Board opens budget study session as departments present $9M gap; administrators urge rightsizing and targeted reviews

Mariposa County’s multi-department budget review on April 15 brought into focus a projected gap of about $9 million on the non–Health & Human Services side of the general fund and prompted calls from administrators and supervisors for a targeted process to reduce expenses without layoffs.

“Public safety and roads are priorities,” Assistant CAO Lee Westerlund told the Board, summarizing the administration’s guiding principles. She and County Administrative Officer Joe Lynch urged a systematic, countywide approach to rightsizing — reallocating staff and other resources where they are most needed, identifying vacancies that could be frozen, examining long-running contracts and special funds, and using those reserves strategically.

Joe Lynch said the county is carrying an approximate $9 million shortfall in non-HHS general-fund expenses and emphasized that the figure would grow if no action is taken. “If nothing changes, you can expect that gap to increase next year,” he said, urging an active administrative approach rather than a series of stand-alone requests. Lynch described a two-part path: use special/restricted funds where allowable, and undertake a countywide review of positions, contracts and real property to identify sustainable solutions.

Department presentations identified specific pressure points. Public Works Director Shannon Hansen said roads operate on roughly $6.1 million of annual revenue; after payroll and other fixed costs, only about $668,000 remained for pavement work across 560 miles of county roads. Hansen and Roads & Bridges Manager Joe Williams presented pavement-condition targets and said an additional $6.8 million would be needed to arrest decline; $12 million would be required to raise the countywide PCI to a better condition. Hansen asked supervisors to consider dedicating additional Measure M monies or other streams to get the roads program into a project-development posture that can win grants.

Treasurer/Tax Collector Courtney Morrow briefed the board on TOT (transient occupancy tax) and noted about 917 active TOT certificates in the county; she said a large share of short-term rental owners are out-of-county. The board asked administration for more refined data: how much TOT and sales tax are paid by visitors vs. locals and what share of short-term rentals are owned by county residents.

The auditor’s office reported that county financial systems have moved largely into Oracle and that payroll and purchasing automation are becoming available. Auditor Luis Mercado said the auditor’s office will issue the countywide financial statements and perform the annual fiscal audit; he also warned departments that operating audits and independent RFPs will become routine to ensure fair pricing and up-to-date vendor agreements.

Administrators proposed several near-term steps: (1) freeze some currently vacant allocations pending a countywide review; (2) inventory county land and buildings to identify assets that could be sold or better used; (3) identify which special-revenue funds can legally be used to offset general-fund obligations; (4) pursue federal/state grants for project-specific needs (roads, bridges, fuel reduction); and (5) reduce operating expenses where possible (conference travel, consultants) and shift certain software fees to non-general funds when allowed.

Board response: Supervisors expressed support for public engagement and for prioritizing roads and public safety, but asked for more detail on revenue by source and the likely effects of each financing or reallocation option on residents and local businesses. Chair Smallcomb said staff should return with refined scenarios, including shorter-term options and staged approaches to large projects.

Why it matters: The county faces a structural difference between ongoing expenses and predictable local revenues; demographic and economic pressures (visitor-driven sales and TOT volatility) increase fiscal uncertainty. The Board is seeking a transparent, multi-step process to balance core services while avoiding sudden staff layoffs.

What’s next: Administration will return with: a refined baseline beginning-fund calculation; department-level staffing and allocation reports; a prioritized list of potential asset-sale candidates; a detailed breakdown of TOT and sales-tax exposure to visitors vs. locals; and options for right-sizing allocations across departments. No final budget decisions were taken at this meeting.