Sacramento County continues to be hammered by the failing local and state economy and now faces a $17.8 million hole in its budget because the county is receiving much less money from sales taxes, property taxes and vehicle license fees, according to a letter County Executive Terry Schutten prepared for the Board of Supervisors’ July 28 meeting.

The $17.8 million gap is only part of the county’s budget mess and does not account for funds the state may take or borrow from the county. Taking and borrowing funds from local governments is part of the state’s budget package. Gov. Arnold Schwarzenegger may sign the state budget Tuesday. 

The Sacramento County Board of Supervisors also wants to find a way to put $10 million toward hiring 70 deputy sheriffs.

“Instead of a piecemeal approach to making corrections for the above shortfalls and the additional funding for the 70 sheriff’s deputies, the county executive is recommending that all these issues be dealt with during the final budget hearings,” Schutten wrote.

The Board of Supervisors is scheduled to approve a final budget Sept. 29.

Schutten’s letter breaks down the county’s latest figures for property and sales taxes and vehicle license fees. The $17.8 million gap comes from the following sources:

*$5.3 less in estimated sales tax collections.
*$2.3 million less in estimated property tax collections.
*$4.8 million less in local public safety funds, which come from sales taxes.
*$5.4 million less in “realignment revenue,” which comes from sales taxes and vehicle license fees.

Read Schutten’s letter here.

Kathleen Haley is a staff reporter for The Sacramento Press.