It is that time of year when we make an initial pass
at our operating budget for the next “fiscal” year - July 1, 2004 to June
30, 2005. Usually, we don’t get to
finalize it until September, after we know exactly how much is left in the various fund
accounts and the State legislature has finished its budget.
When
explaining how our budget works, I like to think of envelopes - each earmarked for a
specific use and only that use. For instance,
this year there was an envelope labeled “roads” that contained $11,500,000.
There was one for “human services” containing $18,300,000; one for behavioral
(mental) health containing $7,400,000; child
support services - $3,300,000 and public health $3,200,000.
Basically,
the Board of Supervisors has no “discretion” to use this earmarked money for any
other purpose. (Generally these are federal /State programs that the County operates
locally.) We do, however, have one big envelope labeled “General Fund.” This is
money that we have some leeway to allocate. This year, out of a $90,091,313 budget, only
$29,400,230 were General Fund dollars. Of this, the Sheriff’s budget was $11,764,000.
The
General Fund Budget includes most of our core county services: Sheriff; jail; probation;
District Attorney; Public Defender; County Counsel; Treasurer/Tax collector; Auditor/Recorder; Assessor;
elections; County Clerk; agriculture; animal control; administration; Board of
Supervisors; airports; libraries; building maintenance; data processing; veterans
services; Grand Jury; building and planning departments.
It
also includes funding for other programs, such as the Siskiyou County Visitor’s
Bureau; Economic Development Council; UCE Farm/Ranch advisor; and County museum. In
addition, it supports the County Fire Warden by supplying dispatchers; a special trainer
for volunteer fire departments; and participation in the Amador Plan – continuing
winter service at the Weed and Hornbrook CDF (California Department of Forestry and Fire
Protection) stations. (This year, the amount
allocated to County Fire was $338,000.)
For
fiscal year 2003-04, our total budget was $90,091,313. Anticipated revenues were
$88,479,032. The deficit was made up from County reserve funds. (We were projected to have about $12,500,000 left.)
For
this next fiscal year, it is anticipated that, in addition to the loss of $500,000 in
rural crime money revenues, the County will lose an additional $90,000 in jail booking
fees from the cities. About $1 billion of Proposition 42 funds earmarked by the voters for
transportation is anticipated to be shifted to other uses.
Another
anticipated revenue loss is another dip into the County’s local property tax revenues
to cover the State’s obligations to school funding under Proposition 98. This tax
shift, called ERAF (Education Revenue Augmentation Fund) could take $980,000 more out of local property
taxes that would have gone to the County.
On
the expenditure side, the cost of maintaining current operations is increasing.
Worker’s
comp insurance is expected to increase by $280,000; liability by $192,000; scheduled
wages/benefits/retirement by $2,890,000. All totaled, expenses will exceed anticipated
revenues by about $4,000,000. Of the $4 million, it is anticipated that $2,684,721 of
these new expenses are attributable to the Sheriff, jail and District Attorney. The
remaining $1,320,000 of the new expenses are attributable to other General Fund programs.
It is probable that incoming tobacco litigation settlement monies of about $2,000,000 may
be used to help close the gaps.
Some
of the strategies being employed to ease the deficit are: continuation of the hiring
freeze; an equipment purchase freeze; travel approval; and a new furlough program. Under
this program, County employees may choose to reduce hours/ days or take unpaid leaves,
subject to department needs.
Governor
Schwarzenegger will review his State budget recommendations in May, so there may be more
surprises (and perhaps some ERAF relief.) There are also additional unanticipated
expenses, including some complex murder trials. We will know more as the State legislature
moves through its process.
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