County Officials Say New Money Found to Balance Budget

County administrators said Tuesday that they expect to avert a major budget shortfall and will recommend today that all of the county’s staff and programs be maintained.

Just three weeks ago, a preliminary 1988-89 budget adopted by the Board of Supervisors was reported to be $35 million out of balance, and was expected to force the dismissal of more than 400 employees.

But county Programs Manager John Sibley said Tuesday that finance officials have identified a variety of unanticipated funds that should be enough to continue operating county government at its present level.

Revenues Not ‘in Hand’

The money to balance the budget includes about $10 million expected from the sale of excess county property, Sibley said. The plan also relies on prospective money from a state block grant and a politically tenuous state plan to pay for the operation of the county courts, a proposal that has already been voted down once.

And Orange County is considering an offer of money from its Retirement Board that would be made in return for the county’s funding of medical benefits for retired employees and for other considerations.

Sibley said none of the new revenues are “in hand.” But county officials are sufficiently confident of obtaining the money that they are recommending its use to balance the budget. If the money is not produced, Sibley said, layoffs and service cuts might have to be made in midyear.

It was unclear Tuesday how the supervisors will react to the proposal. Privately, supervisors’ aides said that some were uneasy with a plan to fund the budget using uncertain money. But they also said they are striving to avoid the alternative of laying off employees.

“We’re going to avoid layoffs with the adoption of this budget,” Sibley said. “We will get through this year--hopefully--if these funds materialize.”

Today, Sibley said the budget shortfall is about $20 million, down from $35 million because of unexpected money left over from the previous fiscal year that ended June 30 and some savings steps, such as a hiring freeze.

That $20 million would be funded in the budget with the money that the county anticipates but has not yet obtained. Sibley said the figures will be included in the budget, but the money will be frozen until the funds are available.

“We are going to balance the budget with some of these potential revenues and then freeze those appropriations,” said County Auditor Steve Lewis. “To lay off people would be a mistake, knowing that there are some things that might materialize.”

On Monday, the Orange County Employees Retirement Board voted to offer the supervisors as much as $60 million over two years to help them meet their budget. But in return, the Retirement Board wants the county to provide medical benefits to retired county employees.