Layoffs have been avoided for years in Kings County, but departments are bracing for deeper cuts that will likely make it impossible to prevent them, county officials say. Despite state budget woes and the recession, the county has so far been able to balance the budget through a hiring freeze and eliminating vacant positions.

But with a further drop in revenues and a deepening state budget deficit, county officials say for the first time in years that staffing cuts are imminent in the next fiscal year.

"We have at this point attempted to eliminate positions through attrition and through a hiring freeze," Staci Phelan, management analyst, told the Board of Supervisors during Tuesday's meeting. "We'll make every attempt to stick with that; however, in fiscal year 09-10, we may not have the luxury of getting rid of positions through attrition. We may have to resort to actual layoffs. We may also have to go back to the bargaining table looking for some concessions."

Concerned county employees as well as contracted service providers packed the supervisors' chambers, as decision-makers reviewed the status of the current budget and anticipated budget impacts for next year. The study session -- held with a sense of urgency -- came a week after Gov. Arnold Schwarzenegger announced deeper cuts in light of the failed budget ballot measures.

No decision was made regarding whether layoffs would be made anytime soon.

County Administrative Officer Larry Spikes said the purpose of the meeting was a "reality check."

"We're going to be making every cut we can make to the budget ... We're going to be talking about making cuts wherever we find them, to services and supplies and all the other categories," Spikes told supervisors. "We don't want to do layoffs if at all possible. Our point was to make sure that we had a reality check with you that we're not going to be able to escape the process forever."

Meanwhile, supervisors stressed that they would weigh all options before resorting to layoffs.

"We as a board have not yet made that vote," said Supervisor Richard Valle. "There's a lot of work to do. I don't think we make these choices easily."

Supervisor Tony Barba cautioned his colleagues that laying off people doesn't always save money. "The state is laying off correctional officers, but they are also having to pay (some officers) double time to fill in for those who were laid off," Barba said. "The number of layoffs sounds good, but if you're paying them off, you're not saving any money. So we have to be careful of that."

Schwarzenegger last week proposed a new round of $6 billion in budget cuts, targeting key social programs, such as CalWORKS and Healthy Families, after voters rejected a series of fiscal measures. The reductions came on top of $16 billion in cuts he unveiled two weeks ago, and was followed by $3 billion further in cuts designed to meet the budget hole, which has now swelled to $24.3 billion.

County officials say the state will most likely trigger the emergency clause in Proposition 1A passed in 2004 to borrow up to 8 percent of property taxes collected by local governments. For Kings County, that would mean a one-time loss of $2.5 million in discretionary funds, $138,000 in library funds and $413,000 in fire funds, officials say.

The state is required to pay back the money with interest within three years, but it remains uncertain how it will be done or how much interest would be paid.

Kings County will also likely lose more than $2 million in Williamson Act money. Under the act, the county is reimbursed for property tax revenues lost when giving a tax break to farmers who agree to keep their lands in agricultural production.

Two months' deferrals for health and social service payments to the county will affect the human services agency and behavioral health department in August and September, creating a massive cash flow problem, county officials say.

Phelan said the proposed elimination of the CalWORKS program would not only affect some 7,000 children and families on public assistance, but would also lead to the loss of a third of the human services staff, which is about 31 positions. Kings County issues CalWORKS cash assistance totaling $1.4 million each month.

The state is also anticipated to take away the gas tax money from counties.

Kings County each year spends about $3.2 million in basic maintenance of the county road system. Gas tax funds make up nearly two-thirds of that funding, said Public Works Director Harry Verheul.

"If we lose all the gas tax, I don't know how we'll function," Verheul said. "I think we'll have to lay off people off and shut down. And that's scary."

The reporter can be reached at 583-2429.

(June 4, 2009)