Presentation on theme: "County of Orange 1 Current Economy Recession Officially Ended in June 2009 Slow Growth Projected Few Signs of “Double Dip” Primary County Impacts."— Presentation transcript:
County of Orange 1 Current Economy Recession Officially Ended in June 2009 Slow Growth Projected Few Signs of “Double Dip” Primary County Impacts Lower Revenue Base (sales tax, property tax) Expenses Have Been Reduced Increased Pension and Benefit Costs
County of Orange 2 Current Economy Recovering Slowly Mixed Signals Home Values Improving Residential New Construction Permits Up Increased Levels of Federal & State Debt Consumer Spending Up Employment has Marginally Improved Unemployment Remains High High Office Vacancy %
County of Orange 3 Unemployment Rate Source: California EDD for October 2010 (prelim)
County of Orange 4 Secured Assessed Valuation
County of Orange Proposition 172 Revenue 5
County of Orange Realignment Revenue 6 Annual Percentage Change
County of Orange 7 Five Year Forecast 5 year SFP
County of Orange 8 Available Sources of Funding 5 Year SFP
County of Orange 9 Identified Risk Factors - FY 2011/12 $2.4 million Identified Budget Risk$45.6 million US Marshal Contract – revenue increase $11.7 million Crime Lab – new revenue$5.0 million ICE Contract Beds Increase VLF Increase Sunset – State law$19.0 million CSA Classification Savings $7.5 million Budget Shortfall (Best Case): $43.0 million Budget Shortfall (Worst Case Excluding State Impacts): $88.6 million State Impacts $xx.x million
County of Orange 10 Current Year Budget – General Fund
County of Orange Options for Closing the Gap Available Funding? 5% NCC Reduction$21M Hiring Freeze? Salary & Benefits Cost Reduction? Pension Prepayment? Service Reductions? New Revenue?
County of Orange 12 Reserves Available to General Fund Projection $350 $313 $291 $303 Note: The chart does not reflect any draws from reserve during the SFP period.
County of Orange NCC Reductions (Countywide Reductions*) FY 08/09FY 09/10FY 10/11 San Bernardino County8.0% 10.0% Riverside County5.0%10.0%19.0% San Diego County0.0%3.5%9.2% Average4.3%7.2%7.7% Orange County5.0% * Represents general NCC reductions. Reductions to specific programs within each county vary.