Board considers fiscal year spending plans

Millions in additional department spending requests also reviewed

The Monterey County Board of Supervisors reviewed a $1.649 billion overall baseline working budget.

Taking its first crack at the upcoming year’s budget, the Monterey County Board of Supervisors considered baseline budgets and $55.9 million in spending augmentations during a lengthy workshop on Tuesday afternoon.

As the county emerges from a year-long COVID-19 lockdown that has affected revenue, the county board reviewed a $1.649 billion overall baseline working budget including a proposed $720 million general fund baseline working budget, which doesn’t include the additional spending being requested by county departments.

The baseline budgets leave about 23 full-time filled positions unfunded and would cost about $2 million to pay for, while 50 vacancies would remain unfunded at about $6 million. Departments have requested 54.5 new positions at a cost of $4.3 million under the budget augmentation requests.

In a budget message, County Administrative Officer Charles McKee noted that the pandemic had put a “strain” on the organization and the community but had also “highlighted exemplary performance” by the county workforce and others. McKee said it was clear last year that COVID-19 would deliver a hit to the county’s budget but that it was important not to “overreact,” and the county would continue that approach with the hope of state and federal resources to help close the gap.

Among the top department funding requests were a $28.2 million ask from McKee, including funding for three current positions and $24.76 million for infrastructure projects, Sheriff Steve Bernal’s $12.3 million request including 36 positions, $6.1 million and 37 positions for the new Public Works, Facilities and Parks department, $1.97 million for the new Housing and Community Development department, and $1.73 million for the county Health Department.

While the county is looking at continued increases in discretionary revenue, including property tax, the rate of growth is slowing and signals the potential for future belt-tightening. A drop in revenue last year, including a major decrease in transient occupancy, or hotel, tax from $28.6 million two years ago boosted by the U.S. Open to $12.3 million this fiscal year, was offset by one-time funding through

the federal CARES Act and other sources spent largely on pandemic-related initiatives, as well as some belttightening.

Even though the county depleted its cannabis assignment account for a number of pandemic-related spending, and has dedicated the majority of its projected $19 million in this year’s cannabis revenue to its baseline budget, the county is expected to have about $3.4 million left for discretionary spending.

The county is also looking at about $84 million in additional one-time revenue from the federal American Rescue Plan but that is supposed to specifically offset revenue loss over the next several fiscal years.

Meanwhile, spending demands continue to increase, largely due to rising pension costs including a $762.5 million unfunded liability, as well as increasing workers compensation, general liability and health insurance expenses.

Budget hearings will be scheduled for early June with final adoption set for later that month.

Also Tuesday, the county board approved a list of capital projects to be proposed for U.S. Rep. Jimmy Panetta’s federal funding earmark list including Pajaro River flood risk management, Davis Road widening, Monterey Bay National Marine Sanctuary scenic trail Moss Landing segment, the proposed Behavioral Health/Primary Care clinic in Salinas, county Emergency Operations Center upgrade, and Palo Colorado Road projects, among others, as well as the late additions of the Interlake Tunnel and dam maintenance, the Carmel River FREE, and Chualar sidewalks projects.

The board also approved under consent a one-year agreement with Velocity International to hold a vintage auto racing event compared to the Monterey Reunion events at WeatherTech Raceway Laguna Seca on Nov. 11-14 this year and postponed for two weeks consideration of a hospitality “right to recall” ordinance aimed at requiring local hospitality businesses to offer their own laid-off employees their jobs back when they reopen.

And the board adopted resolutions including a declaration that racism is a public health emergency, and declaring this week as National Public Health Week including recognition of local health workers and others who have labored during the pandemic.