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On The Money: Is $100,000 Special Fund Really A Slush Fund?

By Mike Luery

A spending fund worth $100,000 is generating controversy in Placer County, where some are calling it a government slush fund.

"I've heard people call it everything from a revenue-sharing program, which is its official title, to a slush fund," said Jennifer Montgomery, a Placer County supervisor from District 5, which stretches from Auburn to Kings Beach.

The five members of the Placer County Board of Supervisors can spend up to $20,000 each on programs of their choice. Montgomery told CBS13, it's time for a change.

"In a time of shrinking budgets, in a time of shrinking staff, in a time of increased need, is it appropriate to be spending public tax dollars on discretionary programs?" Montgomery asked.

The public dollars should go to core county services like law enforcement, Montgomery said. The money could provide additional officers to the county jail, she suggested, where more prisoners will soon be arriving thanks to Gov. Brown's realignment plan.

But instead, some of the money has gone to other causes, including:

  • $2,000 on an eggplant festival in Loomis
  • $1,000 for fireworks at the Gold Country Fairgrounds
  • $300 on a comedy event
  • $200 on a fishing derby

"I feel it's part of the county's business to help out with these type of events," said Jim Holmes, a Placer County supervisor representing District 3.

But in these tough times, can Placer County really afford a $100,000 special fund?

"Is it a slush fund?" this reporter asked Holmes.

"No it's not a slush fund," he stated emphatically. "I prefer to call it a community-benefit fund."

Holmes pointed out the Board of Supervisors also sent $1,500 to the Gathering Inn, the only homeless nomadic program in Placer County. That's where Robert Elster was able to get his life back on track.

"I am now going back to school. I'm going to get my registered nursing license," Elster told CBS13.

But some county residents said the money should be part of the general fund -- to pay for core county needs like health care.

"I've been coming here for about four years because I can't afford the medical for BlueCross and this helps me to save," Debby Souza said. The Placer County resident told CBS13, "It's important to keep my health."

But what about the financial health of the taxpayers? That's why Jack Duran, a supervisor from the 1st district, says he wants to end the special fund.

"There are a lot of other things that I think this money could go to," Duran told CBS13.

But in Placer County, the controversial fund will continue. The Placer County Board of Supervisors decided on a 3-2 vote to keep the special fund. But the two supervisors who voted no -- Montgomery and Duran -- have directed their funds to go directly to the Placer County Health and Human Services Department.

In the future, proposals will now be screened on the Placer County website, where people can make suggestions about the best way to use those public funds.

If you see government waste, send us an e-mail to onthemoney@kovr.com. You can also follow On The Money stories in progress via Twitter at and on Facebook.

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