Title
a. Direct County Departments to immediately implement a non-essential expenditure freeze including a hiring freeze of non-essential classifications; and
b. Provide authority for the County Administrative Officer (CAO) to delegate to Department Heads as necessary, implementation and management of non-essential expenditure freeze including freezing non-essential hiring.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Direct County Departments to immediately implement a non-essential expenditure freeze including a hiring freeze of non-essential classifications; and
b. Provide authority for the County Administrative Officer (CAO) to delegate to Department Heads as necessary, implementation and management of non-essential expenditure freeze including freezing non-essential hiring.
SUMMARY/DISCUSSION:
On March 3, 2020, the County Administrative Office (CAO) presented the countywide financial forecast to the Board of Supervisors (Board). The forecast indicated moderate growth in discretionary revenues. However, revenue growth is not projected to be able to keep up with the 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 contributions lead to an estimated funding gap of $20 million next fiscal year, growing to $40 million by FY 2022-23.
Since the forecast was presented, departments have submitted their requested budgets for next fiscal year, including initial "baseline" plans for operations understanding that increased County contributions are not available. Preliminary results of these baseline budgets will be presented to the Board on April 7, 2020.
In addition to the gaps identified in the forecast, it is anticipated substantial revenue gaps will develop due to the COVID-19 pandemic. Specifically, County discretionary revenue estimates which were used...
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