Monterey County’s budget in the red

Monterey County is looking at an estimated $36-million deficit this upcoming fiscal year, which begins July 1st.

But the county actually began running on empty two years ago for the first time in the last six years, the county had a deficit of $5.4 million between 2016 and 2017. This is a result of rising salaries, high pension contributions, and the series of natural disasters we had, like the Soberanes fire followed by a series of heavy winter storms.

The county had to dip into its reserve and general funds. As costs to run the county continue to go up, the county could be looking at a 53.8 million dollar deficit in three years. So between now and July, officials have their work cut out for them.

“We are probably going to have to look at not filling in certain positions. Looking where are the cuts we can make in some of the programs we provide. But we know that has a detrimental cost,” said Monterey County Supervisor Luis Alejo.

According to the county budget director, there’s another $36 million worth of storm related road repairs to be done. While the intent is to get federal and state reimbursement, the county needs to front the money on big projects first.

Some are hoping that cannabis tax money will come to the rescue, but supervisor Luis Alejo said many city and county governments are looking to lower the rate to keep investors. The money will help but it might not be as much as people expect.

Coming up at 6, KION’s Linda Zhang will have a breakdown of the looming deficit and hear what concerned residents have to say about their roads that need to be repaired.