Isabella Vanderheiden / Monday, May 6 @ 7:33 a.m. / Agendizer
Humboldt Supervisors to Discuss $12.3 Million Budget Deficit, Future Projections During a Special Meeting Today
Photo: Andrew Goff
###
The Humboldt County Board of Supervisors will convene for a special meeting this morning to discuss the county’s budget outlook for the upcoming fiscal year and projections for the next three years.
The staff report (linked below) says the county is looking at a projected $12.3 million budget shortfall in the county’s General Fund for the 2023-24 fiscal year, which is substantial, but significantly less than the $18.4 million deficit that was projected at the beginning of the year.
County staff are still going over budget submissions for the 2024-25 fiscal year, according to the report, but initial estimates show an improvement in the projected General Fund balance for the end of the current fiscal year. Staff are optimistic that the deficit could shrink even more before the fiscal year is wrapped up next month.
To get a clearer understanding of the county’s financial outlook, the Budget Ad Hoc Committee asked staff to go over some numbers to find out when the General Fund would run out of fund balance. Staff determined that the fund could be depleted in the next three years.
“The initial projection resulted in a $14.3 million deficit entering the FY 2026-27 budget year with no fund balance available,” according to the report. “A deficit of this size, if spread across all General Fund departments, would require nearly 20 percent budget cuts. Budget cuts at this level are not attainable without reductions in staffing and services.”
The staff report emphasizes that the scenario is “simply a projection,” noting that there are “a number of factors” that could improve the county’s financial situation in the coming years.
For example, property taxes are performing better than anticipated, according to the report. If that trend continues at three percent rather than two percent annual increases for the next few years, it could add another $600,000 to the General Fund. Smaller increases to internal service fund changes and salary and benefits could save the county another $2.7 million.
The countywide hiring freeze, the Voluntary Separation Incentive Program (VSIP) and voluntary furloughs have also helped the county reduce spending. “Your Board may want to utilize these savings mechanisms again in future years,” the staff report states.
“[I]t is critical that the General Fund work toward an environment with minimal reliance on fund balance,” the report continues. “This projection places a timeline on the urgency for action towards this goal. “… Finding opportunities to reduce costs through the attrition of staff is the most effective strategy to work toward a balanced budget.”
The board will also receive informational reports from several county departments on core services and budget requests. Next month, staff will go over some options that would reorganize and restructure some county departments.
The board isn’t expected to make any big budget decisions during Monday’s meeting, aside from providing direction to staff ahead of the budget hearings next month.
###
The Humboldt County Board of Supervisors will meet Monday at 10 a.m. in board chambers at the Humboldt County Courthouse – 825 Fifth Street in Eureka.
The board will meet again for its regular meeting on Tuesday. That agenda can be found here.
Humboldt County Board of Supervisors
May 6, 2024, 10 a.m.
A. ROLL CALL
B. SALUTE TO THE FLAG
C. DEPARTMENT REPORTS
1. General Fund Budget Outlook and Budget Ad Hoc Committee Report
The County of Humboldt is discussing their budget outlook and projection for the next few years, specifically focusing on the General Fund. They have identified potential deficits and are considering ways to reduce costs, such as through voluntary programs and reorganization. The Board of Supervisors is being asked to accept a staff presentation and report from the Budget Ad Hoc Committee. There may be possible expenditure cuts and staffing reductions in the future to address the projected budget deficit.
— LoCOBot
En el condado de Humboldt, una reunión trascendental,
la junta de supervisores con gran preocupación mental.
El presupuesto general es el tema central,
proyecciones y cifras que causan un alborotal.
En el archivo 24-762 se presenta la situación,
el pronóstico del fondo y la comisión de presupuesto en acción.
Se proponen medidas para evitar la crisis,
aceptar el informe del comité es una decisión precisa.
Con un déficit de millones de dólares en el horizonte,
recortes presupuestarios se perfilan como un desafío desafiante.
Propuestas de aumentos salariales y beneficios,
se contrastan con la realidad de recortes y perjuicios.
Es crítico trabajar hacia un balance en el presupuesto,
encontrar maneras de reducir costos es el asunto puesto.
Propuestas de incentivos y congelamientos se plantean,
mientras que la reorganización de departamentos se planean.
La urgencia de la situación es clara y evidente,
encontrar soluciones es imperativo y consecuente.
El futuro económico del condado en juego,
decisiones importantes se toman en esta reunión tan ambigua.
En el condado de Humboldt, la lucha por la estabilidad,
se refleja en las cifras y en la necesidad de viabilidad.
La junta de supervisores toma decisiones cruciales,
por el futuro de la región, son responsables y su influencia es fundamentales.
— LoCOBot
DOCUMENTS:
2. Informational County Department Reports for Fiscal Year 2024-25
This document is about a meeting in Humboldt County where various county departments will present reports on their services and budget needs for the upcoming fiscal year. The Board of Supervisors will receive these reports and continue the discussion at a later date. The goal is to address budget deficits and challenges faced by departments. The meeting will involve presentations from departments such as UC Cooperative Extension, Assessor, and Human Resources. The financial and staffing impact of these reports is minimal.
— LoCOBot
[Scene: Interview room at the County of Humboldt. A panel of three interviewers, including the County Administrative Office representative, is seated across from the candidate, who is applying for a position in the Human Resources department.]
Interviewer 1: Good morning, thank you for being here. We appreciate your interest in the position with our county. Could you please start by telling us a little bit about your background and experience in Human Resources?
Candidate: Good morning, thank you for having me. I have been working in Human Resources for the past five years, primarily in the private sector. I have experience in recruitment, employee relations, performance management, and training and development. I am excited about the opportunity to bring my skills and experience to the public sector and contribute to the County of Humboldt.
Interviewer 2: That’s great to hear. One of the key focus areas for our Strategic Plan is Workforce & Operational Excellence. How do you see yourself contributing to this goal in the Human Resources department?
Candidate: In my previous roles, I have always strived to promote a culture of employee engagement and development. I believe that investing in the growth and well-being of employees is crucial for operational excellence. I would focus on implementing training programs, performance management systems, and policies that support our workforce and help us achieve our strategic goals.
Interviewer 3: The County is currently facing a projected General Fund deficit for the next fiscal year. How do you think Human Resources can help address budget challenges and support the county departments in their service delivery?
Candidate: Budget challenges can often have a direct impact on employees, which is where Human Resources can play a crucial role. I would work closely with department heads to analyze staffing needs, identify areas for cost savings, and explore innovative approaches to service delivery. I would also advocate for investing in employee retention and satisfaction strategies to ensure that we are effectively utilizing our resources and maintaining a high-performing workforce.
Interviewer 1: Thank you for your thoughtful responses. Before we conclude, is there anything else you would like to share with us about why you are the best fit for this position in the Human Resources department?
Candidate: I am passionate about creating a positive work environment where employees feel supported, empowered, and valued. I believe that my experience, commitment to continuous improvement, and collaborative approach make me a strong candidate for this role. I am excited about the opportunity to contribute to the County of Humboldt and help drive workforce and operational excellence. Thank you for considering my application.
[The interview concludes, and the candidate thanks the interview panel before leaving the room.]
— LoCOBot
DOCUMENTS:
CLICK TO MANAGE