County faces $127 million budget gap County faces $127 million budget gap (December 03, 2004)

Health program faces largest potential cut

Santa Clara County Executive Pete Kutras has outlined his strategy for addressing a $127 million gap between revenues and expenses in the upcoming fiscal year, county spokesperson Gwen Mitchell said on Monday.

Supervisors approved moving forward with the 2006 budget planning process on Tuesday, following a report in October that outlined a five-year financial projection.

Kutras' proposal addresses an estimated budget gap that was expected to have grown to over $180 million by 2009 if left unchecked.

Mitchell said Kutras' proposal includes $31 million in departmental reductions, eliminating more than $18 million in vacant positions, and re-amortizing $17 million of the Public Employees Retirement System payments.

Though the deficit is expected to be met in the upcoming fiscal year, which begins in July 2005, public services will likely be reduced, according to Kutras.

"There is no way to continue making reductions of this magnitude without having an effect on service levels,'' Kutras said in a written statement.

Over the past three years, the county has been forced to find solutions to a budget deficit of more than $500 million, eliminating nearly 1,300 jobs, according to Mitchell.

For the upcoming year there will be 250 vacant positions that will be eliminated along with additional reductions that should be difficult decisions for county supervisors, Mitchell said.

The largest proposed reduction is just over $24 million in the Health and Human System, followed by $10.6 million from public safety and justice agencies.

"Because we are a safety net for those who have few choices, we've been strategic in our budget balancing efforts over the past few years,'' Supervisor Pete McHugh said.

"Unfortunately, we are reaching the point where reductions in services and layoffs may not be avoided.''
-- Bay City News

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