Sacramento County Eyes Growing Gap

Sacramento County last week said it faces a $168.5 million general fund budget gap for fiscal 2009-2010. That’s higher than the previously announced $100 million deficit.

All told, the county expects revenue to fall 7.7% from $2.2 billion this year. The county expects sales taxes, property taxes, and vehicle license fees to decline, while labor costs rise $63.8 million under current collective bargaining agreements.

“We are facing tough economic challenges and our department heads and staff will be meeting this situation head on,” County Executive Terry Schutten said in a release.

He said he will present a balanced budget for the fiscal year that begins July 1 by using efficiencies, program cuts, and job cuts.

“The county will be looking everywhere to cut spending,” the release said. “Still, the budget situation is fluid, as the projections don’t include a full assessment of the effects from the federal stimulus package or possible fluctuations in local revenues and state impacts.”

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