County budget drama 'not fun to watch'
| Saturday, Jul 25 2009 12:00 PM
Last Updated Saturday, Jul 25 2009 12:00 PM
Kern County's budget process this year was messy -- a six-month mash-up of missed budget estimates, state cash seizures and slashed services spiced with surprises and recrimination.
In just one example, Sheriff Donny Youngblood thought early on in the process he might lose 500 to 600 employees. In the end he laid off 38 detention deputies and 16 civilians.
"The process was painful. You would think you had a number and then it would change," Youngblood said. "We had a hard time planning until we had a number."
After six months, more than 150 layoffs, a $21.2 million windfall of cash and an unexpected state capture of $28.8 million, the county patched a final $7 million budget hole with precious reserve cash and called it good.
Tempers flared at points. Feelings were hurt. Messes were made and cleaned up.
"There's emotion and passion and a lot of disappointment," said Supervisor Mike Maggard. "Occasionally you saw people's eyes flash at each other, but that's part of the process."
Now the county starts another process -- preparing for a worse budget picture one year from now.
BLOODY, NOT BROKEN
This year, development of a budget started far earlier than it usually does, triggered by dire mid-year budget news.
"It was not a fun process to watch. Because we started early we were working with a lot of unknowns," said Supervisor Michael Rubio. "It put us in a position where we weren't really strong with our projections."
Starting in February and cutting hard, however, gave the county time to prepare, said newly minted County Administrative Officer John Nilon.
"This is a discussion that had to be had. It was a completely different budget cycle than anyone in the county has been in for the last 20 years," Nilon said. "It probably appeared so messy because we were so used to a different system."
When it was over, 174 permanent county employees lost their jobs.
And the county decommissioned another 506 permanent jobs -- empty positions that department leaders hadn't staffed in hopes of keeping existing employees on the job.
"We have tightened the belt. We have gotten to the last hole on the belt," Rubio said. "We've cut where we didn't think we could cut."
Departments pulled out the stops and the county saved enough money to offset nearly all of the $28.8 million in property tax and agricultural preserve money the state will likely capture.
But county services to the public will suffer.
NO WINNERS
"I believe every department lost vital resources," said Budget and Finance Director Gloria Dominguez.
Even the county's traditional budget winners -- public safety departments such as sheriff's and fire -- lost big.
"The winners are generally public safety," said Parks and Recreation Director Bob Lerude. "In this budget, even public safety took some hits."
Some county fire stations will operate with two firefighters rather than three.
Sheriff's Department layoffs will impact services.
And the District Attorney, Probation and Public Defender departments suffered as well.
Lower-priority departments like parks and libraries suffered even more.
"We have huge impacts out in the parks. People don't realize until they get out there," Lerude said.
Libraries, despite an extra $300,000 last-minute gift from county supervisors, will close most libraries an extra several days each week.
The impacts of those losses are magnified by hidden job losses.
County departments released hundreds of temporary, "extra help" employees that department heads say have become critical to delivering services.
THE FUTURE
As the tension of the last few weeks fades, county officials say now is not the time to rest. They need to prepare for next year's budget cycle.
"What happened last year is going to happen this year and next year," Nilon said.
Rubio said the county will scour all the department budgets for ways to save money, to consolidate services and to negotiate with county unions to protect funding and jobs.
"This is a great opportunity for us to look under every rock to see if there's a way to save taxpayer money," Maggard said. "There's nothing like a good crisis to make people creative."
THE COUNTY'S ROLLER COASTER BUDGET YEAR
July 23, 2008 -- Kern County supervisors, facing a tough budget year and steepening recession, pass a 2008-2009 budget that tapped reserves and cancelled capital projects to restore $11.9 million that had been cut from county parks and libraries, the Department of Human Services and the Sheriff's and Fire departments.
Oct. 7, 2008 -- Supervisors vote to continue tight controls on hiring and spending.
Jan. 26, 2009 -- County Administrative Officer Ron Errea reveals the county has a $27.3 million revenue shortfall for the 2008-2009 budget. That, and a massive state deficit, make a $75 million hole in the current fiscal year spending plan. Errea recommends an immediate 10 percent cut to all county departments.
Jan. 27, 2009 -- Supervisors refuse to embrace Errea's plan for a 10 percent cut, citing too little time to process the dire report from the day before.
Jan. 27, 2009 -- Public Heath Department Director John Nilon writes an e-mail to Board of Supervisors Chairman Jon McQuiston calling Errea's budget staff inexperienced and denouncing the impact to departments of Errea's 10 percent cut plan.
Feb. 3, 2009 -- Errea tells supervisors that Kern County could be $75.9 million in the hole by July 1 due largely to the delay of state funding. Supervisors, listening to dire stories about thousands of lost county jobs in the Department of Human Services and Sheriff's Department, direct him to prepare a plan that cuts only $34 million from this year's budget. No action is taken.
Feb. 5, 2009 -- Supervisors again debate the budget impacts on departments. They take no action on cuts. "We are preparing to defer to next year questions that you could argue we should handle today," Supervisor Mike Maggard said.
Feb. 9, 2009 -- Supervisors agree to patch the budget with $34.1 million from borrowing and reserves and make $29 million in cuts to operations and staff, requiring the layoff of only 12 people. They agree to come back at the end of the month with plans to make additional cuts that will get the county to a zero cash flow balance on July 1.
Feb. 9, 2009 -- Errea explains that county department heads misunderstood how his call for a 10 percent cut plan would slash their budgets. The cut only impacts general fund spending in the department -- not the full department budget. The difference in those two scenarios is big. Sheriff Donny Youngblood said he was going to lose 400-500 deputies. Department of Human Services Director Pat Cheadle said she'd lose 1,100 of her 1,500 staffers. Neither leader laid off a single employee.
Feb. 20, 2009 -- A final state budget deal in Sacramento blows no new holes in the county plan.
Feb. 23, 2009 -- Supervisors approve a final mid-year budget reduction with a few new cuts, savings from the state action and some concessions to Sheriff's and Fire. The general fund will end the year $9.8 million in the black, supervisors are told.
Feb. 25, 2009 -- County Administrative Officer Ron Errea announces he will retire in March.
March 17, 2009 -- Supervisors appoint Elissa Ladd as interim CAO.
April 3, 2009 -- County departments submit proposed budgets showing what 15, 25 and 33 percent cuts to their general fund allocations would do to their departments.
April 28, 2009 -- The county's 2009-2010 budget deficit is estimated at $72 million. Budget and Finance Director Gloria Dominguez tells supervisors that even with a 15 percent cut in general fund spending by departments, the budget will be $14.4 million in the red.
May 6, 2009 -- Kern County leaders estimate Gov. Arnold Schwarzenegger's proposed budget could strip an additional $20.8 million in county funds.
May 14, 2009 -- The estimated, unexpected, hit from the state increases to $29 million.
May 19, 2009 -- Voters reject a package of state measures designed to bridge a budget gap in Sacramento.
May 27, 2009 -- The Kern County District Attorney and General Services departments announce they will ask supervisors to start laying off staff prior to the adoption of the county budget in July.
May 28, 2009 -- County budget officials release a preliminary budget report stating that 251 county workers face layoffs and 600 prisoners would be released from Lerdo Jail in the budget as they currently understand it. Four other county departments announce they will request early layoffs.
June 9, 2009 -- Supervisors authorize 27 layoffs in three departments. Over the next month they authorize a total of 162 layoffs.
June 18, 2009 -- During a brutal Thursday meeting, supervisors review the preliminary budgets of all county departments in a sort of "pre-budget" hearing. They direct sharp cuts -- some in excess of 15 percent -- to all but two county departments. They postpone decisions that would close the minimum security wing at Lerdo Jail and finalize temporary staff reductions in the Department of Human Services.
June 23, 2009 -- Public Health Services Director John Nilon is appointed the new county administrative officer by supervisors.
July 7, 2009 -- Kern County Auditor-Controller Ann Barnett reveals that the end-of-year numbers for the 2008-2009 county budget showed $36.2 million in unexpected savings and revenue from a variety of sources. The surprise is attributed to miscommunication between the Auditor-Controller's office and the County Administrative Office that lead to inaccurate estimates.
July 7, 2009 -- Supervisors vote to spend $7.5 million to keep Lerdo Jail open and fund employees in the Department of Human Services.
July 20, 2009 -- Nilon tells supervisors that some of the $36.2 million windfall from the year-end budget is actually spoken for. The county actually has around $21.2 million extra cash to shift into the 2009-2010 budget. A proposed state budget deal, announced Monday, would take $28.8 million more from Kern County than the county has budgeted for -- leaving the county with a $7 million budget deficit.
July 21, 2009 -- Supervisors approve the 2009-2010 county budget and fill the deficit with $7.09 million in reserve funds.
