County of Monterey predicts a budget deficit of $40 million in three years

SALINAS, Calif. (KION) - Monterey County Supervisors share concerns about a potential budget deficit and what it could mean for the county.

"I want to minimize impact to county employees," said Luis Alejo, Monterey County Supervisor.

A report presented to county supervisors on Tuesday shows the deficit could increase over the next three years, equaling over $40 million.

County officials says health care expenses, salaries, and benefits are causing costs to go up. Even the cost of gas and electricity has played a role in the budget deficit.

County budgeting staff says expenditures have grown rapidly compared to revenue.

"Those costs have increased over time at a greater rate than revenues are growing," said Ezequiel Vega, Assistant County Administrative Officer.

The budget deficit could impact a variety of departments including the sheriff and health department which the county says is already experiencing multiple vacancies.

"If we do have a reduction in force it will be mostly in the vacant positions," said Vega.

County officals are patiently waiting for reimbursements from FEMA of $85 million.

Vega says it could take years until the county sees that money. Monterey County Supervisor Glenn Church says the board is finding solutions now before finalizing the budget.

"This could be a long-term problem that we're facing. So, some are proposing cutting costs, you know, try and find ways to make revenue," Church said. "There are different alternatives out there."

County officials told KION that told every department in the county has vacancies.

The Monterey County Board of Supervisors said they will have a meeting will be on April 2nd to develop a budget plan.

A big loss in revenue for the county was in the cannabis industry which has gone down by about $15 million over the last three years.