County Gaining Ground on $38-Million Deficit

Ventura County leaders Tuesday praised efforts to erase county government’s $38-million budget deficit but warned that deeper and more painful cuts may be yet to come.

If all goes as projected, county officials by this summer will have wiped out $20.1 million of that budget shortfall, leaving a $17.9-million spending gap to contend with going into the next fiscal year, which begins July 1.

The Board of Supervisors was able to achieve the bulk of the savings this fiscal year without massive layoffs or deep program cuts, but officials worry that they may not get off as easy during budget-cutting sessions later this year aimed at rubbing out the entire deficit.

“That may mean that the cuts are going to be real cuts this time,” Supervisor Frank Schillo said following a midyear budget analysis presented to the board Tuesday. “A lot of the cuts we looked at the first year were the easy cuts to make. Now comes the hard part.”

The board cut expenditures by only $6 million, while using $8 million in onetime money and another $5 million in higher-than-expected property tax, sales tax and other revenues to achieve most of the cost savings for this fiscal year.

Because it’s too early to tell what kind of financial condition the county will be in at the end of this fiscal year, supervisors on Tuesday ordered departments--except for public safety--to prepare alternatives for cutting their general fund budgets by 25% next fiscal year. A county law passed last year prohibits supervisors from reducing public safety budgets.

“This is basically a look-see; it is not an across-the-board cut,” Chief Administrator Lin Koester told supervisors, facing a boardroom packed with department managers. “That is not what is being proposed. I don’t expect every agency will take a 25% net cut.”

Last year, Ventura County officials embarked on a two-year plan to eliminate the $38-million budget deficit.

According to the midyear budget projection--the most detailed midyear review ever compiled for supervisors--the county is in good position to finally shake off years of the budget blues.

“I believe this is a positive message,” Koester told supervisors. “Certainly it could have been much worse.”

Indeed, despite tens of millions of dollars in budget cuts and lost revenues over the past five years, the county’s work force--about 7,000 employees--has remained roughly the same.

Even as the board cut $20 million for fiscal year 1995-96, the county only lost 37 positions. About half of them were filled at the time.

“I didn’t think that was possible,” Schillo said. “But if 80% to 85% of our costs are salaries, that may mean we have to look at reducing positions.”

Supervisors said Tuesday they are committed to doing whatever it takes to wipe out the budget shortfall.

“I think the cuts are going to be more real this year,” Supervisor Judy Mikels said. “But we’re committed to a zero deficit and we’re going to get there.”

Supervisor John K. Flynn said that although some employees may have to be laid off, he doesn’t think departments will have to take 25% cuts to their general fund budgets.

“Every year I’ve been doing the budget, it’s been doomsday,” said Flynn, who is preparing to wrestle with his 20th budget document. “I think the assumptions will change to the better. I see the economy picking up, and I think we’ll be in good shape.”