County Budget Hole Estimated At $6.1 Million

One by one the chickens are coming home to roost in the county seat’s henhouse.

Despite assurances from former County Executive Officer Carmel Angelo last March upon her retirement that county finances were in good, if not great shape, it’s undisputed that’s certainly not the case.

It appears from the Board’s Tuesday, Dec. 6^th meeting, that there’s a $6.1 million shortfall in the budget. Even that is an estimate at this time because the past fiscal year has not been closed out because the independent, outside audit required by law has not been completed in large part because the Supes (with the exception of 3^rd District Supervisor John Haschak) voted earlier this year to consolidate the formerly independent, elected offices of Treasurer-Tax Collector and Auditor-Controller into a single office, thus eliminating a vital internal fiscal control over finances. A big no-no in all matters fiscal.

The impetus for the consolidation was a 2021 petty bureaucratic squabble instigated by DA David Eyster over his office’s travel expenses being correctly rejected by then Acting Auditor-Controller Chemise Cubbison because he refused to follow county reimbursement guidelines. CEO Angelo backed the D.A.’s play and there was soon hatched the proposed combining of the Auditor-Controller office with the Treasurer-Tax Collector, which would eliminate one of the two elected positions. 

Prior to the Board approving the consolidation, Cubbison warned everyone why it was a bad idea, explaining, “The Auditor-Controller’s office and the Treasurer Tax-Collector should not be combined into one elected office. No compelling reasons have been indicated and no in depth review of the offices has been conducted. There has been no communication with myself to discuss the consolidation beyond notifying me of the upcoming agenda items. There has been no discussion about Board concerns, nor desired goals or outcomes other than what may be taking place in other offices behind closed doors. In my opinion, there are no efficiencies to be realized and the risk of collapse of two functioning departments that are key to all County departments and functions is real … In addition, consolidation would require yet another annual audit for the County to pay for and participate in. This new audit would be specifically to insure that the internal controls and the separation of duties required by code are adhered to in the combined office.” 

Following Board approval of the consolidation, Cubbison was elected as the very first Auditor-Controller/Treasurer-Tax Collector in the June Primary.

At Tuesday’s meeting, CEO Darcie Antle told the Board that the (long overdue) required outside, independent audit is nearly completed. In the meantime, no one can assure the BOS of the accuracy of the county’s fiscal standing. We know that’s a fact because at the Board’s previous meeting, Chairman Ted Williams asked that very question of County Counsel Christian Curtis: “Can you assure us that we have accurate financial information now that we can trust?”

Curtis replied in the negative, saying, “No, that’s something the Board will have to take up.”

Most of the budget discussion at Tuesday’s meeting centered around what expenses must be cut to comply with state law mandating a balanced budget.

Haschak summed up where things are presently by saying “everything is on the wall and we’ll see what sticks.”

Fourth District Supe Dan Gjerde provided an example of the financial bind they’re in asking, “How can we maintain neighborhood parks when we have 300 miles of unpaved roads?”

On thing is for certain, the only way to balance the budget is to cut expenses and/or find or increase revenues, a tough task in these recessionary times.

Over the next six months, the Board will be formally considering a whole raft of fee increases for permits, licenses, and services. In fact, that process began at last Tuesday’s meeting when the Board approved the first set of fee increases (ranging from 3% to 435%) for Behavioral Health Recovery Services, Cannabis Management, Public Health/Environmental Health, and Social Services.

In April a huge number of departments presumably will be requesting their fees be increased.

So once again, the citizens of this county, who are mostly workers, the ever-shrinking middle class, and small business owners, will be asked to bail out with fee increases a government that finds itself in trouble, mostly of its own making. 

Many people ask the question, why after paying all the taxes they are compelled to pay, are they paying all these additional “fees” for basic services that government is supposed to provide.

And the answer is: Don’t ask that question.

Consumer Groups Support Windfall Profits Cap/Price Gouging Penalty

A phalanx of California consumer groups have written Governor Newsom expressing support for his plan to impose a windfall profits cap and price gouging penalty on oil companies.

Newsom’s recently amended proposed law now features a price gouging “penalty” on oil companies. 

According to the Newsom administration, the bill would permit the state to fine oil refiners with excessive profit margins and rebate the fines’ proceeds back to citizens. Some of the bill’s devilish details are nailing down the size of the penalty and the definition of “excessive profits margins.” 

The consumer groups put out a joint letter, that says in part, “We support a windfall profits cap that limits how much oil refiners can make in profits per gallon of gasoline they refine. Setting a windfall profits cap on refining gasoline at a reasonable upper limit, such as 50 cents per gallon, will save consumers billions of dollars in overcharges.” 

The consumer groups join a coalition of more than 50 environmental groups who have already supported the proposed law, according to Consumer Watchdog.

“Reports to investors show oil refiners in California made an average of 32 cents per gallon refining gasoline over the last two decades,” a group statement noted. “This year they more than doubled that margin to make 69 cents per gallon in profit. The four refiners that report quarterly profits – Valero, PBF, Phillips 66, and Marathon – made an average of 86 cents per gallon in profit during the second quarter and 73 cents per gallon during the third quarter. Until this year, none of the four oil refiners have made profits that have exceeded 50 cents per gallon. The ‘gouge gap’ between the average price per gallon at the pump in California and what consumers pay in the rest of the United States approached $3 this fall. This is not all a function of pent-up demand from the pandemic, the war in Ukraine, or OPEC decisions. It's a consequence of five big oil refiners in California who make 97% of the gasoline and have intentionally restricted supply to artificially drive-up prices. Thus, a windfall profit cap is sorely needed to bring California gas prices under control.”

A Consumer Watchdog poll shows more than six in ten California voters support a proposal to impose a windfall profits cap and price gouging rebate on the Big 5 oil companies for through-the-roof gas prices and record-setting profits in the state.

(Jim Shields is the Mendocino County Observer’s editor and publisher, observer@pacific.net, the long-time district manager of the Laytonville County Water District, and is also chairman of the Laytonville Area Municipal Advisory Council. Listen to his radio program “This and That” every Saturday at 12 noon on KPFN 105.1 FM, also streamed live: http://www.kpfn.org)