AGENCIES TO GO UNDER KNIFE; VENTURA COUNTY ORDERS 2% BUDGET CUTS.

Byline: Jesse Hiestand Daily News Staff Writer

Ventura County agencies were ordered Tuesday to cut their annual budgets by 2 percent as the supervisors struggled to close a $12.8 million shortfall in the 1997-98 budget.

Department heads will have to come up with plans to absorb the 2 percent cuts, which are based on the total revenue each agency receives from all government sources.

``I think people (in the departments) recognize we have a difficult job to do and they're willing to take the 2 percent cut,'' said Supervisor Frank Schillo. ``There was less complaining about it this year.''

Still, some departments are facing significant reductions in the money they receive from the county. The agriculture commissioner - the office that oversees the area's No. 1 industry - last year received $218,000 from the county, in addition to substantial revenue from other sources. By calculating 2 percent of this total, the county reduced its contribution next year to $181,000 - a $37,000 reduction.

The Health Care Agency will see its county funding slashed from $14 million to $12.7 million, while the Public Social Services Agency will drop from $9.2 million to $8.7 million in county funding.

The District Attorney's Office, Sheriff's Department and courts have vowed to generate enough new revenue this year to offset their 2 percent cuts.

Supervisors also are considering a slight increase in property taxes and licensing fees, to generate $894,000.

And while layoffs for county employees are an option in closing the budget gap, it is more likely they will be furloughed four days, either on court holidays or between Christmas and New Year's. This will save about $1.4 million.

County officials assured the board that they can legally impose the furloughs, although they will have to negotiate specific days with the unions and court officials.

Also looking to apply every spare dollar to the budget deficit, supervisors learned that $1.5 million in business license fees that have been unavailable because of pending litigation can now be used. Board members applied about $1 million toward the deficit and $550,000 into their contingency fund.

The board shaved $734,000 by shuffling some Internal Service Fund costs. Two percent of the money Internal Services collects from other county departments for supplies, maintenance and other services was cut, so that money can now be withdrawn from departments' budgets and instead applied to the deficit.

Schillo said it was important to balance the budget by cutting into ongoing operating costs instead of with one-time revenue sources, as has been done in the past.

This should help the county reach its goal of keeping the budget balanced into the future for years to come, he said.

``That's what you really call downsizing and getting government back in the black,'' he said.

Much of the remaining budget tinkering will be done Thursday and the board is still on target to get the final budget approved by July 1, he said.