The nation's worsening financial crisis that continues to plague state and local governments has led Santa Clara County to further cut its social service programs.
On Oct. 14, the Board of Supervisors voted unanimously to slice $17.1 million from its fiscal year 2009-10 general fund, which was approved in July. County agencies and departments will identify specific cuts, as recommended by the county executive. The board will vote again on whether or not to accept the proposed cuts.
According to a press release from the board, the latest round of cuts was prompted by Gov. Arnold Schwarzenegger's state budget for 2009, which was signed into law Sept. 23. In that budget, the governor used his line item veto power to "blue pencil" or reduce state expenditures by $510 million, of which $13 million would have gone to Santa Clara County.
Supervisor Don Gage said County Executive Pete Kutras has advised the board to cut from the same areas from which the state has cut. In Santa Clara County, those areas are entirely social service programs, such as child support services, drug and alcohol treatment programs, and services for people with physical and mental disabilities.
Gage said the cuts will have a "significant impact" on the people in South County who benefit from these programs. But the county needs to try to save as much money as possible in the face of growing projected deficits, he said.
"It's a negative thing, but the county has little choice," said Gage. "We've known for a while that revenues are falling short of our expenditures. If we don't address this structural deficit, we will find ourselves in a similar position as the federal government which ignored all signs that action was needed to avoid an economic crisis."
Kutras added, "Having to cut programs and services for the vulnerable members of our community is extremely difficult. They are not numbers. They are people who really need these services."
The county will use a small portion of a $32 million one-time reserve it approved with the 2009 budget to fund the programs until January, when the reductions are expected to take effect. Gage said the remainder of that reserve will go into the county's cumulative "rainy day fund," which is currently about $100 million.
Gage said that draining the reserve to pay for discretionary services would be a "very foolish thing," as it would leave the county without extra money for unpredictable emergencies such as an earthquake.
In addition to the cuts in state funds, the county has also lost anticipated local revenue in the amount of $4.1 million for an Emergency Response and Disaster Preparedness Fee, which has been eliminated due to recent court actions.
The county's total budget for fiscal year 2009-10 is $3.9 billion. The county has had seven consecutive budget deficits, and even the one passed in July has a $172 million hole.
Michael Moore Michael Moore covers county and law enforcement issues for the Morgan Hill Times. Reach him at (408) 779-4106, ext. 202, or mmoore@morganhilltimes.com.
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