Program Enhancements and Other Budget 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.

Realignment revenues in 2007-08 are estimated to total $4.6 billion, an increase of $71.5 million compared to 2006-07. The $4.6 billion is comprised of $2.9 billion in sales tax revenues and $1.7 billion in VLF. The projected $24.3 million in sales tax growth and $47.2 million in projected VLF growth will be distributed pursuant to current statute.

For 2008-09, realignment revenues are estimated to total $4.8 billion, an increase of $171.6 million above revised 2007-08 estimates. The $4.8 billion total includes $3 billion in sales tax revenues and $1.8 billion in VLF. The projected $126.3 million in sales tax growth and $45.3 million in estimated VLF growth will be distributed pursuant to current statute (see Figure HHS-11, Figure HHS-12, and Figure HHS-13).

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CHAPTER HIGHLIGHTS for Health and Human Services Back to Top

 Proposed Workload Budget
 Proposed Budget-Balancing Reductions
 Other Special Session Issues
 Program Enhancements and Other Budget 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 * - 806K) -
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.