WSAC Insider - September Issue

SEPTEMBER 2010

WSAC 2010 ANNUAL CONFERENCE

Registration is Now Open for Gathering in Spokane County

Riverfront Park

WSAC and your Spokane County hosts invite you to join colleagues and partners in Spokane County November 9-12, 2010 (see preliminary agenda) for our Annual Conference and Products & Services Showcase. Registration is now available online and the host hotel, Red Lion Hotel at the Park, has per diem rooms ready.

WSAC affiliate organizations that will be meeting in conjunction with the conference include: Washington State Association of County Engineers, Washington State University Extension, Washington Association of County Commissioner/Council Clerks, and Association of County Human Services.

Full conference and one-day registration rates have been kept lower than 2008 prices to help defer expenses for participants. Thanks to our sponors and Showcase exhibitors whose support of Washington's counties make this possible.

Our conference sponsors: Washington Counties Insurance Fund, Allied Waste, Comcast, Waste Management, and Red Lion Hotel at the Park.

Register for the Event

State revenue projection down $1.4 billion

The September revenue forecast for Washington state government shows projected General Fund revenue down $1.4 billion. The forecast covers the remainder of this biennium as well as the next budget period. Revenue for the current budget period, 2009-11, is projected to decrease $770 million; and revenue for the next budget period, 2011-13, is projected to decrease $669 million.

The state general fund budget is now expected to have an ending fund deficit of $520 million for 2009-11 and the state Office of Financial Management is currently projecting a gap between state revenues and maintenance level expenditures of $4.5 billion for the 2011-13 Biennium. The next revenue forecast will be in November. The Governor's proposed budget will be based on the November forecast.

Resources:

OFM news release

Revenue forecast

Governor imposes across-the-board reductions

The Governor directed agencies to impose across-the-board reductions of 6.3 percent starting October 1. In addition to state agencies, the executive order (EO 10-04) includes the judiciary, Legislature, higher education institutions, and the offices of elected officials. The Governor's action is in response to declining revenues that leaves the state with a projected $520 million budget shortfall for the 2011 fiscal year (FY 2011). The reductions impact all activities except those that are constitutionally protected, such as K-12, pension contributions, and debt service.

At this time, we do not know what programs or services will be cut; no one does. We do know that the spending authority for the Department of Social and Health Services will be reduced by nearly $300 million, the Department of Corrections will be reduced by over $50 million, and the Department of Health will need to reduce spending by approximately $6.5 million. State shared-revenues such as streamline sales tax and liquor revenues will not be directly impacted.

Some of the cuts that will be implemented in the next few weeks may not be achievable or sustainable and will have to be revisited in the FY 11 supplemental budget. However, given that the state is now faced with a $4.5 billion gap between revenues and maintenance level expenditures for the 2011-13 Biennium, we should expect that this is the first step in what will be a very difficult budget process.

We will continue to advocate for the best position for counties with these budget reductions and will keep you informed as more information becomes available.

Resources:

Governor's Executive Order

WSAC request to extend flood control compliance for Counties granted

Local governments have more time and resources to comply with model ordinance

National Marine Fisheries Service (NMFS) Regional Administrator, Will Stelle, announced on Friday, September 10 that his agency would allow additional time for local governments to determine how they will comply with the Endangered Species Act (ESA) in implementing flood control programs. The extension had been requested by WSAC.

This issue arose in 2003 when the Federal Emergency Management Agency (FEMA) was sued by the National Wildlife Federation for failing to consult with NMFS under the ESA for operation of their National Flood Insurance Program (NFIP) in the Puget Sound region. As a result, FEMA was ordered to consult, and in the fall of 2008, NMFS issued a biological opinion concluding that FEMA's implementation of the program threatens endangered salmon and orca whales in the Puget Sound.

In order to bring the NFIP into compliance with the biological opinion and the ESA, FEMA developed a model ordinance that jurisdictions could adopt and ensure that development projects insured through the NFIP would not threaten endangered species. The model ordinance established setbacks and other conditions that were significantly more stringent than many jurisdictions now have on the books. Adherence to the model ordinance appeared to conflict with existing state mandates on where growth should go and how shorelines should be managed.

Under the original timeline, many local governments were required to demonstrate compliance by September 22, 2010. All Puget Sound jurisdictions would have needed to comply by 2011. NMFS allowed the extension of the schedule "to allow further development of partnerships with state, local and Federal agencies."

In addition to the extension, NMFS asked FEMA to jointly sponsor at least three workshops to train local jurisdictions in how to better determine the effects of floodplain development actions on listed species. The agency also acknowledged the need to make a clearer distinction between the features of salmon habitat in rural compared to urban areas. Finally, and importantly, NMFS recognized the need to "more closely integrate our work with that already ongoing at the state and local level."

WSAC, in partnership with the Association of Washington Cities and the Washington Public Ports Association, had worked diligently to advocate for a more realistic implementation process. This included meeting with the Governor's Chief of Staff, Senator Patty Murray's staff, Will Stelle, and staff from FEMA and the relevant state agencies. This extension will allow WSAC and its members to be better involved in discussions of how implementation should occur, particularly in light of existing state and local programs.

Resources:

Letter of Extension Approval from NMFS

Health Care Reform funding available to counties

Reimbursement for Early Retiree Reinsurance Program

Implementation of provisions of the Federal Patient Protection and Affordable Care Act have begun across the country, with the majority of changes to be completed at the state level in 2014. This change in law will impact counties in a number of areas as we move toward full implementation of Health Care Reform.

As an employer, counties are eligible for funding through the early retiree reinsurance program, although none in Washington have yet been approved through the application process. Applications are still being accepted.

The Early Retiree Reinsurance Program reimburses employers for a portion of the costs associated with providing health coverage to non-Medicare eligible retirees over age 55, as well as their spouses and dependents. The payments from the reinsurance program are intended to provide financial relief to employers for high cost medical claims and help them maintain health care coverage for early retirees. The program is a temporary program which will end in 2014, or before if the $5 billion in available funds is exhausted.

Resources:

Federal Early Retiree Reinsurance Program website

List of approved employers in Washington to date

NACo's Health Reform Implementation resources

WSAC seeks candidates for Association positions

Filing Period Ends September 27

WSAC is seeking Active Members who are interested in serving WSAC in a leadership position. A variety of opportunities are available, listed below.

Last November the membership modified the WSAC Bylaws to permit all Active Members the opportunity to vote in WSAC elections - not just those who attend the Annual Conference. WSAC will also for the first time conduct these elections via an electronic ballot system. President Merrill Ott has announced the 2010 Elections Oversight Committee will be chaired by WSAC Past President Dean Burton.

To submit your candidacy, please submit complete the online form by September 27th at WSAC's website elections center.

Open Ballot Positions

WSAC President
WSAC Vice President
WSAC Secretary/Treasurer
Four Eastern Region Representatives
Two Eastern Region Alternates
Four Western Region Representatives
Two Western Region Alternates
National Association of Counties Board of Directors - two positions
National Association of Counties Western Interstate Region Board of Directors - two positions

WSAC members who are considering running for a position and would like more information should contact WSAC Executive Director Eric Johnson, the current officeholder or representative, or any Executive Committee member to discuss.

Supreme Court suspends implementation of Court Rule

The Washington Supreme Court voted last week to temporarily suspend implementation of amendments to statewide court rules related to the appointment of trial defense counsel for indigent persons.

According to a Supreme Court Order, the earliest the amended rules would become effective is September 1, 2011.

The amended rules direct trial courts to require each public defense attorney to "certify to the court that he or she complies with applicable Standards for Indigent Defense Services to be approved by the Supreme Court. The temporary suspension in the effective date of the amended rules is intended to provide the Court sufficient time to consider and adopt appropriate standards.

Chief Justice Barbara Madsen has indicated that the Court will solicit stakeholder input regarding standards that would be appropriate to include in the rules.

Resources:

Court Order

Ammended Rules as adopted in July 2010

State Auditor asks AG about Interest Earnings

State Auditor Brian Sonntag requested an opinion of the State Attorney General in answer to two questions he asked regarding interest earned on funds held by the county treasurer. The questions are:

(1) Does RCW 36.29.020 allow a county treasurer to allocate the interest earned on investment of a county's own funds to the current expense fund, or does it apply only to the funds of other municipal corporations that are held by a county treasurer?

(2) If RCW 36.29.020 applies to county funds, what statutory language is necessary to indicate legislative intent that interest must remain with county funds rather than be allocated into the county current expense fund?

WASC, the Washington Association of County Officials and the Washington Association of Prosecuting Attorneys have jointly given notice to the State Attorney General that they will be commenting on the opinion requested by the State Auditor. Because of the importance of interest income to all counties, we have also asked that the period for comment be extended to November 1 to allow each association to meet with their respective Boards and/or members and then comment.

County officials and their respective affiliate organizations are encouraged to weigh in on the issue as well.

Resources:

State Auditor's Letter to AG Rob McKenna

NACo County Government Works initiative underway

Toolkit available to help county officials with outreach campaign

WASHINGTON, D.C. -National Association of Counties' (NACo) President Glen Whitley is calling on all county officials to join the County Government Works campaign to help raise county government awareness across the country.

"We know that America's counties provide outstanding programs and services, but unfortunately too many Americans do not," Whitley said. "It's up to us as county officials to reach out to the public and make them more knowledgeable and positive about the contributions of county government. I am hopeful that through the County Government Works campaign we can make a difference in our communities."

A variety of outreach tools are available on the NACo website. You will find examples of effective public awareness programs, how to establish citizen/leadership universities, and examples of state association public awareness efforts.

The toolkit offers county officials practical, proven methods for raising county government awareness. The kit includes:

A speaker's library that provides talking points for community and civic group meetings;

Ideas for scheduling tours of county buildings;
Information on citizen universities;
Methods for informing and educating students; and
Brochures for community and school events.

The brochures are already designed and laid out. All you have to do is add your county's information and make copies. The brochure will provide basic facts and information about your county that will be a valuable resource for your residents.

"Especially in these tough times, it's important for county officials to go the extra mile and communicate the roles and responsibilities of counties," Whitley said. "I am asking all county officials to join me in this effort."

Resources:
NACo County Government Works web center

In This Issue

State Forecast Gloomy, Cuts Loom

Governor Imposes Across-the-Board Cuts

Flood Control Extension Granted

Health Care Reform Funds

WSAC Officer, Board Candidates Sought

Article Headline

Counties Challenged on Interest Earnings

NACo Initiative Toolkit

Boards of Equalization Webinar for Members

Member Notes

WSAC Insider

September Sponsor

Thank you!

Featured Event

WSAC Member Webinar: Boards of Equalization

Save the Date! The County Training Institute and the Washington State Department of Revenue are pleased to present the first webinar exclusively for WSAC members.

When:

Wednesday, October 20

10 - 11 am