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(Placerville, Calif.)—County revenue is up slightly and spending is down according to a report by Chief Budget Officer Laura Schwartz. Schwartz presented the budget report to the Board of Supervisors at a special workshop on Monday, February 25.
The “Mid-year Budget Status Report” provides the Board of Supervisors a picture of how well the county is managing is financial resources. Based on current data, projected General Fund revenues are expected to exceed budget by 1% for a total of $223,322,518. General Fund expenses are projected at $212,526,135 which is 96% of total budget. The mid-year budget projection also maintains a $9 million reserve for economic uncertainties.
“We are looking pretty good in the current fiscal year,” said Schwartz. “But we still need to continue spending conservatively and investing wisely in order to manage out-year shortfalls.”
The report noted that under current financial assumptions, the county could be looking at a shortfall of up to $5.3 million next fiscal year beginning July 1. Despite the potential budget gap, the Chief Administrative Office is not recommending budget cuts at this time.
“Our track record suggests that the amount of savings departments achieve at the end of the year is greater than what we are able to forecast at mid-year,” said Schwartz.
In addition to historically higher than anticipated savings, the county also expects to reduce future operating costs through a new Enterprise Resource Planning system to replace its antiquated financial systems. The ERP investment is expected to generate approximately $3 million in annual savings.
A copy of the Mid-year Budget Status Report is available on the Chief Administrative Office website.