San Joaquin County supervisors slash $6.1 million from budget

Facing a possible $59 million budget deficit during the next fiscal year, the San Joaquin County Board of Supervisors got a head start Tuesday by eliminating $6.1 million from the current budget.

County Administrator Manuel Lopez recommended making cuts right away in the hope of making the 2009-10 fiscal year less painful. The county only has a $2.3 million deficit at this time, Lopez said.

Cities and counties throughout California face painful decisions as the state's $11 billion deficit trickles down to local governments. No county employees were laid off for this fiscal year, but that promises to change beginning July 1.

Supervisors were especially alarmed about the need to cancel a contract with the California Department of Aging, effective June 30 of next year, that provides case management for frail seniors who are eligible for placement in a nursing home.

Called the Multipurpose Senior Services Program, the county would need to spend additional $85,700 to continue the service, Lopez said. Supervisors were upset about the state's massive cuts to senior services. The ombudsman is critically important, Supervisor Steve Gutierrez said, because many seniors cannot speak up, and many don't know their legal rights.

"It reminds me of the movie, 'Lifeboat,'" Supervisor Larry Ruhstaller said. "We'll be prioritizing who stays in the boat and who doesn't."

The county pays two people to oversee 40 volunteers to serve seniors as ombudsmen, and one of the paid people will be laid off due to the state cutbacks, Ruhstaller lamented.

County could cut cell phones

San Joaquin County Administrator Manuel Lopez says the county has issued more than 1,300 cell phones to its employees, and some departments have ordered additional cell phones.

"We could probably eliminate 80 percent of them with minimal impact," Lopez said.

The Board of Supervisors approved a series of budget reductions Tuesday that include reducing the number of county-issued cell phones. Lopez said he hasn't determined a certain number of cell phones to be turned in, but department heads will be asked to confiscate some of them. Due to the bulk number of phone contracts, each phone costs about $30 per year, but when multiplied by 1,300 phones, that's $39,000.

"It might keep two people from being laid off," Lopez said.

Admitting that he is harking back to the 20th century, Lopez said that cell phones in many cases are more of a luxury than a necessity. Lopez said that, for example, sheriff's deputies already have radios and laptops in their cars to communicate, so a cell phone could be unnecessary.

— News-Sentinel staff

Decreases in county revenue in first quarter

Property tax: $2.9 million.
Interest: $300,000.
Prop. 172 public safety: $2.4 million.
Social services: $2.7 million.
Development fees: $1.3 million.
Surveyor fees: $328,000.
San Joaquin General Hospital: $1.7 million (negative cash flow due to delayed state payments).
Source: San Joaquin County

The county will also eliminate 13 full-time and three part-time positions in Public Health Services due to the termination of state funding in one program and reductions in another. However, only three individuals stand to be laid off, Human Services Director Joe Chelli told the board.

The Board of Supervisors' cutbacks for the current fiscal year also include eliminating positions through attrition and retirement, instituting an administrative hiring freeze, deferring equipment and small-tool purchases, limit business-related travel to those that are absolutely necessary, eliminating up to 80 percent of the county-issued cell phones, and transferring $158,000 in annual assessments from Reclamation District 17 to the county reserve fund and for the reclamation district to lend the county another $100,000.

Gutierrez said he was glad that layoffs will be at a minimum.

"I'm glad that Manuel is trying to save as many jobs and services as possible," Gutierrez said. "When someone loses a job, it affects an entire family."

But Ruhstaller was concerned about how much small cutbacks will save the county.

"We can reduce travel and give back cell phones, but the real money is salaries and benefits," Ruhstaller said.

Lopez blamed state officials for being too optimistic about revenues when Gov. Arnold Schwarzenegger signed the state budget on Sept. 23. That, along with declining revenues, put the county $2.3 million in debt for the first quarter.

The county has received $2.9 million less in property taxes than what was projected when the Board of Supervisors adopted the county budget in June, Lopez said. Property tax accounts for more than 80 percent of the county's discretionary revenue, but real estate is selling for much less these days due to the recession, he said.

And due to the decreasing revenue, the county lost $300,000 in interest.

Additionally, the county's costs have gone up $2.3 million in the first quarter. The main cost increases are $2.6 million in human services and $900,000 in law and justice.

And on the revenue side, the real estate crash has affected county finances as well. Since the construction industry is on the skids, developers aren't paying the county fees to build houses and commercial buildings. That's caused the county to receive $1.3 million less in development-related fees than staff anticipated in June, and $328,000 less in surveyor fees.

The Community Development Department will avoid filling vacant positions and will reduce the use of consultants through June, but layoffs are likely for the 2009-10 fiscal year, Lopez said. The Surveyor Division will keep the position of assistant county surveyor vacant and reassign engineering staff members to other divisions, he added.

Contact reporter Ross Farrow at rossf@lodinews.com.

Reader Feedback

wtf wrote on Nov 26, 2008 7:39 AM:

" "We can reduce travel and give back cell phones, but the real money is salaries and benefits," Ruhstaller said.

My question is: **Whose** salaries and benefits is he talking about? Upper management or rank and file workers?

This story made me think of the story I saw in the news regarding Mervyn's....

Rank and file?

"The former employees expected last week to be paid the weeks of vacation pay they are owed, but creditors' demands stopped that process."

Or upper management?

"The irony is that no matter what, the top executives still working at the company managers will get their retention bonuses and vacation pay, guaranteed."

http://cbs5.com/business/mervyns.workers.benefits.2.853949.html

The **real** irony is that the same idiots who got everyone in this mess still get paid while the average persons gets the shaft. "

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