Budget

UPDATE : The Estimated Impact to the County of the Governor’s May Revision

The Governor’s May Revision proposals address a $24.1B budget deficit for FY 2009-10 through a combination of program reductions and borrowing. A preliminary analysis by the County’s Chief Executive Officer estimates that the County would face an additional $1.235B in budget reductions through the end of fiscal year 2009-10 as a result of the Governor’s proposals. Considering the budget actions taken by the Legislature in February resulted in a loss of $253.1M to the County, the overall potential loss for the County is $1.488B. For information on the specific impact to County programs, click here for the CEO’s analysis.

Budget PieOn June 22, 2009, the Board of Supervisors (Board) approved a $22.7 billion budget for fiscal year (FY) 2009-10. The Adopted Budget reflects, a decrease of $494 million, or 2.1% from the FY 2008-09 Final Adopted Budget, and includes a reduction of 1,720 budgeted positions from the 102,458 in the FY 2008-09 budget. Although the Adopted Budget includes reductions in programs, budgeted positions, and hiring, the County will continue its provision of the most critical services and avoid layoffs by eliminating vacant positions.

The Chief Executive Officer’s Proposed Budget, adopted by the Board on April 21, 2009 closed a projected $300.4M budget gap in Countywide revenues with $107.2M in ongoing departmental budget curtailments, $77.7M in federal stimulus funding, and $115.5M in bridge funding that was saved during the years when the County benefitted from the growth in the real estate market and the strong local economy. The budget adopted on June 22, addressed an additional gap of $105.6M. The additional gap was primarily due to a further decrease in property tax revenue ($47.5M), decreases in sales and other local tax revenues ($41.6M), increases in indigent defense costs ($14.4M), and other miscellaneous cost increases ($2.1M). The $105.6M budget gap was closed with a 2% budget curtailment for most County departments ($53.1M), anticipated savings from the hard-hiring freeze ($47.0M), and the implementation of various savings initiatives ($5.5M).
 
The County will undoubtedly face continued budget challenges especially given the State’s significant budget deficit, currently at $26.3B, and ongoing decreases in County-wide revenues. The Governor’s May Revised Budget released in May 2009 had an estimated impact to the County of $1.5B. The County is closely monitoring the State Budget situation and will address the impact once the legislature has approved a budget.

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