The draft budget released by the Orange County Supervisors faces a $73 million uncertainty as County managers work to address a possible revenue shortfall following a tentative court ruling. The County had withheld some tax revenue to offset funds lost from VLF fees, but a judge has tentatively sided with the State, saying that money is due back to Sacramento.
The $73 million judgment wouldn’t break the budget or the bank, after the County was able to restore some of its rainy day fund and came into this fiscal year with a balance of more than $250 million. However, depleting the emergency account so early into its rebuilding could pose problematic. Instead, alternatives are being considered.
Options include expense reductions, increasing estimates of future revenues, or continuing to defer maintenance projects that have been on hold during the recession.
Despite the possible loss of revenues, the budget does provide for an increase in staffing and provides funding for an additional 297 positions.
Read the full story at the Voice of OC.