Facing a $220 million budget deficit, Santa Clara County
supervisors began the cutting process by approving $17 million in
reductions to take effect in the next six months, starting in
January.
Morgan Hill
Facing a $220 million budget deficit, Santa Clara County supervisors began the cutting process by approving $17 million in reductions to take effect in the next six months, starting in January.
About $10 million of the cuts approved at Tuesday’s board of supervisors meeting are in the areas of health services, including the county-owned South Valley Medical Center, the Mental Health Department and Public Health. Another $3.7 million was cut from the Social Services Agency.
Supervisor Don Gage, who represents South Santa Clara County, said some residents will notice a change in the level of services, particularly those provided by the SSA.
For example, collection of child support might slow down due to the latest cuts, which will affect everyone in the county.
“They won’t see a significant change right now, (but) it’s not over yet,” said Gage. “Cuts coming at the state level could be very significant for South County.”
Tuesday’s reductions were made half-way through the current fiscal year, which began July 1 and will end June 30, 2009, in response to the state legislature’s decision to cut the same areas of California’s budget, which partially funds county programs, in September.
“This year we passed the state reductions on to the affected agencies,” said Acting County Executive Gary Graves. “Given the lateness in the year, and the county’s own revenue challenges, we have very few options.”
The board voted 3-1 in favor of the reductions, with supervisor Ken Yeager opposed.
Due to the deficit expected not only for next year but also for at least the next three years, the $17 million of cuts will continue into the future.
County budget director Leslie Crowell said following the board meeting that all of the programs cut Tuesday have been cut each of the last five years.
She said due to declining property tax revenues, state funding shortfalls that are expected to last for the foreseeable future, and stagnant federal revenues, the county will be in a financial crunch for a long time.
“We feel we can’t be in a stable situation every year,” said Crowell. “Our revenue increase is smaller than our cost increase, and the administration is realizing we’re not in a ‘It will be better next year’ mode anymore.”
She added that deficits in recent years have been dealt with through the use of one-time funding solutions, such as the use of reserves and revenues from temporary programs. However, she said it is now time for the county to come up with ongoing solutions, such as the cuts approved Tuesday, because using one-time funds creates bigger deficits in the future.
“Every time you use a one-time solution you have to backfill for that the following year,” said Crowell.
Cuts in the Social Services Agency will affect operations of the department, and result in a lower level of service for the Senior Nutrition Program and Adult Protective Services, according to county financial documents.
Erin O’Brien, president and CEO of Community Solutions said the targeted cuts for 2010 will be “huge and devastating.” Services provided by the agency have progressively deteriorated in recent years due to the ongoing cuts.
If all of next year’s $220 million of cuts go into effect, “Programs within the agency and countywide will be absolutely eliminated,” O’Brien said.
Community Solutions utilizes county funds to provide mental health, youth support and family violence services to residents in South County. All of these programs will be affected by future cuts from the state and county.
The agency currently serves 700 mental health clients, according to O’Brien.
Crowell added that cost savings will also be achieved through the elimination of more than 200 positions in various county departments and shifting employees around through the “in-placement” program and the creation of nearly as many new positions. These eliminations and new positions will result in only two layoffs which will take effect Jan. 12.
“Some people may have to take a demotion or a pay cut, but they will have a job,” Crowell said.
In the Public Health Department, the county made significant cuts to California Children’s Services, which provides medical treatment for children with physical disabilities. Crowell said the state cuts to CCS were among the biggest impacts to the county.
At Tuesday’s meeting, Graves listed a number of factors that will allow the county to start with a lower base budget next year. One of those is increasing revenue from Valley Medical Center due to additional patients and growing MediCal waiver revenue. That revenue will save the county $75 million. Also, $15 million for the county’s retiree benefit trust fund will be used to offset retiree health expenses.
Planning for next year’s budget will continue for the next six months, and Crowell said due to more than $500 million in direct program reductions made by the county in the last eight years, “it would be surprising” to her if the next budget didn’t include more layoffs.
“But it’s very dependent on the board and how they decide to balance the budget,” she said.
