San Benito County could close its $4.1 million budget shortfall
if it follows a list of recommendations by two supervisors, and
department heads work together to cut spending requests.
San Benito County could close its $4.1 million budget shortfall if it follows a list of recommendations by two supervisors, and department heads work together to cut spending requests.
That’s what County Administrative Officer Terrence May told the Board of Supervisors on Tuesday. The board approved cost-cutting policies drafted by the committee composed of supervisors Pat Loe and Richard Scagliotti.
In doing so, the board also directed May to begin developing a budget, which they hope to consider for final approval at the end of June.
“I think those policies provide a a very solid and constructive framework,” May told the board.
After receiving department heads’ requests, which May has called conservative, the projected shortfall came to $8.1 million. That represents 26 percent of the entire requested general fund budget for the fiscal year beginning in July.
In its policies, the committee agreed with May’s recommendation to use up $4 million accrued from under-spending over the past few years. That leaves the $4.1 million hole.
Other policies May will consider include:
– Cap general fund reserve spending at $2.75 million annually; the fund currently has $7.8 million.
– Reduce service levels, particularly discretionary spending involving the CAO’s Office, parks, fire services, public works, veterans’ services, human resources and 4-H.
– Appropriate $1.25 million in contingencies for unpredictable general fund expenses and pay-outs to resigning employees.
– Consolidate the Marshal’s Office into the Sheriff’s Department.
– Consider a countywide half-cent sales tax increase for public safety services.
– Encourage department heads to review and possibly adjust existing impact fees.
May said he plans to hold a meeting with all department heads Friday to discuss other ways to pare down their requests.
Supervisors considered gathering to discuss budget issues before their next scheduled meeting May 25, but couldn’t hold a special meeting because of schedule conflicts.
Scagliotti suggested the Board provide the CAO clear direction as soon as possible. Plus, he pointed out that employee unions would have to get proper notice if positions were cut.
“I suggest the 25th be a do or die day,” he said.
