County supes approve $2.18B budget
STOCKTON — Despite a more than $90 million decrease in funding this year, the San Joaquin County Board of Supervisors unanimously approved the 2022-23 budget last week.
This year’s budget is expected to be $2.18 billion, and staff said the $90.2 million decrease is due primarily to one-time funding programmed in the 2021-22 budget — including transfers of prior-year fund balances to reserves — that was not included this year.
Staff told supervisors over the two-day budget review that the document is structurally balanced and provides resources for the board’s top priorities.
The budget also fully funds current departmental staffing levels and augments staffing to address critical operational needs, staff added.
“Although this $2.18 billion budget was developed during uncertain times with the ongoing pandemic, coupled with the economic disruption from the recent inflationary environment, it demonstrates once again that San Joaquin County continues to provide the best service to our residents and still remain financially stable,” Chair Chuck Winn said.
San Joaquin County Administrator Jay Wilverding said that the Gov. Newsom’s May revision to the state budget now projects a $75.7 billion surplus, and in addition, the county has received $74 million in Federal American Rescue Plan Act funds.
The FARPA funds are the second installment of $148 million to also help the county with COVID-19 recovery.
“While the County continues to be in a favorable position, we want to be good stewards of these funds and ensure that the funding is one-time in nature and be prepared for any other possible downturns that may occur,” Wilverding said.
“In addition, the budget directs $45 million of prior year fund balance to the Capital Outlay Fund as unprogrammed funds to be used for capital projects, and $45 million to the Unfunded Pension Liability Reserve to be used in the future to pay down the county’s
unfunded retirement liability.”
Budget highlights include an estimated general fund balance of $124.2 million by July 1, as well as contingency reserve balance of $111.8 million.
Full-time staff increased by 217.7 positions, which includes 95.7 at San Joaquin General Hospital, 28.7 in the Behavioral Health Services department, 26.1 for county support to San Joaquin Health Centers, 26 in the Child Support Services department, and 154 in the Human Services Agency.
A major highlight in the budget is the recent San Joaquin General Hospital Management Services Agreement with Dignity Health, which includes $3 million in funding for the first 12 months of the 18-month agreement.
The MSA will allow Dignity Health to provide advice, assistance, and management oversight of the day-to-day administration of the hospital, and its initial focus will be on revenue cycle operations, information technology, quality management and improvement, group purchasing organization affiliation, and clinical integration.
Employee salary and benefit costs account for about 46% of the budget.
While the county has current labor agreements with 100% of its labor force, 88.5% of the MOUs with unions will expire by the end of 20222023.
The potential costs resulting from these negotiations are unknown and were not included in the approved budget.
Victory Gardens is slated to open this fall, and should provide housing for about one-third of the county’s veterans experiencing homelessness in 49 units once fully occupied.
An adjacent parcel also provided by the county is planned for future homeless housing.
The budget also allocated $1.1 million to the Mary Graham Children’s Shelter for 15 positions to address additional placement of children at the facility, along with providing additional security and improving the playground.
In addition, the budget includes funding for the San Joaquin County District Attorney’s Office to establish a digital forensics unit and provide paralegal and investigative support to several of its units.
The San Joaquin County Sheriff’s Office’s boating safety, patrol, special services, communications, detectives, administration, public administrator, and custody divisions are augmented with new positions as well.
As a result, the county’s law and justice departments will be budgeted $440 million, which is an increase of $23.5 million from last year.
Health Services will see $873.6 million, an increase of $23.1 million, and roads and facilities will have $123.4 million, an increase of $3.2 million.
“I appreciate the department heads’ leadership, initiative, and innovation during this past fiscal year as the county takes on new challenges and projects, all while performing their ongoing functions and navigating the pandemic,” Wilverding said.
“Our human resources and information systems divisions were crucial in providing analysis, insight and support in the final approved budget, and our county administrator’s staff have been indispensable in their ability to get the job done. They have all been instrumental in developing a collaborative budget which promotes the goals of the county and again delivers a structurallybalanced budget.”