Bennett Warns of Budget Concerns

Ventura County’s $1.1-billion balanced budget won’t stay that way if spending on new jobs goes unchecked, a county official warned Tuesday.

Supervisor Steve Bennett said he is concerned about 186 new jobs identified in the county’s 2001-02 spending plan presented to the Board of Supervisors on Tuesday. While grant revenue will cover much of the new salaries, the county’s general fund may also be tapped, Bennett said.

It doesn’t make sense, Bennett said, to add jobs at a time when the county is trying to rebuild its budget reserves and negotiate with four employee groups pushing for better wage packages.

“We can’t pay competitive salaries and grow positions at the same time,” he said.

The county has about $25 million targeted for reserves, far less than other counties of similar wealth, county Chief Executive Johnny Johnston told board members. Investment analysts told Johnston, Bennett and other county leaders last week that the county must beef up its reserves to qualify for top credit marks.

That’s important because the county borrows millions of dollars each year to finance short- and long-term notes. Lenders look at its credit rating before fixing interest rates, and a lowered mark means the county would spend hundreds of thousands more dollars on higher interest.

Bennett’s comments came during Johnston’s presentation of preliminary budget figures for the fiscal year that begins July 1. Spending on government programs is still outpacing revenue growth, which averages 4.1%, Johnston said.

The problem is particularly acute for the county’s general fund, the discretionary pot of money supervisors dole out each year for a variety of government services. Spending growth in that area is projected at 11.3%, while revenue is increasing at 7.8%, Johnston said.

“All next year we will have to engage in careful budget monitoring--something we have not always done,” Johnston said.

Department managers are being asked to make up the imbalance by increasing revenue or cutting jobs. Supervisor Frank Schillo suggested that every department should aggressively seek out grant money from a variety of sources.

Managers are also being asked to absorb the expected cost of wage increases in their individual department budgets. That cost has been estimated at $6.6 million.

About two-thirds of the county’s 7,500 workers are pushing for new labor contracts.