Riverside County Agencies Will Absorb 19-Percent In Cuts

Riverside County supervisors today tentatively approved a 2010-11 fiscal year budget that calls for departments to absorb spending cuts averaging 19 percent and reserves to be drawn down by millions of dollars to close a $133 million shortfall.

“This budget is Spartan, marked by discipline and determination,” said county Executive Officer Bill Luna. “Our economy will recover. We see some promising signs out there. But hard decisions are ahead that we can’t avoid. We must meet them head-on.”

The Executive Office characterized the 2010-11 blueprint as a “conservative” appropriations plan that adjusts for ongoing economic challenges and helps the county maintain its investment-grade credit rating.

The board voted 4-1 on the proposal, with Supervisor Bob Buster dissenting over concerns that the district attorney and sheriff had not clarified their budget priorities.

“There are no detailed plans on what they can reconfigure to save money,” the supervisor said. “All they’ve talked about is attrition, retirement or moving people around. That’s not good enough.”

The proposed budget would impose a 3 percent cut on the sheriff’s department and a 5 percent cut on the district attorney’s office.

Sheriff Stan Sniff and District Attorney Rod Pacheco warned last month that the revenue losses would prove detrimental to their operations.

The revenue situation is complicated by losses in Proposition 172 public safety sales tax receipts, generated via a statewide half-cent tax on consumer transactions. The Executive Office predicted Prop. 172 revenue would come to $110 million, compared to $126 million in fiscal year 2009-10.

The sheriff receives 61 percent of the county’s Prop. 172 allotment and relies on it for 14 percent of his budget.

Sniff said he may have to slash 85 positions and close the Indio coroner’s office to prevent running over budget. According to Pacheco, fiscal belt-tightening may lead to downsizing 60 positions, including 17 prosecutors.

“There has been attrition in the sheriff’s department and the D.A.’s office through the programs we’ve offered,” Supervisor Jeff Stone said in response to Buster’s comments. “To say they haven’t been transparent is not being transparent. We’ve had numerous meetings. We’ve heard from them.”

Supervisors John Tavaglione and John Benoit agreed with Buster that, of all the department heads, the district attorney was the least specific about his cost-cutting plans. But neither man said that justified delaying the budget approval process.

“We have a balanced budget at this time, but it’s a very fragile balance,” said county Chief Financial Officer Ed Corser.

The county’s reserve pool is roughly $303.5 million, of which $205 million is set aside for “economic uncertainty” — down 50 percent from three years ago.

According to county officials, about $71 million in reserves will be needed to offset revenue losses, combined with $62 million in spending cuts.

Departments are scaling back expenses by an average 19 percent and several hundred layoffs are expected, though the Executive Office noted that early retirements, furloughs and inter-departmental employee transfers would mitigate the need for a deep workforce reduction.

Corser said the exact number of layoffs will be known after a final round of budget hearings on July 12.

The county employs roughly 18,600 people. Early retirements, resignations, layoffs and terminations have resulted in the elimination of 1,000 positions since July 2009.

Discretionary revenue is expected to drop 3 percent, or $27 million, to $592 million, mostly because of falling property tax receipts, which comprise more than 80 percent of the county’s discretionary general fund income.

Riverside County’s property tax assessment roll lost 10 percent of its value last year because of a depressed real estate market, according to the Assessor-Clerk-Recorder’s Office.

Projections are for a 5 percent loss in the current year.

The 2010-11 budget proposal contains no new funding for capital improvement projects.

The total budget is $4.71 billion, nearly 11 percent below the 2009-10 fiscal year outlays.

“This budget is really good. It puts us on the road to manage through this crisis and maintain reserves,” said board Chairman Marion Ashley.

The board will consider a finalized spending plan on Aug. 10.