COUNTY TO END FISCAL YEAR IN BETTER SHAPE THAN EXPECTED

The Board of Supervisors signed off on a report indicating that Riverside County government will end the fiscal year in better condition than originally expected, with a larger reserve pool and no untenable deficits within county agencies.

In a 5-0 vote without comment May 18, the board approved the Executive Office’s 30-page compendium on third-quarter finances, setting the stage for a round of hearings on the 2021-22 fiscal year budget next month. The current fiscal year ends on June 30.

“While the current projected outlook has improved significantly, we have challenges looming in the coming fiscal year that will need to be addressed,” the Executive Office stated in an introduction to the budget report.

In June 2020, budget analysts told the board the county could face a $62 million deficit by the end of 2020-21. However, that was before the county realized the benefits of almost $500 million in Coronavirus Aid, Relief & Economic Security Act funding.

The county’s reserve pool had also been expected to shrink from $260 million to $222 million, with money needed to cover spending gaps in multiple agencies. But according to the report, the county will end the fiscal year with a bigger pool — totaling $277 million.

Despite the impacts of the coronavirus public health lockdowns, discretionary revenue has increased an estimated $38 million, for a total of $894 million in receipts. The adopted 2020-21 budget projected revenue would top out at $855 million.

The overall 2020-21 budget, based on both discretionary and programmed funds, is $6.46 billion.

As the impacts of the virus and lockdowns have lessened, some agencies have returned funds to the county treasury, most prominently the Emergency Management Department, which ended up not needing $12 million in contingency revenue, according to the report.

Sheriff Chad Bianco informed budget analysts that he may be returning $7 million to the general fund, thanks to anticipated reimbursements from the state for the monthslong housing of jail inmates who were slated to be transferred to state correctional facilities, where intakes were stopped as part of a COVID-19 mitigation strategy.

The Department of Animal Services has been facing hurdles in trying to contain losses. The midyear report stated DAS was nearly $2 million in the hole, stemming in part from less revenue tied to pet adoptions, licensing and field operations.

Registrar of Voters Rebecca Spencer told the board earlier in May that her office will need additional funding for the pending gubernatorial recall election, as well as more money for staffing and equipment to ensure efficient running of elections going forward.

The board postponed action on her requests until the end of July, when another public hearing on the agency’s challenges is planned.