Board approves $2.75 million contingency transfer after sheriff’s office reports mid‑year shortfall; staff directed to propose audit options

Monterey County supervisors voted June 3 to authorize adjustments to the sheriff’s fiscal 2024–25 budget after the sheriff’s office reported a mid‑year shortfall and accounting errors that left appropriations misallocated.

Undersheriff Keith Boyd told the board the sheriff’s office identified a swap in cost‑plan charges that created a $4,247,000 appropriation mismatch and asked the board to authorize the auditor‑controller to move existing budgeted funds from one sheriff appropriation unit to another. Boyd also requested a separate increase in appropriations of $2,750,000 to cover projected shortfalls in patrol operations, corrections and other divisions. "Today we are requesting the board authorize and direct the audit controller to increase appropriations by 4,247,000.000 in the sheriff's office fiscal 24 25 budget," Boyd said in the presentation.

Board members pressed the sheriff’s leadership on causes for the overrun. Boyd and sheriff’s staff said overtime and temporary professional staff costs rose because of unbudgeted wage increases across bargaining units, recruit training, extra temporary hires and higher than forecasted attrition. Sheriff’s officials said they reduced procurement‑card use, limited overtime where possible, and cut other spending to reduce the projected shortfall from about $7 million at mid‑year to the amount requested.

Budget office staff said the requested $2.75 million would be drawn from general‑fund contingencies if the board approved. The board approved both requests.

A central point of the public and board debate concerned oversight and transparency. Several supervisors — including Supervisors Alejo and Esc ew — urged additional financial review. Supervisor Esc ew proposed and the board added direction for the county administrative office, in coordination with counsel, to return with options for a budget or financial audit specific to the sheriff’s office, including the possibility of contracting external expertise. The board approved that direction.

Why it matters: The sheriff’s office is one of the county’s largest operating departments, and the board’s action preserved the office’s ability to meet payroll and pay vendors through the fiscal year. But supervisors emphasized the need to understand how the shortfall occurred and to present stronger internal controls to prevent year‑end crises.

What the county will do next: The auditor‑controller will effect the appropriation adjustment authorized by the board. The CAO and counsel will return with options for a financial review or audit approach and any recommended changes to internal controls or reporting timelines.