Monterey County will sue the state, supervisors announced on Feb. 10, joining a host of other California counties that will go to court to fight missed payments from the state.

The state requires counties to provide food stamps, welfare, Medi-Cal, foster care programs and many other health and social services, and is supposed to pay counties to run them. This week the state stopped sending money – some $89 million – to California’s 58 counties. But the legal requirements to provide the services remain.

At the board meeting on Feb. 10, county supervisors blasted state Legislators for failing to reach a budget agreement and forcing counties to “do the dirty work” of cutting safety-net programs and not making welfare payments.

“It is unconscionable,” Supervisor Dave Potter said. “It’s a dereliction of duty. It’s not our duty to do the dirty work that is a result of others’ inactivity.

“Hell, no, we’re not going to take it any more.”

In light of the state’s projected $42 billion budget deficit, state Controller John Chiang recently announced that payments to counties (along with tax refunds and several other bills) would be deferred because the state doesn’t have money to pay them.

“And this at a time when more people than ever before are turning to the county for support,” says Elliot Robinson, the county’s director of Social and Employment Services. “Food stamp eligibility requests have increased by 30 percent in the last year. Medi-Cal and CalWORKS are up just shy of 10 percent.

“Our policy is to continue paying for these services – CalWORKS, foster care child welfare services, eligibility for food stamps and Medi-Cal, child abuse prevention programs, adult service programs – but the county’s cash reserve can’t last that long,” Robinson continues, adding that deferring social service payments for seven months would cost Monterey County $26.6 million. “It would not only harm the services that come out of the department of Social and Employment Services, but would put the whole county at risk.”

Now, California counties are fighting back. Monterey County will join a lawsuit set to be filed on Feb. 10 against Chiang, state Treasurer Bill Lockyer and, according to County Counsel Charles McKee, possibly the state Department of Social Services for failure to fund state-mandated programs. The counties argue that because the money has already been appropriated by the Legislature in the state budget, Chiang must release the funds and send checks to the local governments. Monterey County will join a second lawsuit against the state for failing to adequately fund state-mandated programs, McKee said. “We are seeking injunction and/or declaration that counties are not mandated to backfill those programs,” he said. This could mean county-run social service programs would close until state money comes in.

At the board meeting, McKee said all 58 counties would likely go to court.

The legal action comes as Monterey County braces for an additional financial hit from the state in fiscal year 2009-10. Finance officials expect a $8.6 million reduction in state funds next year (the county’s 2008-09 general fund balance is about $568 million). Gov. Arnold Schwarzenegger’s proposed 2009-10 state budget would cut funding to the probation department, sheriff’s programs, health and social service programs and others. It may get even worse.

“What you have before you is just a preliminary estimate,” Rosie Pando, assistant county administrative officer, told supervisors. “We don’t know what the end is going to be.”

In addition to less state money, the county anticipates losing cash from investments, revenue-generating programs, and declining property, sales and hotel taxes. Next year’s shortfall could reach upwards of $40 million.

“We’re no longer on the cliff, we’re sliding into the abyss,” said Supervisor Simón Salinas. “[Legislators] have got to do their jobs. They’ve got to get the budget passed.”