As costs climb above revenue, County Supes begin identifying the most critical needs.

The needs are great and the funds are finite – a reality that set the stage for over six hours of discussion at a March 25 County Board of Supervisors meeting as they undertook the task of weighing demands against a projected $39.7 million deficit in the coming year, and debated how the county budget sausage should get made.

Departments brought forward augmentation requests, totaling over $121.1 million, including over $63 million in capital projects. It was a preliminary meeting, intended to discuss each department’s needs in advance of formal budget hearings set for May 28-29.

The largest request came from the Sheriff’s Department, with a $30 million augmentation request, followed by Public Works, Facilities and Parks with $8.2 million; the District Attorney with $4.6 million; the Public Defender with $2.9 million; the Department of Social Services with $2.1 million; and the Department of Emergency Management with $1.7 million.

“I’m feeling very cautious as I walk down this path, knowing how significant the needs are that are being asked for,” Supervisor Wendy Root Askew said. “I’m just honestly saying, I don’t know how we pay for this.”

Supervisors unanimously agreed on maintaining funding for all currently filled positions and emphasized the challenge of sustainably managing rising baseline costs – salaries, health care, retirement – that impact the county’s ability to retain staff. Looking ahead at projected deficits, Supervisor Glenn Church underscored that cuts made this year can help mitigate future shortfalls.

Supervisors discussed their priorities, which include the Pajaro library; infrastructure and health care improvements at the county jail; development in Chualar; enhancements to the Department of Emergency Management’s alert and warning system; and more.

In addition to property taxes and transient occupancy tax – two of the county’s main revenue drivers – other funding options under consideration include a one-time $8.4 million contingency reserve, Development Set-Aside funds for economic and cultural organizations, and Fund 478, a reserve for building improvements.

Measure AA, a 1-percent sales tax increase approved by voters last year, took effect on April 1. County officials anticipated it would generate $29 million a year. However, it remains unknown how much they will collect or how it will be allocated. It has only been in effect for a little over two weeks, and no revenue has been reported yet.

The county’s hiring freeze implemented in October as a cost-saving measure remains in effect. Moving forward, officials are looking at not filling vacant positions, eliminating long-term unfunded roles, and increasing the use of technology to improve efficiency in county operations.

“Our departments are and have been doing much more with less,” County Administrative Officer Sonia De La Rosa said. “At the same time, we have to arm them with the resources they need to move forward.”