None. However, the result of the recommendations herein, if implemented, will improve the County’s overall fiscal stability and multi-year outlook.

The recommended actions today will direct the County Administrator to return April 20 with a Recommended Budget that balances expenses with revenues for the 2010/11 fiscal year. This action follows both the Budget and Reserve Policy. Building on labor concessions made this year, we plan an approach that will minimize service reductions as much as possible. Unfortunately, the fiscal projection does not yet appear to provide the opportunity to rebuild services and reserves. Especially in light of a projected State deficit of $20 billion.  
  
Recommended Budget Development  
  
There are many challenges that the County will face in the coming fiscal year, not all of which stem from the State budget. The County Administrator believes there will be further decline in local property tax and other general purpose and program revenues used to fund the baseline cost of services into FY 2010/11. Although the County has sustained most of the structural cuts that balanced the last five County budgets, many one-time solutions were used to balance the current fiscal year, which creates a gap for FY 2010/11.   
  
Additionally, there are factors over which the County has little or no control (such as Federal and State budgets, economic changes, and demographics) that will affect the ultimate size of the baseline budget and ultimately the County’s budget challenge. Department Heads will be expected to work closely with the County Administrator to achieve a balanced budget that restricts net County cost growth while minimizing service delivery cuts. Wherever possible, categorical/ program revenues will be increased to offset increased cost of doing business. Restrictions on increases in net County cost needed to balance the budget may result in the loss of federal and State program revenues, and this added loss may cause program reductions.  
  
Meet and Confer   
  
Departmental budget requests are due to the County Administrator’s Office on February 22. At that time Department Heads will know which, if any, positions may be affected by reductions necessary to balance the budget. Departments, in cooperation with Labor Relations, will if necessary, begin the meet and confer process with employee representatives regarding the impact of potential program reductions on the terms and conditions of employment for affected employees. Early planning will allow Departments a reasonable period of time to meet and confer, and permit them to implement all budgetary required actions prior to July 1, 2010. As with the last four fiscal years, this progress will allow the County to adopt a budget that is balanced from the first day of the new fiscal year.  
  
  
Public Notice  
  
The County Budget Act requires that the Board of Supervisors publish a notice in a newspaper of general circulation throughout the county, stating when budget documents will be available and the date of Budget Hearings. The FY 2010/11 Proposed Budget document will be available to the public on April 9, 2010.  
  
  
Conclusion  
  
  
The County Administrator will return to the Board on April 20 with a FY 2010/11 Recommended Budget that meets the requirements listed above. Tuesday, April 20 will be reserved for FY 2010/11 budget hearings including Bielenson hearings if needed. Additionally, it is recommended that the County Administrator return to the Board of Supervisors on Tuesday, May 11 for adoption of the FY 2010/11 County and Special District Budgets, including any changes the Board makes on April 20.