Title
Receive an Update on FY 2015-16 Budget Development.
Report
RECOMMENDATION:
It is recommended that the Budget Committee receive an update on FY 2015-16 Budget Development.
SUMMARY:
On April 20, 2015, the County Administrative Office held a budget workshop to share perspectives on budget challenges facing the County and to seek direction from the Board of Supervisors. This report is provided to the Board of Supervisors' Budget Committee for further consideration of preliminary budget considerations as staff begins preparing the recommended budget for Fiscal Year (FY) 2015-16.
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.
When necessary to balance requested baseline budgets to expected revenue, departments cut operating expenditures and vacant positions. In total, departments unfunded 63.5 vacancies for an estimated expenditure savings of $4.5 million. Some departments had already exhausted opportunities for cost savings because they have lost their budgetary flexibility due to cost pressures and/or do not have vacant posi...
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