BCC Facing Tough Budget Decisions

by Commissioner Jeff Koons

May 13, 2008

Folks, I’m sure I don’t have to tell you that things are really tough. Our national and local economies are sputtering, fuel and food costs keep soaring, houses aren’t selling, and property values continue to drop. Combined with state-mandated property revenue cuts and passage in January of a second $25,000 homestead exemption, county government is facing its most difficult budget process in years.

We were already anticipating about $80 million less in general fund revenue when we received more bad news from the state: Funding from state revenue sharing and sales and telecommunications taxes are about $7 million below projections for this year and next year. This additional shortfall, not to mention lower than projected revenues from franchise fees and utility and gasoline taxes, will be very difficult to make up.

We may have no choice but to dip into reserves or cut or reduce some programs and services. Job cuts are also a possibility. The county currently has more than 500 vacant positions. While this is twice the historic number, only half of these are paid for out of the general fund. Many of these openings are the result of a selective hiring freeze, but some are due to inability to hire. If all of the general fund vacancies were eliminated -- and some can't be -- we would only save about $10 million.

We have asked each county department to submit a budget for next year that is at least five percent lower than this year’s. Employees have already given up their regularly scheduled merit increases in the current year's budget.

The Sheriff’s Office is seeking a $36-million budget increase, which we are trying to absorb within state-specified revenue limitations. But it will be impossible to fund future increases in the sheriff's budget without additional tax revenue. To the extent that we use one-time sources, such as reserves, to balance next year’s (2008-09) budget, it will leave us that much short the following year.

As my fellow commissioners and I wrestle with all these financial issues, I assure you it will not be done in a vacuum. The board remains committed to involving the public as much as possible in our budget process. In January, we held a series of public budget forums around the county, and hundreds of citizens offered comments in person and via an online budget survey.

There are several more opportunities for you to comment on the budget before we make a final decision. I hope you will plan on attending one or more of the following:

As always, I welcome your comments and suggestions. Please feel free to contact me or my staff at 355-2202.