Title
Receive the Fiscal Year 2022-23 Board of Supervisors' Budget Workshop Presentation.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive an update on budget development as part of the Board of Supervisors' Fiscal Year 2022-23 Budget Workshop;
b. Receive an update on the County's General Financial Policies; and
c. Provide direction to staff.
SUMMARY/DISCUSSION:
On March 8, 2022, the County Administrative Office (CAO) presented the countywide financial forecast to the Board of Supervisors (Board). The forecast indicates continued growth in discretionary revenues. However, revenue growth is not sufficient to keep up with increased costs of doing business. Rising pension contributions, increased salaries, increased employee health insurance costs, higher workers' compensation and general liability program expenditures, and formulaic increases in general fund subsidies lead to an estimated funding gap of $18.2 million next fiscal year, growing to $26.4 million by FY 2024-25.
Since the forecast, departments have submitted their requested budgets for next fiscal year, including initial "baseline" plans of operations if increased County contributions are not available. Staff in the County Administrative Office are analyzing the baseline budgets to better understand each department's operational needs and implications to services. These preliminary baseline budgets identify staffing-related funding gaps for continuing 77.68 positions, including 26.88 filled positions and 50.8 vacancies.
Departments submitted augmentation requests totaling $36.2 million to address funding gaps and, in some cases, to add new staff or enhance programs. The augmentations include:
* $3.9 million to keep filled positions,
* $7.1 million to preserve vacancies,
* $7.1 million to support current non-personnel operating costs (trial expenses, building maintenance, etc.),
* $5.7 million for expansion of services,
* $4.5 million for 38 new positions,
*...
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