Report: County Gets Mostly Its Fair Share of Revenue from the State

Last year, the voters passed a measure mandating the County of San Bernardino commission a study to review whether it was receiving its fair share of state funds. The study, which resulted from a Bay Area consulting group, concluded that San Bernardino County does, in many areas, receive its fair share of state revenue.

“Overall, the state’s [financial] transfer to San Bernardino County have generally been at, or above, the average level statewide,” the 33-page analysis by Blue Sky Consulting Group in Oakland states. “But there are certain areas, most importantly concerning homelessness and affordable housing, where San Bernardino County has received substantially less than other counties.”

The report – which the board of supervisors commissioned one year ago and paid nearly $200,000 to have done – states that the county received nine percent more state funding per person than California’s remaining 58 counties during the 2019-2020 and 2021-2022 fiscal years.

That works out to an average of $829 per person in San Bernardino County compared to $763 per person for the rest of the state.

Regarding realignment funding—the transfer of funds from the state to local governments—San Bernardino County ranks 31st among the state’s 59 counties since 1991. During that time, the county has received an average of $201 per person annually in realignment funding, compared with the statewide average of $174 per person.

Also, since 1991, San Bernardino County has received more social service funding than most counties (28th statewide ), more funding for child poverty (10th statewide), and an average level of mental health family supplemental support. However, in several RAs, including mental health, homelessness intervention funds, and affordable housing money, the county falls short.

But critics of the state legislature say the issue isn’t how much revenue the county gets from the state in mandated funds. The real problem is discretionary funding, which can be spent anywhere in the state, depending on where the state legislature believes it will do the most good.

One prominent local businessman and community leader, who was among the largest funders of the measure, said the Blue Sky study doesn’t adequately address discretionary funding.

“I think it’s an accurate assessment of how much state-mandated money is passed on to San Bernardino County,” said Jeff Burum. “I think it’s a good study in that regard. But you could get most of the information in it from a Google search.”

“The question is not how much the state is obligated to send it,” Burum said. “No one is saying San Bernardino County isn’t getting that money. But the report doesn’t say anything about discretionary spending, so I believe San Bernardino County still isn’t getting what it should be.”

Burum is correct that the report deals almost exclusively with mandated, not discretionary, revenue, but that’s because mandated revenue is typically the only funding a county receives from its state legislature, according to Newman.

“The only money counties get from their states is the money the states are required by law to give them,” said Matthew Newman, a principal with Blue Sky Group. “States almost never send discretionary funds to counties.”