The Plumas County Board of Supervisors has until Oct. 1 to adopt a final budget for the 2024-2025 fiscal year—and it is waiting until that very last day to do so.
A public hearing scheduled for after 10 a.m. on that final day will review the proposed $164.8 million budget, which includes $60 million in general funds and nearly $10 million in unassigned funds that are available for the supervisors to allot as needed.
Revenues for the fiscal year are estimated at $118.5 million, expenses at $152.8 million, reflecting a $34.3 million deficit in total government funds. Most of this money is for state and federal programs that are not under the control of the board of supervisors.
Their focus is on the general fund. This is money used for programs that affect Plumas County residents most directly, including sheriff’s services, senior nutrition programs, the district attorney’s office and library services. The 2024-2025 budget for the county general fund shows a deficit of $12.9 million.
“How long do we have before we fall off the cliff?”
Debra Lucero, Plumas County administrative officer
That is the historic trend for Plumas County, said Debra Lucero, the county administrative officer. But it raises a red flag. Budgeting spending greater than incoming revenues is not sustainable into the future, she cautioned. The county “leadership team” needs to give it their immediate attention, she added.
“How long do we have before we fall off the cliff?” Lucero said.
The supervisors voted 4-0 Sept. 17 to postpone adopting the budget, citing the absence of Supervisor Kevin Goss and numerous unanswered questions. Oct. 1 is a “drop-dead deadline,” said Lucero.
Highlights include 5% raise
She presented the proposed budget at the board of supervisors’ Sept. 17 meeting with Martee Graham, county auditor-controller. It has changed since the last public hearing, held June 25. That proposal totaled $156.4 million, with a county general fund of $57.5 million and $6.4 million fund balance. Lucero cited 685 line changes that have occurred between June 25 and Sept. 6.
She highlighted several initiatives in the budget the supervisors will review Oct. 1:
- A 5% across-the-board raise for most county employees, 15% for the social services department
- A commitment to eliminate wasteful and unnecessary fines and late fees
- The promise of the ENGIE project taking the county into “a greener future”
Adjusting fee schedules countywide
Lucero also called attention to countywide fee schedules as an untapped source of revenue. Among them are fees for building and sewer permits, marriage licenses, searching vital records and filing fictitious business names. Most fees have not been adjusted in 20 years, she said, and county department heads are asking for a countywide fee study. Fees for building and other permits issued by the building department are the “most out of whack,” she said.
Sheriff Todd Johns has been asking for fee adjustments since his appointment in 2020. Some counties charge $2,000 for a body bag; Plumas County charges nothing, he told the supervisors. Johns offered to get fee schedules from other sheriff’s departments throughout California to assist with adjustments.
County supervisors have been “kicking this can down the road” for years, said Supervisor Tom McGowan. “We have to address it.” He noted that Plumas County does not charge landing fees as any of its airports, a common practice at most airports. Increasing fees for county services would help “chip away at the deficit,” Lucero said.
40 vacant positions
The 2024-2025 budget includes expenditures that are $15.5 million above the previous year. Lucero said the increase is driven by the budget for salaries and wages, which is $8.1 million higher than last year and accounts for slightly more than half of the general fund expenses. She cited the 5% across-the-board raise as the primary reason for the change.
The increase in expenses is buffered by the county’s 40 vacant positions. That’s down from the 84.695 unfilled full-time equivalent positions she cited in June. Today’s 40 vacancies represent 20% of the total full-time employee roster. If they remain vacant, the county will save $4.2 million, which can help offset the deficit.
Previous county budget hearings have aired complaints that the supervisors are balancing the budget on the backs of county employees. Many of them are doing the work of two or three people due to vacancies. Lucero noted that in the past county officials have used the revenue saved from vacant positions to increase the county’s fund balance. This year she used the unpaid salaries for vacant positions to help balance it.
Deficit looms large
While Plumas County is clearly facing a revenue shortfall, District Attorney David Hollister presented the problem in terms of expenses rather than revenue, pointing out a “worrisome trend.”
The county budgeted $51 million for expenses in the 2023-2024 budget, with $42.4 million in revenue. The difference between revenue and expenses was $8.7 million, 20% of the general fund revenue, he said.
“I don’t think we have a revenue problem. I think we have a spending problem.”
David Hollister, Plumas County district attorney
The 2024-2025 spending plan budgets $59.9 million in expenditures against $47 million in revenues. That increases the deficit to $12.9 million, 27% of the general fund revenue, he said.
“I don’t think we have a revenue problem. I think we have a spending problem,” Hollister said.
All of the general funds budgeted for services and supplies for the new fiscal year show an increase over the 2023-2024 budget. Salaries and benefits are up $8.1 million, a 36% increase over the previous year. Professional services are increased by 2% and contingencies a whoping 689% increase over the previous year.
If the trend continues Plumas County will soon expend all of its unassigned fund balance. “That’s what worries me,” Hollister said.
Lucero said the budget uses reserves and vacant positions to keep the county solvent. But she acknowledged the worrisome trend and called on the supervisors to summon the courage to confront it.
“This is a historic trend that needs to be addressed by the leadership team of the county. It will require commitment from all departments… and a plan to rectify it,” Lucero said.
