Kern County Supervisors met Tuesday to talk about their budget, just days after the County Assessor-Recorder's office lowered the value of Occidental Petroleum's Elk Hills property by $2.5 billion.
The company says a steady decline in production is the reason for the sharp drop.
But, that means an estimated $27 million less in property taxes for the county and some 17 other school and special districts.
The county and its Fire Fund combined, will take the biggest hit, losing around $11 million dollars from the new assessment.
They'll have to shave that off of next year's budget and likely find a way to pay Oxy the $11 million they already charged them this fiscal year.
County officials say they have a contingency plan, and no one should see a change in services.
"So, this isn't going to result in any drastic cuts in services. It means the county will have to tighten its belt and and we'll run with a smaller reserve this year and build it up next year," said Alan Krauter, Senior Administrative Analyst.
Krauter says increases in sales taxes and car registrations will help as another money source for the county.