BOARD MEETING DATE: May 2, 2003
AGENDA NO. 4

FY 2002-03 Budget Transfer

SYNOPSIS:

At Board direction, staff has periodically brought to the Board all necessary budget transfers occurring during the fiscal year. Budget transfers are the result of Board actions, further definition of programs approved in the budget, reorganizations, or budget corrections. These transfers move moneys to the appropriate expenditure accounts and do not require additional appropriations.

COMMITTEE: Administrative, April 11, 2003, Recommended for Approval

RECOMMENDED ACTION:

Transfer $546,000 from the Services and Supplies Major Object, Professional and Special Services account, and $320,000 from the Capital Outlays Major Object, as detailed in Attachment A, to the Salaries and Employee Benefits Major Object.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In FY 2000-01, 32 positions were added to the budget, supported with additional CARB compliance activities-related funding received that year. AQMD’s adopted FY 2002-03 Budget reflected a potential 33% reduction ($2.1 million) in State subvention funding as a result of cutbacks in the State budget. During last year’s budget development and approval process staff discussed with the public and Board potential reductions (through attrition) of 29 of the 32 positions added in the previous year to mitigate this potential loss in State support. It was hoped that the Legislature would take action to continue subvention funding in full. Final action by the Legislature and Governor did not occur until after AQMD’s Budget approval. It has now become necessary, due to the decrease in state funding, to permanently unfund an equivalent number of positions.

At the time the AQMD FY 2003-03 Budget was approved, it was anticipated that if throughout FY 2002-03 there was not sufficient salary savings from vacant funded positions, that some contract work and some capital outlays would be eliminated or deferred to a later year. This matter was further reviewed by the Board at its mid-year retreat and budget review.

At the March 7, 2003 meeting the Board approved the first transfer from Capital Outlays to Salaries and Employee Benefits of $234,000. This amount represented budget savings from vehicle purchases. This action requests approval to transfer already-budgeted funds from the Services and Supplies Major Object and the Capital Outlays Major Object to the Salaries and Employee Benefits Major Object for FY 2002-03.

Resource Impacts

This action transfers already-budgeted funds and does not increase the FY 2002-03 Budget.

Attachment

A - Budget Transfer Required to Meet S&EB Shortfall

ATTACHMENT A

Budget Transfer Required to Meet S&EB Shortfall
 

*Transfer made at 3/7/03 Board meeting

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