County Budget: Brian McDermott, our Chief Administration
Officer (CAO,) recently presented some very preliminary County budget figures. (The
initial budget for fiscal year 09-10 is scheduled to be passed at our June 2 meeting.) In
my years as a Supervisor, the situation has never been so bad.
First, let me explain that several of our departments locally
administer State/federal programs. (Human Services, Public Health, Behavioral Health.)
Their principal revenue streams and programs are controlled by the State. The County has
no discretion to move that money to other local services. The County also has little
leeway in the program benefits and services the State requires to be delivered. The Road
Department also has separate revenue streams from the gas tax, federal Secure Schools and
Communities moneys and various grants. Those pots of money, as well as others, are
required to be spent only on designated expenses.
The County does have discretion to allocate “General Fund”
dollars among General Fund Departments which include: Sheriff; District Attorney; Public
Defender; Board of Supervisors; County Administrator; Auditor, Assessor; Tax
Collector/Treasurer; County Counsel; Elections; Data Processing; County Clerk; Grand Jury;
Law Library; Juvenile Hall; Probation; Ag Commissioner; Emergency Services; Building
Dept.; Recorder; Planning Dept.; Veterans Service; Farm Advisor; Museum; and Library.
However, there are many State laws that mandate certain functions be performed. The
fundamental function of local government to protect general public health and safety from
injury can be challenged by the administrative requirement to collect revenue, account for
expenditures, meet State and federal mandates as well as to respond to local desires for
discretionary services. Last year, the General Fund budget totaled around $35 million.
(The total County budget was $140 million.)
The County receives 21.3 percent of property taxes paid (about $8.9
million.) The rest goes to cities, schools and assessment districts. Other revenues come
from Vehicle License Fees, personal property taxes, various State funding sources and
grants. The General Fund revenues coming into the County for the current year did not
materialize as expected. Currently there is a shortfall of $1.4 million. (For instance, we
have not yet received any backfill payments from the State for property tax revenue
reductions from the Williamson Act – about $700,000.) However, expenditures at the
end of the fiscal year on June 30 are anticipated to be about $800,000 less than expected.
Considering other offsets, it is estimated that we will start the next year, at best, with
a zero fund balance to role over, at worst with $200,000 or more in the hole.
General Fund budget requests received from Department Heads for next
year exceed our anticipated revenues by about $5 million. Insurance payment reductions,
the freezing of ten unfilled positions, use of tobacco settlement dollars and reserves can
reduce that budget gap to about $2.8 million.
Last year our Department Heads were asked to cut deeply, which
included the ten person staff reduction. This year they are also looking for additional
cuts – such as eliminating budgets for training and funds for any travel. This could
result in about $400,000 in cuts. The CAO is also looking at several small reserve funds
to see if they can be diverted to pay for personnel. The remaining $2 million budget gap
will have to be made up through personnel layoffs. (Notices would go out prior to July 1,
2009.)
Adding to this deficit are the many State proposals to raid County
revenues for money to make up their $21-25 billion budget hole. This could include:
$700,000 in Williamson Act subventions; Proposition 1A monies of from $740,000 - $1.16
million; and Rural Crime monies of $500,000. In addition, there is also a County repayment
of federal funds that were overpaid as much as $700,000 that could be in the mix. This
will be occurring at the same time that the State plans to devolve responsibility for
other services to the Counties. This could include the release of 25,000 low level
prisoners back to their communities of origin and elimination of Proposition 36 State
funding for the courts to divert local drug offenders to treatment, rather than jail. |
