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Inyo’s mid-year budget brighter, but clouds linger |
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Tuesday, 10 March 2009 |
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By Mike Gervais
Register Staff
3-7-2009 Inyo County approved its mid-year financial report on Tuesday with an understanding that the spending guidelines are a road map and that it will be important for the Board of Supervisors to pay close attention to the “terrain” of the state and federal financial situation.
“We’re sitting very well,” County Administrative Officer Kevin Carunchio said as he began the financial report. “But the map is still not the terrain.”
Carunchio said the county has $138,325 left in General Fund contingencies. “That’s $10,000 more than approved in the 2008-09 budget.”
He also said that there are sufficient funds in non-General Fund budgets to cover any increase in net costs.
Though the budget looks like it’s in good shape now, how the fiscal year will end depends on several factors.
Carunchio said county staff will be closely monitoring the federal stimulus funds, state revenue projections, the governor’s June revise, decreasing local revenues resulting from low real estate sales and “other unforeseen challenges.”
If the voters shoot down the propositions that are to appear on the May ballot, the county and state will need to find some way to supplement cash flow to keep operations moving.
“It’s not clear what the state’s Plan B is for the six propositions on the ballot for the special election in May,” Carunchio said. Either way, however, “the real pinch is going to be felt in ’09-10.”
The best way for the county to prepare for tougher financial times next year will be to exercise fiscal conservancy and “read the map and look around” at the financial terrain in the state and federal arenas to get an idea of what kind of funds the county can expect to see.
“We’re going to have to adjust budgets as necessary on a case-by-case basis” throughout the remainder of the year, Carunchio said. “Cash flow is OK, but we still need to emphasise savings.”
The county will need $3.5 million in its fund balance to meet the status quo for next year, Carunchio said, noting that the declining economy will likely result in lower-than-average property and sales tax.
Focusing on the task at hand, Carunchio said making it through this fiscal year is going to take some work.
To keep county finances in check for the remainder of the fiscal year, Carunchio recommends revising the “extraordinary budget control policies” the board put in place when it passed its budget.
He said the county should shift its attention from meeting its cash-flow needs, which it has done, to an emphasis on savings that will keep the budget in the black next year.
Carunchio also suggested that the board “maintain the hard hiring freeze” and exempt seasonal hires for weed management and mosquito abatement programs, water scientists and a project manager for work on the Lower Owens River, and a psychologist for county Social Services.
“All hiring being done in those departments have very secure revenue sources,” Carunchio said.
On the lighter side, Carunchio suggested that the board resume the Community Project Sponsorship Program that was halted with the hiring freeze earlier this year. The county did budget for the grants, and has the money available, but decided to hold off on accepting applications or awarding funds until the state budget was passed.
Carunchio said he strongly recommended issuing the grants “because this could be our only contributions to local enrichment this spring and summer.”
The board unanimously approved the mid-year report with glowing praise for Carunchio and county staff members who have worked diligently throughout the state’s financial crisis to keep the county on track.
“Good job,” said Second District Supervisor Susan Cash. I appreciate that so far we’ve only seen mild repercussions. We’re in the eye of the storm right now” and next year is going to be a real challenge.
“I hope that everyone in the county is aware that tightening your belts right now will help next year,” Fourth District Supervisor Marty Fortney said.
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Last Updated ( Saturday, 25 April 2009 )
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