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Board approves $1.7M appropriation for auditor-controller; debate over use of compensated-absences reserve
Summary
The board approved a $1.7 million increase to the auditor-controller budget to cover a shortfall in state disability insurance liabilities, voting 4–1 to draw the funds from the county’s compensated-absences assignment. One supervisor opposed using that reserve and urged a formal fiscal policy for liability reserves.
The Monterey County Board of Supervisors on Oct. 21 authorized a $1.7 million increase in appropriations for the auditor-controller’s office to cover a shortfall tied to state disability insurance (SDI) liabilities.
Auditor-Controller Rupa Shah described the request as a follow-up to a previous meeting and explained the appropriation was needed to resolve an underpayment to the state related to SDI. County staff proposed funding the increase from existing county reserves, and Assistant CAO Michael Beaton recommended using the compensated-absences assignment because of its nexus to payroll and leave liabilities.
Beaton’s presentation summarized the county’s compensated-absences liability and the assignment’s balance (about $10.4 million) and noted prior one-time transfers and uses. He said the county’s compensated-absences assignment represented roughly 21% of the outstanding compensated-absences liability and recommended a one-time release of $1.7 million from that assignment to cover the SDI cost.
Supervisor Lehi expressed concern about using the assignment for a purpose other than its stated intent and urged more robust fiscal-policy language to prevent repeated one-time uses. Several supervisors — including Supervisor Church and Supervisor Lopez — said there were no ideal funding sources and that the county needed to address the immediate state liability; they supported the staff recommendation.
The board voted 4–1 to approve the appropriation; the dissenting supervisor asked that objections be recorded. County staff said they would return with broader fiscal-policy recommendations for liability reserves during a future budget-policy update.
Ending: The board’s action authorized the appropriation and repayment plan; staff said they would recommend formal reserve levels and improved policy language in the coming fiscal-policy update.
