The Santa Barbara County Board of Supervisors discussed on Tuesday what services it should protect after hearing a report on the projected $66.4 million deficit over the next five years.

Staff gave a report on the financial future of the county and asked the supervisors to provide guidance as the county prepares for its annual budget workshops.

County staff provided the board with a series of questions about what services to prioritize, whether to use county savings, and employee wages.  

“So, we have to pick which one of our kids we love the most,” Fourth District Supervisor Bob Nelson joked.

County Executive Officer Mona Miyasato told the board that she was not asking for final decisions but was trying to have a discussion to help staff when it begins developing the annual budget.

The board begins developing its annual budget in April. The county fiscal year begins on July 1 and ends on June 30.

In December, the board was presented with the five-year forecast that predicts a $23 million deficit in the general fund and health and human services programs for the fiscal year that starts in July. That number will grow to $29 million for the next fiscal year.

Over five years, the deficit will grow to a combined $66.4 million.

The deficits are being driven by cuts in federal and state funding, along with the county’s rising operating costs and falling revenue, according to budget staff.

Fifth District Supervisor Steve Lavagnino said the county is there to be the social safety net and described the shortfall in funding as someone ripping a giant hole in the net.

“For me, the most vulnerable should be the most protected,” Lavagnino said.

Lavagnino acknowledged that some cuts may lead to inconveniences, such as a closed hiking trail, but he said some children will depend on the county in the future.

Second District Supervisor Laura Capps also supported protecting social services and pointed out that Santa Barbara County has the second-highest rate of poverty in the state. She said cuts to the programs could affect generations of residents.  

First Supervisor Roy Lee agreed with his fellow supervisors and suggested adding animal services as a department to prioritize.

The supervisors also indicated that they are willing to use some of the $50 million in general fund money set aside for the expansion of the Northern Branch Jail to soften the blow of the next five years.

The $50 million is what the county set aside to help fund the jail expansion and lower the amount of debt service it needs to take on to complete the project. The total project is estimated to cost $167.3 million.

Nelson said he would be willing to support using some of the money to soften the blow of the deficits, but indicated he had some conditions.

Nelson said the county needs to look at areas that are not its responsibility to support. He added that the county may not be able to fund programs that are “nice to haves,” not “have to haves.”

The supervisors also agreed to keep the option of employee furloughs and wage freezes on the table.

Later in the meeting, the board heard a report on the status of the current fiscal year, which showed a drop in the general fund’s year-end surplus. The surplus by the end of the second quarter is $2.2 million.

The county recorded a surplus in its general fund of $11.9 million at the same time during the previous fiscal year.