Regulators must choose between spending and reserving TOT money amid budget woes – Times-Standard

The Humboldt County Board of Supervisors must decide fairly quickly whether or not to spend or generally spend the expected $1.6 million in transient occupancy tax funds, which typically support local housing, public safety, arts, tourism and film Fund will hold.

The considerations stem from the district’s dire budget situation: a current deficit of $12.4 million and, according to a presentation on Monday, a completely emptied General Fund by the end of the 2025-2026 budget year if the district is in the continues to spend at the current pace.

“Budgets are in many ways moral decisions about what’s important, and they’re investments…We’re just running into some pretty tight times,” said 3rd District Supervisor Mike Wilson.

Several figures from Humboldt County’s arts and tourism community spoke during public comment, all noting that the dollars spent on their industries ultimately generate money for the county through increased sales tax revenues and direct dollars from visitors to local businesses. Humboldt-Del Norte County Film Commissioner Cassandra Hesseltine said the Star Wars-themed Forest Moon Festival brings in significant tourism revenue that reaches the county level.

Humboldt County Sheriff William Honsal, whose department has two deputy positions funded by TOT taxes, said he had not scheduled those jobs in his General Fund in anticipation of belt-tightening due to financial stress.

“We’re looking at cuts across the country, we’re looking at a structural deficit, all these things. We cannot conduct our normal provincial activities due to the lack of provincial funds there. And I know we have to work on generating more revenue, that’s what I’m all about, but right now we may have to lay off people this year,” Honsal said.

Wilson said he would like to see “a middle ground,” which would see some of the TOT tax revenue go into the county’s General Fund but continue to pay for previous initiatives — especially housing.

The board took no action at its Tuesday meeting, but will ultimately vote on it at a later meeting

Second District Supervisor Michelle Bushnell said she was concerned about the county “getting things messed up,” and that while she leans toward preserving the funds, the county is currently left with few attractive fiscal options has to do with.

“There’s going to come a time not far away when we have no money and there’s no choice and we’re going to lay off our employees and that’s a pretty terrible feeling when people can’t pay their bills, and they have no money left. a task. And that choice will come pretty quickly,” Bushnell said.

Jackson Guilfoil can be reached at 707-441-0506.