Acknowledging that budget cuts could have “tragic” consequences, the Sonoma County Board of Supervisors enacted Tuesday an immediate hiring and spending freeze.
The board, beginning to shape the 2010-2011 budget, received a stark budget forecast from administrators that points to a $47.5 million deficit.
The board promised to take aggressive actions to contain costs to mitigate impacts to services and employees.
“The magnitude of this budget gap is gut wrenching, especially when you know what the impacts will be to our community and our organization,” said Board Chair Valerie Brown in a statement.
“The human impact of the necessary cuts could be tragic,” she said. “However, dealing with this problem early gives us a better chance of overcoming it.”
By law, Sonoma County is required to balance its budget without a deficit. Unlike at the state or federal level, the county cannot borrow from other governments. As property tax and sales tax revenues drop, the county’s only response can be to cut services and staffing.
The California’s fiscal problems add an additional uncertainty, as the state may again raid county funds to help balance its own budget.
At the board’s first Budget Policy Workshop, in January, the initial projection was a $35.6 million deficit in the county’s general fund. Due to an unexpected drop in carry over funds from last year, and below-forecast property tax revenues, the shortfall is now projected to be $47.5 million.
The Board directed staff to bring back additional budget updates for review. The next budget update will come on April 20 when the Third Quarter Budget Report is provided to the Board for public review. Full budget hearings begin June 14.
“It is vital that the board remain squarely on top of all budget developments,” Brown said. “The Board continues to work diligently looking for new revenues and finding new means of providing services.”
