Silicon Valley Council of Nonprofits Everybody WinsSVCN

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Our Mission
“Magnify the influence and contribution of nonprofit business in Santa Clara County.”

News
- August 2007 News
- July 2007 News
- June 2007 News

Events
Current SVCN Position Statements
- SVCN Position Regarding the County Budget
- SVCN Position on the RFP Process
- Request for Nonprofit Access to the Mental Health Department
- SVCN Statement on the City of San Jose Community Center ReUse Strategy		 SVCN Position Regarding the County Budget
February 1, 2007

To the Board of Supervisors
From: Silicon Valley Council of Nonprofits
RE: County Budget Recommendations
The membership of SVCN fully understands the gravity of the projected $238 Million deficit for the FY 2007-2008 Santa Clara County Budget. With exhausted reserves and no foreseeable new revenues to help mitigate the budget crisis, we appreciate the position of the Board of Supervisors to have to make very painful decisions to address the County Executive’s budget reduction recommendations.

It is the County Executive’s recommendations that SVCN would like to fully address in this letter. The largest percentage of budget reductions is directed toward the fragile safety net of human services: Mental Health, Drug and Alcohol, Public Health and the myriad of Social Service general fund programs that include senior nutrition, immigration services, domestic violence, senior adult daycare, children and family services and many more vital community safety net services have been targeted for up to 50% reductions or even possible elimination.

Drastic reductions of prevention programs ultimately increase institutional care both at the hospital and jail systems of care. Hospitals are overburdened and have to confront the increasing population of uninsured and unsponsored patients who may other wise have been diverted by prevention services that had been reduced in past budget years. Nonprofits value community-based systems of care that serve all in our community regardless of status and ability to pay.

The membership of SVCN are concerned that health care is already making tough decisions in community based budget priorities presented by the County Executive that protects institutional care beyond just emergency services. There must be a balance of these budget priorities that demonstrate the equal value of community mental health, drug and alcohol, public health and other community safety net services.

It is the position SVCN that the County adopts a “fair and equitable” strategy to meet the budget reduction goals. It is critical that the County holds to its long-standing principles of serving the less fortunate and “protecting” the safety net of vital community services. This can be accomplished with the following short and long-term recommendations:

Immediate Short-Term Recommendations
1). The County should look seriously at the subsidies to Valley Medical Center. To maintain a balance of essential services no system of care should be reduced by more than 20%. This can be accomplished by the redistribution of some of the VMC subsidies to Mental Health, Drug and Alcohol, Public Health and other safety net services

2). The Health and Hospital System must make hard choices. Prevention and early intervention services by Drug and Alcohol and Mental Health and other primary prevention services is the best cost driver for savings at VMC by reducing emergency room services and other higher levels of care in the County. It is important to realize that all the systems of care provide services to the uninsured or unsponsored at no higher percentage at VMC. The balance between the need to serve the unsponsored and financial capacity must be addressed. It is also vital to maintain adequate staffing ratios for healthcare workers throughout the system.

3). We must work together to increase the number of insured workers in our community through creative health care reforms and business incentives for providing health care for employees.

Other recommendations include:
· To ensure that all Medi-Cal revenues are preserved. By restoring the projected reductions that may be Medi-Cal eligible, Nonprofit providers and the County can generate important leveraged revenues. Once a Federal revenue stream such as Medi-Cal is lost it is very difficult to reclaim for the future.
· Promote and implement a “fair and balanced” policy in funding mandated and essential community services. All mandated services need to be reviewed for cost savings.

Continuing and Long-Term Recommendations
· Explore and study the economic feasibility of contracting out of some select County operated services perhaps by geography or by service mental health and drug and alcohol outpatient services and public health primary prevention services.
· We encourage the County Executive and Board of Supervisors to ask Department Heads for creative ideas in this regard that may save client programs and services
· We encourage an independent feasibility study analyzing the County’s potential for contracting and other County’s contracting experiences should be implemented. It is important to ensure compliance to the County’s Contracting Principles.
· The future cost and fiscal liability of the existing County retirement and benefit plans must be addressed and possible new employee standards be considered. This is an important cost driver that should be part of all budget planning.
· Land and property use must be put into high priority planning for economic development and revenue generation, i.e., airports, fairground, parking facilities, etc.
· Efficient management of facilities must continue to be studied and resource development opportunities be explored. For example, very small county operated programs in both North and South County who are in large facilities can be relocated to other county programs in their local region.
· Corporate sponsorships and increased County, Private Sector, and Nonprofit partnership possibilities should be explored.
· Explore the potential of Bonds as a financing option.
· No general funds should be allocated to the mandated seismic retrofitting of Valley Medical Center. Bonds may be a viable option.
· The Valley Healthcare Plan should be marketed to local business employers to help offset the cost for the uninsured.

In times of crisis it is important that all innovative and common sense solutions are fully explored. The recommendations by SVCN are put forward to the Board of Supervisors as tangible ideas that we believe can make a difference in helping to uphold the traditions and mission of Santa Clara County.

The 200 member agencies that comprise the Silicon Valley Council of Nonprofits accept the responsibilities of protecting the safety net of services that are so vital to the health and safety of our communities. We are committed to our continuing partnership with Santa Clara County to ensure that we continue to make a difference in the lives of our people.
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