Fiscal Year 2013-2015 Special Budget Meeting

HONORABLE MAYOR AND CITY COUNCIL Subject: Federal and State Budgetary Action Standing Report Date: June 10,2013 Page 3 Risks: • Increase Special Fund for Economic Uncertainties from $232 million in the current year to$l.ll billion in FY 2013-14 • The pace of the economic and revenue recovery is still uncertain • Federal court actions on prison health care provision • Rising health care costs on Medi-Cal and State employees and retirees • There are more than 70 active pending court actions associated with former redevelopment agencies • Federal budget action may further impact state's budget • Projecting between now and FY 2016-17, the cost for retired slate employees' health care will rise by 59% • Still need to address significant amount of unfunded liabilities For the entire document, see link below: http://www.dof.ca.gov/documents/2013-14_May_Revision.pdf Respectfully submitted, Donna Hom Budget Director For questions, please contact Donna Hom, Budget Director, at (510) 238-2038.