Title
FY 2018-19 Board of Supervisors' Budget Workshop Presentation.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive an update on the budget development as part of the Board of Supervisors' FY 2018-19 Budget Workshop; and
b. Provide direction to staff.
SUMMARY/DISCUSSION:
On March 20, 2018, the County Administrative Office (CAO) presented the countywide financial forecast to the Board of Supervisors (Board). As discussed in the forecast, revenues continue to grow moderately, but departments are experiencing increased costs due to rising pensions, raises, and increased allocations from our workers' compensation and general liability programs. The County is also impacted by program-specific challenges, such as the State's redirection of Public Health Realignment revenue. Because of multiple fiscal pressures, the County's financial forecast revealed a $36.2 million estimated funding gap in next year's budget, growing to $53.8 million by the end of the three-year forecast period.
Since the forecast, departments have submitted their requested budgets for next fiscal year, including preliminary "baseline" plans of operations that are feasible with expected resources. Staff in the County Administrative Office continue to analyze the requested budgets to better understand each department's operational needs and the implications to service levels. These preliminary baseline budgets identify large funding gaps including staff-related impacts of 283 positions (160 filled and 123 vacant).
Departments submitted requests to address these impacts, as well as augmentations to add new staff or enhance programs. Although discretionary revenue increases an estimated $4 million, this financing is offset by reduced reserves that had been used to meet needs in the current year. Cannabis revenue has specifically been excluded as a source of discretionary financing given it has been following a special allocation process spearheaded by the...
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