The Placer County Board of Supervisors will be asked to adopt a proposed 2011-12 budget Tuesday so the county has a spending plan in place when the new fiscal year gets under way July 1.
Adopting the proposed budget would complete the first phase of the county’s two-phase budget-approval process. The proposed budget will serve as an interim spending plan until the board completes the second phase: adopting a final budget in September.
The two-phase approach allows the county to have a spending plan in place when the new fiscal year begins but wait to adopt a final budget until it has final estimates of available funding. By September, the county hopes to have a clear picture of how it will be impacted by the state budget.
Having the proposed budget in place July 1 will allow Placer County to reap the benefits of cost-cutting measures for the entire fiscal year. The cost-cutting efforts are part of the county’s ongoing response to the economic slowdown and state budget crisis.
Next year’s proposed budget is for $720 million, down 4.9 percent from the final 2010-11 budget. County funding has dropped by 16.8 percent since the 2008-09 fiscal year.
The county budget team expects property tax revenue, the county’s largest revenue source, to drop by $4.8 million next fiscal year.
The size of the county workforce will be 13.5 percent smaller next fiscal year than in 2007-08 largely as a result of a hiring freeze approved by the board in 2007. Other cost-cutting moves authorized by the board over the last few years include having employees pay larger shares of their pension and health insurance costs and creating a two-tier retirement system that will scale back benefits to new employees, but help ensure that benefit cost are sustainable in the future.
On April 5, the board took the final step needed to balance the proposed 2011-12 budget, agreeing to redirect $1 million in capital projects funding to the county General Fund.
Placer County still could face substantial revenue shortfalls and service disruptions if the state reduces funding for mandated county programs and shifts responsibility for some state programs to counties without accompanying funding. The budget team estimates the county has from $30 million to $60 million at risk in the state’s budget battles.
Tuesday’s meeting will take place at 9 a.m. in the Board of Supervisors Chambers at the County Administrative Center, 175 Fulweiler Ave. in Auburn. The proposed budget is scheduled for discussion at 11 a.m.
Assistant Public Information Officer
Placer County, California
Office phone: 530-886-4515
Cell phone: 530-308-0858