HomeMy WebLinkAboutReports - 2023.04.20 - 38135
AGENDA ITEM: Creation of One (1) Financial Services Technician III Position in the Fiscal Services
Reimbursment Unit
DEPARTMENT: Management and Budget
MEETING: Board of Commissioners
DATE: Thursday, April 20, 2023 6:00 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2023-2700
Motion to approve the position deletions as proposed in Schedule B and creation of one (1) GF/GP
Full-Time Eligible Financial Services Technician III position in the Fiscal
Services/Reimbursement/Family Court Accounts Unit (#1020650), effective on March 31, 2023;
further, amend the Fiscal Years 2023-2025 Budget as detailed in attached Schedule A, including
associated reductions in operating and internal service costs, as well as impacts on court collections
and state child care subsidy revenue.
ITEM CATEGORY SPONSORED BY
Staffing Modification Gwen Markham
INTRODUCTION AND BACKGROUND
This reduces positions in Fiscal Services Reimbursement Unit as a result of an administrative
decision to end collection of non-statutorily mandated assessments/fees for juveniles. As a result of
this resolution, the following positions will be deleted:
One (1) FTE Fiscal Services Supervisor
Six (6) FTE Financial Services Technicians II
Four (4) PTNE Financial Services Technicians I
One (1) FTE Office Support Clerk
It has been determined that a reduction of positions is necessary in Fiscal Services Reimbursement
Unit as a result of an administrative decision to end collection of non-statutorily mandated
assessments/fees for juveniles.
One (1) FTE Financial Services Technician III position will be created within the Reimbursement
Family Court Accounts Unit.
An attached PowerPoint presentation provides broader context for the decision and explains full
financial details.
BUDGET AMENDMENT REQUIRED: Yes
Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at
248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional
information.
CONTACT
Kyle Jen, Director Management & Budget-APP
ITEM REVIEW TRACKING
Gwen Markham, Board of Commissioners Created -
AGENDA DEADLINE: 04/20/2023 6:00 PM
ATTACHMENTS
1. M&B Fiscal Services Position Deletions and Creation HR Write Up
2. M&B Fiscal Services Reimbursement Unit Schedule A
3. M&B Fiscal Services Position Deletions and Creation Schedule B
4. Juvenile Court Collections PowerPoint Update
COMMITTEE TRACKING
2023-04-12 Finance - Recommend to Board
2023-04-20 Full Board - Approve
Motioned by: Commissioner Robert Hoffman
Seconded by: Commissioner Michael Gingell
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen
Nelson, Christine Long, Robert Hoffman, Philip Weipert, Marcia Gershenson, Janet Jackson,
William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman (16)
No: None (0)
Abstain: None (0)
Absent: Gary McGillivray, Gwen Markham, Angela Powell (3)
Passed
REQUEST:
1. It is requested that the Oakland County Board of Commissioners approves to implement the position
deletions as proposed in Schedule B, effective on March 31, 2023.
2. To create one (1) GF/GP Full-Time Eligible Financial Services Technician III position in the Fiscal
Services/Reimbursement/Family Court Accounts Unit (#1020650), effective on March 31, 2023.
PROPOSED FUNDING:
This is a cost savings.
OVERVIEW:
Changes in policy that have resulted in a reduction in fees collected by the Reimbursement Unit has decreased
funding for positions. It is requested that the Oakland County Board of Commissioners approves to implement the
position deletions as proposed in Schedule B, effective on March 31, 2023. It is also requested to create one (1)
GF/GP Full-Time Eligible Financial Services Technician III position in the Fiscal Services/Reimbursement/Family Court
Accounts Unit (#1020650), effective on March 31, 2023. It is requested to amend the FY2023-2025 Budget as
detailed in attached Schedule A.
COUNTY EXECUTIVE RECOMMENDATION:Recommended as Requested.
PERTINENT SALARIES FY 2023
*Note: Annual rates are shown for illustrative purposes only.
Class Gr Period 01 Step 12 Step 24 Step 36 Step 48 Step 60 Step 72 Step 84 Step
Fiscal
Services
Supervisor
068/
123
Annual
Bi-wkly
73,371
2,821.98
76,933
2,958.97
80,495
3,095.96
84,057
3,232.95
87,618
3,369.94
91,180
3,506.94
94,742
3,643.93
98,303
3,780.90
Financial
Services
Technician
III
069/
115
Annual
Bi-wkly
49,661
1,910.02
52,072
2,002.75
54,482
2,095.46
56,893
2,188.19
59,303
2,280.90
61,714
2,373.63
64,125
2,466.35
66,536
2,559.07
Financial
Services
Technician
II
069/
112
Annual
Bi-wkly
42,898
1,649.94
44,981
1,730.04
47.064
1,810.14
49,146
1,890.23
51,229
1,970.33
53,311
2,050.42
55,394
2,130.52
57,476
2,210.61
Financial
Services
Technician I
069/
109
Annual
Bi-wkly
37,057
1,425.28
38,856
1,494.47
40,655
1,563.66
42,454
1,632.86
44,253
1,702.05
46,052
1,771.23
47,851
1,840.42
49,650
1,909.62
Financial
Services
Technician I
HRL/
109 HRLY 17.8191 18.6809 19.5458 20.4107 21.2755 22.1404 23.0053 23.8403
Office
Support
Clerk
069/
107
Annual
Bi-wkly
33,276
1,279.83
34,955
1,344.44
36,635
1,409.05
38,315
1,473.64
39,995
1,538.25
41,674
1,602.85
43,354
1,667.45
45,034
1,732.09
SALARY AND FRINGE BENEFIT SAVINGS
**Note: Fringe benefit rates displayed are County averages. Annual costs are shown for illustrative purposes only.
Actual costs are reflected in the budget amendment.
Delete one (1) GF/GP FTE Fiscal Services Supervisor position
(#1020650-01111)
Salary @ Step 72 $94,742
Fringes @ 35.48%$33,614
Total Health Care Based Fringes $13,574
Savings ($141,930)
Delete four (3) GF/GP FTE Financial Services Technician II positions
(#1020650-06343,00709, and 07968)
Salary @ Step 12 $44,981
Fringes @ 35.48%$15,959
Total Health Care Based Fringes $13,574
Savings of 1 ($74,514)
Savings of 3 ($223,542)
Delete one (1) GF/GP FTE Office Support Clerk position
(#1020650-11859)
Salary @ Step 12 $34,955
Fringes @ 35.48%$12,402
Total Health Care Based Fringes $13,574
Savings ($60,931)
Delete one (1) GF/GP FTE Financial Services Technician II position
(#1020650-07969)
Salary @ Step 84 $57,476
Fringes @ 35.48%$20,392
Total Health Care Based Fringes $13,574
Savings ($91,442)
Delete two (2) GF/GP FTE Financial Services Technician II positions
(#1020650-00670 and 05429)
Salary @ Step 36 $49,146
Fringes @ 35.48%$17,437
Total Health Care Based Fringes $13,574
Savings ($80,157)
Savings of 2 ($160,314)
Delete four (4) GF/GP PTNE 1,000 hours per year Financial Services
Technician I positions (#1020650-10059, 11566, 11567 and 10058)
Salary @ Step 12 – 1,000 hours per year $18,681
Fringes @ 5.49%$1,026
Savings of 1 ($19,707)
Savings of 4 ($78,828)
Create one (1) GF/GP FTE Financial Services Technician III position
Salary @ Step 84 $66,536
Fringes @ 35.48%$23,607
Total Health Care Based Fringes $13,574
Cost $103,717
Total Savings ($ 653,270)
Oakland County, Michigan
MANAGEMENT AND BUDGET - FISCAL SERVICES - REIMBURSEMENT UNIT POSITION DELETIONS AND CREATION
Schedule "A" DETAIL
R/E Fund Name Division Name
Fund #
(FND)
Cost Center
(CCN) #
Account #
(RC/SC)
Program #
(PRG)
Grant ID
(GRN) #
Project ID #
(PROJ)
Region
(REG)
Budget Fund
Affiliate
(BFA)
Ledger
Account
Summary Account Title
FY 2023
Amendment FY 2024
Amendment
FY 2025
Amendment
R Child Care Circuit Ct - Family Div FND20293 CCN3010402 RC630140 PRG121240 630000 Board and Care (840,000)(900,000)(900,000)
R Child Care Circuit Ct - Family Div FND20293 CCN3010402 RC630840 PRG121240 630000 Govt Benefit Board and care (130,000)(150,000)(150,000)
R Child Care Non-Departmental FND20293 CCN9010101 RC615359 PRG112700 615000 Child Care Subsidy 450,000.00 450,000.00 450,000.00
R General Fund Fiscal Services Reimb FND10100 CCN1020650 RC631799 PRG126010 630000 Reimburse Contracts (5,500)(5,500)(5,500)
R General Fund Fiscal Services Reimb FND10100 CCN1020650 RC630140 PRG126010 630000 Board and Care (260,000)(280,000)(280,000)
Total Revenues $(785,500)$(885,500)$(885,500)
E General Fund Non-Departmental FND10100 CCN9090101 SC730359 PRG196030 7300000 Contingency $(320,552)$(22,903)$(22,903)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC702010 PRG126000 702000 Salaries $(257,296)$(514,592)$(514,592)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC722900 PRG126000 722000 Fringe Benefit Adjustments (140,713)(281,426)(281,426)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC702010 PRG126000 702000 Salaries 26,036 52,072 52,072
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC722900 PRG126000 722000 Fringe Benefit Adjustments 16,025 32,049 32,049
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC731388 PRG126020 730000 Printing (5,000)(5,000)(5,000)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC731458 PRG126020 730000 Professional Services (30,000)(30,000)(30,000)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC750154 PRG126000 750000 Expendable Equipment (5,000)(5,000)(5,000)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC750392 PRG126020 750000 Metered Postage (20,000)(20,000)(20,000)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC750399 PRG126020 750000 Office Supplies (3,000)(3,000)(3,000)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC773535 PRG126020 770000 IT CLEMIS (4,300)(4,300)(4,300)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC774636 PRG126020 770000 IT Operations (39,500.00)(79,000.00)(79,000.00)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC774637 PRG126020 770000 IT Print Managed Services (550.00)(1,100.00)(1,100.00)
E General Fund Fiscal Services Reimb FND10100 CCN1020650 SC778675 PRG126020 770000 Telephone (1,650)(3,300)(3,300)
Total Expenditures $(785,500)$(885,500)$(885,500)
Schedule B - Position Deletions
Dept #Pos #Classification Title Pos Type Fund Hours
Allocated
1020650 P00001111 Fiscal Services Supervisor FTE GF/GP
1020650 P00006343 Financial Services Technician II FTE GF/GP
1020650 P00000670 Financial Services Technician II FTE GF/GP
1020650 P00010059 Financial Services Technician I PTNE GF/GP 1,000
1020650 P00011566 Financial Services Technician I PTNE GF/GP 1,000
1020650 P00010058 Financial Services Technician I PTNE GF/GP 1,000
1020650 P00011567 Financial Services Technician I PTNE GF/GP 1,000
1020650 P00011859 Office Support Clerk FTE GF/GP
1020650 P00000709 Financial Services Technician II FTE GF/GP
1020650 P00007968 Financial Services Technician II FTE GF/GP
1020650 P00007969 Financial Services Technician II FTE GF/GP
1020650 P00005429 Financial Services Technician II FTE GF/GP
Juvenile Court Collections
Kyle Jen, Director of Management and Budget
March 2023
1
•Effective October 1, 2022, the Oakland County Reimbursement Unit is no longer collecting any
assessments/fees for juveniles in the Circuit/Family Court system except those required by state law
•Major categories that will no longer be collected are Board and Care (including Collection Offset and
Government Benefits), Probation Service Fees, and Defense Attorney Fees for juvenile defendants*
•Required fees that will still be collected due to state law are:
•Restitution
•Crime Victim’s Rights
•State Minimum Costs,
•Court costs
•DNA fees
•Wage Garnishments and tax intercepts have been discontinued on all discretionary fees
•These are administrative actions accomplished through a directive from the County Executive Office to the
Reimbursement Unit of the Fiscal Services Division
•Notice provided to Board of Commissioners in September 2022
2
Oakland County Administrative Action
*Effective October 1, 2022, the County is also no longer collecting reimbursement for defense attorney fees from partially indigent adult
defendants, consistent with Michigan Indigent Defense Commission (MIDC) standards. Change in policy was built into FY 2023-2025
budget; defense attorney fees will now be paid through annual MIDC grant
•Daily Board and Care rate of $169 per diem for children housed/treated at Children’s Village
•Same rate charged to families (before reduction for ability to pay) and other counties that
contract with Oakland County to use bed space
•Rate has not changed in at least 25 years
•Board and Care charges could be reduced based on ability to pay using the same methodology
as child support
•For a family making $25,000/year, assessment was reduced to $600/month -- still equates to
$7,200/year
•Collection rate was less than 10%
•Total outstanding debt of $98 million
•Funds collected are subtracted from Child Care Fund expenses that State of Michigan provides
partial reimbursement for (generally 50%)
3
Children’s Village Board and Care Charges
•Increased risk of recidivism
•Unpayable debts traps youth in a cycle of poverty
•Exacerbates racial, ethnic, and geographic inequities in the youth justice system
•Black and brown youth are overrepresented in the juvenile justice system
•The financial hardship is inflicted on the entire family
•Once assessed the debt may be collected for an indefinite amount of time
•Does not improve outcomes or accountability
4
Harms of Juvenile Court Debt
•Hinders requests for assistance
•Parents were often reluctant to ask for help because they were afraid it would add to
the detention or probation of the youth, thereby increasing the costs
•Unstable and unreliable revenue stream for courts
•Millions of dollars in unpaid juvenile fees go uncollected every year
5
Harms of Juvenile Court Debt - Continued
Sources
Overdue for Justice: An Assessment of Access to and Quality of Juvenile Defense Counsel in Michigan ,
June 2020, National Juvenile Defender Center.
Minors Facing Major Debt: The Immense Burden of Court Fees on Macomb County Youth and Families ,
2021, Michigan Center for Youth Justice
•Oakland County’s actions follow similar
actions by other counties in recent years
(Macomb, Washtenaw, Wayne)
•Macomb County commissioned a full
report in 2021 on the impact of court fees
on youth and families and subsequently
ended collections and discharged debts
for reimbursement of detention, housing
in residential facilities, court-appointed
attorney costs, and probation
•Oakland County taking a lesson
learned and applying action to
neglect/abuse cases in addition to
delinquency cases
6
Actions in Other Counties
The Report and Recommendations
released by the Michigan Task Force
on Juvenile Justice Reform in July
2022 included the following
recommendation, which was
unanimously approved by the
members.
Legislation (HB 4987-4991 in prior
session) is currently pending that
would limit the costs, fines, and
assessments that the court may order.
7
Statewide Movement
“Eliminate most non-restitution fees and
costs associated with juvenile justice
system involvement.”
•The court shall not order a juvenile or a
juvenile's parent, guardian, or legal custodian
to pay for the costs of care, services, court-
appointed attorney representation, or other
costs or assessments related to the juvenile's
court proceeding.
•The court shall not collect the balance of any
court–ordered fines, fees, or costs previously
assessed to a juvenile.
8
Total Juvenile Court Collections
Source: FY 2022 Reimbursement Unit Annual Report
*Items no longer
collected **
**
**
**
*
*
>Items continue to
be collected
>
>
>>
>>
**
•The Reimbursement Unit of the Fiscal Services Division handles collections for the Circuit,
Family, and Probate Courts
•Ending these juvenile collections reduces the number of positions needed in the unit by 7
full-time and 4 part-time positions (currently 29 full-time and 4 part-time positions)
•Employees were notified as early as possible in the process (August 2022) to give time
for them to find other positions in the County or elsewhere and ideally avoid any
layoffs/bumping
•We have worked with affected employees to find positions elsewhere in County
government, so no layoffs will be required
•Projected full-year savings of about $840,000/year, including personnel, operating, and
internal service costs
9
County Employee Impacts and Support
Impact on County Budget Estimated Annual
$ Amount
Reduced court collections*($1,330,000)
Reduced positions/costs in Reimbursement Unit (full-year)$842,759
Net increase in Child Care Fund reimbursement from State of Michigan $450,000
Total Estimated Net Financial Impact ($37,241)
10
Financial Analysis: Full-Year Impact
Ø Overall impact of administrative action is net neutral, accounting for position/other savings in
Reimbursement Unit and increased reimbursement from State of Michigan due to revenue no
longer being collected for Board and Care
Ø One-time net financial cost of approximately $325,000 in FY 2023 due to partial-year position
savings
Note: Additionally, County will evaluate whether daily rate charged to other Counties for housing
children at Children’s Village should be increased over time to more fully capture true costs of service
1.Ending these collections will help children and their families get their
lives on track
2.No significant financial loss to Oakland County
3.All affected employees have new positions
11
Key Takeaways