Amended 6/2/04
Members Present: Mark Grebner, Lisa Dedden, Debbie DeLeon, Marc Thomas, Thomas Minter and Board Chairperson Victor Celentino
Members Absent: Calvin Lynch
Others Present: Teri Younger, Harold Hailey, Bob Moore, Don Reisig, Harry Moxley and John Jacobs
The meeting was called to order by Vice Chairperson Grebner at 6:05 p.m. in the Personnel Conference Room of the Human Services Building, 5303 S. Cedar, Lansing.
Approval of the May 5, 2004 Minutes
The May 5 Minutes were approved as amended. Absent: Comm. Lynch
Additions to the Agenda: None
Limited Public Comment: None
MOVED BY COMM. MINTER, SUPPORTED BY COMM. THOMAS, TO APPROVE A CONSENT AGENDA FOR THE FOLLOWING ITEMS:
5b. Controller's Office - Resolution Authorizing a Budget Adjustment to Purchase a Replacement Courier Van in 2004
MOTION CARRIED UNANIMOUSLY. Absent: Comm. Lynch
MOVED BY COMM. MINTER, SUPPORTED BY COMM. THOMAS, TO APPROVE THE ITEMS ON THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. Absent: Comm. Lynch
MOVED BY COMM. MINTER, SUPPORTED BY COMM. DELEON, TO APPROVE THE RESOLUTION AUTHORIZING AMENDMENTS AND CONTINGENCY FUND APPROPRIATION TO THE CIRCUIT COURT/FAMILY DIVISION - FRIEND OF THE COURT BUDGET.
Mr. Reisig explained the Friend of the Court budget shortfalls in 2003 and 2004 are due to reductions in incentive funding from the State of Michigan. The shortfalls are not due to the Court's overspending. The Court believes the incentive revenue decrease will create a structural shortfall of approximately $200,000 in the FOC budget for this and future years. Additional reductions in funding for 2004 will result from a reduction in CRP reimbursement of $117,086 for MIS services (the result of Maximus over-billing for such services in prior years), and a $20,000 reduction in statutory fees because of the Court's inability to "prioritize" their collection due to limitations engendered by our conversion to the MiCSES system.
Mr. Reisig's April 21, 2004 memorandum to Mr. Ambrose outlines the Court's proposed reductions for 2004 in order to partially offset the above shortfall of $337,086. The reductions include: the Restructuring of the Parenting Time Program; the Reduction of MIS Office Equipment Service Charge; the Reduction in Postage and Computer Supplies line items and Reduction in Personnel Costs Due to Staff Attrition. These reductions will result in lowering the FOC General Fund shortfall by $157,908. However, even with these reductions, the Court anticipates a deficit of $179,178 for 2004.
Mr. Reisig stated this matter has been thoroughly discussed with the Controller and Ms. Younger. He also explained he has made a commitment to the Family Court Judges to continue the parenting time advocate duties.
In response to Comm. Minter, Mr. Moxley reviewed the information contained in the Friend of the Court Revenues and Expenses as contained in the agenda packet. Comm. Minter stated he would like to see the differences between the original and the revised dollar amounts.
Comm. Minter asked what the Court would do if their funding request is not approved by the Board. Mr. Reisig explained that if the funding was not approved, the Court would be non-functional. Mr. Moxley stated the result would be equivalent to the elimination of a division within the Court. He also explained CRP stands for Cooperative Reimbursement Program.
Mr. Reisig stated the Court would probably lay off employees throughout the Court if the funding request is not approved. However, two unions represent employees within the Court which would make the lay offs very difficult. He further explained that he has not determined the specific cuts that would be needed if the request is denied. The Committee held a brief discussion regarding the State's Incentive Formula.
MOTION CARRIED UNANIMOUSLY. Absent: Comm. Lynch
5a. Controller's Office - Resolution Amending the 2004 Budget
MOVED BY COMM. THOMAS, SUPPORTED BY COMM. DEDDEN, TO APPROVE THE RESOLUTION AMENDING THE 2004 BUDGET.
Ms. Younger stated the Controller's Office has recommended a transfer of $200,000 from the General Fund Reserves in order to bring the reserve level in this fund into accordance with policy. A transfer from the Budget Stabilization Fund for this purpose is not recommended.
The balance of the Contingency Fund at this time is $119,163. This will not be sufficient to address unplanned needs for the balance of the year. An amendment to the General Fund Budget increasing the Contingency Account by $364,498, which is the amount by which the Account was reduced with the last reduction in Revenue Sharing payments. This would increase the balance of the Contingency Account to $483,661.
The effect of these transfers on the General Fund reserves would be to reduce the reserves from 8.0% to 7.2%.
Comm. Minter stated it would be helpful to see a breakdown of the Contingency Fund expenditures to date. This information should also be provided in the next Board packet.
MOTION CARRIED UNANIMOUSLY. Absent: Comm. Lynch
(Chairperson Celentino and Comm. Thomas left the meeting at 6:47 p.m.)
MOVED BY COMM. MINTER, SUPPORTED BY COMM. DELEON, TO ENTER INTO A CLOSED SESSION FOR THE PURPOSE OF RECEIVING A LABOR RELATIONS UPDATE. MOTION APPROVED BY THE FOLLOWING ROLL CALL VOTE: YEAS, COMMS. GREBNER, DEDDEN, DELEON AND MINTER absent: Comms. Lynch and Thomas
The Committee entered a Closed Session at this time.
The Committee returned to Regular Session at this time.
Comm. Minter stated he would like some time to consider the Closed Session discussion before taking action to move this item forward.
MOVED BY COMM. MINTER, SUPPORTED BY COMM. DEDDEN, TO TABLE ACTION ON THIS MATTER UNTIL THE NEXT FINANCE MEETING. MOTION CARRIED UNANIMOUSLY. Absent: Comms. Lynch and Thomas
The Letter was received and placed on file.
Announcements: None
Public Comment: None
The meeting adjourned at 7:08 p.m.
Respectfully submitted,
Debra Neff