County Budget: A Challenging Year

Acknowledging the County is facing a challenging financial year, Chief Executive Officer William T Fujioka this week unveiled a $21.9 billion proposed 2008-09 county budget that calls for a slight decrease in spending and positions, but no layoffs or major program cuts.

The County’s current fiscal condition is the result of the Board of Supervisors’ strong fiscal policies and conservative approach to the budget in past years. Due to the uncertainty surrounding the extent and duration of the current economic downturn, Fujioka said, the County should continue to exercise this same conservative approach in the management of the budget.

The spending plan, 2.61 percent lower than the present $22.5 billion budget, reflects the current state of the economy and lower tax revenues. Fujioka cautioned that it does not reflect potential impacts of threatened state and federal cuts, so those issues must still be addressed once the respective budgets are finalized.

Despite the weakened economy, the budget funds a number of critical programs and continued development of high-priority capital projects, including $1.5 billion for new jails, fire stations, health facilities, animal shelters, libraries and infrastructure.

Funding was provided for high priority programs, collaborative initiatives and projects that produce ongoing efficiencies. Providing one-time funding for initiatives to create ongoing efficiencies will result in lower costs to the County.
This is the first year that the budget has been drafted under the County’s new administrative structure, which has resulted in a more collaborative effort in identifying high-priority programs, ways to streamline processes and elimination of duplicative efforts.

CEO staff will continue throughout the year to work with departments to identify additional efficiencies and opportunities for improved service delivery. Special emphasis will be given to implementing innovative technology projects and continuing a collaborative approach by departments in solving their problems and providing services.

The budget will be formally presented to the supervisors Tuesday (April 22) for adoption to allow public hearings to be scheduled. Hearings are proposed to begin May 7, with the Board deliberations on June 16. The County’s fiscal year begins July 1.

A 35-position decrease in employee count, bringing the County workforce to 102,240, would still maintain the County’s ranking as the largest employer in the five-county region.

A total of $36.1 million was eliminated from some departments’ budgets, but the reductions would not impact current services as the funding cuts were from long term vacancies or other savings. The Department of Health Services has a net decrease of 111 positions, the largest of any department, while the Sheriff’s Department is targeted to receive 240 more positions.

The impacts of the threatened significant cuts in state and federal funding are not yet known so are not reflected in the budget. The budget does include a decrease of $127 million for health services; a plan for addressing the department’s structural deficit will be presented to the Board in June.