“The Chief Executive Officer’s proposal for the Los Angeles County 2008-2009 Budget rightly focuses on limiting growth of government programs in the time of a slowing economy and slowing revenue into County coffers.”

“For the first time in several years, we are experiencing a loss in property tax revenue from the stalled real estate market and the potential loss of state funding in many areas. However, this proposed budget reveals that Los Angeles County remains in solid financial shape and today we are not facing the widespread financial shortfalls and cutbacks that many other levels of government are currently suffering.”

“What we will have to keep a close eye on is the potential impact the proposed Federal and State budgets could have on the County in the year ahead. Proposed cuts in both of these budgets could potentially mean a loss of up to $500 million in funding to the County in the year ahead. Both the Federal and State budgets proposals are still very uncertain at this point, so the potential hit the County could take is unknown today. We likely will not know more about these impacts until September or October. If State and Federal budget cuts impact the County, then we will cross that bridge when we come to it. Until then, the County will move forward with our own budget proposal that is free of service cuts at this time.”

“As far as our budget proposal, I am very pleased to see $4.6 million in new funding for enhanced unincorporated Sheriff patrols. This means our unincorporated area residents will benefit from dozens of additional patrol deputies in the near future. Additionally, $3.3 million in new funding will be dedicated to gang prevention efforts.”

“Although the vast majority of our County programs and departments remain financially solvent, the ongoing deficit in the Department of Health Services is still deeply alarming and continues to loom on the horizon. With a potential structural deficit of over $700 million in the next two fiscal years, the time to act and to make difficult decisions has arrived. We must resolve this deficit without reducing health services to patients. Closing clinics and access points to healthcare is not the answer in a time when we should be opening additional clinics. We need creative decisions and a willingness to look at out-of-the-box solutions to solve this deficit and we need to make these decisions now.”
 

APRIL 21, 2008

County Budget: A Challenging Year
 

Acknowledging the County is facing a challenging financial year, Chief Executive Officer William T Fujioka this week unveiled a $21.9 billion proposed 2008-09 county budget that calls for a slight decrease in spending and positions, but no layoffs or major program cuts.

The County’s current fiscal condition is the result of the Board of Supervisors’ strong fiscal policies and conservative approach to the budget in past years. Due to the uncertainty surrounding the extent and duration of the current economic downturn, Fujioka said, the County should continue to exercise this same conservative approach in the management of the budget.

The spending plan, 2.61 percent lower than the present $22.5 billion budget, reflects the current state of the economy and lower tax revenues. Fujioka cautioned that it does not reflect potential impacts of threatened state and federal cuts, so those issues must still be addressed once the respective budgets are finalized.

Despite the weakened economy, the budget funds a number of critical programs and continued development of high-priority capital projects, including $1.5 billion for new jails, fire stations, health facilities, animal shelters, libraries and infrastructure.

Funding was provided for high priority programs, collaborative initiatives and projects that produce ongoing efficiencies. Providing one-time funding for initiatives to create ongoing efficiencies will result in lower costs to the County.
This is the first year that the budget has been drafted under the County’s new administrative structure, which has resulted in a more collaborative effort in identifying high-priority programs, ways to streamline processes and elimination of duplicative efforts.

CEO staff will continue throughout the year to work with departments to identify additional efficiencies and opportunities for improved service delivery. Special emphasis will be given to implementing innovative technology projects and continuing a collaborative approach by departments in solving their problems and providing services.

The budget will be formally presented to the supervisors Tuesday (April 22) for adoption to allow public hearings to be scheduled. Hearings are proposed to begin May 7, with the Board deliberations on June 16. The County’s fiscal year begins July 1.

A 35-position decrease in employee count, bringing the County workforce to 102,240, would still maintain the County’s ranking as the largest employer in the five-county region.

A total of $36.1 million was eliminated from some departments’ budgets, but the reductions would not impact current services as the funding cuts were from long term vacancies or other savings. The Department of Health Services has a net decrease of 111 positions, the largest of any department, while the Sheriff’s Department is targeted to receive 240 more positions.

The impacts of the threatened significant cuts in state and federal funding are not yet known so are not reflected in the budget. The budget does include a decrease of $127 million for health services; a plan for addressing the department’s structural deficit will be presented to the Board in June.
 

Useful Links

Doing Business with L.A. County
L.A. County Fraud Hotline
Citizens’ Guide to Services
L.A. County Quick Reference Guide