Contra Costa County’s 2020-2021 budget is balanced “at this moment,” the county administrator said, but COVID-19 coronavirus-related expenses and other future obligations make for a less rosy future.
Chief among the looming costs in the near future, County Administrator David Twa told the Contra Costa County Board of Supervisors this week, are $43 million a year to treat mentally ill jail inmates and an estimated $77 million a year in general fund money to support the Contra Costa Regional Medical Center in Martinez — both significant increases.
“We have good fund balances (now), but we’ll be spending them down over the next couple of years, irrespective of the COVID-19 issue,” Twa said.
As for the COVID-19 coronavirus response, Twa said the county has expedited its purchasing process to help make sure county workers have needed masks, gowns and other personal protective equipment, as well as 100 new
laptops to enable county workers to do their jobs remotely.
Twa said the county could well end up spending $100 million on COVID-19-related treatment and protection; he hopes the federal government will reimburse much of that, but added that there’s no guarantee how much of that reimbursement Contra Costa County will see.
Twa said it’s possible property tax valuations could drop, too, as they did during the 2008 Great Recession. A loss of $37 million of that revenue, Twa said, “would create a significant hole in the budget.”
This vicious cycle will play out in all cities and counties during the COVID-19 pandemic, Supervisor John Gioia of Richmond said.
“We’re going to go through more difficult financial times before things get better,” Gioia said.
Twa said the preliminary 2020-2021 Contra Costa County budget is already headed to the printer, but dates for the county’s budget hearings (April 21) and tentative adoption (May 12) are meaningless now, given all the COVID-19-related actions either taken or to be taken.
Those hearings have now been delayed, but a budget must be passed by the end of September.
25 comments
expect massive layoff threats in all public sectors/entities.
You can bet taxes will be going up.
Not only at the county level but all levels of government.
It might be a good idea to save the $1200 check rather than spend it.
There’s no indication of that at the county level either right now or during past recessions.
What, no mention of unfunded retirement and medical funds for employees.
Jack, One of my favorite lines…..
There was a lot of movement in real estate sales last year.
A person who sold their home in Walnut Creek for over a million and had lived there for over 20 years probably left behind very nice higher property tax.
For an example homeowner was paying $7,000 a year in taxes. Sells home for $1,500,000. Now new homeowners will pay over $15,000 a year.
Unless they grandfather their property tax from old sale. Which could happen in same county purchases. But one would hope whomever budgets for the county would not use inflated property tax amounts based on speculation. How would one know if Susan and Carl we’re going to sell? And for how much?
Just saying.
IF children buy family home from parents they can file to retain existing property taxes. Can not skip a generation and buy Grandparents home. Bought house I grew up in from parents, when time came for assisted living, here in Clayton. Property taxes are less than $3,000 a year.
I guess this means our property tax will go up? No please tell me no.
Obviously, State and Local budgets will have massive HOLES in them from this economic downturn and pandemic, not just Contra Costa County.
The State unemployment rate just zoomed from 3.9% to 12%.
Sales tax revenues have collapsed.
Capital gains revenues have collapsed.
Personal income taxes have collapsed.
Corporate taxes have collapsed.
Home sales have collapsed.
Tourism has collapsed.
At least the State has a $21 Billion reserve.
But that’s only 1/10th of the state’s budget.
https://www.latimes.com/california/story/2020-03-25/california-20-billion-budget-reserve-may-get-wiped-out-by-coronavirus-crisis
NY State is projected to lose between $10 – $15 Billion.
well yes
but
don’t forget
the dem politicians increased the population and bums and undereducated
by millions so they could secure locked in census money from the feds for 10 years all going into a bucket for them to divide up amongst themselves
also gathering more representative slots with the increased population to further their actions to split demifornia into 3 democrat separatist socialist communist states beholding to the dem party line
which seems to be why they are not fixing roads and or infrastructure until they divide up the state …all the while manipulating voters into over taxing themselves some more ……
welcome to your servitude
you have performed well
Simple. Cut the exorbitant pay and benefit packages. You’ll save a lot.
This pandemic is playing right into the liberal agenda. Level the playing fields.
On top of what Mike Wagner wrote above there will be a drop in discretionary spending, as people try to catch up on bills. Businesses that rely on discretionary spending will see a hit for months to come.
Gas tax, sales tax revenue will be way down. Probably the same for every other ‘fee’. More people needing government services. Everyone is going to get hurt by this crisis. Send a Thank You card to Xi Jinping!
@original g
’Grandfathering’ means carrying over your taxes from your previous home.
Not buying from your grandparents.
My spouse thought it would be misconstrued. 🙂
Under Proposition 58,
“The new owner’s taxes are calculated on the established Prop.13 factored value, instead of the current market value when the property is acquired.”
more info, hope this helps.
https://www.sccassessor.org/index.php/tax-savings/transferring-your-assessed-value/parent-to-child
What this means is screw the rank & file workers by cutting wages & increase cost of health insurance while giving Dept heads & Twa a nice raise & the BoS can give themselves another 30% raise.
This is so funny.
I am not writing about relatives purchasing homes from relatives.
Thanks.
yeah when is the class action against china
because we all know if this was the us infecting the world
we would be on the hook
so it appears a communist country can do what ever it wants to the world and they sit and take it
get ready for world communist rule then
we just got the first salvo
next will be the crashing markets as china and Russia feast on our carcass
get ready its real close
Newsom needs to make some bold moves to get money to working families! Cut property taxes, cut utility costs, cut gas taxes, provide free internet for everyone in California! Be visionary Gavin! Be progressive Gavin!
Gavin’s in live with his hair gel. He doesn’t care about anything else.
Everyone relax- this will all be over by Easter.
Not just Contra Costa……but California.
I shouldn’t be seeing ANY vehicles on the roads with 2018 Registration. Get on the ball with this!!!
If their registration is no good….I doubt that their license or insurance are good either.
But don’t deal with it……raise everyone elses registration.
Yeah, well, my budget is facing big challenges, too.
It appears now is an opportune time to stop giving illegal aliens and their children free health care, welfare and benefits most citizens don’t even know exist.
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