Page 361 - FY 2021-22 Blue Book Volume 2

ETHICS COMMISSION

PUBLIC MATCHING CAMPAIGN FUNDS TRUST FUND

BASIS FOR THE PROPOSED BUDGET

The 2021-22 Proposed Budget for the Public Matching Campaign Funds Trust Fund (the Trust Fund) relates to
current year funding as follows:

Amount % Change

2020-21 Adopted Budget $ 3,431,848

2021-22 Proposed Budget $ 3,464,617

Change from 2020-21 Budget $ 32,769 0.95%

Charter section 471(c)(1) requires an annual General Fund appropriation to the Trust Fund equal to the current
value of $2 million in 1991 dollars. The current value is determined using the Consumer Price Index (CPI) for all
consumer items other than housing for the metropolitan statistical area of Los Angeles-Long Beach-Anaheim, CA.
The annual appropriation must be adjusted each year to reflect changes in the CPI since 1991. The required
appropriation amount for 2021-22 is $3,464,617.

Charter section 471(c)(1) provides that the City Council, by two-thirds vote, may reduce or withhold the Trust Fund’s
annual appropriation if all of the following occur: (1) the City Council declares a fiscal emergency by resolution for
that fiscal year; (2) the Trust Fund balance is at least $8 million in 1991 dollars adjusted for CPI; and (3) the City
Council has considered the Ethics Commission’s analysis on projected costs and public funding needs for the next
four years. For 2021-22, $8 million in 1991 dollars adjusted for CPI is $13,858,466.

Charter section 471(c)(2) provides that City Council, by two-thirds vote, may temporarily transfer money from the
Trust Fund to meet other obligations if all of the following occur: (1) the City Council declares a fiscal emergency by
resolution for that fiscal year; (2) the City Council has considered the Ethics Commission’s analysis on projected
costs and public funding needs for the next four years; and (3) the transferred funds are limited to funds that exceed
a minimum balance of $8 million in 1991 dollars adjusted for CPI. The transferred funds must be reimbursed to the
Trust Fund upon the earlier of the date the Ethics Commission determines that the funds are needed or the end of
the next fiscal year.

The Ethics Commission projects total payouts of $9.1 million in 2021-22 for the 2022 June primary elections for
three Citywide and eight odd-numbered city council seats races. The Trust Fund balance is expected to be
approximately $20.8 million on June 30, 2021.

2021-22 Minimum Fund Balance required to
reduce or withhold annual appropriation: $13,858,466

Estimated balance on June 30, 2021: 20,817,385
Required appropriation for 2021-22: 3,464,617

Estimated balance on July 1, 2021: $24,282,002

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