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~r~ He stated that there probably would be a large amount of unspent monies on hand next May, however, this would, be too late for any county to do anything with it. Commissioner Gustaveson stated that he felt the concern should be a new principle of how the funds are allocated and to get away from this situation of not being able to budget sensibly ar have programs with any continuity. He stated that the Board should make this point clear. He added that he was concerned that the State would end up next year with 20 million dollars of unspent monies. Mr. Ward stated that some counties will have to increase their spend- . ing while some decrease spending, and that there is some question that as much money will be spent under this formula because those counties which __._- are spending now will have to depend on a reallocation and he was unsure many counties would take this risk. Mr. Ward stated that another argu~ent could be the Title XX formula itslef, which made no seise based on the Title XX guidelines. The County Manager was instructed to arrange a meeting with the Department of Human Resources. He is to also ask Representative Hunt, Howard Lee, the local government liason, Ron Adcock from the County Commis- sioners Association, and Robert Ward with the State Social Services Office to be in attendance at this meeting. Any other counties who are interested are invited to attend. Mr. Ward informed the Board of new Federal funds which may be avail- able for day care services. These funds requrie no match but are expended wherethere are no day care programs. Funds are also expended to expand day care programs or to continue programs where funding has been cut back. He stated that Frank Porter Graham could qualify to receive these funds. Item 13 was in regard to a letter Commissioner Walker will send to the Local Government.Commission. Mr. Walker presented to the Board a letter addressed to Harlan B. Boyles, requesting that the financial con- dition of the Mental Health Center be investigated and the Counties be advised as to whether they may lawfully contribute public funds toward eleiminating a deficit created by antther legal entity. He asked the - Board of-:Commissioners to endorse the letter to Mx. Boyles. Commissioner Gustaveson stated that the letter to Mr. Oakley, which Mr. Walker referred to, was suggesting certain actions which each Board could consider. He added that when an agency projects a deficit, it is not to pay back a deficit, but to analyze where you actually are in terms of what your spendings are. The Mental Health Board went to the three Boards and the three Board of Commissioners in turn appropriate additional money to help meet this expected deficit. Mr. Gustaveson stated further that he could no endorse the letter to Mx. Boyles, because it was not accurate. Mr. Walker referred to the letter addressed to Mr. Oakley from the Local Government Commission of March 22, 1977. He stated that he wanted to know if it is legal for the County to contribute money toward elimin- ating a deficit created by another legal entity. Chairman Whitted stated that the situation was that given the current level of spending, and the current level of revenue, if Mental Health continued at that same level, then come June 30,1977, the Mental Health Center would find itself in a deficit situation. These facts were pre- sented to the Person, Chatham and the Orange County Board of Commissioners. - The Mental Health Board presented these counties with alternatives of either losing mental health services or else provide additional appro- priations to pay for these services. Additional appropriations were pro- vided and Mental Health is now operating at a level of where expenditures and revenues will equal at the end of the fiscal year. Further discussion ensued concerning the pay back situation which Mr. Walker reminded the Board must be paid back by June 30, 1978, to the State. He asked if the pay backs will be built into the County budget, and the reply was yes, however, this was not a deficit but a liability. Mr. Walker stated that his question was if he as a County Commissioner had any liability, or does the Board of Commissioners have any liability for funding these pay backs.