Report: County Public Safety Agencies More Than $50 Million in the Red

By City News Service:

Riverside County supervisors Tuesday will get their first glimpse of the county’s financial condition in the middle of the 2014-15 fiscal year, with deficits appearing inevitable in public safety agencies’ budgets, which are collectively more than $50 million in the red.

“Future policy actions may be needed to address certain identified funding issues, but at this early stage, I recommend continuing to monitor those budget units and deferring action to address those matters until later in the fiscal year,” county CEO Jay Orr wrote in an introduction to the 77-page midyear budget report.

Compared to previous years, no monster budget gaps demand the Board of Supervisors’ immediate attention, though by all estimations, the document left little doubt that by June, the board will have to wrestle with deficit reduction measures.

Topping the watch list was the fire and sheriff’s departments, as well as the District Attorney’s Office. According to figures, the agencies’ projected composite deficit totals $51.7 million.

The largest shortfall was in the sheriff’s budget, which was estimated to be $40 million in the red, roughly $6 million less than originally projected. According to the Executive Office, most of the deficit can be ascribed to unfunded pay raises for deputies over the last three years. The hikes were part of the collective bargaining agreement negotiated with the deputies’ union. Other sheriff’s expenses are tied to higher operations costs, according to the report.

The D.A.’s office is facing a $7.5 million shortfall, down from an estimated $10 million hole in September. According to the Executive Office, most of the loss stems from higher personnel expenses.

The agency has managed to realize modest savings by not filling some positions, but it was doubtful the status quo will last long. According to county officials, the D.A.’s office is likely to contend with a growing number of sentencing “reconsideration” requests now available to individuals convicted of various property and drug crimes.

Under Proposition 47, approved by voters in November, people serving time for offenses such as fraud, forgery, grand theft and drug use can petition to have their sentences reduced from felonies to misdemeanors, generally as long as the crimes were non-violent. The re-classification also applies to probationers and according to the Executive Office, that could mean upward of 9,200 county residents are eligible to petition for re-sentencing, thus increasing prosecutors’ workload and costing the county money.

The fire department is $4.2 million in the red, based on midyear calculations. Higher firefighter salaries and benefits are largely to blame, though the agency is also trying to find money for station repairs and expenses related to training and vehicle maintenance.

According to the Executive Office, fire’s shortfall could balloon to $6.1 million if the city of Canyon Lake doesn’t make good on payments for emergency services by the end of 2014-15. The county has signaled legal action may be necessary to collect on past-due bills, which currently total in excess of $903,000, according to officials.

The Canyon Lake City Council in 2013 asked that the sole fire station in the gated municipality be shut down because funds weren’t available to operate it, but the county kept it open for safety reasons.

In November, a thin majority of Canyon Lake residents approved fee hikes to cover fire service costs, but it remained unknown how long it may take to generate the revenue necessary to begin paying the county.

The Riverside County Regional Medical Center continues to struggle with budgetary challenges, but prospects appeared to be brightening, according to the report. The Moreno Valley hospital’s projected yearend structural budget deficit was $30 million -- down from $80 million a year ago. The hospital remains in reorganization mode, and officials said revenue-generating potential continues to be hampered by a lack of timely public health insurance reimbursements.

Smaller revenue gaps were identified in the budgets of the Department of Animal Services, the Department of Information Technology and the Registrar of Voters’ Office. County officials said solutions will be ironed out during the county’s budget hearings, slated to begin in May.

According to the report, the county’s discretionary revenue should reach $650.2 million in the current fiscal year, roughly $13 million more than anticipated. Reserves should total $202.8 million, about $2 million below where they stood at the start of the fiscal year.

(Image via Shutterstock)