OROVILLE — With myriad services on the line, the Butte County Board of Supervisors held a public hearing for a $1.1 billion budget, with some services saved via one-time funding.
The decision came before another packed house of mostly county staffers and department heads but notably fewer community members than last year’s budget hearing when the chambers were limited to standing room only with people looking to protect rural fire stations and libraries.
This year, rural fire stations and libraries were once again saved by one-time funding, this time from outside grants.
Chief Administrative Officer Andy Pickett provided a presentation on the budget and noted that it was a 28.4% increase from a year ago. However, it was noted that this year’s budget is bolstered by Community Development Block Grant disaster funding.
Only 15% of the total budget is discretionary and comes from local revenue. The remaining funding goes to programs and services dictated by the state.
In his presentation, Pickett noted that Butte County has one of the lowest sales tax revenues of similar counties within the state.
“We have systematically reduced services over the past four decades,” Pickett said. “We have reached a point now where we have to use one-time funding to slow down the reduction of services.”
Additionally, there will be $11.3 million in one-time funding to balance the general fund, the majority of which — $8.6 million — will go directly toward ongoing operating costs with the remainder going to one-time costs specific to this fiscal year.
The 2024-25 fiscal year budget aims to hit a $10.4 million contingency fund for emergencies as well as an additional 8.75 net full-time positions.
Supervisor Bill Connelly asked Pickett to explain how Schedule A and special revenue funding worked, pointing to the fact that counties cannot use this funding for general fund purposes. The majority of county budgets are mandated by the state as to what the money can be used for.
“(If the county used Schedule A funding for general purposes), not only are we doing something illegal, we would have to pay it back,” Pickett said. “…You cannot use special funds for general uses.”
The board agreed to approve the final budget resolution at a later meeting.
Sales tax potential
As part of its regular agenda, the board gave the approval for a 1% sales tax to be placed on the November ballot. If approved by voters, the tax could bring as much as $44 million in revenue to offset the many cuts proposed last year and ultimately made this year.
The county brought in two outside firms to get a pulse on residents and which way they might vote and what kind of information would help them lean toward a favorable vote for the measure.
Representatives from Team CivX and FM3, the contractors hired, said in a previous meeting that information would be key. They said many who leaned either toward a no vote or said they were unsure then leaned toward yes votes once provided with additional facts about county financial struggles — and how public safety would be affected without the proper funding.
Last year, three rural fire stations faced closures in the winter and library hours were also on the chopping block. In a last-minute decision, the board chose to utilize one-time funding to provide the services for one extra year noting at the time that a ballot measure for a sales tax increase would need to be passed going forward.
During Tuesday’s meeting, some spoke against the sales tax while others, specifically county employees, spoke in favor of it.
Deputy District Attorney Ashley Giusti said the Butte County DA’s Office has struggled to maintain staffing mostly thanks to a lack of competitive pay.
“In the last year, we haven’t been able to hire anyone, not even with the $30,000 hiring bonus,” Giusti said. “We simply can’t compete with other counties.”
Giusti added that the office lost two more prosecutors in recent weeks, resulting in a loss of 26 years of experience.
“Losing any prosecutor impacts our office but losing seasoned prosecutors impacts public safety,” Giusti said.
Magalia resident John Stonebreaker said he understood the need for the additional revenue but noted that a 1% sales tax might not be as palatable for others who live in fire-affected areas.
“I am concerned that a 1% sales tax might be a tough pill for some people to swallow,” Stonebreaker said. “I would like to have a conversation about what would happen with the PG&E settlement funding, and then I think people could support it.”
Sheriff Kory Honea as well as District Attorney Mike Ramsey each once again took to the podium to voice support for the sales tax as well.
Supervisor Doug Teeter defended the board’s decision to go forward with the ballot item.
“We’ve always been in the black until last year, and I think giving voters an option before making some hard decisions is warranted,” Teeter said.
