SLO County supervisors approve nearly $1 billion budget. Here are 5 things to know
San Luis Obispo County will operate with an almost $1 billion budget for the 2024-25 fiscal year after the Board of Supervisors whisked it through to approval in a single day.
On Monday in the first of three days of hearings, the board voted 4-1 to adopt the $997 million budget, with Supervisor Debbie Arnold dissenting.
She objected to the county’s spending levels and disagreed with the board’s priorities, which no longer include road maintenance.
The board’s top ongoing priorities are to meet legal demands, meet debt service requirements and enhance public safety, according to county budget director Lisa Howe.
Next, first tier priorities include homelessness and mental health along with housing and economic development, Howe said. Second tier priorities are storm recovery and infrastructure, water resiliency, and organizational effectiveness.
The board priorities guide the budget development process, according to Howe.
The county general fund faces a $15.6 million deficit for the 2024-25 fiscal year, according to Howe.
The deficit resulted from the loss of one-time funding, increasing salary and benefit costs for county staff, and slow-growing tax revenue, she said.
In response, the county will cut department budgets, move funding around and use reserves to make up the difference, Howe said.
San Luis Obispo County receives 39% of its general fund revenue from the state. The California state budget for 2024-25 could contain a $68 billion deficit, which means the county may receive less funding than usual.
The state Legislature will finalize the state budget later this summer, and the county will update its own budget accordingly in September, Howe said.
From key spending areas to storm repairs, here are five things to know about SLO County’s 2024-25 budget.
Sheriff’s Office to get largest share of the general fund
The San Luis Obispo County Sheriff’s Office will once again receive the largest cut of the general fund, according to the county budget report.
The board voted to allocate almost $68.7 million to the Sheriff’s Office, an 8% increase from the 2023-24 budget.
That’s about 23% of the county’s general fund expenditures to general fund departments, and the largest amount allotted to any of those departments.
The Sheriff’s Office uses 81% of its budget to pay salary and benefits to its 461.5 full-time-equivalent staff members, the budget book said.
Who are the county’s top 10 property taxpayers?
Energy companies were the top three property taxpayers in San Luis Obispo County during fiscal year 2022-23, according to the budget report.
PG&E was the top taxpayer, valued at almost $1.3 billion. The solar ranch High Plains Ranch II took second place at $768 million, followed by Southern California Gas Co. at $178 million.
San Luis Obispo retailer Jamestown Premier took fourth place at $156 million, while the now-closed Phillips 66 oil refinery took fifth place at $138 million.
The following five top property taxpayers were E&J Gallo Winery and Vineyard, Firestone Walker LLC, Mustang Village LLC, Treasury Wine Estates and Sierra Vista Hospitals, the budget report said.
The properties owned by the county’s top 10 taxpayers were worth more than $3 billion combined during 2022-23, the report said.
County boosts Cal Fire budget for shorter work week
Cal Fire’s union negotiated with the state to replace its 72-hour work week with a 66-hour work week starting in November, according to local Cal Fire Chief John Owens.
“It’s going to help our firefighters in their family life, mental and physical health,” Owens told The Tribune after the meeting.
The county will give Cal Fire $3 million more during fiscal year 2024-25 so it can hire more staff to fill in the gaps.
“We have to hire some additional people,” Owens said.
Meanwhile, Cal Fire’s union is currently negotiating with the state for higher salaries — so the $3 million also covers potential pay raises, Owens said.
During a 72-hour week, firefighters work three, 24-hour days then have four days off. That adds up to 12 shifts per month, Owens said.
With the 62-hour work week, firefighters will serve one fewer 24-hour shift per month, he said.
Between their regular hours, training and wildfire calls, firefighters have to spend an extensive amount of time away from home each year — which takes a toll on their families, Owen said.
“You might be who knows where in the state of California fighting a fire,” he said, which means they miss Little League games, dance recitals and all sorts of family milestones.
Giving firefighters another day off per month will support their health and families, Owen said.
“It’s that work-life balance thing,” he said.
Meanwhile, most city fire departments require their staff to work 56-hour work weeks. Sometimes, Cal Fire employees will quit to work for a city fire department for the better hours, so moving to a 66-hour work week could help retain employees, according to Owens.
Funding cuts to the Homeless Services Department
The board voted to pull $1.7 million of the county’s general fund contribution from the Homeless Services Division, according to the budget report.
That’s a 26% reduction from fiscal year 2023-24, the report said.
The majority of the division’s almost $11 million budget comes from state and federal grants — putting it in a precarious financial position, according to SLO County Social Services Department Director Devin Drake.
“That’s how we’ve always lived is grant to grant to grant,” he told The Tribune after the meeting. “We’re clawing for money, and we’re competing with all the other counties. So, to me, any cuts have impact.”
The California state budget for 2024-25 could contain a $68 billion deficit, and funding for homelessness services is likely on the chopping block, lobbyist Paul Yoder told the board at a previous meeting.
That means the Homeless Services Division will likely face more budget cuts later this summer when the state budget is finalized.
In the meantime, the Homeless Services Division will also lose a $2.4 million one-time grant that was primarily used to fund outreach and homeless prevention services.
The division awarded that money to local nonprofits to fund their efforts to connect people experiencing homelessness with services. Without the grant, those organizations will likely have to reduce their outreach services, according to Drake.
“There are impacts any time funding stops,” he said.
Storm repair costs
Historic storms and flooding battered the county in 2023, damaging county roads, buildings and bridges. The county is still repairing that damage, and the board budgeted $18.5 million for storm repair projects for the special districts budget for 2024-25.
That funding includes $9.3 million for permanent repairs to the Nacimiento pipeline and $3 million to fix the Oak Shores storm drainage washout near Nacimiento Lake, according to Howe.
Meanwhile, the county awarded $5.7 million for repairs to the Arroyo Grande Creek levee and $450,000 to fix the Chorro Valley access road, Howe said.
