Stanislaus County's plan for 2010-11 has $40 million gap

Stanislaus County is torturously limping into another spending plan, with no aspirin or crutches in sight.

Leaders are expected next week to consider a final 2010-11 budget even more dire than those that forced the county to shed 857 positions in three years. The current plan notes the recent release of 270 Honor Farm inmates and reduced hours at libraries and the tax collector's and assessor's offices, and warns of scantier help for vulnerable seniors, children and poor people.

A release describes "a devastated economy, soaring unemployment, dramatically decreased property taxes" and money snatching from Sacramento as "once again pounding ... the Central Valley in a crippling way."

Next week's $918 million proposed plan is upside down by $40 million, the gap between expected income and spending, despite unprecedented layoffs and 9 percent reduction in every department. The spending estimate is down 4 percent, or $39 million, from this point last year, although up slightly from a $912 million preliminary budget approved in June.

Property taxes alone are $20 million less than three years ago. That's more than leaders normally spend on functions performed by the agricultural commissioner, assessor, auditor-controller, clerk-recorder, elections, cooperative extension, county counsel, grand jury, parks and recreation, planning, tax collector and county supervisors — combined.

Rick Robinson, the county's chief executive officer, called the past three years "an incredibly painful time," yet warned, "we aren't done cutting and the bottom is not in sight."

He's most worried about the county's obligation to its retirement system, whose investments plunged partly because of botched assumptions. The county's $44 million obligation could swell an additional $15 million next year.

Payments to home-care providers could plunge the county even further into the red, Robinson warned. A contract with providers expires Sept. 30, the budget forecast already shows a $1.3 million wage gap and a $2 million federal funding source is expected to dry up by July.

With more people joining the ranks of the poor, the county's ability to care for them is dwindling. A health care program for indigent adults, for example, shows a $2.3 million deficit. And drug and alcohol programs and child welfare and public guardian services will take more hits, officials say.

Other cuts have hurt prosecutors, public defenders and parks maintenance.

The county's 3,746 employees — fewer than its work force of 13 years ago — a few months ago agreed to 5 percent wage cuts for the next two years by taking 13 furlough days per year.

Some departments are taking advantage of a new incentive allowing them to keep 75 percent of any savings they produce in a given year, instead of that money being swept back into the general fund. Last year, agencies saved almost $7 million, returning $5.2 million to those departments.

County leaders are poised to adopt a final budget despite inaction by state legislators on theirs. Despite a state constitution mandate, California leaders are 70 days into a budget stalemate, with little hope on the horizon — and potentially huge impacts on county government.

Robinson said, "some of the greatest funding challenges may still be ahead of us" because of uncertainty from Sacramento.

The Stanislaus County Board of Supervisors will hold a public hearing on the 2010-11 proposed final budget at 9 a.m. Tuesday in the basement chamber at Tenth Street Place, 1010 10th St., Modesto.

On the Net: www.stancounty.com/budget.

Bee staff writer Garth Stapley can be reached at gstapley@modbee.com or 578-2390.