Ventura County May Face $22-Million Budget Deficit, Official Warns

Ventura County will face a $22-million deficit in the coming fiscal year unless department managers begin slashing spending, County Executive Officer Johnny Johnston warned Monday.

Early projections show the county with a $2.8-million balance by June 30, when the current fiscal year ends.

But the faltering economy is expected to slow state and federal revenue flowing to the county’s treasury at the same time labor costs and demand for services are on the rise, Johnston wrote in a budget update that will be reviewed by the Board of Supervisors today.

The gloomy forecast means job freezes or even layoffs may be necessary to avoid a financial meltdown next year, the county chief said.

“The good news is, we are living within our budget,” Johnston said. “The bad news is, our spending plan is rapidly becoming obsolete because of the changing economy.”

County officials are bracing for the effect of an estimated $12.4-billion state budget deficit.

Several social service programs run by the county could be affected if the Legislature approves spending reductions proposed by Gov. Gray Davis, said Bert Bigler, chief deputy administrative officer. At the same time, sales tax revenue is expected to decline by $1 million, or 1.2%, Bigler said.

Labor costs from recently settled contracts are expected to rise above budgeted levels in some departments, compounding the problem, Bigler said.

Officials are looking at other potential problems for the county’s $1.1-billion budget.

Among them is a $781,200 increase for wages paid to in-home care providers, a $3-million redesign of the county’s crime lab, increased costs for security due to terrorism threats and higher labor expenses once a contract for sheriff’s deputies is settled.

Johnston said he will recommend only minor adjustments for now, but said some department managers will need to squeeze every dollar for the rest of this fiscal year. The Health Care Agency, Sheriff’s Department and Human Services Agency all have projected overruns, he said.

Supervisors said now is the time to start taking corrective action.

“The managers need to make sure they are paying attention to where their expenditures are to their budget. Some are doing fine,” Supervisor Steve Bennett said. “But anyone that looks like they are on a path that will take them over budget, they need to rein in costs.”