Los Angeles County chief executive officer William Fujioka this week proposed a $22.8 billion all-funds budget that cuts spending by $415 million, or 1.8%.
General governmental spending would fall by $127 million, or 0.7%, to $18 billion. Fujioka proposes closing a $300 million gap between the cost of providing current services and expected local revenues with $107.2 million of spending cuts, $115.5 million of reserves, and $77.7 million of federal stimulus dollars.
The cost of providing services is increasing because of rising social service demands, while revenue is falling because of an economic downturn that has increased the county’s jobless rate for 24 consecutive months to 10.9% in February.
“The 2009-10 proposed budget is shaped largely by the impact of the deep recession that we are enduring,” Fujioka said in his budget letter to the Board of Supervisors. “The county continues to see an erosion in a number of key revenue sources.”
The nation’s second-biggest county expects general fund property tax collections, its biggest local revenue source, to fall by $26.4 million, or 0.7%, to $3.9 billion, while state aid, its biggest single source of revenue, declines by $133 million, or 3.1%, to $4.3 billion. Federal aid is expected to rise by $362.8 million, or 11.5%, to $3.6 billion.
Fujioka said the budget, which covers the fiscal year that begins July 1, may have to be cut further in September if the county realizes further declines in property values. The budget assumes a 1% decline in assessed values, but the county assessor has said assessments may fall by a further 2.3% in the upcoming year.
The $107.2 million of departmental cuts included in the proposal largely come from eliminating 1,684 vacant positions. The county has about 100,000 employees.
