Report: Public Safety Agencies' Budgets Threatened by Safety Tax Shortfall

RIVERSIDE COUNTY, CA - Riverside County public safety agencies continue to struggle with shortfalls, exacerbated by an unanticipated drop in sales tax revenue that will require the county to draw down a reserve account to cushion the blow, according to a report the Board of Supervisors will review Tuesday.

The Executive Office will present its first-quarter update on 2016-17 finances as part of the board's policy agenda Tuesday.

Chief Executive Officer Jay Orr acknowledged "significant challenges" on the budget front, but he was optimistic that the county's structural deficit and spending obligations could be managed as long as all departments recognized "immediate financial constraints" and did not stray far from spending parameters established at the beginning of the fiscal year.

One of the more troublesome surprises to surface in the first-quarter assessment was a $22 million loss in Proposition 172 public safety sales tax revenue distributed by the state, according to the Executive Office.

The shortfall will further hamper efforts by the Riverside County District Attorney's Office and Sheriff's Department to close spending gaps.

However, Orr recommended that the board approve an $18 million allocation from a general fund contingency account to help make up the difference.

Even with that discretionary "backfill," the District Attorney's Office office will remain $5.1 million in the red, while the sheriff's department will try to close a $19 million hole before June 30 -- the end of the 2016-17 fiscal year.

Given activity in prior budget cycles, the agencies will likely not be able to overcome the deficits.

However, the Executive Office spotlighted positives for the probation and fire departments, both of which are either in the black or working successfully to contain excesses.

The Office of the Public Defender was under-funded by $1.7 million as of the end of September and appeared to have few options for slashing that overage, officials said.

During budget hearings earlier this year, Public Defender Steve Harmon said he would have no choice but to reduce his attorney staff without additional funds. The Executive Office noted in the budget report that it was working with Harmon on ways "to manage costs."

The Department of Animal Services is facing a $1 million hole, potentially impacting services, according to the report.

Orr underscored the need for departments to economize at every opportunity in order to adhere to the board's goal of preserving $150 million in reserves in the current fiscal year and gradually increase that pool in the coming years.

According to the Executive Office's "multi-year budget schedule," all agencies should prepare to absorb their own insurance and internal service costs, as well as limit hiring "only to replace vacated mission critical positions."

To save money, Orr is recommending that the board not approve additional funding for the sheriff's department to boost the number of patrol deputies in the unincorporated communities.

However, the sheriff's department will need an extra $7.2 million to fund 65 additional positions to ensure compliance with a consent decree stemming from a legal settlement earlier this year regarding healthcare for inmates.

The sheriff's department is relying on overtime for existing staff to meet obligations -- an untenable strategy going forward, officials said.

According to the budget report, overall discretionary revenue is likely to fall about $16 million below the level originally projected in 2016-17.

The Executive Office said two professional services firms hired to ferret out efficiencies and identify cost-cutting opportunities in the public safety arena, as well as in general government operations, are making progress.

The board finalized appropriations totaling $5.43 billion for the 2016- 17 fiscal year in September.

— By City News Service / Image via Shutterstock