Madera County budget reflects $8 million deficit [Sierra Star, Oakhurst, Calif.]

June 28--The Madera County 2012-13 budget is currently being developed with budget hearings set to begin on Aug. 14, to deal with a projected deficit of $8 million.

"Current fiscal trends, coupled with rising salary and benefit costs for the remaining workforce and increasing health insurance costs for retirees, indicate that the county's extremely tight fiscal situation will intensify as we move into the new fiscal year resulting in a projected deficit of more than $8 million," said Kevin Fries, chief assistant county administrator.

The county budget is $170.3 million for the current fiscal year ending June 30 and it is anticipated to be lower for 2012-2013.

According to Fries, the area economy is no longer declining as in previous years but remains somewhat stagnant with little to no growth.

"The sluggish and unpredictable economy, and its negative impact on local revenues over the last three years, has resulted in a series of fiscally prudent but service-oriented decisions by the board of supervisors," Fries said. "The board has strategically used available one-time monies to help mitigate the impacts to public service and by phasing in budget reductions."

Fries added that reimbursement for central administrative services such as legal counsel, human resources and accounting services provided to departments financed from state and federal funds are on the decline due to reductions in administrative service budgets.

Last year those one-time monies were identified through audits of funds from the Department of Social Services and Child Support Service.

Fries feels the tight fiscal trend will continue for the county in the upcoming fiscal year.

According to Fries, previous budget-cutting measures have included a reduction in workforce, departmental reorganizations, a hiring freeze, continuation of unpaid furloughs and other methods to reduce the county's cost of operation.

"As a result, the new budget will continue with these cost cutting strategies to mitigate service impacts to essential public services," Fries said.

Fries said the county is anticipating a small increase in sales tax while property taxes are anticipated to stay relatively flat.

County revenues will continue to be evaluated and if there is not a significant increase by the start of January 2013, the county could be forced to make additional cost cutting measures according to Fries.

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