Program Enhancements and Other Adjustments
State-Local Program Realignment

In 1991-92, State-Local Program Realignment restructured the state-county partnership by giving counties increased responsibilities for a number of health, mental health, and social services programs. Realignment also provided an ongoing revenue source for counties to pay for these increased responsibilities by establishing a new one-half cent sales tax and an increase in the motor vehicle license fee (VLF). The one-half cent sales tax is a dedicated funding stream for realignment. Chapter 322, Statutes of 1998, established a program to offset a portion of the VLF paid by vehicle owners. The amount of the offset has increased from the original 25 percent reduction in 1999 to the current 67.5 percent reduction that resulted from Chapter 5, Statutes of 2001. The amount of VLF revenue available for realignment is not affected by the 67.5 percent reduction in VLF because the amount of total VLF collections dedicated to realignment was increased by Chapter 211, Statutes of 2004, from 24.3 percent to 74.9 percent, effective July 1, 2004 to backfill this reduction.

Sufficient sales tax growth revenue is available from 2005-06 to make current the payment of caseload growth. For 2003-04, the amount of sales tax growth required to be deposited into the Caseload Subaccount was deficient by $147.6 million. This shortfall was fully restored with $60.1 million of 2004-05 sales tax growth revenue after the 2002-03 caseload growth was fully funded and $87.5 million of 2005-06 sales tax growth revenue. Sales tax growth revenue for 2005-06 was sufficient to restore the previously-unfunded 2004-05 caseload growth of $81.7 million and the 2005-06 caseload growth of $26.9 million. The remaining sales tax growth revenues will be allocated to the County Medical Services and General Growth Subaccounts pursuant to current state law.

Realignment revenues in 2006-07 are estimated to total $4.6 billion, an increase of $75.5 million compared to 2005-06. The $4.6 billion is comprised of $2.9 billion in sales tax revenues and $1.7 billion in VLF. The projected $9 million in sales tax growth and $66.5 million in projected VLF growth will be distributed pursuant to current statute.

For 2007-08, realignment revenues are estimated to total $4.8 billion, an increase of $231.4 million above 2006-07. The $4.8 billion total includes $3 billion in sales tax revenues and $1.8 billion in VLF. The projected $163.4 million in sales tax growth and $68 million in estimated VLF growth will be distributed pursuant to current statute (see Figure HHS-10, Figure HHS-11, and Figure HHS-12).
image of backward arrow  
CHAPTER HIGHLIGHTS for Health and Human Services Back to Top

 Major Accomplishments in 2006-07
 Proposed HHS Spending for 2007-08
 Program Enhancements and Other Adjustments
  Department of Alcohol and Drug Programs
  Department of Health Care Services
  Department of Public Health
  Managed Risk Medical Insurance Board
  Department of Developmental Services
  Department of Mental Health
  Department of Child Support Services
  Department of Social Services
 image of black pointing arrowState-Local Program Realignment
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Health and Human Services (pdf * - 261K) -
Provides this entire Health and Human Services Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Proposed Budget Detail - Health and Human Services
Displays Proposed Budget Detail information for Health and Human Services.