Riverside County Sheriff’s Department layoffs appear unlikely, county willing to use reserve funds

Update 6 p.m.

The Riverside County Board of Supervisors agreed Monday to tap into reseve funds to fills budget gaps in each public safety agency, reducing the likelihood of layoffs.

“I think we can skate through without doing layoffs,” said Sheriff Stan Sniff. “My intent is not to have to do any layoffs.”

Sniff had planned to layoff as many as 500 deputies and other staff. Attrition would continue, he said, with positions not being filled and patrols decreasing in the unincorporated communities.

The board said it would dip into the $13.5 million from Proposition 172 safety sales tax revenue. The funds come from a total $22 million the county anticipates receiving this year and next.

The county’s deficit-reduction plan calls for across-the-board spending cuts, with some departments’ general fund appropriations shrinking 25 percent to plug a drain on county reserves.

The  Executive Office is holding the Sheriff’s Department to a $224.7 million spending threshold in 2011-12. Roughly $11.4 million — or 5 percent — below the current-year allocation of discretionary revenue.

In April, Sniff estimated the effect of the county cut, plus higher operational costs in the jails and increased personnel costs would put him $60 million in the red. However, that amount was chopped to $17 million after accounting for savings from the county’s imposition of a new contract on the deputies’ union, attrition, the new city of Jurupa Valley’s law enforcement contract and other changes.

Counting this year’s lingering shortfall, the Sheriff’s Department will be operating about $7 million in the red in the 2011-12 fiscal year, which begins July 1.

District Attorney Paul Zellerbach told the board he would have to initiate layoffs and end his office’s participation in anti-gang and sexual predator task forces if he did not receive a portion of Proposition 172 funds.

“I’m not here to ask for any more money. Not that I don’t want to ask for more money,” he said.“ I’m trying to right the ship in the DA’s office.”

Zellerbach blamed his $5 million in current-year cost overruns partially on his predecessor, Rod Pacheco. The former judge said Pacheco hired staff without the funds to pay for it.

The department’s projected costs for 2011-12 is $66 million, with $58 million coming from county, Zellerbach said. He also noted that his department could increase revenue by $3 million, leaving a $5 million deficit.

“That is the nut we need to face and the nut we need to crack,” Zellerbach said.

Supervisor John Benoit said it appeared the board would dip into a reserve fund to bridge the $5 million shortfall.

“We all have to recognize we are dipping into the reserve to do that,” Benoit said.

“Come next fiscal year, we will have other ways to resolve our deficit,” Zellerbach said.

The $58.6 million in general fund appropriations proposed for the agency in the next fiscal year is about $4 million lower than the current one.

Zellerbach said the county was facing “a perfect storm” of negative impacts from the state, with the governor’s push for realignment translating to a major commitment of local public safety resources.

The realignment plan calls for the county to take responsible for imprisoning any felon sentenced to less than three years, and all parole violators will be prosecuted at the local level, without any involvement by the state Board of Parole.

“All of this has a ripple effect,” Zellerbach said. ”It scares and concerns me.”

The board indicated it would drop the 6 percent cut intended for the DA’s office and allocate roughly $3.8 million in Proposition 172 funds for operations there. With another $1.36 million in savings from county-imposed benefits cuts on DA’s office investigators, the agency should begin the next fiscal year with a balanced budget.

Fire Chief John Hawkins did not anticipate significant layoffs to meet his department’s budget target, though he couldn’t rule them out.

The agency was originally girding for a $9.9 million loss based on a 5 percent cut in general fund appropriations. But with the board’s tentative approval of a $1.1 million Proposition 172 distribution, a $2.4 million commitment of reserves and pension benefits concessions by the firefighters’ union, the deficit is now closer to $3 million.

Hawkins said staffing levels at fire stations in 15 unincorporated communities, including Glen Oaks, French Valley, Lake Riverside and Nuevo, would be lower to stay within budget. However, plans to shutter fire stations in Blythe, El Cariso, Oasis and Poppet Flats were no longer on the table.

“These are tough times,”  the chief said.”But I think we can find success and continue to balance the public safety needs of Riverside County with funding needs.”

According to the Executive Office, the aggregate 2011-12 county budget will be around $4.78 billion, compared to $4.73 billion in the current year.

Discretionary revenue — more than half of which comes from property tax receipts — is expected to slip about $10 million year-over-year to $582 million.

Budget documents indicated $32 million in reserves would be tapped to meet some funding needs, compressing the reserve pool to $148.2 million.

The county’s reserves have been sliced in half over the last three years to cover shortfalls triggered by the downward spiraling economy. The Inland Empire ranks among the top 10 regions nationally in foreclosure activity.

 The fiscal blueprint pieced together today will remain a working product through Sept. 13, when the budget will be formally adopted, according to the Executive Office.

Update 4:30 p.m.

Riverside County Supervisors appeared willing Monday to approve use of reserve funds which would enable Sheriff Stan Sniff to avoid layoffs.

Supervisors appeared to be in favor of a plan proposed by Sheriff Sniff which made cuts and relied on budget reserves.

“If the board supports this option, my intent is not to have to do any layoffs,” Sniff said. “ I think we can skate through.”

While District Attorney Paul Zellerbach said his office’s share of Proposition 172 funds would  enable him to balance his budget.

“I’m not here to ask for any more money. Not that I don’t want to ask for more money,” he said.“ I’m trying to right the ship in the DA’s office.”

The department’s projected costs for 2011-12 is $66 million, with $58 million coming from county, Zellerbach said.

He also noted that his department could increase revenue by $3 million, leaving a $5 million deficit.

“That is the nut we need to face and the nut we need to crack,” Zellerbach said.

Supervisor John Benoit said it appeared the board would dip into a reserve fund to bridge the $5 million shortfall.

“We all have to recognize we are dipping into the reserve to do that,” Benoit said.

“Come next fiscal year, we will have other ways to resolve our deficit,” Zellerbach said.

Most members of the Riverside County Board of Supervisors supported the idea.

Several also commended Zellerbach for his efforts to reduce costs and his willingness to work with county officials.

Former District Attorney Rod Pacheco was criticized in the past for his unwillingness to do so.

Supervisor Jeff Stone, whose son is a prosecutor, pointed out that Zellerbach inherited a department in turmoil.

“Morale within the District Attorney’s office is high…. Keep up the good work, DA Zellerbach,” Stone said.

Update 2:45 p.m.

District Attorney Paul Zellerbach said since taking office in January, he has reduced the department’s deficit.

It was at $9.3 million in 2010 and now sits at $4.75 million, he said.

“All of this while justice is been done and the heavens haven’t fallen yet.”

Zellerbach also noted the backlog of criminal cases is down to 23 cases from 1,500 in 2008.

His office has 950  authorized positions with the current staffing at 739 employees.

Update 1:45 p.m.

Riverside County Sheriff Stan Sniff is addressing the Board of Supervisors during its budget hearing Monday.

Sniff is discussing proposed cuts and the impact it would have on overall public safety.

This is the final budget hearing before the board finalizes details of its 2011-12 fiscal year spending plan.

A number of department heads are expected to discuss how proposed cuts will be handled, with Sheriff Stan Sniff and District Attorney Zellerbach addressing how many layoffs may be necessary to keep their departments in the black.

The county’s Executive Office is proposing a 5 percent cut in general fund support for the Sheriff’s Department and a 6 percent cut for the D.A.’s office.

Other county agencies are facing cuts as high as 25 percent.

The average is 19 percent.

Sheriff Sniff has warned that the $224.7 million spending threshold set by the Executive Office will leave him with no alternative but to slash payrolls.

The expenditure limit is roughly $11.4 million below the current fiscal year, but the sheriff has said union-negotiated salary increases for deputies, higher operating costs connected with the jails and declining Proposition 172 public safety sales tax revenue will result in a funding gap of $40 million or more.

In the last two weeks, that figure has dropped to $17 million based on discussions between sheriff’s officials and Executive Office administrators that identified budgetary relief using sub-funds and other methods.

But the prospect of layoffs remains high.

According to Sniff, anywhere from 100 to 500 patrol and correctional deputies, along with support staff, could be handed pink slips in the first quarter of the next fiscal year.

Sniff has also indicated that several sheriff’s stations may have to be consolidated, jail pods deactivated and the coroner’s Coachella Valley office shuttered to stay within budget.

While the district attorney has blamed his current-year cost overruns – which will have to be carried over — on his predecessor, Rod Pacheco, whom Zellerbach said hired staff without the funds to pay for it. Pacheco also sued the county during a dispute over hiring new attorneys, which was paid for with funds from the district attorney’s office.

The $58.6 million in appropriations proposed for the agency in the next fiscal year is about $4 million lower than the current one. According to Zellerbach, around three-dozen positions may have to be chopped to erase next year’s shortfall.

All the public safety agencies’ budgets include revenues from other sources, including state funds, locally assessed fees and federal grants. The board only controls general fund disbursals.

Earlier this year, county fire Chief John Hawkins told the board his department would face a $10 million deficit in 2011-12, making it necessary to close or reduce staffing at nine stations and cut 70 positions.

All of the supervisors expressing a strong aversion to mothballing fire facilities, the board upped its general fund commitment to the department by $2.4 million in April. That was on top of $1.6 million in savings from pension benefits reductions to which the firefighters’ union conceded.

The county fire shortfall stands at $5.9 million, according to Deputy fire Chief Ignacio Otero.

He said any personnel cuts will be “minimal,” but there are plans to close fire stations in El Cariso, Oasis and Poppet Flats.

According to the Executive Office, the aggregate 2011-12 county budget will be around $4.78 billion, compared to $4.73 billion in the current year.

Discretionary revenue — more than half of which comes from property tax receipts — is expected to slip about $10 million year-over-year to $582 million.

Budget documents indicated $32 million in reserves would be tapped to meet some funding needs, shrinking the reserve pool to $148.2 million. The county’s reserves have been sliced in half over the last three years to cover shortfalls triggered by the downward spiraling economy.

The Inland Empire ranks among the top 10 regions nationally in foreclosure activity.

The board implemented a gradual deficit-reduction strategy in 2008. In the ensuing years, the county’s workforce declined from nearly 20,000 to just over 17,500 — the result of early retirements, attrition and terminations.

Recent economic forecasts predicted either limp or no revenue growth regionally over the next two years.

County administrators remain concerned about the consequences of the state’s budget fixes, which may not be known for another two or three months.

The fiscal blueprint pieced together Monday will remain a working product through September, when the budget will be formally adopted, according to the Executive Office.

City News Service contributed to this report.

- tammy.mccoy@swrnn.com