Title
a. Direct and authorize the County Administrative Officer to immediately implement a hiring freeze for positions funded by General Fund discretionary revenue; and
b. Provide authority for the County Administrative Officer to develop hiring freeze exemption administrative guidelines. (ADDED VIA ADDENDA)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Direct and authorize the County Administrative Officer to immediately implement a hiring freeze for positions funded by General Fund discretionary revenue; and
b. Provide authority for the County Administrative Officer to develop hiring freeze exemption administrative guidelines.
SUMMARY/DISCUSSION:
Despite efficient management and stewardship of County of Monterey fiscal resources, the County faces significant challenges including impacts from the inflated housing market, growing response to emergencies with delayed reimbursement, dwindling state and federal one-time and grant resources, and increased labor costs. On March 12, 2024, the County Administrative Office (CAO) presented the countywide financial forecast to the Board of Supervisors (Board), which indicated continued growth in discretionary revenues. However, the growth is not sufficient to keep up with the increased cost of doing business. Updates about the County’s financial condition were provided to the Board during its April 2, 2024, budget workshop and the budget hearings held on May 29, 2024.
The County faces multiple challenges including the high cost of living, which impacts all county residents and workforce. The critical shortage of affordable housing for working families compounds this challenge resulting in difficulty hiring, finding and maintaining a home in our community. During the financial forecast in March 2024, the County projected a deficit of more than $20 million in Fiscal Year (FY) 2025-26. Although the FY 2024-25 Adopted Budget was balanced, results from the ongoing inflated housing market, growin...
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