Merced County supervisors approve $537 million budget

The Merced County Board of Supervisors on Tuesday unanimously passed the county’s final budget for 2015-16 – a $537.1 million budget that is balanced, higher than the proposed budget and focuses on one-time infrastructure projects and public safety.

This was the second fiscal year in which the county’s revenue outpaced its expenditures. County officials attribute that trend to the improving economy.

“The outlook for the future is positive, and we are cautiously optimistic going forward,” said Jim Brown, the county’s chief executive officer. “The economy is improving, and the region’s employment figures are the best we have seen in many years.”

The budget was about $31 million more than the proposed budget of $505.8 million.

Discussions surrounding this year’s budget were positive, compared to last year when county officials feared a $2.3 million shortfall but avoided it after adjustments. This year’s budget was higher than 2014-15 by $47.9 million, in part due to the general fund increasing.

“I didn’t expect it to become as good as it has became since the proposed budget,” said Deidre Kelsey, District 4 supervisor.

In total, the general fund is $434.7 million, with local revenue at $78.2 million. The county has $18.57 million in the general fund reserves.

The county has $107.2 million in net cost, with more than 50 percent marked for public safety. That covers the costs of sheriff operations, corrections, the district attorney, public defender, probation, juvenile hall, the grand jury, court operations, state institutions and indigent defense.

Costs associated with health and human services were set at $3.1 million, down from the proposed $6.2 million. Those costs were offset by state and federal funding, said Scott De Moss, the county’s assistant CEO.

The budget left room to reopen the sheriff’s substation in Los Banos, replace all the computers in the libraries and remodel the second floor of the county administration building, he said.

During Tuesday’s meeting, the board approved multiple budget-related items.

One of the actions granted a contract with a company to submit a grant application to the state for renovations at the John Latorraca Correctional Center on Sandy Mush Road. The application is for $40 million that would go toward a new health care building, more room for programs and services and new mental health housing.

The board also approved a $280,000 contract with a company that will help develop the Castle Commerce Center. Supervisor Daron McDaniel suggested creating an ad hoc committee to work on the project.

This story was originally published August 19, 2015 at 4:24 PM with the headline "Merced County supervisors approve $537 million budget."