Report 2020-102 Recommendation 10 Responses

Report 2020-102: Public Safety Realignment: Weak State and County Oversight Does Not Ensure That Funds Are Spent Effectively (Release Date: March 2021)

Recommendation #10 To: Fresno, County of

Unless the Legislature clarifies its intent otherwise, to ensure that the counties prudently and appropriately spend realignment funds, the Partnership Committee at Fresno should, starting with its next annual budget, review and make budget recommendations to its board of supervisors for all realignment accounts, including the accounts that fund non-law enforcement departments and community-based organizations. Further, Fresno should ensure that it budgets all realignment funds to eliminate excessive surpluses in realignment accounts and prevent future surpluses beyond a reasonable reserve.

Annual Follow-Up Agency Response From November 2024

Fresno County's response to the recommendation requiring the Community Corrections Partnership (CCP) review and make budget recommendations to the Board of Supervisors of all realignment funds has not changed from the initial response provided in the Public Safety Realignment Report issued on March 2021 and previous responses related to this recommendation.

Due to the continued unprecedented statewide growth payments received over the last few years, many of the Realignment funds have continued to see increases in their surpluses. However, in light of the FY 2023-24 revenue shortfall for 2011 Public Safety Realignment, it is expected that these surpluses will be diminished significantly.

The CCP and County Departments will continue to review the surpluses in the Realignment funds over which they have oversight. The County continues to seek additional programs, expanded services, and one-time projects to fund which will reduce the surpluses to a reasonable level over the next several years depending on economic conditions.

Additional information/documentation will be provided via email to Karen Wells.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Fresno provided an account summary for all of its public safety funds showing a significant increase in public safety surpluses. The summary indicates Fresno maintains a public safety surplus of approximately $114.5 million at the end of fiscal year 2023-24, up from the $78.6 million that we reported in 2021.

As we have noted in previous responses, we disagree with Fresno's narrow interpretation of public safety realignment legislation and its assertion that its Partnership Committee is only required to oversee the Community Corrections account. As we state in the report on page 33, the California Constitution defines realignment legislation as legislation enacted on or before September 30, 2012, related to implementing the state budget plan and assigning responsibilities for public safety services, including various social services through 10 different public safety accounts. Nothing we reviewed in state law or legislative history suggests that the public safety realignment plans prepared by Partnership Committees were limited to activities funded through the Community Corrections account. Given the plain meaning of the relevant statutes, we stand by our conclusion that Fresno's interpretation of public safety realignment funding is overly narrow and that its Partnership Committee should oversee all public safety realignment accounts.

We look forward to reviewing documentation during its next annual response of Fresno's progress toward eliminating its excessive surpluses in its public safety realignment accounts.

Annual Follow-Up Agency Response From September 2023

Fresno County's response to the recommendation requiring the Community Corrections Partnership (CCP) review and make budget recommendations to the Board of Supervisors of all realignment funds has not changed from the initial response provided in the Public Safety Realignment Report issued on March 2021 and previous responses related to this recommendation.

Due to the continued unprecedented statewide growth payments from FY 2021-22, received in FY 2022-23, many of the Realignment funds have seen increases in their surpluses. The CCP and County Departments will continue to review the surpluses in the Realignment funds over which they have oversight. The County continues to seek additional programs, expanded services, and one-time projects to fund which will reduce the surpluses to a reasonable level over the next several years depending on economic conditions

California State Auditor's Assessment of Annual Follow-Up Status: Pending

We did not receive any updated information from Fresno regarding its implementation of this recommendation as indicated in its initial response. Further, we disagree with Fresno's narrow interpretation of public safety realignment legislation and its assertion that its Partnership Committee is only required to oversee the Community Corrections account. As we state in the report on page 33, the California Constitution defines realignment legislation as legislation enacted on or before September 30, 2012, related to implementing the state budget plan and assigning responsibilities for public safety services, including various social services through 10 different public safety accounts. Nothing we reviewed in state law or legislative history suggests that the public safety realignment plans prepared by Partnership Committees were limited to activities funded through the Community Corrections account. Given the plain meaning of the relevant statutes, we stand by our conclusion that Fresno's interpretation of public safety realignment funding is overly narrow and that its Partnership Committee should oversee all public safety realignment accounts. Thus, unless Fresno demonstrates that it has eliminated its surpluses in all public safety accounts, we will not consider this recommendation fully implemented.

We look forward to reviewing documentation during its next annual response of Fresno's progress toward eliminating its excessive surpluses in its public safety realignment accounts.

Annual Follow-Up Agency Response From November 2022

Fresno County's response to the recommendation requiring the Community Corrections Partnership (CCP) review and make budget recommendations to the Board of Supervisors of all realignment funds has not changed from the initial response provided in the Public Safety Realignment Report issued on March 2021 and previous responses related to this recommendation.

Due to the unprecedented growth payments from FY 2020-21, received in FY 2021-22, many of the Realignment funds have seen increases in their surpluses. The CCP and County Departments will continue to review the surpluses in the Realignment funds over which they have oversight. The County is currently considering additional programs and expanded services to fund which will reduce the surpluses to a reasonable level over the next several years

California State Auditor's Assessment of Annual Follow-Up Status: Pending

We did not receive any updated information from Fresno regarding its implementation of this recommendation as indicated in its previous responses. Until Fresno demonstrates that it has eliminated its surpluses in all public safety accounts, we will not consider this recommendation fully implemented. We look forward to reviewing documentation during Fresno's next annual response of its progress toward eliminating excessive surpluses in its public safety realignment accounts.

1-Year Agency Response

Fresno County's response to the recommendation requiring the Community Corrections Partnership (CCP) review and make budget recommendations to the Board of Supervisors of all realignment funds has not changed from the initial response provided in the Public Safety Realignment Report issued on March 25, 2020. It is our understanding that your office received a letter from Diane Cummings, former Special Advisor to Governor Brown, that provided her perspective of this issue.

Due to the significant growth payments from FY 2020-21, received in FY 2021-22, many of the Realignment funds have seen increases in their surpluses. Over the next three-months, the CCP and departments will review the surpluses in the Realignment funds that they have oversight. It is expected that an expenditure plan for each of the funds that have significant surpluses will be developed, which in some cases will be multi-year, in order to reduce the surpluses to a reasonable level.

California State Auditor's Assessment of 1-Year Status: Pending

We did not receive any updated information from Fresno regarding its implementation of this recommendation as indicated in its initial response. Further, we disagree with Fresno's narrow interpretation of public safety realignment legislation and its assertion that its Partnership Committee is only required to oversee the Community Corrections account. As we state in the report on page 33, the California Constitution defines realignment legislation as legislation enacted on or before September 30, 2012, related to implementing the state budget plan and assigning responsibilities for public safety services, including various social services through 10 different public safety accounts. Nothing we reviewed in state law or legislative history suggests that the public safety realignment plans prepared by Partnership Committees were limited to activities funded through the Community Corrections account. Given the plain meaning of the relevant statutes, we stand by our conclusion that Fresno's interpretation of public safety realignment funding is overly narrow and that its Partnership Committee should oversee all public safety realignment accounts. Thus, unless Fresno demonstrates that it has eliminated its surpluses in all public safety accounts, we will not consider this recommendation fully implemented.

We look forward to reviewing documentation during its next annual response of Fresno's progress toward eliminating its excessive surpluses in its public safety realignment accounts.

6-Month Agency Response

Fresno County's response regarding the Community Corrections Partnership (CCP) making recommendations on all accounts has not changed from the initial response.

An email will be sent providing a response regarding the surpluses in the Realignment funds.

California State Auditor's Assessment of 6-Month Status: Pending

We did not receive any updated information from Fresno regarding its implementation of this recommendation as indicated in its initial response. Further, we disagree with Fresno's narrow interpretation of public safety realignment legislation and its assertion that its Partnership Committee is only required to oversee the Community Corrections account. As we state in the report on page 33, the California Constitution defines realignment legislation as legislation enacted on or before September 30, 2012, related to implementing the state budget plan and assigning responsibilities for public safety services, including various social services through 10 different public safety accounts. Nothing we reviewed in state law or legislative history suggests that the public safety realignment plans prepared by Partnership Committees were limited to activities funded through the Community Corrections account. Given the plain meaning of the relevant statutes, we stand by our conclusion that Fresno's interpretation of public safety realignment funding is overly narrow and that its Partnership Committee should oversee all public safety realignment accounts.

The email Fresno provided does not demonstrate that it has eliminated excessive surpluses in its realignment accounts and, in fact, indicates that surpluses will likely increase in some of its accounts based on a significant increase in estimated growth funds.

We look forward to reviewing documentation during its 1-year response of Fresno's progress toward eliminating its excessive surpluses in its public safety realignment accounts.

60-Day Agency Response

Fresno County's response to the recommendation requiring the Community Corrections Partnership (CCP) review and make budget recommendations to the Board of Supervisors of all realignment funds has not changed from the initial response provided in the Public Safety Realignment Report issued on March 25, 2020. It is our understanding that your office received a letter from Diane Cummings, former Special Advisor to Governor Brown, that provided her perspective of this issue.

Fresno County is currently preparing its FY 2021-22 Budget with budget hearings scheduled for September 13-17, 2021. As part of the preparation process, the Community Corrections Partnership and Departments who have oversight of the various Realignment funds will be reviewing fund balances for their respective funds. Based on the usage of Realignment funds in the FY 2021-22 Adopted Budget, plans (some multi-year) will be developed for each fund, as necessary, to bring the surpluses to a reasonable level.

California State Auditor's Assessment of 60-Day Status: Pending

We did not receive any updated information from Fresno regarding its implementation of this recommendation as indicated in its response. Further, we disagree with Fresno's narrow interpretation of public safety realignment legislation and its assertion that its Partnership Committee is only required to oversee the Community Corrections account. As we state in the report on page 33, the California Constitution defines realignment legislation as legislation enacted on or before September 30, 2012, related to implementing the state budget plan and assigning responsibilities for public safety services, including various social services through 10 different public safety accounts. Nothing we reviewed in state law or legislative history suggests that the public safety realignment plans prepared by Partnership Committees were limited to activities funded through the Community Corrections account. Given the plain meaning of the relevant statutes, we stand by our conclusion that Fresno's interpretation of public safety realignment funding is overly narrow and that its Partnership Committee should oversee all public safety realignment accounts.

We look forward to reviewing documentation during its 6-month response of Fresno's progress toward eliminating its excessive surpluses in its public safety realignment accounts.

All Recommendations in 2020-102

Agency responses received are posted verbatim.