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County Budget Problems Continue
In late February Executive Reardon informed the Council that revenues in the fourth quarter were significantly below what had been anticipated. As a result, another $4.8 million of reserves had been spent, dropping reserve levels to only 4.7% of the budget.
"Reserves at this level are not even enough to meet our cash flow needs," said Councilmember Dave Gossett. "The county is using short term loans to pay our bills some months. We need to take steps to change that."
Following the Executive's presentation the Council asked that Executive and Council staffs work together to see if the revenue estimates for 2010 needed to be adjusted and the 2010 budget reduced. The Executive submitted the results to the Council last week.
The proposal calls for a reduction in revenues of $3.6 million. Departments would face an additional 2.55% across the board cuts. Those cuts, plus a variety of other fund shifts, would reduce general fund expenditures by $6.5 million, allowing an increase in the reserves of $2.9 million. These cuts are in addition to the cuts made in 2009 and 2010.
"This week I met with the Executive and the other independently elected officials to discuss the proposal," said Gossett. "While no one is happy about new budget cuts, everyone agreed it must be done. Next week the Council will set the date of a public hearing to take final action."
While addressing the 2010 shortfall, serious budget problems continue in 2011 and beyond. Initial projections of the 2011 budget shortfall are approximately $17 million.
"The county needs to move beyond short-term fixes to get through the year and to long-term budget sustainability," said Gossett. "Our budget problems go beyond 2011."
In addition to the 2011 budget shortfall there are a series of factors which will negatively impact out-year budgets. Some of those factors include:
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Federal stimulus dollars are currently funding programs and positions. As those dollars go away cuts will be necessary.
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The legislature allowed the county to use millions of dollars from the mental health sales tax for already existing mental health related services in the 2010 budget. Each year the amount of money used for previously existing services must be decreased, reaching zero in 2015.
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Large annexations are expected in the next few years.
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Reserves must be increased by millions of dollars to an adequate level.
"Across the board cuts work for small problems or for the short-term," noted Gossett. "To provide consistent services to our citizens we need to make permanent cuts in programs. We need to take a comprehensive look at what services the county is required to provide and what the priorities of our citizens are."
Gossett plans a series of meetings with all other elected officials during the year to accomplish that goal. Opportunities for citizen input will also be provided. The results will be implemented in the 2011 budget.
"We've got to put everything on the table," said Gossett. "We will look at all options." | 
