The structural $44.5 million deficit facing Kern County is expected to be eliminated by the end of fiscal year 2020, according to county leaders. The announcement comes as the county continues with its four-year-budget mitigation plan, refereed to as Lean Six Sigma.
Four years ago, the shortfall in funds was widely blamed on loss of property tax revenue due to the slump in the oil industry.
On Tuesday, leaders cautiously pointed out the county is on path towards recovery, noting the deficit will be eliminated by July 1st, 2020.
“Nearly the county’s entire general fund deficit has been resolved, and the county continues to make progress towards fiscal stability,” said Ryan Alsop, Kern County Administration Officer.
The county still has some challenges ahead, including the pension fund, which leaders today acknowledged will be depleted by the end of the 2021-2022 fiscal year.
Talks are in the works with the fiscally-challenged Kern County Fire Department to work on a long term plan for its 8.8 million dollar deficit.
County leaders will present the preliminary budget for next fiscal year on June 25.