Supervisor Don Gage State of the County Report, February
2006
By Don Gage, County Supervisor
Thank you for the opportunity to provide an update on County issues and to identify my goals for 2006.
The State of the County is strong, but the fiscal realities of local government continue to challenge us. Sixty-five percent of the county’s revenue comes from the federal and state governments and small changes in their regulations or reimbursements can mean millions of dollars in lost revenue to the county.
Cuts in federal and state funding, coupled with the downturn in our economy have required drastic measures over the last few years. We have had to address budget deficits totaling nearly $640 million and have eliminated nearly 10 percent of general fund positions in our county workforce, while only adding positions that were revenue producing. I am proud to say that the county was able to address these financial challenges.
The budget situation remains difficult this year, with the county facing a projected deficit next fiscal year of $111 million. In the face of this deficit, and potential impacts from the federal and state governments, the county developed a strategy to address this projected shortfall. The instability of funding from the state and federal governments is only half the challenge we face. The other half of our structural problem is that the costs of providing services continue to rise, mostly driven by increases in personnel costs. Quite simply, our expenses outpace our revenues.
To address this challenge the Board of Supervisors has taken a number of actions to help control the cost of delivering services. We reduced our workforce, consolidated departments, and offered creative early retirement programs based on models used in the private sector. The county also took advantage of high real estate values to sell surplus property, while at the same time developing strategies that reduced our own use of leased facilities. Although many criminal justice and health areas require construction of specialized facilities, the county took advantage of the depressed commercial market to purchase generic office space instead of constructing new facilities.
The effort to reduce costs is ongoing and we are constantly exploring more efficient ways to deliver services. We are fortunate that our residents value the services the county provides and have supported efforts to gain more local control over our finances. This local control and self-help approach was evident in the 1996 Measure B Sales Tax program that delivered transportation projects like the additional lanes on U.S.101 and the Highway 85/U.S.101 interchange. Indeed, it is this move toward local control of our tax dollars that has led to discussions by the county of putting a sales tax measure on the June ballot.
Turning now to my goals for 2006, first and foremost, I must insure that our county government remains fiscally sound. During my time on the Board of Supervisors, I have consistently called for audits, improvements in service delivery, and for building and maintaining prudent budget reserves. These policies have allowed us to develop innovative ways to address hundreds of millions in revenue shortfalls, while preserving and enhancing health and safety services to our residents.
These fiscal policies have yielded real benefits for our residents. Prudent reserves allowed the county to address deficits without severe reductions in services or massive lay-offs. We were also able to increase the number of Sheriff’s deputies, develop a strategic plan for older adults, provide healthcare for uninsured kids, break ground on a new courthouse serving South County, and implement the plan for a health clinic in Gilroy. We have achieved these goals through sound financial planning, including consistently adopting a balanced budget. These fiscal strategies also earned the county the highest bond rating in the state, saving taxpayers millions of dollars in interest costs. For these reasons, my primary goal for 2006 is to maintain the fiscal integrity of the county.
Turning to more specific goals, I will continue to look for ways to enhance the county’s transportation system. As a Board member on the Valley Transportation Authority, I will continue to fight for road improvements and traffic relief for South County. For this coming year, we will oversee the construction of the flyover interchange planned for the Don Pacheco Y where Highway152 and Highway 156 meet. I am also chairing the VTA South County Policy Advisory Board to develop a plan and to make recommendations for our future highway needs. I will continue to oversee the completion of the remaining Measure B transportation projects. We will be breaking ground in February on the Route 152 improvement projects that will include installing a traffic signal at Gilroy Foods and widening the Llagas Creek Bridge. As a representative on the Caltrain JPA, I am committed to improving train service to South County, it is our only transit link and it should be expanded to meet the needs of our residents.
I am also working to sustain the long-term viability of the San Martin Animal Shelter. I recently asked the county to explore the feasibility of establishing off-hour emergency services at the shelter. These services are currently lacking in South County and residents must now drive to San Jose if their pet is injured or sick during off-hours. It is also possible that such services could help support and expand the shelter’s current operations.
The county suffers from a severe shortage of affordable housing, and as Chair of the Housing Trust of Santa Clara County, I will continue my efforts to advocate for affordable housing projects The Board of Supervisors recently adopted a 10-year plan to end homelessness in the county. The plan will help our county qualify for federal funds to help provide housing and services to the needy.
Last but not least, this year we will complete our long-awaited overhaul of the county’s Williamson Act procedures. After four years of review and analysis, a staff recommendation is scheduled for final Board consideration on March 14. Once approved, we can begin addressing the problems with the Williamson Act as identified by the state and start back on the road to full compliance. Resolution of this issue has been a long time in coming, but I think our Stakeholder Group and staff arrived at a reasonable compromise. I am anxious to move forward on the proposed action plan, which will begin just days after the Board approves the proposal.
I look forward to continuing to serve on the County Board of Supervisors and working with you to achieve the goals I have outlined. I remain confident that we have the structure in place at the county to address these challenges and accomplish these goals.
Editor’s Note
This is the first in a series of reports from community leaders to be published monthly. Gilroy Mayor Al Pinheiro will comment on the state of the city in March.
