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Mendocino supervisors accept third-quarter budget update, approve voluntary separation incentives and hiring limits
Summary
The Board of Supervisors accepted the county's third-quarter fiscal report, approved a temporary hiring-control approach and authorized a voluntary separation incentive program intended to reduce the county's budget gap; staff were directed to prioritize mandated positions and seek matching funding where possible.
The Mendocino County Board of Supervisors on May 6 accepted the county's third-quarter report for fiscal year 2024'—25 and approved short-term measures intended to narrow an estimated budget gap.
The board's action followed a presentation by County executive office and finance staff showing an updated general-fund revenue projection of $93,821,530 and a reduction in the county's need for one-time funding to about $3 million for FY 2024'—25. Acting Assistant CEO Sarah Pierce and Principal Analyst Jessica Sandoval told the board the change reflected updated property-tax estimates but warned some revenues remain subject to seasonal and closing adjustments.
The board also voted to implement what staff described as a targeted hiring control: departments were directed to work with the CEO's office to fill only critical, mandated positions and defer other hiring. The proposal was presented as a way to capture savings from natural attrition; staff said the county-wide turnover rate used for planning was roughly 9.9% and the administration estimated an attrition assumption of about 6% for general-fund budgeting next year.
In a related vote, supervisors approved a voluntary separation incentive program (VSIP) designed to encourage eligible employees to retire or resign in exchange for a one-time payment. Human Resources Director Sherry Johnson told the board that federal law requires certain age disclosures for group incentive offers and explained the program's departmental impacts. The board approved the program unanimously.
The CEO's office and auditor-controller's staff said the one-year, prorated general-fund savings from employees who opt for the incentive are projected at about $338,000 for FY 2025'—26 (prorated at 75%), with approximately $1.8 million in non-general-fund savings for the same period; estimated two-year savings were roughly $1.0 million (general fund) and $5.7 million (non-general fund), net of incentive payments. Staff said incentive payments would be handled within existing budgets and would not rely on a new ongoing appropriation.
Why it matters: County leaders said the measures are part of a multi-step effort to close a remaining $2.1 million budget shortfall and to limit use of one-time reserves going forward. Supervisors asked for more detailed line-item analysis from departments to identify where non-mandated spending can be deferred if needed.
Board direction and next steps: Supervisors asked departments to return additional detail at hearings in June, including department-level prioritization of mandates and any options to reduce costs. Auditing and budget staff will also present updated close-out numbers when third-quarter accounting is finished.
Quotes: "The need for one-time funding has reduced to $3,000,000," Jessica Sandoval said, summarizing updated projections.
"If we cannot commit to [audit] resources being available, I will not be able to commit to the audit firm that we will be ready by September," Auditor-Controller Jamice Kubison told the board about year-end closing requirements.
Ending: The board approved the package of Q3 adjustments, the targeted hiring approach and the VSIP by unanimous vote and directed staff to return with department-level details and implementation steps during June budget hearings.
