Latest news with #Morillo
Yahoo
14-05-2025
- Business
- Yahoo
Federal, state uncertainty complicates county's budget process
Facing budget reductions at the local, state and federal level, Kern County officials will have to take a hard look at which programs it wants to support should outside funding dry up. Speaking at the Board of Supervisors meeting Tuesday, Assistant County Administrative Officer Elsa Martinez said county funds won't be able to make up for all the reductions being proposed at the state and federal level, meaning certain programs may have to be prioritized. "Our county has a policy about overmatch. What that means, we have made the policy of the county that we are not to backfill production of state and federal programs," Martinez said. "The impacts (of proposed cuts) are so severe that we believe we're going to have to look at that policy and really prioritize the programs that are important to our community and your board." Property and sales tax revenues haven't kept up with expenditures and in March, Martinez told the board that department heads were instructed to reduce their budgets by 3% as the county looked to close a $9 million budget gap. But no amount of efficiency cuts can make up for the money some programs receive from outside sources, and if those funding streams end, the officials will have to decide which programs to support using county dollars. The Public Health Services Department alone faces a reduction of $10 million if all proposed reductions go through. "You heard your director of public health. She has done restriction of travel, canceled contracts. She still has a $10 million hole that she needs to cover," Martinez said. "We're gonna work with her to try to mitigate but at the end of the day, I don't know how to efficiently cut $10 million in such a short time." Reserves saved from sales tax revenue could buy the county some time but without a more reliable funding stream, certain programs may have to be paused or canceled. Roughly 34% of the county's budget is derived from state, federal and other government aid, according to Alexander Alva, budget and finance director with the County Administrative Office. Current projections estimate $69.2 million in reductions to federally funded programs across all county departments. Reductions to that funding could mean cost-cutting measures, resulting in reduced services and other operating adjustments, Alva told the board. Uncertainty in the budget process makes planning for those reductions difficult. "It's a very fluid situation, the budget continually changes, we hear in news, every single day, if not by the hour," said Lito Morillo, director of the Department of Human Services, which oversees the county's Medicaid disbursements. Kern County has roughly 400,000 Medicaid patients, or Medi-Cal as it's called in California, Morillo said. Congress is considering not just reductions to the program's funding, but also changes to eligibility requirements. "All these reductions that I've shared with you are just current proposals at this point in time," Morillo said. "But if they come to pass in some way, shape or form, they will dramatically impact our ability to provide services here in this county." At the same time, several departments are looking at additional mandates but no additional funding. "Proposition 36 has required us to create new expanded substance use services for justice-involved individuals. Care Court mandated the development of an entirely new treatment program and increased coordination with the courts," said Alison Burrowes, behavioral health and recovery services director. "Most of the new requirements are either unfunded or underfunded," Burrowes said. Public Health Services Director Brynn Carrigan noted the county is grappling with unfunded requirements and possible reductions from state and federal sources all while trying to manage some of the worst health outcomes in the state. "The county has the highest mortality rate from diabetes in the state, and leads in reported cases of valley fever, to name a couple," Carrigan said. "Additionally, Kern County experiences disproportionately high rates of HIV and other sexually transmitted infections, further underscoring the urgent need for targeted health interventions and sustained funding support." Fortunately for the county, the budget process isn't finalized until August, which means officials should have a better idea of how much money to expect. On Wednesday, Gov. Gavin Newsom will release an updated version of his budget known as the May Revision. While the Legislature will ultimately decide the final budget, Martinez said the "May Revise" will signal the governor's priorities. "However, we cannot backfill every state and federal reduction," Martinez said. "If there are programs that we cannot just use resources or backfill, we might have impacts. We might have layoffs. Again, I don't want to scare anybody. This is not bad news. This is the reality we're living in." A preliminary budget will be presented June 24, and then updated in July after the assessor finishes property valuations. Supervisors said they recognized putting together this year's budget would be a difficult process. "I think the most important line in your entire administrative report for our workforce is on page five, last page, where one of your budget planning goals is to minimize impacts to the county workforce to the greatest extent possible," said District 4 Supervisor David Couch. "I think in an effort to be just open and transparent about this, the methods to achieve minimizing those impacts aren't pretty." District 1 Supervisor Phillip Peters recommended a board subcommittee look into hiring an outside auditor to assess county programs for their efficiency. "I would like for us to consider the possibility of getting an outside company, individual, or identifying some third party that can come and take a look at our budgets and help us," Peters said. "(A) fresh set of eyes on where we can identify efficiencies and opportunities for operational improvements that are available."
Yahoo
17-04-2025
- Business
- Yahoo
Portland proposal to ban rental price-fixing software hits stumbling block
PORTLAND, Ore. (KOIN) — The Portland City Council measure that would ban rental price-fixing software has hit a stumbling block. After hearing a third round of testimony on the proposal on Wednesday night, city leaders unanimously approved District 3 Councilor Angelita Morillo's motion to refer the ordinance back to the Homelessness and Housing Committee. A six-figure salary might not be enough in Portland, report finds 'It's kind of with a heavy heart that I have to say this — that there is some new litigation elsewhere that touches on similar issues with the algorithmic price fixing ordinance,' Morillo, the proposal's lead sponsor, said. 'And I want to assert that the litigation is not determinative of what's going to happen here, but it's worth us keeping an eye on and being responsible stewards of policy and maintaining good conversations with stakeholders as we look into it.' The councilor was referring to a real estate software company's ongoing legal battle with the City of Berkeley. In early April, the Associated Press reported that accusing the California city of violating its free speech with an ordinance that prohibits rent-pricing algorithms. The lawsuit against Berkeley is the most recent development in a nationwide attempt to crack down on an alleged price-fixing scheme. In August, Oregon and several other states joined the Department of Justice in filing a federal complaint that claimed with property managers and hike up the cost of rent. The plaintiffs to include some of the country's 'largest landlords' in January. Portland's Homelessness and Housing Committee began discussing an ordinance against these practices the following month. The committee later , but Morillo's recent decision to reverse this move comes as the city is 'facing other immediate priorities, like the upcoming budget.' Complaint requesting prosecution of St. Helens Mayor heads to Oregon DOJ The councilor previously noted that 47% of Portlanders are renters. And while much of the has come from those in support of it, RealPage Vice President of Associate General Counsel Mike Semko argued that banning the software would impact renters negatively. 'What this draft ordinance does at the present moment — It doesn't ban price fixing,' Semko said on Wednesday. 'It bans the use of data sets in applied math. Essentially, what you're doing is — you're banning a math tool. That's not going to help anybody. It certainly won't help housing providers and, by the way, it won't help your residents either.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
02-04-2025
- Business
- Yahoo
‘Hurting everybody': Portland City Council, tenants sound off on proposed AI rent-fixing software ban
PORTLAND, Ore. () — Portlanders are sounding off on a proposed measure that would ban the use of AI to fix rent prices. The Department of Justice and several states, including Oregon, that accused software firm RealPage of using its algorithm to help property owners drive up rent costs. The complaint, which was , is what sparked the Portland City Council policy that could prohibit the act at the local level. Oregon gas pumps ranked 5th most expensive in the US as West Coast prices rise 'I want to note for my colleagues that the Department of Justice does not bring things forward unless there is serious evidence,' District 3 Councilor Angelita Morillo, who co-introduced the ordinance, said. 'This is going to be hurting everybody: renters, small housing providers and small businesses and small landlords, because people aren't investing their money in the economy.' Morillo serves the city's Homelessness and Housing Committee, which has addressed the proposal twice this year. The committee to the remainder of city council just last week. When the policy was re-introduced at Wednesday's meeting, city leaders were met with testimony from people on both sides of the debate. Although proponents have argued that the ordinance would benefit Portland 'mom-and-pop landlords' and renters, with renters accounting for about 47% of the population, opponents fear that the ordinance could exacerbate the ongoing housing crisis. Six Oregon James Beard contenders advance to final round, six semifinalists passed over Joe Gardner, a self-described 'lifelong renter' in the Portland area who testified on behalf of RealPage, claimed that rent costs have significantly dropped in the markets served by the software firm. 'This ordinance will not help marginalized populations, as some proponents have claimed,' Gardner added. 'In reality, part of the impetus for the software was to reduce the importance of face-to-face bargaining in renting — a process that's subject to severe implicit bias effects based on race, gender, English language skills and other factors.' City council will hear additional comments on the ordinance on Thursday. But the discussion of banning rental price-fixing algorithms reaches far beyond Portland. Oregon Department of Education ends math, literacy programs after federal funding cuts San Francisco, Philadelphia and Minneapolis are among the cities that have approved or proposed similar policies. Oregon's Senate Bill 722 as well. If the Portland ordinance is approved, those who violate it could be charged up to $1,000 per violation. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
