Maricopa County Sheriff’s Office Paul Penzone Sheriff 1550 West Jackson Street Ph: 602-876-1801 Phoenix, AZ 85008, Switchboard: 602-876-1000 February 27,2017 woimeso.org ‘Ms. Goetz and OMB Staff: ‘am pleased wo submit the Real Year 2018 requested budge for the Shentts omce, The Sheriff's Office is currently facing significant budgetary challenges. & new court order issued just three weeks into the ical year resulted in a repriortization of $8 milion In appropriated funds, While this action was fiscally responsible and necessary, it was not taken without consequences. A much anticipated retention pay plan for detention officers was sacrificed, as was the Special Response Team, a Avision of detention officers specially trained to handle high risk situations within our jas. Sworn staff was transferred from specialty divisions, such as Investigations and Judicial Enforcement, to patrol districts and the Professional Standards Bureau in order to respond to the court order requirements Increasing demands on sworn officers and continued turnover of detention officers have resulted in skyrocketing overtime in beth the General and Detention funds. While the Office's overall budget has been sufficient in years past to cover spikes in overtime spending, this is no longer true. We are not meeting budgeted personne savings levels. Unfortunately, the current year General Fund budget also ‘contains a savings amount asoclated with suspended retiement payments for Public Safety Retirement ‘System DROP participants, making it even more challenging to manage. ‘The Sherif’s Office needs :0 reduce spending immediately in order to stay within its cutent year budget. Chiefs and captains have been lected to reduce overtime spending immediately and Grastically. Non-essential training requests are being denied. Requests for equipment purchases and replacements are being reviewed crtcally. While these actions are manageable in the short term, they will uikly begin to negatively affect services ifnat reversed early next fiscal year, As instructed in the Budget Guidelines, the Sheriffs Office budget is submitted within the threshold levels established by the Offce of Management and Budget. However, forthe reasons discussed above | request a re-evaluation of my Office's personnel budget fr the upcoming fiscal year. Thank you forthe onportuniy to submit the budet request fo the Maricopa County Sheriff's Office. Pe ie Cit YO au Penzone, seit?FY 2018 Budget Submission Overview ‘General Fund - Operating ‘The General Fund operatirg budget request totals $98,682,257. The submitted budget includes an Increase of $187,851 associated with the Interfund allocation of administrative costs between the General and Detention funds. The Detention Fund budget includes an offsetting reduction Revenue The primary source of reverue in the Sherif’ Office General Fund budget i intergovernmental charges for services associated with contracted low enforcement services, This revenue source fs increasing slighty ($185,817) due to increased contract costs Personne! ‘The FY 2018 General Fund budget includes personnel savings of 5.6% In order to balance tothe baseline budget. Actual savings achieved inthe frst half of FY 2017 was just over 4%, Personnel savings needs to be re-evaluated Overtime spending continues to be high due largely, we believe, to vacancies in patrol districts. The work performed by staff in patrol districts is largely directed by the Melendees court orders that dictate What, how and often when staff perform their assigned duties. Unmitigated, itis anticipated that ‘overtime costs could reach 7 milion by year-end. Command staff has been directed to reduce overtime. spending in the coming morths, but these reductions may not be sustainable long-term, The FY 2018 requested budget includes $5.5 millon for overtime, This amount is artificially ow in order to meet the baseline budget ‘The requested budget does not include the $1.6 million DROP reduction associated withthe suspension ofthe employers share of participants’ retirement premiums. ‘Supplies and Services ‘Ayear-to-year comparison ef the supplies and services budgets is somewhat dificult due to the recent changes to the chart of accounts. However, In total the non-personnel budget increased by only 46,745, a fraction ofa percent. ‘General Fund - Melendres ‘The requested budget for Nelendres-related expenses is submitted atthe baseline budget level witha personnel savings factor of ust over 6%. As the Office fils Melendres-elated vacances in the coming ‘months (all civllan postions are actively being recruited, a new sergeants list will be avaliable in June, and a new academy lass wil tart in July) we expect actual savings to closely miror that achieved inthe General Fund Operating Budzet.FY 2018 Budget Submission Overview Detention F The Detention Fund operating budget request totals $216,486,884, $187,851 under the threshold. As noted above, this isan offset to the General Fund increase associated with the iterfund transfer. Revenue The primary Source of revenue inthe Sheriff's Office Detention Fund is intergovernmental charges for services associated with the hooking and housing rates charged to other jurisdictions for their inmates We expect this reuenun trsam tn ramain stable in EY 2018. We are experiencing lower than budgeted revenues from the Department of Public Safety associated with the Office's Jail Wagon Program. AS such, our budget submisior reflects a revenue reduction of $70,200. ‘A secondary, and far smaller, source of revenue In the Detention Fund is from the Social Security ‘Administration (SSA) The sheriff's Office provides Inmate data to the SSA, which allows the SSA to suspend payments to inmates during periods of incarceration. In tur, the SSA pays fee to the Sherif’ Office for providing the dats This revenue stream has declined In FY 2017. While we will continue to research the root cause of this decline, we have reduced the revenue budget from $400,000 to $221,000 to reflect the current experienc. Personnel ‘The FY 2017 Detention Fund budget maintalns the prior fiscal years personnel savings Factor of 9.64% This eve of savings snot being achieved and it is not believed ta be realistic for FY 2018, Unfortunately, the Office continues to lowe detention staff at a rate higher than recruitment efforts, AS a result, ‘overtime spending is sgnieantly outpacing the currently budgeted level, While the Office is making _reat efforts to reign In overtime spending, we expect to end the year 40% over budget in overtime. We Were not able to reflect ths Increased level of spending in the FY 2018 budget submission and stay ‘within the baseline budget ‘Supplies ond Services ‘Ayear-to-year comparison ef the supplies and services budgets is somewhat difcut due tothe recent changes to the chart of accounts. However, in total the non-personnel budget increased by only $290,822, a fraction ofa percent. Donations Fund ‘The requested budget for the Donations fund is $50,000 based on current revenue levels, The budget i structurally balanced. We also request to appropriate $250,000 In fund balance. Nearly all funds donated tothe sherif'sOffie are earmarked for MASH, Officer Safety Equipment Fund ‘The Officer Safety Equipment Fund is submited at the baseline budget amount of $52,000 for both Fevenue and expenditures, Revenues are deposited into this fund pursuant to ARS. §12-116.04, whichFY 2018 Budget Submission Overview Fequires 2 $13 assessment on every fine, penalty and forfelture Imposed by the courts for criminal ‘offenses investigated by or cil trafic violations fsued by the Sheriffs Office. ight dollars of this ‘assessment is deposited to State funds, one dollar is deposited to a special revenue fund dedicated to the Justice Courts, and four dollars is deposited to the Sheriff's Officer Safety Equipment Fund. These {funds must be used fr officer safety equipment and cannot be used to supplant other funds We also request to appropriate $250,000 in fund balance. These funds will be used to continue to provide safety equipment tc our sworn officers The RICO Fund requested budget is submited at the baseline budget amount for both revenue and expenditures, Jail Enhancement Fund ‘The requested Jail Enhancement Fund budget fs submitted at the baseline budget amount for both revenue and expenditures, Revenues are deposited into this fund pursuant to ARS. §12-116.03, which Fequires surcharges on criminal offenses and chil penalties, and ARS. §41-2401 which requires that a Portion of these revenues be dlstributed to county sheriffs for the enhancement of jail facities and ‘operations, Funds are spent at the discretion ofthe Sher ll detention-elated continuing education ‘and training is pad for wit al Enhancement Funds. | FY 2047, the Sheriffs Offce continued its practice of funding small capital improvements with Jil Enhancement funds. These aojects would otherwise have been funded through the Detention Fund or not completed, In FY 2038, we request the appropriation of $2,000,000 in fund balance so that we may continue to fund small projects. All projets will be coordinated with the Faclities Management Department, (Grants Fund ‘The Grants Fund is submitta with revenues and expenditures both equaling $8,847,429, Pease se the detalled grant schedule for edltional information. lnmate Services Fund Revenue in the inmate Services Fund has been unpredictable due to anticipated changes to the FCC regulations governing fees and rates for inmate phane calle The FY 7017 budget rellcted the Fst of these changes with a $600,000 reduction in revenue. Though the fst haf ofthe fiscal year we worked to transition drug treatment services the Correctional Health Services, Ths transition allowed the Office to significantly reduce spending, While we were prepared te take additional cost savings measures, there is now speculation that the proposed changes, which weuld have nearly eliminated phone revenue, may neve go into effec. The FY 2018 budgets submitted a the threshold level of $9,596,352 and is structurally balanced,FY 2018 Budget Submission Overview ‘We wil continue to monitor the status ofthe proposed FCC regulation changes, mate Health Services Fund ‘The Inmate Health Services Fund is maintained within the Sherif’s Office but is dedicated to funding 00ds and services that benefit Correctional Healt Services (CHS). CHS provided all forecast and budget values. The requested experditure budget is less than the revenue budget. n ation, CHS i requesting ‘non-recurring appropratcn in the amount of $360,320 from fund balance. ARS. § 28-3511 requires peace officers to remove and impound vehicles under certain conaltions, The revenues from the administative charges that are assessed when releasing these vehicles are deposited into this fund. The FY 2017 requested budget is structurally balanced and submitted below the threshold level due to stagnant revenues, However, we request the appropriation of $170,000 in fund balance in order to purchase speed enforcement equipment and a vehicle tobe used by impound lt staff