Rabbitt weighs in on county budget

<p>With the county facing a $42 million budget shortfall that is worsening each day, Supervisor David Rabbitt said that his learning curve has been “pretty steep” in his first two months in office.</p><p>On top of getting up to speed, he has dealt with a number of budget proposals that include layoffs and elimination of important programs.</p><p>“The decisions to be made are not good, they are all bad decisions that have to be made” he said. “But there's still a lot of good things we can do.”</p><p>Rabbitt, who joined the Board of Supervisors in January, sat down with the Argus-Courier for an interview Friday to explain budget proposals on the table and his time in office so far.</p><p>Rabbitt said that he and his fellow Supervisors — Valerie Brown, Efren Carrillo, Mike McGuire and Shirlee Zane — have worked together well and that the board has fostered a collegial atmosphere.</p><p>“You can agree to disagree and there's a lot of discussion,” he said.</p><p>Despite the fact that only one supervisor, Brown, was on the board before 2008 and much of the county staff is new, “I don't think that's necessarily a bad thing,” Rabbitt said. New faces have brought new ideas needed in tough budget times, and supervisors share fairly close ideological backgrounds and leanings.</p><p>“Here I'm considered a moderate, but I'm a lifelong Democrat,” he said, adding that “people make more out of (ideological differences) politically.”</p><p>Last month, supervisors met to set their goals for 2011. With the $42 million budget shortfall at the top of the list, Rabbitt and Zane volunteered to form a committee to look at pension reform. Supervisors agreed that the hot-button topic must be addressed soon in order to cut annual pension payments that now top $92 million.</p><p>“What we're really doing is gathering info,” said Rabbitt about the pension committee, which has examined the costs and figures of pensions, but not specific changes to benefits.</p><p>Rabbitt said that the pension issue is divisive among voters, with “envy” and “defensiveness” entering to the discussion, but that the current cost of $19 million is “unsustainable.”</p><p>“It's a leadership thing,” Rabbitt said about the need for pension changes. The committee will eventually meet with unions to negotiate changes during budget talks this summer.</p><p>In addition to pensions, supervisors will discuss a number of other methods to balance the budget this summer. Budget hearings are scheduled in June, with the start of the fiscal year in July. Each county department head has been asked to come to the meetings with proposals for cuts of 25 percent in their budgets. Supervisors will then modify the cuts and be tasked with setting priorities for what to keep or what to cut.</p><p>Rabbitt said that all of the decisions will be painful, and that while programs will have to be cut, “it doesn't mean that we don't appreciate the program.”</p><p>“We agreed not to touch the reserves, we're going to build them up,” he said. The county's general fund reserves stand at $35 million, and special reserves are $29 million. While the temptation exists to balance the budget with reserves, “At some point you've got to say ‘we can't do that anymore,'” said Rabbitt. “If we had a flood or some other disaster, we'd need that money.”</p><p>Proposals for new taxes have been floated, but are considered to be unpopular among taxpayers. The county does not have a business tax, and hotel tax rates are lower than those in surrounding cities, prompting talk of increases. However, “now is not the time to throw a tax on them,” Rabbitt said about businesses.</p><p>“The huge unknown is what will happen at the state level,” said Rabbitt. “It is a very unique year in that regard.”</p><p>County officials are weighing different scenarios for their own budget, depending on what the state budget's impact will be when it is eventually passed. Officials are waiting for news on, among other changes, the proposed elimination of local redevelopment agencies.</p><p>While state budget proposals shift more responsibility to counties and local governments, some are unsure that those tasks will come with funding to complete them. The services include fire and emergency crews, child welfare programs, and others.</p><p>Rabbitt said that despite the challenges, he hopes to visit cities to get their input. He has been to Petaluma meetings, and plans to visit the City Councils of Cotati and Rohnert Park.</p><p>“It's a large organization; it's easy to sit at your desk and be insulated, so you have to get out there,” he said.</p><p>Supervisors and staff also returned last week from a trip to Washington, D.C. to meet with congressional representatives from the area, along with other federal officials.</p><p>Despite the budget picture, Rabbitt said that supervisors have been reaching out to businesses, residents, and federal officials for ideas and possibilities on improvements.</p><p>“I have some colleagues who set the standard high,” he joked.</p><p>But that work may pay off.</p><p>“It's important to work proactively if there may be jobs at the end of the day.”</p><p>(Contact Philip Riley at philip.riley@arguscourier.com)</p>