Recommended Budget Volume One.book - Chief Executive Office ...

■ An increase of seventeen percent (17%) in the employer
retirement contributions due to the decline in the Los Angeles
County Employees Retirement Association (LACERA) portfolio
and revised investment return assumptions.
■ A decrease in utilities costs primarily due to current and
estimated reductions in electricity, natural gas, and telephone
costs.
■ A decrease in General County Overhead (GCO) based on the
FY 2011-12 County Cost Allocation Plan.
■ An increase in indemnity and litigation costs associated with
medical malpractice, partially offset by reductions for
commercial insurance premiums, automotive liability and
general liability.
■ An increase of 1.0 position for Speech Pathology at LAC+USC
Medical Center funded by the deletion of 2.0 vacant positions.
■ An increase in funding for projected Cost-of-Living
Adjustments for supplies and rents and leases; net cost
increase for various services provided/received by other
County departments; partially offset by a decrease in funding
requirements for prior year lease payments; and various minor
HEALTH SERVICES
Budget Summaries
■
appropriation and revenue realignments based on current
operations.
A net decrease in revenue, primarily due to the deletion of the
Hospital Provider Fee; the elimination of the enhanced Federal
Medical Assistance Percentage (FMAP) impact on various
Medi-Cal revenues; the deletion of one-time Measure B
reserves; reduced Medi-Cal Assembly Bill 915 revenue; and
decreased Managed Care Rate Supplement revenue; partially
offset by increases for Cost-Based Reimbursement Clinics
revenue and Medicare revenue.
■ A net reduction in pharmaceutical costs based on projected
savings from efficiency initiatives, partially offset by
■
anticipated cost increases related to the pharmaceutical
Consumer Price Index (CPI) of 7.6 percent, which has been
applied to the FY 2011-12 estimated costs.
A net increase to the placeholder reduction in revenues to
address the Department’s deficit for FY 2011-12. The
Department anticipates addressing the deficit primarily with
the use of 1115 Waiver revenue, and is working on a plan to
achieve savings and/or generate additional revenue to
mitigate the remaining deficit placeholder.
FY 2011-12 Recommended Budget Volume One 27.29 County of Los Angeles