SANTA ANA, Calif. — Orange County supervisors Tuesday preliminarily approved the county's proposed $9.5 billion budget for the 2024-25 fiscal year, which is a slight increase from the current year's $9.3 billion spending plan.
The general fund budget, which is the more flexible part of the spending plan, is $4.8 billion, down from last year's $4.9 billion. The rest of the money in the budget is generally restricted by law, giving county officials little ability to change its use.
Orange County CEO Frank Kim told the supervisors that it was likely there will be minimal adjustments based on the state's budget, which affects how much revenue the county receives.
"We've done our best to anticipate what those impacts are," Kim said. "It's likely we'll come back to make some minor adjustments." Those adjustments would be made in September or January, which is routine.
The supervisors offered some small suggestions but largely took straw votes approving the spending plan.
Supervisor Andrew Do moved to have OC Human Relations Commission employees switched over to county staff, with no change to the budget or services provided.
Orange County Board Chairman Don Wagner asked staff to look into establishing a program to help with large animal evacuations during wildfires. Wagner said the cost now "falls on private citizens." He added that other counties such as San Diego and Riverside have established large animal rescue programs.
Supervisor Vince Sarmiento suggested that county staff should consider extending pilot programs from two districts, including his own, that fund services for the homeless. He also asked officials to look into added resources to clean up the flood control channel, noting that recently "a couple of teenage students were assaulted" there.
Supervisor Katrina Foley added, "Maybe we need to try a different approach. I don't know what that is because we've tried so many different things ... but now people are using creative tools like blow torches to break through the fencing ... Do we need to just staff someone there? It may be less expensive, but we have to get a handle on it because it's unsustainable."
Sarmiento also advocated for simplifying the budget so residents will have an easier time understanding it. "I want my mother to be able to understand this," he said.
Do noted this was his last annual budget as his term expires this year and he praised Kim and the budget department for steering the county through tough times.
"We went through the 2008-09 Great Recession," Do said. "We went through COVID — a lot of trial and tribulation ... The stability is all due to your hard work, especially to Frank Kim ... What a privilege it has been to work with all of you ... Where we are today is a huge improvement."
Supervisor Doug Chaffee agreed. "We have great people in all of our departments," he said.
The 2% increase in the overall budget — or $182 million — is owed mostly to increasing costs for staff and infrastructure improvements, most notably at John Wayne Airport. Under the proposal, the county would eliminate 322 jobs, which are already vacant. No layoffs are anticipated.
Revenue for general purpose funding is pegged at about $1.1 billion, an $89.6 million increase over last fiscal year, mostly due to a projected $60.8 million boost in property taxes.
Funding for law enforcement, which comes from the half-cent sales taxes from Proposition 172, is projected to be $438.6 million, with 80% going to the Orange County Sheriff's Department and 20% to the District Attorney's Office. It nets out to a 3.7% increase over the current fiscal-year budget, which is about on pace with the rate of inflation.
"It's a lean budget," Kim told City News Service last month.
Kim said the county consults with economists from Cal State Fullerton and Chapman University, and there is optimism a recession will be avoided.
"The economists we speak to don't see a recession in this coming year," Kim said. "They don't see revenue growth, but they don't see a recession."
Do previously said the county must hold the line on spending to prepare for how Prop. 1 will affect state funding for mental health programs. The proposition approved by voters in March will lead to a change in priorities when it comes to funding programs for the mentally ill, with a focus on substance abuse treatment and housing.
He said the county will "have to start planning for that eventuality" of state funding for mental health services in the county being reduced.
Funding for affordable housing wasn't part of state funding for mental health services in the past, but will now account for about one-third of such funding, Do noted.
The Prop. 1 effect won't be felt until 2026, he said.
Kim noted that "the other component of it that is creating challenges" is that the amount of funding from income taxes on the wealthiest Californians has been trending down, and those funds pay for the mental health programs.
"So the overall pod of money is shrinking because there are fewer tax filers in California required to contribute the additional one percent," Kim said.
But the county has for several years been investing in affordable housing, particularly since efforts to take down the homeless encampment along the Santa Ana riverbed led to federal litigation that was settled, Kim said.
"We're already doing that," Kim said. "For a long time — many years — we've been investing (state mental health funding) money into housing that supports our existing mental health clients in Orange County."
A major focus of this year's spending plan is on programs to help people leaving jail get back on their feet, because officials believe it will save money in the long run, Kim said. He noted that the new Be Well Irvine behavioral health campus planned on county property will officer help for those with substance abuse problems.
The proposed spending plan also focuses on infrastructure projects like a planned razing of the old Orange County district attorney's offices and replacing them with various offices for other county agencies.
"We're looking at flattening that entire block," Kim said.
The previous district attorney office complex is "largely vacant... and it's in bad shape. That building probably gets demolished."
The proposed county budget also reflects a focus on providing money for new green technologies and environmentally sustainable projects.
"It's important to identify the practical path to having a lighter touch on the environment," Kim said.
County officials want to improve recycling and educate residents on how to reduce waste, given that the Brea landfill will probably be shut down in 2026, leaving only two landfills in the county. The cost of trucking waste out of the county is expensive, he said.
"Our ability to get out and meaningfully educate and drive change in behavior takes a long time and money," Kim said.
Final approval of the budget is expected June 25.