El Dorado County officials begin review of discretionary programs as budget gap widens

El Dorado County officials on Tuesday opened a broad review of discretionary programs and outside agency contributions as staff works to close a large projected budget gap.

Chief Administrative Officer Sue Henneke told the Board of Supervisors the item was intended to place county programs on a spectrum from fully discretionary to mandated and to show where the board has authority to change services or funding levels. "...we are working through all of those with your departments right now as we are looking to develop the recommended budget," Henneke said, noting the process would identify where the county could reduce net county cost without violating state or federal mandates.

The board received a spreadsheet of county programs that currently use general fund dollars and a separate list of outside contributions, including longtime payments to local fire districts, the Resource Conservation District and the Sacramento–Placerville Transportation Corridor Joint Powers Authority (JPA). Henneke said staff planned to return with more detail on facilities, projects and a draft plan to distribute the remaining budget gap across departments "on or before 04/08/2025."

Why it matters: Supervisors face a substantial shortfall that staff said will not be closed by trimming discretionary contributions alone. The discussion framed options for near-term reductions, longer-term structural changes and how to balance service impacts with available reserve and grant funds.

What staff briefed the board on - Definitions and scope: Henneke explained county programs were classified as mandated (required by state, federal or voter-approved local law), discretionary (county chooses to provide), complex-discretionary (where repeal or reduction would trigger ordinance changes, grant implications or other ripple effects) and support services (centralized functions such as procurement and county counsel that support both mandated and discretionary services). "Although mandated, as I mentioned, there may be discretion on the level of service offered," she said. - Net county cost list: Staff and departments provided a list only of programs that use the general fund. Those programs may also include state or federal funding but the spreadsheet focused on county general fund contributions. - Outside contributions: The packet included longstanding outside payments—examples discussed by the board and public included contributions to local fire districts (tourism-related reimbursements), the Resource Conservation District, the Placerville Aquatic Center and the Sacramento–Placerville Transportation Corridor JPA. Henneke said those payments are discretionary and could be reduced or discontinued, but each had unique complications. - Timing and next steps: Staff recommended a two-track approach: 1) identify discretionary programs the board wants staff to examine further and 2) prepare a proportional distribution of the remaining budget gap across departments so the board can see service impacts prior to making adoption decisions.

Public comments focused on service impacts and alternatives - Janelle Horn, Recorder Clerk, urged the board to consider internal consolidations and administrative efficiencies, including absorbing records-management duties into the recorder's office as a potential $372,000 general-fund saving. - Dennis DeShahara, community services director for the City of Placerville, and other public speakers warned against cutting the Placerville Aquatic Center, saying the pool provides life-safety and swim-education services and that a funding cut would jeopardize those programs. - Several senior advocates and nonprofit representatives urged supervisors to protect senior day programs and other safety-net services or to pursue non-profit partners and grant funding rather than immediate eliminations.

Board discussion and staff direction Supervisors debated process and scope and emphasized the need for more information before choosing cuts. - Supervisor Durbin emphasized that departments should provide their own proposals to absorb target cuts and suggested staff present scenarios that describe the service impacts of specified percent reductions. "Identifying a number of percent that we're gonna have to cut as a county ... and how do we get there?" Durbin said. - Supervisor Lane asked staff to prioritize work that would present concrete impacts and cautioned against making "emotional decisions" without department input; Lane also asked that core public safety services be protected as a priority. - Chair Turnbull and others requested staff gather firm data on several items that had come up in public comment, including: the county's actual financial exposure for the Juvenile Treatment Center (JTC) — specifically how many juveniles are El Dorado County residents versus out-of-county placements — and whether a roughly $9.6 million grant tied to a proposed JTC project would impose long-term constraints if accepted.

Formal action Board members voted to give staff the direction described in the CAO's report and to return with details at future meetings. The motion to direct staff to pursue the analyses and return with proposals, timelines and impacts passed 5-0.

What comes next Staff said it will work with department heads and the board ad hoc budget group to develop recommended options and to return with: 1) more detailed analyses of specific discretionary programs and outside contributions flagged by the board, 2) a list of facilities and capital projects for possible schedule or scope changes, and 3) a draft plan to allocate the budget gap across departments for the board's April 8 meeting. Henneke cautioned the board the spreadsheet alone would not close the shortfall and that the county will need multi-part solutions combining program reductions, restructured delivery, and limited use of one-time reserves.

Ending Supervisors and members of the public agreed more targeted data and departmental proposals are needed. The board set a near-term timetable for follow-up and asked staff to prioritize practical impact assessments so elected officials can weigh service trade-offs before budget adoption later this year.