Budget Woes Continue in 2012 Sacramento County Budget

$90 million shortfall projected

While the national economy is reportedly on the mend, the financial situation facing Sacramento County for 2012 continues to feel the affect of the Great Recession.

According to preliminary fiscal year 2012 budget estimates released this morning, Sacramento County is facing a $90.4 milllion shortfall. To close the defict gap, county official have said they will seek to reduce services and staffing.

Steve Szalay, Interim County Executive said the county will face difficulty in the coming year because of the shortfall. “These service reductions are significant, but it’s imperative that we size service levels with our current long-term revenue and there is no other choice but to continue to downsize,” he said.

The shortfall is comprised of:

$30 M in one-time funding 33.19%

$20 M in increased labor costs 22.12 %

$19.4M department shortfalls 21.46 % $69.4 M Total Shortfall

$21M in known state reductions

Along with the reductions in services, there will be reductions in staffing levels. Of the current 11,500 full time employees, about 222 General Fund positions and 92 Non-General Fund positions will be reduced. This does not include the Sheriff and District Attorney’s staffing plans. Because of Civil Service rules that dictate seniority “bumping” and transfers combined with retirements, it is impossible to predict the number of people that will be laid off. 

Budget documents can be found on the County Budget Website. Budget Hearings will be held the week of June 6, in the Board Chambers at 700 H Street, Sacramento.