Sacramento County officials began budget hearings Tuesday with an explanation of the county's poor financial state, noting that the county is expecting an ongoing pattern of poor sales tax revenues, among other problems. The county is also facing criticism about its budgeting practices from credit rating agencies, said Nav Gill, chief operations officer for the county.

The Sacramento County Board of Supervisors is addressing a $180 million budget gap in budget hearings this week. Supervisors may approve a proposed budget next week. The county’s proposed overall budget is $4.3 billion for the 2009/2010 fiscal year. The proposed general fund budget is $2.03 billion.

“This budget is the most difficult one I have faced in my professional career,” said Sacramento County CEO Terry Schutten on Tuesday.

The poor economy has meant that county revenues from sales taxes and property taxes have fallen, Gill explained. He noted that the county has seen its revenues from sales tax dive, noting that the trend of poor sales tax returns “continues into the future.”

While the economy’s condition has meant decreased revenues for the county, credit rating agencies are launching criticism at the county's budgeting practices. Credit rating agencies have downgraded the county's credit rating, Gill said. The agencies are saying the county has a “structural deficit” because it has used one-time funds to balance budgets in the past, Gill said. They expect the county to balance its budget without using one-time funds, he also said.

The board will hold a hearing on county public safety budgets at 2 p.m. Wednesday. 

Kathleen Haley is a staff reporter for The Sacramento Press.