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

■ An increase of 3.0 positions, offset by the deletion of
3.0 vacant positions, to provide cleaning and sterilization
services at the H-UCLA Medical Center during the hours of
11:00 pm to 7:00 am, seven days per week. This will allow
Central Sterile Processing to be open on a 24/7 basis to
address emergent sterilization and equipment needs required
of a Level I Trauma center.
■ An increase in funding and related revenue for the In-Home
Supportive Services (IHSS) Provider Health Care Plan to
recognize an increase in enrollment.
■ Funding for Board-approved increases in health insurance
subsidies and adjustments to salaries and various employee
benefits.
■ The elimination of the Department's proportional share of the
costs associated with the issuance of the 1994 Pension
Obligation Bonds. The bonds were fully paid in FY 2010-11.
The retirement of the 1994 Pension Obligation Bonds reflects
a reduction in expense that will partially offset other net cost
increases.
■ A projected ten-percent (10%) increase in retiree health
insurance premiums in FY 2011-12.
■ An overall decrease in deferred compensation plan costs due
to reduced County contribution rates along with a
corresponding decrease in the County's total annual
contribution limit as approved by the Board of Supervisors.
■ 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.
HEALTH SERVICES
Budget Summaries
■ 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.
■ A net decrease in revenue, primarily due to the deletion of the
Hospital Provider Fee; the reversal of the enhanced Federal
Medical Assistance Percentage (FMAP) impact on various
Medi-Cal revenues; the deletion of one-time Measure B
reserves; and decreased Medicare revenue; partially offset
with increased Managed Care Rate Supplement revenue and
Cost-Based Reimbursement Clinics revenue.
■ An increase in funding for projected cost-of-living
■
adjustments for supplies; increased debt services costs;
increased rents and leases costs; and a net cost decrease for
overhead charges billed among departments and within the
Department.
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 27.35 County of Los Angeles