Title
a. Receive an update on budget development as part of the Board of Supervisors' Fiscal Year 2024-25 Budget Workshop; and
i. Capital Improvement Projects Presentation by Public Works, Facilities and Parks
ii. Development Set Aside Presentation by Richard Vaughn
iii. Strategic Initiatives and the Budget Presentation by CAO's Office Staff
b. Provide direction to staff.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive an update on budget development as part of the Board of Supervisors' Fiscal Year 2024-25 Budget Workshop; and
i. Capital Improvement Projects Presentation by Public Works, Facilities and Parks
ii. Development Set Aside Presentation by Richard Vaughn
iii. Strategic Initiatives and the Budget Presentation by CAO's Office Staff
b. Provide direction to staff.
SUMMARY/DISCUSSION:
On March 12, 2024, 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 sufficient to keep up with increased costs of doing business. Rising pension contributions, increased salaries, 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 $26.3 million next fiscal year, $37.3 million in FY 2025-26, and $40.3 million by FY 2026-27.
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 baseline budgets to better understand each department's operational needs and implications to services. These preliminary baseline budgets identify staffing-related funding gaps for continuing 39 positions, including 9 filled positions and 30 vacancies. D...
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