Hearings next week on $1.41 billion county budget Hearings next week on $1.41 billion county budget (June 22, 2005)

By Marion Softky

Almanac Staff Writer

Thanks to an uptick in the economy, San Mateo County will have the most favorable budget in several years, allowing some growth in positions and programs -- although future cuts in federal programs next fall may bring a quick end to the sense of relief.

"There will be no closing of parks or clinics or reduced services," said Rich Gordon, president of the Board of Supervisors. "For the first time in four years, we're trending up instead of down."

The board will review the proposed $1.41 billion budget department by department next week. Hearings start Monday, June 27, at 9 a.m., and conclude Wednesday afternoon, June 29, at 400 County Center (corner of Bradford Street and Hamilton Avenue) in Redwood City. The county will make final adjustments to the budget in September.

This year's proposed budget is 8.3 percent higher than the budget for the fiscal year ending June 30. It recommends adding 152 employees to bring the county's work force to 5,428 full-time employees. Eighty-eight of the new employees will work at the San Mateo Medical Center, the county's public hospital.

Revenues are up $76 million, thanks in part to an 8.5 percent increase in property taxes fueled by the hot real estate market, County Manager John Maltbie reported. He also pointed to losses of revenue: $1.2 million a year in jet fuel taxes that go to Oakland, and $1.8 million a year in transient occupancy tax due to the closing of the Hilton Hotel at San Francisco International Airport.

San Mateo County's budget funds a host of county activities, ranging from hospital and health programs countywide to the courts and justice system. The county serves as the local government agency for the two-thirds of the county's area outside its 20 cities.

The budget includes a one-time $29.2 million to cover health costs for retirees. It would also give a 3 percent increase in payments to nonprofit organizations that contract with the county to provide social services, such as drug and alcohol treatment, community mental health, and youth programs.

New programs proposed in the budget include: creation of a health policy; a planning and promotion unit to help guide the Health Department; planning for a new women's jail to replace the present outdated, over-crowded facility; and updating the master plan for the County Center.

The proposed budget includes funds to hire a consultant to work on a project to redevelop business areas in North Fair Oaks, where closure of the Key Market and opening of a day laborer center have created needs and opportunities.
Federal, state cuts

County officials are nervously watching the state and federal budgets evolve. These have an enormous effect on the county because approximately 30 percent of the county budget comes from state and federal governments to fund health and social services.

Mr. Maltbie is deeply troubled by the growing federal budget deficit, even more than by California's chronic budget problems. "Even with a reduction in spending, the federal government is faced with massive deficits for the foreseeable future," Mr. Maltbie wrote in his budget message. "As a result, the county should anticipate reduced funding for health and human service programs."

While the extent of the impact of federal budget cuts won't be known until Congress acts and the national budget year starts in October, Mr. Maltbie worries particularly about proposed cuts to Medicaid, the federal program that funds medical care for the poor.

"The consequences could be catastrophic for the San Mateo Medical Center, mental health, public health, and aging and adult health programs in the county," he said.

Of particular concern is the future of the San Mateo Medical Center, the county's recently rebuilt public hospital in San Mateo. This already receives a county subsidy of about $55 million a year out of its limited discretionary funds, Supervisor Gordon said. "For me that's kind of the max."

While the county is mandated by the state to provide care for indigents, it is not mandated to run a public hospital, Mr. Gordon noted. At present the county pays 95 percent of the cost of charity care; a task force led by Supervisor Jerry Hill has been investigating whether more of the charity load could be assumed by other hospitals.

If the county loses more health money, Mr. Gordon said, "We may have to re-examine our commitment to the hospital."

Possible cuts in federal housing and redevelopment funds and housing vouchers could also hurt services provided by the county. Mr. Maltbie wrote, "The proposed reductions ... will only exacerbate an already bleak situation for thousands of families in San Mateo County that rely on these programs to gain access to affordable housing."

While still concerned, Mr. Gordon is less worried about big hits from the state budget, although it has not yet been adopted

Mr. Gordon said he resents the special election the governor called last week for November. This will cost San Mateo County some $700,000, and will probably not be reimbursed, he said. "We'll have $700,000 less to spend on services our folks need, want, and expect."

For information on San Mateo County's 2005-06 budget, go to www.co.sanmateo.ca.us/budget.

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