The county’s budget is lean and balanced for now, but as the
state prepares its budget the Santa Clara County Board of
Supervisors will likely have to revisit the $4.4 billion it
approved unanimously today.
A deficit of $223.2 million was accounted for in the budget
approval by using $138 million from one-time revenue, cutting 193
positions countywide and merging the Sheriff’s Office with the
jails.
The county’s budget is lean and balanced for now, but as the state prepares its budget the Santa Clara County Board of Supervisors will likely have to revisit the $4.4 billion it approved unanimously today.
A deficit of $223.2 million was accounted for in the budget approval by using $138 million from one-time revenue, cutting 193 positions countywide and merging the Sheriff’s Office with the jails. The upshot of eliminating 193 positions for fiscal year 2011 is only five employees will actually lose their jobs – most will be transferred or have their hours reduced.
The county’s priority was to cut the fewest amount of jobs and services as possible.
“(The board) set the stage to make it clear to administration to preserve services and employees and we’ve done that and thank you for your direction,” County Executive Jeffrey V. Smith said.
The approved budget reflects the county’s preparation for challenges ahead and opportunities to include flexibility as the county awaits the finalization of the state budget, which likely will total tens of millions of dollars – but the county is bracing in case it is much more. Hundreds of millions would result in a deep reduction of services, board president Ken Yeager said.
“The county continues to be challenged by crippling declines in discretionary revenues that have led to a ninth consecutive general fund deficit,” Yeager said. “Unfortunately, more reductions are likely once the state Legislature takes action on the governor’s proposed budget.”
The county has cut its budget by $1.8 billion since 2003 and the county’s income will become thinner and thinner until the economy brightens.
The years ahead are bleak. If Governor Arnold Schwarzenegger’s budget proposal was enacted today it would affect the county by as much as $249 million.
South County’s supervisor Don Gage of District 1 commented that Friday’s final budget wrap-up meeting and vote was the longest he had experienced in 14 years as a supervisor. It was an indication that times are indeed tough. The board spent the two-and-a-half hours discussing reduction to the nursing staff at Valley Medical Center, the closing of several pharmacies in the surrounding San Jose area and creating a task force to review the county’s provision of fresh fruits and vegetables to low-income families.
“The shortest was two minutes,” Gage said. “But that was 10 years ago when the good times rolled.”
He said the county’s budget will never appear as it had in years past and that people need to realize more changes are expected.
“We have to change and people generally do not like change. But the way we’re doing business in the county must change,” he said. Gage will end his career as supervisor in December due to term limits and will run for the Santa Clara Valley Water District board of directors.
When the hearings began this week, Smith outlined changes that occurred after the recommended budget went to print. Increased savings in fund balance, resulting from spending controls put in place earlier in the year and reduced debt service expenditures, among other things, improved the county’s financial picture by $4.2 million. Those funds enabled the board to make some adjustments and set aside a small reserve in anticipation of state budget impacts. The board was also able to set aside $921,000 to pour into nonprofit programs and services in 2011.
The current budget deficit drove the restructuring of several redundant functions currently carried out by the Sheriff’s Office and the Department of Correction. The restructuring is projected to save $5.8 million by eliminating duplication in units such as internal affairs and human resources.
The board restored staff which will allow the Probation Department to retain four positions for one of the important alternatives to detention for juveniles, the Community Release Program. The approved budget also included additional funding for the Public Health and Drug and Alcohol Departments, which had endured several years of cutbacks. The Mental Health Department was spared cuts beyond the across-the-board service and supply reductions.
“Support from many of the county’s unions to hold contracts at prior year levels gave us a solid foundation and makes it possible for us to make needed changes incrementally,” said Yeager. Last year, the county’s 23 unions agreed to a wage and benefits freeze through June 2011. “We have averted disaster for the time-being, and we are bracing ourselves for the impact of reductions the state is likely to pass on to counties with the passage of its budget later this summer.”
