Budget Plans A and B Give Huntington Beach Options

Because the state is chronically late in adopting its budget, the city will have two plans for the fiscal year that begins July 1, officials announced Monday night.

The city will first adopt Plan A, a $96.4-million budget, which assumes that the state will not further reduce city funds. Plan B, a $91.4-million budget, will be the city’s fallback plan, in case the state takes away up to $5 million more.

“I think there’s a very good chance the state will be taking away more money,” City Administrator Michael T. Uberuaga said. “Last year, the governor was holding out trying to prevent cuts from local government. But this year, the governor has already announced that he’s going to cut at least $2 billion from local governments.”

Uberuaga made the comments as he briefed the City Council during a special meeting Monday night.

Both Plan A and Plan B would keep a hiring freeze on any vacant city positions. And both plans also call for belt-tightening by all city departments. The difference is that Plan B would make heavier cuts, Uberuaga told the council.

“If we had budget cuts of $5 million such as Plan B anticipates, we may have to cut 55 full-time (city workers),” Uberuaga said.

Both the city and the state are by law required to adopt new budgets by July 1. The state, however, frequently violates the law by not agreeing on a budget until weeks after the legal deadline. Last year, the state did not adopt a budget until September.

State government funnels tax dollars to the cities. But when the state budget is late, cities have to guess what income they will receive. This year the state Legislature has already hinted that it will take away more city funds.