Page 405 - 2022-23 Blue Book Vol 2

ETHICS COMMISSION

PUBLIC MATCHING CAMPAIGN FUNDS TRUST FUND

BASIS FOR THE PROPOSED BUDGET

T 2022-23 Budget for t Public Mat Funds Trust F (th Trust Fund) relates t

current year funding as follows:
Amount % Change
2021-22 Adopted Budget $ 3,464,617
2022-23 Proposed Budget $ 3,667,173

Change from 2021-22 Budget $ 202,556 5.85%

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 2022-23 is $3,667,173.

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 2022-23, $8 million in 1991 dollars adjusted for CPI is $14,668,692.

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 $7.6 million in 2022-23 for the November 2022 general election for
three Citywide, eight odd-numbered seats races, and one special election. The Trust Fund balance is expected to
be approximately $18.2 million on June 30, 2022. The projected balance will be more than the minimum fund balance
required per Charter Section 471(c)(1) to reduce or withhold the annual appropriation, but as the City Council has
not declared a fiscal emergency by resolution for 2022-23, the required appropriation for the Public Matching
Campaign Funds Trust Fund for 2022-23 is $3,667,173.
FY 2022-23 Minimum Fund Balance required to
Reduce or withhold annual appropriation: $14,668,692
Estimated balance on June 30, 2022: $18,200,000
Required appropriation for 2022-23: $3,667,173

Estimated balance on July 1, 2022: $21,867,173

941