Bruce McPherson, 5th District Supervisor
Starting on June 17, the Santa Cruz County Board of Supervisors will begin deliberations on the 2013-14 County budget, which will be another difficult budget with continued employee concessions. I would like to share an overview of the proposed budget.
The total General Fund budget, at $396 million, is essentially unchanged from last year. The proposed budget reflects another challenging year resulting from continued slow economic recovery. While housing prices show modest gains, they are still well below the peak levels of six years ago. Since much of the County’s economic base is tied to the housing market and to the State budget, the associated impacts are evident in the proposed budget.
The recommendations in the proposed budget are largely achieved through the following actions:
- Continued reduction in payroll costs of approximately $5.9 million through negotiated furloughs or the equivalent.
- New budget reductions of about 10 percent in many County departments and programs, with the additional requirement that departments absorb any cost increases.
- Changes in fees and charges to reflect the actual cost of doing business.
- Modest increases in the General Purpose revenues.
Difficult Budget (Photo credit: Backdoor Survival)
A total of 2,342 positions are recommended, which represents a net increase of 30 positions over 2012-13 and is the result of mid-year additions of staff to implement the Affordable Care Act (ACA) and related health care programs.
The impacts of the $85 billion in federal sequestration spending cuts imposed in March are still not finalized. These reductions are targeted to impact County programs such as Substance Abuse Prevention and Treatment block grants, HIV screening funding, and reduction in Workforce Investment Act grants.
The largest share on the Net County Cost is allocated for public protection, which accounts for 59 percent of the costs to the General Fund. General government costs account for 18 percent, followed by public assistance at 12 percent of the General Fund budget. Health and sanitation account for about 8 percent of General Fund costs, with recreation and culture at 3 percent.
The proposed budget reflects a significant new State law, Public Safety Realignment (enacted through Assembly Bill 109 which was implemented in October 2011), which moves qualifying low-level offenders from state prisons to County programs, and facilities. It also reflects the winding down of the County’s Redevelopment Agency.
In summary, the 2013-14 recommended budget makes some progress towards attaining financial stability and balance. However, as we inch toward recovery, County reserves will remain at the minimum levels established by previous Boards of Supervisors, and approximately $5 million in facility maintenance projects will again be deferred into the future.
As the Board prepares to begin budget deliberations for fiscal year 2013-14, I would welcome any comments you might have about funding priorities. Please don’t hesitate to contact me at: [email protected] or at 454-2200.
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Learn more about Supervisor McPherson at www.co.santa-cruz.ca.us
