Los Angeles County released its preliminary recommended budget of $23.303 billion for Fiscal Year 2011-12, which reflects a decrease of $941.8 million in total requirements. General county funds, including the General Fund and Hospital Enterprise Funds ($18.019 billion) reflect a net decrease of $488.7 million.

Under this budget, the county faces a $220 million shortfall that will be addressed through the use of one-time budget solutions. The county has $228 million in reserves and will not need to tap into its Rainy Day Fund nor its Reserve for Economic Uncertainty.

Among the areas affected by the budget:

Health Services – The Department’s recommended budget contains a $312.7 million placeholder reduction. The Department plans to address the deficit primarily with additional 1115 Waiver revenue and other cost-cutting measures.

Mental Health – The Department’s recommended budget reflects a $14.7 million placeholder reduction in services and supplies to close its projected budget gap. The Department will collaborate with stakeholders and community partners to develop a curtailment plan for restructuring the mental health service delivery system to achieve these savings.

Public Health – The Department’s budget submission to the Chief Executive Officer included $9.9 million in curtailments, $1.0 million in cost-cutting savings, $2.9 million in new revenue solutions, and a $4.4 million placeholder reduction. At this time, the Los Angeles County Supervisors are recommending the $1.0 million in cost cutting savings along with $2.9 million in new revenues, and a placeholder reduction of $14.3 million to the Department’s services and supplies budget.

Additionally, the area of Emergency Preparedness and Response reflects appropriation and revenue increases of $25.4 million in various federal and state disaster grants.