Title
Receive the FY 2019-20 Recommended Budget.
Report
RECOMMENDATION:
It is recommended that the Budget Committee receive the FY 2019-20 Recommended Budget.
SUMMARY:
The FY 2019-20 Recommended Budget includes $1.5 billion in expenditures for all funds, which is an increase of $25.8 million (1.7%) over the adopted budget. Total authorized positions of 5,359 increase by 120 positions from the current year adopted budget, including 60 positions added during the current year and 60 new positions included as part of the Recommended Budget. The Recommended Budget will be presented to the Board of Supervisors for consideration at the public budget hearings scheduled to commence on June 3, 2019.
DISCUSSION:
In March, staff presented the Financial Forecast projecting a $14.1 million deficit next fiscal year, growing to $36 million in FY 2021-22 to continue existing operations. Although the Forecast projected discretionary revenue growth due to favorable property tax collections, cost pressures to continue current service level operations rise at a faster pace including large increases in pension contributions and health insurance premiums, higher costs to run internal service fund programs such as the workers' compensation and general liability programs, and increased formula-driven contributions to outside agencies and other funds.
Following the Forecast, departments submitted initial "baseline budgets" for next fiscal year, which communicate what level of operations can be afforded, considering the fiscal pressures, if no additional funding is available. As a result of cost pressures and revenue loss for some programs, departments initially identified funding gaps to continue 70.5 filled positions and 32.4 vacant positions next fiscal year. As part of the budget development process, departments also submitted augmentation requests to increase funding to allow them to continue operating at existing service levels, to expand programs, and to complete capital i...
Click here for full text