San Diego County is facing at least a $78 million budget deficit that is expected to grow in coming years and could force dramatic cuts in programs aimed at children and low-income families.
The county Board of Supervisors received an economic update Tuesday that showed a bleak picture for sales and property tax revenue as well as state funding, which makes up a bulk of the county's $5.2 billion budget.
County officials said they will simply have fewer services delivered by fewer people at a time when the declining economy has forced more and more people to seek public assistance.
The financial woes hearken back to 2003, when the county was forced to make dramatic cuts in its Health and Human Services Agency and workforce because of a dropoff in state funding. The agency will also likely bear the brunt of the impact this time as well because the county often passes state cuts directly on to its state-funded programs.
Walt Ekard, the county's chief administrative officer, said the county is being hit by a “double whammy” thanks to a decline in tax revenue coupled with state funding cuts. But he said the county is better positioned than most public agencies to weather the storm.
“Collectively we have fiscal concerns the likes of which we've not seen in many years,” Ekard said. “Our ability to manage our finances while continuing to provide core services to the public will be tested.”
County leaders said the financial impact can be dealt with for the current fiscal year, which began July 1, by tapping reserves, leaving vacant positions open and possibly cutting or reducing some services.
Ekard said the real problem arises in fiscal 2010 if revenue continues to slump. Programs may be axed and layoffs could be possible, he said.
No decisions were made Tuesday, but Board of Supervisors Chairman Greg Cox said tough decisions will need to be made should the outlook continue to worsen.
One area that will be hit hard is public safety, including the Sheriff's Department, the District Attorney's Office and the Probation Department. Those departments rely on a general sales tax for part of their budgets and the county's financial experts predict $30 million less than anticipated for this year.
The county isn't alone in wrestling with a budget deficit.
The city of San Diego has a $43 million deficit and Mayor Jerry Sanders has proposed closing libraries and recreational facilities to balance the budget.
Craig Gustafson: (619) 293-1399;
craig.gustafson@uniontrib.com
