Merced County Supervisors to review proposed budget, $6.6 million shortfall projected

CVV News l June 23, 2024

The Merced County Board of Supervisors on Tuesday is scheduled to consider approval of the proposed fiscal year 2024-25 budget, which is projected to have a shortfall of $6.6 million. 

According to a news release, the $1.13 billion spending plan is down $32.1 million from last year’s budget.

That’s primarily due to reduced appropriations for major county projects that have advanced into construction stages, reduced American Rescue Plan Act funding as it’s spent down and reduced capital improvement programming as various projects are paused due to economic uncertainty, according to the county.

The budget shortfall is characteristic of the tough economic times facing Merced County. Last month the board voted to decrease the number of Merced County Fire Department/Cal Fire stations from 19 to 15.

Within recent months county employees have held several protests, complaining about the skyrocketing costs of healthcare premiums. Negotiations between Merced County’s labor team and union representatives began in April. 

The economic woes of Merced and other counties statewide are further compounded by budget shortfalls in Sacramento. 

Gov. Gavin Newsom and legislative leaders recently announced a $297.9 billion spending plan to address a revenue gap estimated at $56 billion over the next two years, Cal Matters reported. That plan is expected to make $16 billion in cuts, which includes a 7.95% reduction in funding almost all state departments. 

Public safety highlighted in budget

According to Merced County, of the $1.13 billion proposed total budget, $208.5 million requires local funding. The balance is dedicated funding from the state and federal levels required to be spent on programs like social services, behavioral health and public health. 

With local revenues projected at $132.4 million and an estimated available fund balance of $69.5 million, there is a shortfall of $6.6 million that will need to be addressed during this year’s budgetary process, the release said. 

County officials say the proposed budget emphasizes public safety and community services, pointing out it incorporates a recent wage increase for sheriff’s deputies. Out of the funding the Board of Supervisors has control over, 80 percent is dedicated to public safety and justice. 

The board is expected to vote on the county’s final budget at its Sept. 24 meeting.