Stanislaus County has budget impact from coronavirus outbreak. Shortfall is $25 million.
Stanislaus County’s final budget is marked by significant financial impacts from the coronavirus pandemic, forcing the county to use additional savings to balance the 2020-21 spending plan.
Direct sales tax revenues to the county are projected to be $2.1 million less than last year, as businesses were closed by state orders and fewer large-ticket items like automobiles were sold after the coronavirus emerged here in March.
Jody Hayes, county chief executive officer, said the county will take a bigger hit from realignment funds that are based on statewide sales tax revenue. The projected shortfall is $25 million, but about $9 million in state pandemic relief can be leveraged to get $7.3 million in federal funds, helping to narrow the gap.
Overall, the annual budget is $1.5 billion, an increase of $127 million over the previous year. The county is relying on $124 million in fund balance, or savings, to balance the budget, which is almost double the amount last year.
The county plans to use $41 million in fund balance to make ends meet in the general fund, a pot of money that funds public safety, parks maintenance and other public services.
Hayes said Monday the county incurred millions of dollars in extra expenses this year in responding to the coronavirus pandemic but most of the costs are covered by federal CARES Act funding. County leaders are optimistic the revenue numbers will improve as the year progresses and the county won’t have to spend down savings as much.
The latest forecasting suggests the fiscal outlook could get better, the CEO added. On the other hand, the county can’t afford to spend savings at this rate next year and budget cuts would be necessary if the trend continues, he said.
“We don’t see it getting worse than we have already budgeted for,” Hayes said. “We think the budget can absorb most scenarios for this fiscal year.”
Hayes said the CEO’s office has told county departments to keep 5 percent of their allocated positions vacant the rest of the fiscal year, which runs through June 30.
Sheriff’s Department to add nine positions
Despite the financial hits, staffing in the Sheriff’s Department will expand by 27 to 767 positions, mostly to recognize the transfer of the office of emergency services and fire warden’s office to sheriff’s oversight. The proposed budget gives the Sheriff’s Department nine new positions, including a captain and supervising legal clerk for a newly created detention administration division; a community resource deputy for Riverbank; a staff services analyst; a staff services coordinator for OES and the fire warden; two crime analysts; and a deputy for the FBI’s joint terrorism task force.
The city of Riverbank is paying for the community resource deputy. The other sheriff positions and creation of a detention administration division will cost the county $760,000.
The proposed budget shows a net increase of 14 positions for the county, bringing the total allocation to 4,533 positions.
The Board of Supervisors could approve the final budget after a public hearing set for 9 a.m. Sept. 22. The entire document can be read at www.stancounty.com/budget.
