County looks at budget cuts
Point Reyes Light
San Rafael, CA (April 5, 2018) – The Board of Supervisors met for three days last week to hear recommendations by county departments that must pitch in to help close a projected budgetary gap of $5.6 million over the next two years.
The purpose of the hearings, County Administrator Matthew Hymel said, was for the board to review the recommendations—meant to achieve a 5 percent across-the-board spending reduction—before approving a balanced 2018-2019 budget in June. This is the first time in five years that the county has asked for reductions from its departments.
The shortfalls, projected to begin this year, are linked to slowing property tax growth, personnel costs and increased costs to repair county infrastructure.
“In June you will get the total budget with all the numbers, and it will be balanced,” Mr. Hymel said.
Main priorities for the board in balancing the two-year budget include improving emergency preparedness, preserving affordable housing, prioritizing racial equity, addressing climate change and adapting to sea-level rise.
Budget Manager Bret Uppendahl said the budget was balanced last year, but that “core local revenues are just growing slower than our cost of doing business is.”
A report from the administrator’s office states that property tax growth is slowing in Marin; those revenues represent over 30 percent of general fund revenues “and are the source for nearly all discretionary spending in the county.” While other localities generally see a growth of roughly 6 percent in property tax, Marin expects 5 percent growth.
The report’s projected general fund shortfalls are based on assumptions that there will be continued regional economic stability, an annual property tax growth of 5 percent, updated department fee schedules, continued growth in state and federal revenues and cost of living adjustments for all employees.
Even so, based on these assumptions, the county’s budget shortfalls are expected to grow in coming fiscal years, to $7.4 million in 2020-2021, $9.4 million in 2021-2022 and $11.3 million in 2022-2023.
The county is also recommending an ongoing annual spending increase of $2 million for parks, libraries and other facilities that have not been kept up over the years.
“We have worked with each department over the past year to identify budget reduction options that minimize the impact to our community as well as our staff,” Mr. Uppendahl said.
Only 11 full-time equivalent positions, or less than 1 percent of the workforce, are recommended for elimination.
“Compared to what we had in our 2012 and 2013 recessions, [when] we were talking about 10 percent reductions and over 200 positions countywide, the total budget reductions are under 1 percent of the expense budget [or] about 2 percent across the board in the net county cost,” Mr. Uppendahl said.
During the budget hearings, Robin Sternberg, CEO of the Marin Economic Forum, said other Bay Area counties are better funded and suggested the county focus on a stronger culture of civic partnership, bringing the private and public sectors together.
“Other counties nearby with like demographics are publicly funded at far higher levels,” she said. “Research we have done shows that Marin County is not investing in the economy through an economic development organization at a level even close to comparable regions.”
Ms. Sternberg suggested the county reimagine the economic forum as a “newly conceived economic development organization.”
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