Record County Budget Falls Short of Needs : Finances: Proposed $1.7-billion budget is largest ever, but critical programs are in jeopardy because it falls $23 million short.

San Diego County officials on Thursday unveiled a proposed $1.7-billion budget--the county’s largest ever--that falls $23 million short of what is needed to fund a number of critical programs.

Chief Administrative Officer Norman W. Hickey said several programs will die or be inadequately funded unless the county finds a way to make up the shortfall. He blamed much of the shortage on the “fiscal uncertainty” provoked by “the state’s current budget debacle.”

As a result, the county may cut social service programs by $14 million, Hickey said. Another $3 million for court-related services, including jury fees, is scheduled to be eliminated, he added. Medical care for county inmates will be reduced by $2 million, according to the proposal.

Even with the shortfall, the budget is bigger by 2%, or $40.5 million, over last year’s appropriation.

State law requires the county budget to be balanced, which was accomplished in part by reducing the work force by 95 employees, Hickey said. But it also reflects modest salary and benefit increases for employees.

The new budget takes effect July 1, the beginning of the new fiscal year. Supervisors will begin budget talks June 10.

Hickey said he is considering several options to cope with the $23-million shortage, including across-the-board reductions and cuts in specific programs. Also under study are changes in the way county agencies operate, including closing some offices during selected hours to save money.

A big frustration for county officials is that they have discretion over only 2% of the $1.7-billion budget, or about $35 million, Hickey said. Most of the remaining funds come from the state and federal governments for mandated services.

Hickey made it clear that the final budget depends largely on what state officials do to meet a $12-billion gap between state revenues and budget needs.

“The major unanswered question concerns the future relationship between the state and the county,” Hickey said. “The realignment of programs under consideration in the state capital, I fear, will be designed to benefit the state and not the county.”

The budget presented Thursday was developed “in an atmosphere that resembled a vacuum, a fiscal vacuum,” Hickey said.