There's no margin for error now.

On Tuesday, the board of supervisors approved a "bare bones" budget, in the words of County Administrative Officer Terri Daly, who pulled no punches in describing the collision of tightening financial realities and disappearing maneuvers. Tax revenues are down sharply from where they were two years ago and the county is committed to higher personnel costs due to labor contracts with built-in increases for everything from cost of living to uniform allowances. Even an early retirement incentive program that should save upwards of $2 million would reduce personnel costs by only $100,000 this year.

Most of the 28 early retirees filed their applications two days before the deadline, making the 10 days leading up to Tuesday's final budget approval a frenzied scramble. Daly reached out to nine employee associations to shave the last $1 million but didn't get the response she was looking for. Since personnel costs make up more than half of the county's $72 million budget, that's where the last measure would be made up. Daly offered three options: layoffs, eliminating the cost of living adjustment that's ingrained into employee labor contracts, or instituting a mandatory furlough program that would mean seven unpaid vacation days for all employees. Daly was hoping everyone would spread the pain by choosing the last option. All except the law enforcement units agreed with two law enforcement associations offering alternative proposals that Daly called economically infeasible.

Unable to convince all nine bargaining units to sign off on the furlough program, Daly had to find other ways to cut the last million from a projected $4 million deficit. What she came up with was a fourth option that calls for a hard hiring freeze at the county. In effect, it means no hiring, promotions or changes in personnel status without administrative committee approval. "Frankly, I don't think a hard hiring freeze is the most fair and consistent approach to this process," Daly told supervisors. "It's going to affect departments disproportionately."

One of those departments is the county assessor's office, whose elected head, Jim Rooney, told supervisors he was about to be very short-handed. Rooney's office already has two employees opting for early retirement, while two others abruptly resigned, leaving the assessor's office with a sudden 20 percent reduction in staff that may not be made whole. "We have a problem in the assessor's office," he said. "We're not getting the job done."

If assessments slow, Rooney explained other departments could feel the ripple, specifically the county auditor's office, which could mean a late budget next year. Rooney informed supervisors he was planning to go before the administrative committee, which two supervisors head, to request filling the two resignations. "I know we're tight," he said, "but there's going to have to be a little flexibility."

On Wednesday, county administrators began an aggressive examination of how the county operates and how it can be restructured to perform more efficiently and cheaply. That's something the state hasn't done, Daly noted, despite annual speeches about government reform. "Well, I don't want to be in that position," she said. "We need to be proactive and make structural changes."

One example Daly offered was taking a look at how the county runs its motor pool in an effort to save on gas money.

For those waiting for the silver lining, it was hard to make out. Local groups like the Amador County Recreation Agency and Amador-Tuolumne Community Action Agency managed to avoid painful cuts, Daly said, "because that would just be letting our woes trickle onto other community organizations."

"And frankly," she added, "dealing with the cuts needed, that wouldn't have even come close."

The county is cutting $700,000 from its capital improvement plan, delaying or endangering projects for a new jail and victim-witness services office closer to the courthouse. The 28 positions vacated by early retirees won't be refilled. All purchases over $500 will require approval. A mid-year budget review some time before January will look at how the county's reorganization is going. Next year could well be worse due to a down economy having widespread impacts and the fact that there isn't much left to cut, according to Daly. "Also, when you put off buying fixed assets, such as computers, year after year, at some point you have to invest a large amount just to catch up," she told the Ledger Dispatch.

Before the potential for a state budget veto surfaced, county officials focused on the positives of the tentative deal. Funding for rural crime programs and law enforcement agencies remained largely intact, while a diverted distribution fund that froze money from the Jackson Rancheria would be released. There were still billions in cuts to dozens of state programs, "which will really hurt our health and human services program," Daly noted.

Still, Forster said, "The county appeared to get through it (the budget deal) without too much bloodletting."

The bloodletting may come later.

"I do want to warn you that there is no slack in this budget," Daly stressed. "If we encounter any hiccups, it will mean layoffs."

Hiccups could run the gamut from natural disasters to unforeseen expenses, from wildfires to unexpected landfill problems.

While unpaid furloughs will still be granted on a voluntary basis, supervisors were disappointed that a mandatory program didn't fly with employee associations.

"It's very unfortunate to see some wouldn't go along with that," said District 5 Supervisor Brian Oneto. "The county is trying to basically stay intact, meet our budget. I would have liked to see some of the associations work with us."

"In the private sector, CEOs just cut jobs," added District 3 Supervisor Ted Novelli. "There's no asking anyone for anything. There's just cutting jobs."

District 4 Supervisor Louis Boitano said he's spent nearly 25 years in the public sector, sitting on both sides of the negotiating table. "You always look for the best in people, but be prepared for the worst," he said. "People don't like to be cut, see their salaries cut."

Daly pointed out that departments with employees choosing unpaid furloughs would keep those savings. And in the instance that layoffs become necessary, those departments would be further down on the list.

Supervisors will join in some of the budget pain, but it took some discussion. Forster lobbied his colleagues to consider voluntary furloughs and accept caps in travel expenses and discretionary funds. "My feeling is the board should set the example," he said.

Board members ultimately agreed to reduce travel spending allowances from $18,000 to $5,000, and cap discretionary funds at $10,000 per district with the understanding that money couldn't be banked for future years. "Use it or lose it," Forster said. Oneto objected to the idea, saying worthy programs would lose out. He lost that vote 4-1.

Approving the actual budget became almost an afterthought, with Forster moving onto the next item before a vote was recorded.