Supervisors face deficit of $2 million

By Kristine Williams | Posted: Friday, May 10, 2013 / The Calaveras Enterprise

Calaveras County supervisors had harsh words Tuesday for  Administrative Office staff after a special presentation of the next  fiscal year’s draft budget. Supervisors’ final comments questioned a  “nebulous” introduction to the budget, one that lacked sufficient detail to allow the board to give meaningful direction on how to balance a  near $2 million initial deficit.

The proposed operating budget for the next fiscal year itself wasn’t disclosed; this year’s operating budget is $139 million.

“This doesn’t bode well,” said District 3 Supervisor Merita Callaway in her closing comments.

Chief Assistant County Administrative Officer Clay Hawkins, who presented a  majority of the day’s PowerPoint presentation, explained that the  deficit comes as a result of escalating personnel costs, the county  approved an additional 21 new positions in 2012, a move Callaway said  was a “huge mistake;” loss of some previously relied upon state revenue  and a year-end cash carry-over amount that is only half of the previous  year’s.

“There are lots of moving parts,” said Hawkins. “We made our best guess.”

The Administrative Office was seeking board direction on various distinct  items Tuesday, including upgrading the county’s electronic financial  system and human resources software; reducing general fund revenue to  the county’s road fund; replacing high mileage vehicles, a majority of  them for the Sheriff’s Office; and delaying funding of new general fund  positions until adoption of the county’s final budget in September.

For this initial recommended budget update, all county departments  developed a “status quo” budget which included the same service and  supply costs as the previous year. For supervisors, such budgets were  unrealistic in what the board deemed will be needed to close the $2  million deficit. Each agreed that department cuts would most likely be  necessary

“The departments are happy, and I’m glad they’re happy,”  said Callaway of the status quo budgets, “but where is their  direction?”

District 4 Supervisor Debbie Ponte agreed, comparing  the morning’s presentation to simply throwing a dart and waiting to see  where it lands. She said she wanted to hear from each county department  in person.

“I need the human contact behind the numbers. I need  the detail. There is no one clear direction, … but it (the presentation) brought up another 160 questions.”

Both District 1 Supervisor  Cliff Edson and Supervisor Chris Wright of District 2 were narrower in  their assessments. For Wright, a plan to increase funding to the “bare  bones” library system ranked high as one of his top priorities along  with putting more sheriff’s deputies on the streets.

“There’s no  reason for money to be sitting in the bank,” said Wright. “There’s no  reason to keep saving it for a rainy day because it’s already raining.”

Edson emphasized applying business principles to budget deliberations. He  said that if his personal business, drawing the comparison to the  county, were not bringing in any sort of income then he would  essentially be “out of business.”

According to Edson, Calaveras  should be preparing for the local economy to pick up and prioritize  departments that “bring in income” like the Planning Department and  Assessor’s Office.

“I’m all about income,” he said.

The morning’s presentation wasn’t all doomsday prophecies though. “There is some hope in this gloomy tunnel,” said Hawkins.

Fiscal year 2012-2013 did see a marked increase in consumer revenues,  including funds brought in from the county’s transient occupancy tax and sales tax. Hawkins said such revenues are again expected to increase  for the following fiscal year by $600,000.

Supervisors will meet  again in mid-June to begin preliminary budget hearings. Final budget  hearings are scheduled to take place in September.

In other action at Tuesday’s special meeting:

•  Laurie Norton was officially sworn in as Calaveras County’s new chief  administrative officer. She will take the reins from Interim CAO John  Blacklock Monday, May 20. Norton said she was “honored and humbled” at  the opportunity to work in Calaveras.

• Also on Tuesday,  representatives from each county department gathered at the government  center in San Andreas to participate in the annual Government Center  Frog Jump. The Assessor’s Office continued its winning streak for the  second straight year. Staff member Lindy Winkler’s amphibian hopped an  impressive 13-feet-5-inches to secure bragging rights for another year.