On Wednesday of this week County Council Chair Dave Gossett, joined by other elected officials, spoke to county employees regarding the county's budget situation. The same presentation was made a day earlier to elected officials and representatives of organized labor.
"Snohomish County elected officials have been meeting monthly at the request of Vice Chair Dave Somers and myself to develop a collaborative framework for the development of the 2011 budget," said Gossett. "We've agreed that communication is crucial and the first step is to make sure our employees have the same information we do."
As a result of the economic crisis that began in late 2008 county revenues have plummeted. Sales tax revenues, a key component of local government financing, has particularly fallen. While originally estimated to equal $54 million in 2009 the actual number was less than $38 million. This trend has continued into 2010.
"The suddenness of the shift also had a major impact," noted Gossett. "In the last three months of 2008 the county went from being on sound financial footing to having to spend nearly $18 million of our reserves."
The county has used a wide variety of strategies in the face of the economic turndown. Nearly 100 General Fund positions were eliminated in 2009. Nearly 150 positions were eliminated in other funds as well. Furloughs were mandatory for many employees in 2009 and for all non-union employees in 2010. Hiring for most positions is frozen, with special Council approval required to fill those positions. Spending for supplies, training, maintenance and other items has been slashed.
Economists now agree that while it is clear that the economy is recovering the recovery will be slow. Additionally there are more negative impacts, such as annexations, expected in future years.
"We have worked to minimize the impact of reduced revenues on services to the public in hopes the economy would recover more quickly," said Gossett. "As a short term strategy these actions have worked. But it is clear now we need a long term strategy."
All county elected officials are working together to develop a budget that is financially sustainable for the next five years. The shortfall for 2011 is roughly $19 million, or nearly 10% of the General Fund budget. Failure to make changes would lead to a $110 million deficit by 2015.
"We will not allow a deficit to happen," promised Gossett. "We've already adjusted this year's budget to add money to our reserves by making additional spending cuts."
Gossett told employees that all options are on the table. He invited employees and their labor representatives to provide the elected officials who are working on the budget with any ideas they have.
