To: Board of Supervisors
From: District Attorney
Agenda Section: Departmental
Vote Requirement: 4/5th
SUBJECT:title
Approve a Supplemental Budget in the amount of ($858,163) for the District Attorney’s Office Budget (1100-205 and Transfer from General Fund Contingencies in the Amount of $1,298,694 to District Attorney’s Office Budget (1100-205) for Fiscal Year (FY) 2025-26 (4/5 Vote Required) end
RECOMMENDATION(S):Recommendation
That the Board of Supervisors:
1. Approve the Supplemental Budget (Attachment 2) to reduce grant revenues and associated expenditures that will not be received in budget unit 1100-205 in FY 2025-26 in the amount of ($858,163) (4/5 Vote Required); and
2. Approve a transfer from Contingencies (Attachment 1) in the amount of $1,298,694 from the General Fund Contingencies (1100-990) to the District Attorney’s Office budget (1100-205) for the balancing of FY 2025-26 budget (4/5 Vote Required); and
3. Approve the following recommendation to address the fiscal concerns that have led to a General Fund allocation overage in budget unit 1100-205:
a. Direct the District Attorney’s Office to submit quarterly financial reports to the County Administrative Office (CAO) and the Auditor-Controller in a format determined by the CAO and Auditor-Controller.
Body
STRATEGIC PLAN:
The recommended actions support the following areas of the Board of Supervisors’ Strategic Plan:
Area of Focus: Safe & Healthy Communities and Core Services
Strategic Plan Category: 1001 -Support and sustain partnerships between public safety and partner agencies to enhance public safety in our communities
DISCUSSION:
The District Attorney’s Office is requesting the Board transfer funds from the General Fund Contingencies to balance the District Attorney’s Office FY 2025-26 budget 1100-205. The District Attorney’s Office recently identified a budget deficit and General Fund allocation overage of $1,298,694 when finalizing the closure of FY 2025-26. The deficit correlates to unrealized anticipated revenue from multiple sources, as well as increased expenses incurred during FY 2025-26.
Notably, the FY 2025-26 budget revenue from the Board of State and Community Corrections (BSCC) Organized Retail Theft Vertical Prosecution Grant Program (ORTVP) and financial support from Northern California Coalition to Safeguard Communities (NCCSC) were projected to be revenue sources at a much greater extent in FY 2025-26 than what transpired.
Per California Government Code section 26500, “the district attorney shall attend the courts, and within his or her discretion shall initiate and conduct on behalf of the People all prosecutions for public offenses.”
Due to staffing shortages related to factors such as a nationwide reduction in qualified law enforcement and prosecution workforce applicants, extended employee leave, employee retention and recruitment challenges (linked to the lack of local services and noncompetitive compensation packages relative to other counties) have impacted the ability of the District Attorney’s Office to fully access secured grant program funds. This is because all available staff must work together to complete mandated duties in the prosecution of crime and sometimes the only available personnel who can competently and lawfully handle the task are otherwise assigned to a grant-funded position. When personnel assigned to grant funded positions fulfill duties outside grant activities this prevents the District Attorney’s Office from fully being able to receive full grant reimbursements for staff time. During budget preparations the frequency of these occurrences can be estimated and is largely based upon historical data, however, actual occurrences is unforeseeable.
The staffing shortage described above accounts for $945,733 in unrealized revenues, with $87,570 budgeted from the NCCSC and $858,163 budgeted from the BSCC ORTVP program funds. It should be noted that due to multiple grant recipients across the state encountering similar staffing challenges an extension of funding from the BSCC for the ORTVP program was offered to eligible applicants. Through diligent efforts of District Attorney’s Office employees, the funding extension was granted through FY 2026-27.
Additional funding revenue is accessible via multiple trust funds, including a Consumer Fraud Trust, Blood Alcohol Analysis Trust, Asset Forfeiture, Real Estate Fraud & Victim Witness Program Donation Fund. As with other budget matters, the projected revenue is estimated based upon historical data. Due to a variety of circumstances, the available funds in some of the trust accounts are significantly lower than in prior years. In recent years with significant budget constraints, the funds have been utilized to balance the District Attorney’s Office budgets. Multiple factors impact funding, some of which include: reduced imposition and collections of court fines and fees ordered to be paid upon sentencing for criminal convictions; changes in California laws reducing collection of fines and fees in criminal courts; the number of cases that no longer proceed along traditional prosecution tracks with sentencing and court ordered fines and fees never occurring because cases are diverted; reduced court collections statewide during and following COVID-19 pandemic; courts ordering statutory fines and fees at sentencing but suspending them; a decline in forfeited asset distributions; and fewer consumer fraud dispositions. Moreover, the law strictly governs how these various trust funds are utilized. Collectively, the estimated trust funds balances have a shortfall of $85,575 in projected revenues.
Additionally, revenues for reimbursement of discovery expenses are in the negative. Pursuant to California Penal Code section 1054.1 the District Attorney’s Office, as the prosecutor, shall disclose to the defendant or his or her attorney all relevant evidence. Discovery fees for production of criminal case discovery materials, such as video (body worn camera and surveillance) and audio recordings (interviews of witnesses, victims and suspects), investigative reports, photographs, reports or statements of experts, including scientific instrument results, examiner notes and data for physical or mental examinations and/or scientific tests, such as blood, DNA analysis, are charged to defense counsel or a self-represented defendant. However, fees for these costs incurred in production of discovery materials by the District Attorney’s Office frequently remain unpaid thereby contributing to the deficit in the District Attorney’s Office 1100-205 budget.
Increased production costs are addressed in an updated fee schedule adopted annually, however, an estimated 85% of discovery production is provided to the Humboldt County Public Defender and Humboldt County Conflict Counsel offices. Both indigent defense offices operate from the county General Fund, therefore the District Attorney’s Office seeking recovery of the discovery production expense is moot. In fact, additional personnel and other resources would be consumed in collecting the fees for discovery production thereby costing the county more money. To reduce discovery production expenses and maximize the investment in the District Attorney’s Office electronic case management system, the District Attorney’s Office has been working with the County Information Technology division since 2023 to safely & lawfully distribute discovery materials electronically in compliance with Department of Justice regulations. Transfer of highly sensitive confidential personal information, including criminal arrest and conviction records as well as documents referencing the contents therein, is subject to rules and regulations. Additionally, the volume is overwhelming to the current technology infrastructure. Discovery costs are invoiced to private counsels for all cases however collection efforts are often unsuccessful. Legal options are being explored for recovery of costs. In sum, the unpaid discovery fees account for $30,749 in unrealized revenues.
On Aug. 19, 2025, Agenda Item C-14, approved and ratified by the Board, the county increased salaries for all Deputy District Attorneys (DDA) represented in County Attorney’s Association (CAA) unit by 30 salary ranges (15.0%). The total cost of the DDA salary increase for FY 2025-26 is $222,670. Personnel expenses expected to be covered via salary savings within the county general fund allocation include employee bonuses. However, because more general fund monies were needed to cover salaries not eligible for grant reimbursement and salary and benefit increases, there was insufficient general fund contributions to cover the bonuses. This is a domino effect. The amount requested to cover employee bonuses is $80,001. Total being requested from General Fund contingencies to cover the CAA salary increase and employee bonuses is $302,671.
Furthermore, estimated District Attorney’s Office budget revenues for State Aid-Public Safety Service Proposition 172 based on sales tax revenue and proportionally allocated for public safety had a shortfall of $55,445 for FY 2025-26.
Leading up to these necessary changes in compensation, other challenges have compounded the financial strain in the District Attorney’s Office 1100-205 budget. The budget has endured employee longevity increases, renewed PARS contributions, Board approved cost of living increases across AFSCME, HCSD, CAA, LEM, M&C and Elected Officials and department head labor agreements which are all encompassed under the District Attorney’s Office budgets along with overall increased prices when purchasing necessary equipment or supplies.
While facing these challenges the District Attorney’s Office has written, applied and secured multiple grant opportunities to address public safety prior to FY 2024-25 until present. The grant opportunities aid in addressing unfunded priorities of community. There are limited grant opportunities available for the District Attorney’s Office, and most are increasingly competitive. Many potentially applicable Federal grant opportunities from 2024 have new federally required assurances that do not align with state and local laws and policies, resulting in litigation and confusion surrounding eligibility and application requirements. Therefore, the District Attorney’s Office must weigh the exhaustion of resources in seeking grants that are seemingly less obtainable. External funding sources are rapidly diminishing. This is further compounded by the number of available state grant funding opportunities, often relying heavily on the award of Federal grants, which again have requirements that appear at odds with California law. The District Attorney’s Office has reviewed over ten potential grant opportunities that historically would have been viable opportunities but are now questionable at best due to these restrictions.
The underutilization of the BSCC and NCCSC program funding in conjunction with decreased discovery fee revenues, a static general fund distribution, and reduced trust fund revenues have resulted in a budget deficit of $1,298,694 in FY 2025-26 within the District Attorney’s Office 1100-205 budget. Through the BSCC grant extension funds have been secured through December 2027. Additionally, NCCSC funding has been secured for FY 2026-27. The District Attorney’s Office seeks Board approval for the transfer from General Fund Contingencies to balance the District Attorney’s Office budget in 1100-205 for FY 2025-26.
SOURCE OF FUNDING:
General Fund Contingencies (1100-990)
FINANCIAL IMPACT:
|
Expenditures (1100-205) |
FY25-26 |
|
Budgeted Expenses |
6,804,515 |
|
Additional Appropriation Requested |
349,577 |
|
Total Expenditures |
7,154,092 |
|
|
|
|
Funding Sources (1100-205) |
FY25-26 |
|
General Fund |
2,814,643 |
|
State funding: (prop 172, State Realignment Funds, COPS AHEAD, Vehicle Theft and DUI) |
1,870,706 |
|
Grants, collected Discovery Fees, and trust fund utilization |
1,170,049 |
|
Contingencies (1100-990) |
1,298,694 |
|
Total Funding Sources |
7,154,092 |
Narrative Explanation of Financial Impact:
As previously mentioned, the extension of the BSCC funding resulted in extensive unrealized budgeted revenue, therefore the attached supplemental budget reduces revenue and expenditures by ($858,163). Of which, expenditures were still realized beyond this amount resulting in the attached request for General Fund Contingencies. The criminal prosecution related services charges reside in the District Attorney’s Office budget unit (1100-205). The District Attorney’s Office provides mandated and essential services that are paid from a variety of funding: State Aid-Public Safety Service Proposition 172, State Realignment Revocation, COPS AHEAD, multiple grant programs, discovery fees, filing fees, court ordered fines and fees from trust fund accounts, and the County General Fund. Year-end expenses have exceeded appropriations. Therefore, staff are requesting approval of the attached transfer from contingencies in the amount of $1,298,694 for FY 2025-26.
Approval of the attached appropriation transfer will allow the DA to fund $1,298,694 in expenditure overages as a one-time transfer from General Fund contingencies, 1100-990, in FY 2025-26. The FY 2025-26 General Fund Contingencies has an available balance of $5,183,345. If approved, this transfer would bring the balance to $3,884,651. It is included in the recommendations that the DA submit quarterly financial reports to the CAO and the Auditor-Controller to address the budget deficit in District Attorney, 1100-205.
STAFFING IMPACT:
There are no staffing impacts.
OTHER AGENCY INVOLVEMENT:
N/A
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board could choose not to approve the attached transfer from contingencies; however, this is not recommended due to there are no alternative funding options and the expenses incurred are mandated pursuant to California Government Code section 26500 and supports the Board of Supervisors’ Strategic Plan.
ATTACHMENTS:
1. Transfer from Contingencies- 1100205
2. Negative Supplemental Budget request
PREVIOUS ACTION/REFERRAL:
Meeting of: N/A
File No.: N/A