Sheriff’s Department Budget Overrun Tops County List, Officials Call It a Strategy

The Orange County Sheriff’s Department (OCSD) overran its budget by nearly $30 million in the past fiscal year, marking it the department with the highest cost overruns across the county, according to year-end budget reports. This recent figure contributes to a combined $77 million in overspending by the OCSD over the last three fiscal years.

Sheriff’s department officials, however, argue these figures are not true overruns but rather the result of a deliberate budgeting strategy implemented by the County Executive Officer’s (CEO) office. Brian Wayt, executive director of the sheriff’s administrative services command, stated that the CEO’s office "underfunds our budget" at the start of the year. Wayt explained this is a strategy designed to exert pressure on certain departments to manage costs.

When asked about other departments subject to this specific pressure point, Wayt indicated he was only aware of the sheriff’s department operating under this requirement. He further claimed that the OCSD had anticipated a $30 million overage last year and actually ended up with less overruns than expected, stating that despite appearances on paper, the department actually underran by a couple million. Wayt noted that the sheriff and he have worked closely with Michelle and Frank from the CEO’s office in the past to comply with this approach.

This explanation echoes similar claims made by sheriff officials last year when their budget also exceeded allocated funds. At that time, Supervisor Vicente Sarmiento highlighted the issue, asserting that the sheriff’s department had not sufficiently informed supervisors about the overruns, a statement the sheriff’s department disputed. This year, Sarmiento again questioned the department's overruns, issuing a brief statement on Monday that emphasized the importance of all departments, including the Sheriff, functioning within their budgets, given current county economic realities. Supervisor Janet Nguyen declined to comment on the matter, and other county supervisors did not respond to requests for comment.

County spokesperson Molly Nichelson provided further context, explaining that a significant portion of the sheriff’s department’s funding comes from sales tax revenue. This means the CEO’s office must continuously monitor the budget throughout the year and provide supplements if tax revenues fall short. Nichelson clarified that the CEO Budget’s strategy is to supply the necessary General Purpose Revenue either within the initial budget or when closing the fiscal year books.

The Orange County Board of Supervisors is scheduled to discuss a budget report detailing spending from the last fiscal year, including these cost overruns, at their 9:30 a.m. meeting next Tuesday. In the past two years, county supervisors have approved year-end budget reports detailing sheriff’s overspending without public discussion, despite being notified by staff.

Wayt acknowledged the complexity of the county's over $10 billion bureaucracy, which makes budget transparency challenging. He noted that even public documents are hundreds of pages for a high-level overview, and a full detailed budget would span tens of thousands of pages, making it difficult to comprehend.

The OCSD is one of the most expensive departments in the county, consuming over 20% of the county’s general fund. It operates with an annual budget exceeding $1 billion and employs an elected sheriff along with more than 3,900 other staff, including deputies and support personnel.

County reports indicate varying reasons for the department’s budget overruns in previous years. For instance, in the 2023-24 budget, the sheriff’s department missed targets by nearly $11 million due to lower than anticipated revenue from Prop 172, a statewide sales tax increase dedicated to public safety. The following year, an overrun of over $37 million was attributed by officials to lower tax revenue and higher than budgeted overtime expenditures. The most recent nearly $29 million overrun, according to the finance department’s report, stemmed from a revenue shortfall tied to lower-than-budgeted Realignment revenue, alongside increased expenditures for IT services, daily meals for the inmate population, and uniforms and safety clothing for sworn personnel.

These overages are covered by the county’s general fund. County staff have cautioned that this fund is becoming increasingly structurally imbalanced. The Social Services Agency held the second-highest overage in the last fiscal year, reporting $17 million in overspending during that same timeframe.