County budget projections improving
Riverside County Executive Officer (CEO) Jeff Van Wagenen provided a first quarter report on the Fiscal Year (FY) 2022-23 budget. Unlike the recent Legislative Analyst’s Office pessimistic preview of the state’s budget status, Van Wagenen reported that the end of FY 2021-22 balance was greater than expected and the county’s revenue projection is currently greater than the summer estimate, when the budget was approved.
In June, when the board adopted the FY 2022-23 budget, projected reserves were $231 million. By the end of September, the estimate increased to $368 million. However, through greater savings, the final reserve balance for November was $464 million.
Van Wagenen attributed this increase to “favorable economic factors and countywide retention challenges.” The economy helped in two ways: “Consumer spending resulted in greater property tax and sales tax collection, and interest rates grew.” This resulted in $76 million more in revenues than originally anticipated for FY 2021-22.
And these circumstances are currently continuing into FY 2022-23. Van Wagenen explained why the revenue estimate for FY 2022-23 has grown by $63 million. “The increase is primarily attributed to a $24 million net increase in interest earnings, a $17 million net increase in property tax revenue, a $9 million increase in Motor Vehicle in Lieu state contribution, as well as an increase of $8 million in the RDA [Redevelopment Agencies] Residual Assets.”
If these positive budget effects continue, he expects the county’s reserves by July, the end of the fiscal year, will exceed $510 million.
The CEO report also included about $4.5 million in budget adjustments for this fiscal year. The largest was $1.9 million for the district attorney’s office. A significant portion of these commitments is related to a critical countywide infrastructure upgrade within the district attorney’s office.
Earlier in the fiscal year, the Department of Public Social Services budget was increased by $1.9 million for salary adjustments.
The current contingency balance for the last half of FY 2022-23 is $15.5 million.
Also, the county shifted $16 million to its Capital Improvement Fund to finance several projects for the Sheriff’s Department.
