Siskiyou County has now completed
a $117.6 million preliminary budget for the “fiscal” year beginning July 1, 2004.
As explained in prior columns, only $32.3 million of that is General Fund. This is money
over which the Board has the most discretion. It provides the basic functions associated
with government – such as sheriff, planning and tax collecting. Although departments
such as Human Services, Public Health and Behavioral Health make up the bulk of the
budget, the County is generally required to make a money contribution of only a relatively
small Maintenance of Effort (MOE.) These programs are largely dictated and funded by the
State and federal government.
Revenues coming into the County were estimated, based on the Governor’s
May budget recommendations to the State legislature. Revenues also assume: a) that up to
$2.2 million in “Tobacco Litigation” money will be deposited into the General
Fund; b) that the State will honor Siskiyou County’s request for more than $3 million
to pay for the cost of several pending homicide trials; and c) that costs for construction
and material for the new juvenile hall will not go over the amount of the grant and other
money the County has set aside for this.
In a prior column I explained that, even with the Tobacco Litigation
money, expenses for the General Fund were expected to exceed revenues. This was largely
due to increased costs of workers’ compensation, unemployment and liability
insurances; as well as previously negotiated salary benefit and retirement increases. At
the beginning of work on the budget, General Fund Departments were asked to cut $2 million
from their budgets. Even with these cuts, that expenditure/revenue gap was still about $5
million dollars.
The gap was first reduced by an estimated $2 from all the General
Fund “fund balances.” This is the sum of the estimated amount of money left over
to be carried forward in each fund or pot of money established for programs or department
area – such as the Assessor or Planning. (Actual fund balances will not be known till
well after the end of the fiscal year.) It was then reduced by a transfer of $1.9 million
in reserve funds. These were monies once set aside for “capital outlay,” an
internal “self-fund lease reserve” and revolving loan funds for community sewer
and water projects. All but $200,000 in “fixed assets” (vehicles and equipment)
were denied – including the Road and Sheriff;s Departments. This left about one
million left to be cut from the General Fund budget.
Additional cuts in travel and personnel were made to close the gap.
In the General Fund, frozen positions were balanced with requests to fill vacant positions
with an overall decrease of about 1.6 “full time equivalent” positions. There were also two layoffs: one in Probation and a
part time position in the museum. By Board budget hearing date, most of the Department
Heads had consented to their final budgets, but a few had not. These were: Tax Collector;
Clerk/Elections; Building Department; Yreka Farm Advisor; Probation; Public Health.
At the hearing, the Board of Supervisors: a) denied the Tax Collector’s
request to fill a vacant position that had been frozen; b) denied the County Clerk’s
request to fill a vacant elections position that had been frozen and a request for
additional travel money for training, however approved some additional temporary help; c)
denied a request to reclassify a fiscal position in the Building Dept.; d) denied a
request by the Farm Advisor to reinstate additional $1000 to travel budget; e) deferred a
request by Probation to fill a vacant supervisory position until final budget; and f)
denied a request by Public Health to restore additional $12,500 to travel budget.
Funding for the Amador fire stations (Hornbrook, Weed, McCloud) was
retained as were the extra dispatchers that the County funds at CDF. Also, in addition to
the County trapper, one federal trapper will be reinstated in July. He will be located out
of Scott Valley. The Economic Development Council (EDC,) Enterprise Zone and Visitor’s
Bureau will be funded at last year’s levels.
Some troubling aspects of the budget are the landfill and Behavioral
Health. The landfill is now operating in the red at $2,955,215. Service and fee changes
implemented this year will reduce that deficit only by about $500,000. Financing covering
that deficit ends in 2006, so some additional changes will have to be made. With the
Director on sick leave, the Behavioral Health
budget has some uncertainties, but deficits in expenses over revenues could be running as
high as an estimated $567,000. Plans to reduce this overage are currently being made.
The budget for fiscal year 2004-05 will not be finalized until
September, after the State budget, fund balances and other unknowns are finalized.
Additional cuts may need to be made at that time. The fact that layoffs have been so
minimal ( I have heard Tehama County is as high as 100,) is a testament to the wisdom of
the hiring freeze that has been in place since April 2002 and the restricted travel policy
since November 2002. These have brought budgets down to rock bottom. Any reserves left to
stabilize next year's budget will be minimal. |
