Title
Receive an Update on FY 2015-16 Budget Development.
Report
RECOMMENDATION:
It is recommended that the Board of receive an update on FY 2015-16 Budget Development.
SUMMARY:
During the budget hearings scheduled to commence on June 2, the County Administrative Office will present a recommended budget requiring difficult choices for the approaching fiscal year. Revenues have recovered and non-program revenue, allocated at the discretion of the Board to meet local priorities, has posted solid gains in recent years. However, cost pressures related to salaries, benefits, and operating expenses have consumed these revenue gains and eroded most departments' flexibility to maintain current staffing levels, keep up with infrastructure demands, and respond to emerging needs. It is within this context that the County Administrative Office has requested a budget workshop in order to share perspectives on budget challenges facing the County and to seek direction from the Board of Supervisors.
DISCUSSION:
In March, departments submitted "baseline" requested budgets for next fiscal year, detailing the staffing and operating expenditures they can afford with expected financing. Proposed expenditures total $572.1 million, an increase of $21.9 million over the current year adopted budget. Requested budgets with increased expenditures are balanced with growth in program revenues or, in some cases, financed by reserves set aside for planned one-time needs. The baseline budget also includes a $5.7 million contingency appropriation for critical, unplanned operational needs next fiscal year. The uncommitted balance after financing requested baseline expenditures and taking into account expected revenue is $12.8 million. This amount represents growth in non-program revenue after meeting County commitments (e.g., formula-based increases to economic development agencies and the road fund) and is the amount available to finance departmental augmentation requests.
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