TheBakersfieldCalifornian.com

Facing a fiscal crisis, top county officials called Monday for an immediate 10 percent spending cut in all budget units and to possibly ask county workers to take time off without pay.

The Board of Supervisors could make the cuts Tuesday afternoon to salvage a budget that has fallen $27.3 million short of projected revenues and is facing more than $145 million in state reductions and delayed payments over the next 17 months.

Every day of county delay, said Budget and Finance Director Gloria Dominguez, puts county resources further at risk.

Supervisor Don Maben said the board has to act now.

“It’s just like not making your credit card payment this month,” he said. “It comes back to haunt you next month.”

Dominguez said the county’s ability to decisively protect revenue has been delayed by budget gridlock in Sacramento. The likely state budget picture has cleared over the last month, she said.

Kern faces a triple threat to its finances, Dominguez said.

The first is a $27.3 million drop in county tax income and other revenues.

Some $13.3 million of the losses are in critical “discretionary” units — the places where county supervisors have control over spending decisions.

Kern County’s 2008-2009 budget is $1.5 billion but its discretionary spending is only $349 million.

The next threat comes from proposed cuts in state funding of an additional $8.9 million from this year’s county budget and $24.7 million from the county fiscal year that begins on July 1.

But the biggest immediate threat may come from a state plan to delay social services, health care and infrastructure payments to the county for eight months.

Those delayed payments would drain $136.7 million out of county coffers. While the state promises to pay up on its IOUs in September, the sheer size of the temporary shortfall could create a cash-flow crisis for the county, Dominguez said.

All this information, released in a report to supervisors on Monday, has County Administrative Officer Ron Errea calling for the 10 percent mid-year spending cut.

He will also ask county unions to agree to mandatory furloughs to save the county enough cash to keep it operational.

Chuck Waide of the Service Employees International Union, Local 521, which represents general county employees, said he hasn’t seen the county report yet but his initial feeling is that the call for furloughs is misguided.

“To do it on a county-wide basis seems like an overreaction,” he said.

Dominguez said the furloughs will be discussed with unions as a way to help the county reach the 10 percent revenue cuts in county departments.

A restricted hiring and spending plan has been in place at the county since April 2008.

But it hasn’t been enough to handle the impacts of the economic downturn, state budget crisis and sharp decline in tax revenue.

PROPOSED STATE BUDGET CUTS

KERN MEDICAL CENTER

$200,000 this year if public hospitals' Safety Net Care Pool funding is shifted to other Medi-Cal programs; $2.7 million next year.

$1.5 million this year if the state limits Medi-Cal benefits for some groups and KMC can't turn them away; $4.5 million next year.

SHERIFF'S DEPARTMENT

$700,000 in meth suppression programs this year; $1.4 million next year

$107,000 less in Citizens Option for Public Safety money this year; about $84,000 next year.

$228,000 for rural crime prevention this year; $456,000 next year.

PROBATION

$298,000 in Juvenile Justice and Crime Prevention money this year; $256,000 next year

$862,000 for juvenile camps and ranches this year; $1.7 million next year

$514,000 for juvenile probation activities this year; $437,000 next year

MENTAL HEALTH

Elimination of managed care funding: $0 this year, $8 million next year.

DISTRICT ATTORNEY

Elimination of OES, DOJ, COPS funding: $488,150 this year, $1.1 million next year.

DISCRETIONARY REVENUE

Elimination of Williamson Act subvention: $4.1 million this year, $4.1 million next year.

TOTAL: Nearly $9 million this year; $24.7 million next year

TOTAL ESTIMATED STATE DEFERRED PAYMENTS:$64.7 million this year, $72 million next year

SOURCE: County administrative office