Where's east Contra Costa health care district's money going?

By Rick Radin
Contra Costa Times
Posted: 08/07/2011 12:00:00 AM PDT

PITTSBURG -- East Contra Costa's only taxpayer-supported health care district is proposing to spend less than half its budget this fiscal year on the community programs it was set up to support, just a year after a civil grand jury criticized it for not directing more money toward serving residents.
The rest of the 2011-12 budget would go toward district expenses such as employee wages and board compensation, legal services and strategic planning.
The Los Medanos Community Healthcare District is budgeting $405,422 for its own expenses compared with $325,879 on grants to community nonprofits and an eyeglass program for needy schoolchildren.
The district is proposing to spend $164,000 on wages in 2011-12, including a $100,000 annual salary for Administrator Bobbie Palmer, who has moved from part time to full time. That is roughly double what it spent on district wages last year.
Palmer was formerly receiving $48,000 a year for a 20-hour-a-week position.
Palmer declined to comment on the budget, including questions about her salary and a plan to spend $4,500 to buy Apple iPads for each board member so they can communicate with each other.
"Somebody just said 'I want an iPad, how about the rest of you guys?' " said Joe Rubi, a former board member and a longtime critic of the current board. "They already have email, home phones and cellphones, so why do they need iPads? That's a luxury item."
The district was the subject of a 2010 civil grand jury report that criticized trustees for spending an average of half of its revenue from 2006 to 2009 on community programs.
In response to the report, the district produced a balance sheet that showed it spent about 69 percent of its budget on programs during those years.
The district has budgeted 44 percent of revenues on programs this year, compared with 49 percent last year. About 73 percent of district residents are in Pittsburg, 22 percent in Bay Point and close to 5 percent in four other communities. The district is funded through a 1 percent property tax assessment. A recent grand jury report also criticized the Mount Diablo Healthcare District, a similar special district, for spending only 10 percent on programs out of the $2.45 million it collected from 2000 to 2009.
Los Medanos board member Eva Zendejas Vera said Palmer's position has always been full time, but she's been paid a half-time salary in the past.
The five board members will continue to receive about $4,800 each in annual stipends for attending two meetings a month. Vera said the district has been struggling with a loss of property tax revenue. Los Medanos had more than $1 million in revenues in 2007-08 and 2008-09 compared with $731,400 in 2011-12.
"We get our money from property tax, but our expenses have stayed the same," Vera said.
Board members Marilyn Condit, Linda Strong, Vern Cromartie and board President Darnell Turner did not respond to requests for comment on the district's spending.
"(Board members) are doing all they can to not say anything about what's going on," Rubi said. "If you challenge them, they just get mad and chew you out."
The board is scheduled to discuss the budget at Monday's meeting.
"This shows a very cavalier attitude toward the people's money," said Kris Hunt, of the Contra Costa Taxpayers' Association, which had a representative at the district's July 18 budget meeting. "This (assessment) is an item that's hidden away on the property tax bill."
Among the 16 nonprofit groups receiving annual funding are Delta Memorial Hospital Foundation, Delta 2000/Bay Point All-Star Cheerleading and East County Midnight Basketball.
The largest beneficiary in 2010-11 was John Muir Community Health Alliance, which received $146,222 to provide blood pressure and diabetes checks for minority residents and information about health care options.
Vera acknowledged that "two or three" of the nonprofits have not returned required documentation verifying that they have spent the money as intended.
"They're not doing their program, obviously," Vera said. "We would like them to return the money."
Despite the criticisms, incumbents Condit and Vera were re-elected in November. Strong was the only challenger to win a seat.
Three other challengers, including Rubi, were defeated.
Contact Rick Radin at 925-779-7166.
by the numbers
Top expenditures from Los Medanos Community Healthcare District's proposed budget for 2011-12 fiscal year:
District expenses
Wages: $164,080
Legal Services: $40,000
Board Stipends: $24,000
Strategic Planning: $20,000
Accounting/Bookkeeping: $16,000
Auditing Services: $12,000
Board Seminars/Travel: $12,000
Landscaping: $10,800
Program grants
John Muir Community Health: $146,222
Delta Memorial Hospital Foundation: $84,000
Pittsburg schools adult education: $80,000
Los Medanos College nursing program: $60,410
Loaves & Fishes of Contra Costa: $40,000

If YOU GO
WHAT: Los Medanos Healthcare District board meeting
WHEN: 6:30 p.m. Monday
WHERE: Board room, 2311 Love-
ridge Road, Pittsburg

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