LAKE COUNTY ? The Lake County Mental Health Department was directed to consider cutting staff to address approximately half of its almost $1.1 million budget shortfall at a Tuesday meeting of the Lake County Board of Supervisors.
Between invoices from 24 vendors and additional miscellaneous expenses, the department owes approximately $2.1 million in unpaid bills. The board heard an update about the department”s current budget status and suggested solutions, which included cutting 16 positions. Of those, nine are already vacant.
“They owe private businesses in the community that are probably going to have to lay off employees if they don”t get paid by the county. We”re not used to being in a position where the county doesn”t pay its bills in a timely manner ? the county pays its bills in a timely manner, except for the mental health department right now, because they don”t have the money to pay,” Lake County Chief Administrative Office Kelly Cox said.
Fiscal administrator Chuck Fernandez gave a PowerPoint presentation. He said the state Department of Mental Health (DMH) audited the county department eight years in a row between 1998 and 2006 and found the department owed DMH $5.63 million. The department has paid all but nearly $1 million.
Of the owed amount, the department appealed more than $700,000 of the expenses. More than half of that amount could be reimbursed if the department wins the appeal, according to Lake County Mental Health Department Director Kristy Kelly. She said the appeal process could take another “several months.”
In addition, Cox said the department is paying $200,000 per month to repay a $1.7 million loan from the county”s general fund.
Kelly said in addition to the staff cuts, she”s also considering cutting some vendor contracts in half.
“Basically your suggestions decimate Mental Health to pay the bills,” Board Chairwoman Denise Rushing said.
Dist. 2 Supervisor Jeff Smith said he would rather see more cuts than necessary, rather than fewer.
Cox said the department currently employs 78 people, and more than half of its annual budget covers payroll. He said current expenses cannot continue, and said significant staff increases in recent years was allowed on the premise that funding would be available.
Kelly said department staff members had expressed a desire to retire early, but said she could not discuss those options without board approval. In addition, a staff member had resigned since the report was prepared. As a result, she said seven layoffs were proposed in addition to cutting nine vacant positions.
“This isn”t something that”s going to be corrected in a few months. This is a long-term structural deficit in their budget, and the only way to deal with that is to make some permanent reductions in expenditures,” Cox said.
Contact Tiffany Revelle at trevelle@record-bee.com, or call her directly at 263-5636, ext. 37.
