The Board of Supervisors on Monday will consider the first round of appropriations requests for the 2024-25 fiscal year budget, which calls for an 11% increase in spending compared to the current fiscal year.
The budget hearings will open with the heads of public safety agencies testifying in the morning, and additional testimony later in the day, as well as possibly on Tuesday, if required.
The proposed spending plan totals $9.6 billion, an 11.1% increase from 2023-24’s budget of $7.45 billion. The new budget must be tentatively approved by June 30, with spending authority formally established by Oct. 2.
“While we look positively toward the future, we acknowledge challenges will arise,” county CEO Jeff Van Wagenen said in an introduction to the 500-plus page budget report.
“The long-term economic forecast remains uncertain, and local revenue growth is slowing. Additionally, the projected budget deficit at the state level could have significant implications for our county. We are closely monitoring these developments and are prepared to adjust our strategies as necessary.”
The California Legislative Analyst’s Office estimated the state budget deficit going into 2024-25 to be $68 billion.
Executive Office staff estimated county discretionary revenue — which, unlike programmed funding, the board may use for any purpose — will top out at $1.22 billion in the next fiscal year, a $100 million increase over 2023-24.
The projected reserve pool is $698 million, compared to $555 million in the current fiscal year.
Officials anticipated increases in most revenue streams throughout 2024-25, including property tax revenue, motor vehicle-in-lieu of property taxes, interest earnings on treasury pool investments and ongoing income from redevelopment assets, driven in part by inflation.
According to the proposed budget, $2.6 billion would be appropriated to the Riverside University Health System, the largest set-aside in the spending blueprint, at 27% of total expenditures. The outgo would translate to a 5.6% increase in health care-oriented spending.
Public safety agencies would be next, with $2.2 billion in proposed expenditures, 8.5% more than the current year’s outlays and 23% of the composite budget, while the social services portfolio would be in line for $2.1 billion in general fund receipts, also representing an 8.5% increase compared to 2023-24 and comprising 21.4% of the overall budget for 2024-25.
Other budget components would receive smaller outlays but still receive higher appropriations compared to the current fiscal year.
The county received almost $500 million in 2020 Coronavirus Aid, Relief & Economic Security Act allocations and another $480 million in 2021 American Rescue Plan Act money. Just under 10% of the federal infusions have been applied to “budget stabilization.” Some of the revenue remains available and is being allocated to community development and related programs.