Stanislaus County gives nod to interim budget

More cuts expected after state enacts spending plan -- mostly services to poor

By TIM MORAN
tmoran@modbee.com

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Stanislaus County's interim budget approved Tuesday by the Board of Supervisors tries to minimize the impact on the community and maintain levels of serv-ice, Chief Operations Officer Patty Hill Thomas said.

There are some areas that already have been felt -- cuts in library hours, layoffs in the Building Department, stricter eligibility requirements for indigent health care.

But as the state struggles to cope with a $17 billion deficit, deeper cuts are likely in the county's final budget -- projected to be about $957 million -- and they largely will fall on the poorest segment of the community.

"There's no way the budget isn't going to affect many members of the community," Hill Thomas said. "Much of what the county does is provide for the most needy."

That might mean fewer dollars for children on welfare, lower wages for In-Home Supportive Services workers who help families care for disabled relatives or a tougher time finding a doctor who will accept Medi-Cal payments.

Some of the potential cuts hit the county twice, Hill Thomas noted. Less money to collect child support payments not only hurts the family that doesn't get the payments, but government doesn't recover money spent on welfare for that family.

As fewer people qualify for state-funded Medi-Cal, more become eligible for medically indigent care, which is picked up by the county general fund. "We are starting to see that kind of increase," Hill Thomas said.

The supervisors unanimously approved an interim budget for 2008-09 Tuesday, but the real problems are likely to surface when the state budget passes this summer.

The county approves its annual budget in two stages, an interim plan in June and a final one in September, because the fiscal year begins July 1, but the state budget typically isn't approved until later. The county relies on state money for many of its programs.

The prospect of state funding cuts leads county officials to believe the interim budget is optimistic. State officials are projecting a $17 billion deficit and dramatic cuts to county programs, from health care to law enforcement.

Weak economy hits tax revenue

The county's interim budget for 2008-09 is an increase of 1.2 percent over this year's budget, according to Chief Executive Officer Rick Robinson. The general fund budget of $269.5 million is down $9.3 million, Robinson said. The general fund pays for things such as law enforcement, parks and recreation, planning and community development, justice administration, tax collection, and administration.

Most of the money for the general fund programs comes from property and sales taxes, Robinson said, and both have been hit hard with the weak economy. Property tax revenue for the coming year is projected to decline 4 to 5 percent as home prices have plummeted.

The county general fund departments have been working on a 16-month strategy to cope with the declining revenue, including a 2 percent across-the-board cut in the final four months of this fiscal year, and a 3 percent cut for 2008-09.

The interim budget cancels a $3 million down payment on a county jail expansion, and a $1.5 million annual payment to the county's economic development bank. The bank is a pool of money the county sets aside for cities to borrow for projects that boost jobs and the economy.

Doing less with less

Several county law enforcement officials warned of future problems as state and local budget cuts materialize.

Chief Probation Officer Jerry Powers said his department will meet the budget by keeping vacant positions open.

"It's difficult to do more with less. It probably means you do less," Powers told the supervisors. He called for a regional approach to public safety, so that county prosecutors, public defenders and probation officers aren't overwhelmed by increased arrests as cities boost law enforcement with sales tax increases.

Sheriff Adam Christianson criticized state legislators using law enforcement funds as political bargaining chips, including a state task force on methamphetamine.

District Attorney Birgit Fladager said she was down four attorneys, as the office workload is about to increase with two new judges. "I may be asking for more funds in September," she said.

The supervisors unanimously approved the interim budget, and unanimously rejected a 7.5 percent salary increase. The salary increase was recommended by staff because supervisors' pay has fallen 47 percent behind a group of counties Stanislaus uses for a benchmark. The supervisors are paid $70,470.36 a year.

Board Chairman Tom Mayfield predicted that the budget situation will get worse before it gets better.

"This is only the beginning of hard times. Next year will be worse," said Mayfield, who will leave office at the end of the year. "I won't be here, but the Board of Supervisors will do what we have to do to make it work."

Bee staff writer Tim Moran can be reached at tmoran@modbee.com or 578-2349.