 to take input on the AQMD's Program Goals and Objectives; and two budget workshops, one for the public April 16, 1997 and one for the Board on April 25, 1997. This submittal transmits the required appropriations and reserves necessary to adopt the proposed budget.

Committee:

Administrative, April 18, 1997, Board Budget Workshop, April 25, 1997

Recommended Action:

1. Approve amendments to the staffing plan as shown in Attachment A;

2. Remove from Reserves and Designations all amounts associated with the FY 1996-97 Budget;

3. Approve appropriations in the Major Objects for

Salary and Employee Benefits	$54,964,067
Services and Supplies	36,753,390
Fixed Assets	1,795,174
Building Remodeling	145,000

4. Approve a Fund Balance of the following:

Reserve [ The terms Reserve, Designated, and Undesignated are terms established by the Government Accounting Standards Board. ] for Encumbrances	$14,600,000
Reserve for Inventory of Supplies	80,000
Reserve for Clean Fuels	1,740,000
Designated for Equipment Replacement	2,852,715
Designated for Self-Insurance	2,000,000
Designated for Unemployment Claims	80,000
Designated for Forecasted Revenue Deficiencies	4,000,000
Undesignated	4,908,180 [ Available for unforeseen events impacting revenue.]
Total	$30,260,895

5. Recognize estimated revenues of $87,894,000.

James M. Lents, Ph.D.
Executive Officer

Background

State law (Health and Safety Code Sections 40720) which took effect in 1994 requires that the draft budget and revenue projection for the ensuing fiscal year must be prepared and made available by April 1. The law also requires the AQMD Board to adopt a final proposed operating budget, including final fee schedules, prior to May 15. The approved final proposed operating budget must be submitted to the Legislature and the California Air Resources Board annually by May 15. The final proposed operating budget submitted by the AQMD becomes operative on July 1 unless, prior to July 1, the Legislature enacts an urgency statute amending or supplementing the proposed AQMD budget, or the AQMD adopts a revised final budget pursuant to the comments or formal recommendations made by the state board.

AQMD has responded to the concerns raised by businesses and the Legislature regarding the cost and effectiveness of its programs. AQMD has cut its work force by 36% and reduced its program costs by 17% ($19.3 million) overall. In real dollars, the AQMD budget is 27.3% less than the 1991-92 budget. Over the last six years AQMD has implemented regulatory reform to introduce market-based principles in cleaning up urban air, has automated permit processing to provide speedy issuance of permits, privatized to improve operational efficiency, and remained committed to treating regulated businesses like valued customers.

Proposal

This year's proposal reflects AQMD’s ongoing efforts to re-evaluate program activities in support of our state and federal clean air mandates. For FY 1997-98 we will continue emphasis in the areas of regulatory reform as set forth in the Business Clean Air Partnership and the subsequent Regulatory Reform Initiatives; develop an Air Quality Investment program and Intercredit Trading program; implement the Title III and V programs; develop PM₁₀ Control Measures; further streamline the permit and source testing programs; and increase emphasis on the development and transfer of new air quality-enhancing technology.

Resource Impacts

The proposed budget for FY 1997-98 represents a 3.2% reduction in staffing from 765 to 741 positions and a reduction in expenditures of approximately $2.1 million over last year's approved budget. As a partial offset to declining revenues and increased cost for services and supplies, this year’s request includes an across-the-board fee increase of 2.4% consistent with the change in the state Consumer Price Index.

Attachments

A - Staffing Plan

B - Abstract of FY 1997-98 Draft Budget and Draft Work Program. A copy of the proposed budget has been transmitted to the Board members separately. Copies for public review have been available in the AQMD Library and at the Public Information Center. The budget abstract is available through the Internet as an attachment to this board item or through the Public Information Center (909) 396-3600.

C - Addendum to the FY 1997-98 Draft Budget and Draft Work Program to update pages reflecting changes to the personnel actions requested and to provide additional budget comparison information for the new Office of Public Affairs and Local Government Assistance.

/ / /

ATTACHMENT A

STAFFING PLAN

Recommendations

In order to maintain the needed balance between the number of monitoring sites and field staff it is recommended that one Air Quality Instrument Specialist position, previously recommended to be deleted in this budget, now be restored.

The reduction in the number of attorneys within the Office of General Counsel dictates that all attorneys within that office operate at the Senior level in order to accommodate the workload. It is recommended that the three remaining Deputy District Counsel positions be upgraded to Senior Deputy District Counsel positions. The recommendation can be accomplished by deleting the three Deputy District Counsel positions, restore one Senior Deputy District Counsel, previously recommended to be deleted in this budget, and add one Senior Deputy District Counsel position.

A recent resignation of a secretary provides the opportunity for that position to be deleted in place of a Systems and Programming Supervisor position which had previously been proposed to be deleted in this budget. This exchange will provide a position with greater utility to the AQMD and opportunity for upward mobility among the existing staff.

Actions

Add one (1) Air Quality Instrument Specialist I position in Applied Science & Technology

Add one (1) Senior Deputy District Counsel position to the office of District Prosecutor

Add one (1) Senior Deputy District Counsel position to the office of District Counsel

Add one (1) Systems and Programming Supervisor in Information Management

Delete one (1) Deputy District Counsel II position within the office of District Prosecutor

Delete two (2) Deputy District Counsel II positions within the office of District Counsel

Delete one (1) Secretary position in Administrative and Human Resources.