County to Tap Reserve Funds to Cut Deficit Over 2-Year Span : Finances: Supervisors vote unanimously on plan to counter a projected shortfall of $38 million.

By CARLOS V. LOZANO

April 19, 1995 12 AM PT

TIMES STAFF WRITER

Ventura County supervisors agreed Tuesday to dip into the county’s reserves to reduce a projected $38-million deficit over a two-year period, rather than absorbing all of the cuts next year.

The supervisors voted unanimously to approve the two-year budget-reduction plan, which calls for spending cuts of $19 million each year. General fund reserves and other surplus revenue would be used to spread out the cuts.

“We do have significant reserves to consider a multiyear approach,” said Bert Bigler, the county’s budget director. “Without those funds, we wouldn’t be in a position to talk about (such) a plan.”

Bigler estimated that the county will have between $13 million and $21 million in unspent funds at the end of the fiscal year, money which could be rolled over into the new fiscal year beginning July 1. He said the county has another $27 million set aside for emergencies or restricted to certain programs.

But Supervisors Frank Schillo and Judy Mikels stressed that the county cannot rely totally on its reserves to balance its budget.

“We’re operating in the red,” Schillo said. “We cannot count on these reserves to bail us out. Keeping our reserves is like a savings account for emergency situations--like the state coming in and taking a hit on our budget.”

Indeed, the board agreed Tuesday to adopt a projected deficit of $38 million as a starting point for developing its two-year, budget-cutting plan. But that figure does not include merit raises or possible state budget cuts, which prompted the auditor-controller to place the deficit at closer to $49 million.

“I think the hardest part for all of us is that we have to downsize,” said board Chairwoman Maggie Kildee. “We do not have enough money in the general fund to pay for services that we are now providing.” The board, however, postponed for two weeks discussions about which departments and programs to cut.

Schillo and Mikels said that they wanted more time to talk with department heads about a number of cost-cutting proposals they are considering, including the consolidation of some departments. But the two supervisors declined to elaborate on which departments might be affected by a plan the two are putting together.

“I don’t want to paint anybody into a corner,” Mikels said.

Also Tuesday, the board postponed for two weeks a decision on hiring a consultant to study merging parts of the county’s health and welfare agencies, such as administrative, payroll and accounting services.

Supervisor Susan K. Lacey said that several consultants have met with county officials and have advised them to consider broadening the scope of the study to include other agencies. Lacey said the consultants do not believe that there would be enough savings in the health and welfare agencies to justify spending $100,000 or more on such a limited study.