Unable to wait any longer on the
State government to pass a budget, the Board of Supervisors passed a final balanced County
budget for fiscal year 2008-09. It is understood that if assumptions on revenues in this
budget radically differ from those actually passed by the federal and state governments,
we will have to reopen the County process.
Back in June when we did our preliminary budget, we found ourselves
with a $4 million revenue gap in the budgets submitted by General Fund departments. (Note:
“General Funded Departments” include the Sheriff, Jail, District Attorney,
Public Defender, Probation, County Counsel, Tax Collector, Assessor, Auditor,
Administrator, County Clerk, Library, Agriculture, Farm Advisor, Building, Planning,
Veterans Services, County Fire and the Museum.) We cut $2.5 million from that budget and
assumed a $1.5 million dollar “fund balance” or carryover of unspent funds from
last year to this to make up the rest. It turned out that the actual fund balance was far
less than expected.
In the preliminary June budget, we expected that revenues for last
year to come in at a certain level. We based the projected revenues for this year on that
same amount. Unfortunately, we found that we
were short by $1.4 million. Sales tax declined by $475,000; property taxes by $300,000;
“realignment” monies from the state were down $250,000; and vehicle license fees
and federal Payment in Lieu of Taxes were down another $100,000. All in all, we ended up
with an additional budget gap of $1.8 million in our General Fund.
In our final budget, we have tried to avoid layoffs. However, we have
frozen nine vacant positions that will not be re-filled. This represents savings of
$727,000. In addition, each department was directed to cut an additional two percent. Two
departments chose to freeze two additional positions that will become vacant later this
year. These cuts will result in a savings of $565,000. The remainder of the General Fund
shortfall will be covered by a one time shift of this year’s tobacco settlement
revenue.
Staff and the Board will review future cost containment and fee
opportunities. A “paperless” agenda process in being implemented for the Board
of Supervisors and a paperless claims process in the Auditor’s office. We will also
be reviewing services to get a clearer picture as to what is required in law and what
services might be cut, if departmental staffing is reduced. The Board will also be
reviewing fees, some of which have not increased in over a decade. (Siskiyou County has
some of the lowest fees in the entire state.) This is to ensure departments, such as
planning, building and public health are largely self-supporting and adequately staffed to
provide high quality and timely service.
The State is still talking about balancing its budget by holding back
Rural Crime, Proposition 1A and Proposition 42 (Transportation) funds. The current County
budget assumes that we will receive that money. Also the final County budget includes an
assumption that Congress will continue the backfill for loss of former levels of timber
receipts (Secure Schools and Communities Act monies,) as well as Payment in Lieu of Taxes
on federal lands (PILT.) If these revenues do
not come in, this represents up to an additional $3 million revenue gap in the General
Fund and $6 million in the County Road Department. Obviously, the budget will be reopened
and layoffs will be likely. |
