Title
Receive the FY 2019-20 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' FY 2019-20 Budget Workshop;
b. Receive an update on the County's General Financial Policies; and
c. Provide direction to staff.
SUMMARY/DISCUSSION:
On March 12, 2019, 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 enough to keep up with increased costs of doing business. Sharply rising pension contributions, 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 $14 million next fiscal year, growing to $36 million by FY 2021-22.
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 requested budgets to better understand each department's operational needs and implications to services. These preliminary baseline budgets identify staffing-related funding gaps for continuing 70 positions, including 56.5 filled positions and 13.5 vacancies.
Departments submitted augmentation requests totaling $40.9 million to address funding gaps and, in some cases, to add new staff or enhance programs. The augmentation includes: $7.6 million to keep filled staff, $210,993 to preserve vacancies, $2.9 million to support current non-personnel operating costs (trial expenses, building maintenance, etc.), $10.2 million for 104.5 new positions, $15.7 million for capital spending, and $4.3 million for program expansion. Staff is assessing p...
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