BY ELAINE GOODMAN
Daily Post Correspondent
A budget surplus at the San Mateo County Sheriff’s Office has shrunk from $36.7 million in fiscal year 2022-23 to $3.2 million – a drop the department attributes to spending on the sheriff’s new headquarters and a technology server upgrade.
The $36.7 million surplus at the sheriff’s office dropped to $19.26 in fiscal year 2023-24 and to $3.246 million in the current 2024-25 fiscal year. That’s an overall decrease of more than $33 million. Sheriff Christina Corpus, whose office has been mired in controversy in recent weeks, took office in January 2023, midway through fiscal year 2022-23.
The surplus is also known as the department’s “fund balance” – which consists of extra revenue the department wasn’t expecting, money that was appropriated but not yet spent and fund balance rolled over from the previous year.
In addition to the fund balance decrease, the sheriff’s office also has been falling short of the county’s reserve requirement, which called for departments to have a reserve of 2% of their net appropriations. Some other departments also aren’t meeting the reserve requirement, officials said during a Board of Supervisors meeting last week.
Supervisors voted Sept. 24 to increase the reserve requirement for departments to 4% and for the county’s general fund overall to 15%, up from 10%. That’s seen as a way to be better prepared for natural disasters or another event like the Covid-19 pandemic.
The sheriff’s office reserve fund has been at $3.246 million for several years, an amount that’s currently only 1% of net appropriations.
Sheriff’s Office Communications Director Gretchen Spiker addressed the $33 million drop in fund balance as well as the failure to meet the reserve requirement in an email to the Post.
Spiker said it’s “normal practice to budget one-time capital and technology projects in fund balance,” such as the sheriff’s office new headquarters and a server upgrade.
Now that the headquarters project is wrapping up this fiscal year, “we are confident in our ability to build our reserves back up to the recommended levels,” Spiker said.
According to the county’s Office of Budget and Performance, the major items that the sheriff’s office paid for with its fund balance include:
– Sheriff’s office headquarters building project: $27.8 million
– Server modernization project: $2.09 million
– Sheriff’s work program software replacement project: $404,000
– Investigations data integration project: $1.2 million
The sheriff’s office started moving into its new headquarters in downtown Redwood City in May. The new headquarters is at the former site of the Old Maguire Jail, next to the Maguire Correctional Facility and across the street from the Hall of Justice, where the sheriff’s office had previously been located.
The project received funding from The Arrillaga Foundation and the late John Arrillaga Sr., whom the facility is named after.
Meanwhile, controversy has been swirling at the sheriff’s office. This month, two unions – the Deputy Sheriff’s Association and the Organization of Sheriff’s Sergeants – cast a resounding vote of “no confidence” in Corpus’ chief of staff, Victor Aenlle.
The county Board of Supervisors hired former judge LaDoris Cordell to investigate a growing number of employee complaints at the sheriff’s office.
Last week, Corpus fired Assistant Sheriff Ryan Monaghan after he talked to the investigator, according to Supervisor Ray Mueller.
Corpus denied that Monaghan’s firing was in retaliation for talking to Cordell. And the sheriff has fired back, accusing County Executive Mike Callagy of bullying, interference and “abuse of power.” She asked the board of supervisors to investigate his conduct.
Departments that don’t meet the county’s reserve requirement face a number of potential consequences.
If a department falls below its 4% reserve requirement, it must present a plan to the county executive’s office explaining how it will get back on track.
If the department’s reserves are less than 2%, the department may be required to submit all contracts to the county executive’s office for approval. Normally, contracts of $200,000 or less don’t need that approval.
And if a department has been running a deficit for two out of five fiscal years, the county executive’s office may take over handling of its finances.
“Now that the headquarters project is wrapping up this fiscal year, “we are confident in our ability to build our reserves back up to the recommended levels,” Spiker said.”
What about the substation and day care? Where are those renovation, furnishings, and staffing costs coming from? Allegedly, Victor didn’t follow the County’s procurement rules, which is going to further delay that project and result in even higher costs. Where are the reserve monies for that?
Victor, you’ve got some explaining to do.