Finance team outlines efforts to realign 2009-2010 county budget

Vancouver, WA – Major adjustments must take effect by July 1 to keep the county on a stable financial footing, County Administrator Bill Barron said Wednesday during a crowded work session with the Board of Clark County Commissioners.

Barron said the 2009-2010 budget adopted in early December reflected the recession that spread through the economy in 2008 and was very conservative in forecasting difficult business conditions through 2010.

Unfortunately, the economic contraction over the last six months has proved to be “beyond difficult, to the point of excruciating,” he said. “This means we must move quickly to prevent a deficit that could be as high as $18 million before the end of this budget cycle.”

The most immediate goal is to limit increasing pressure on the General Fund, which serves as the county’s primary operating fund. After intense study, an interdepart-mental finance team presented a two-part plan for the Board to consider during the work session. Decisions regarding “Part I” will determine the size of the projected deficit that remains for individual departments to resolve under “Part II,” Barron said.

Part I: Balancing the Budget Overall

· Maintain a core staff to perform essential functions in the Department of Community Development; reduce the need for the General Fund to make up for sharp reductions in development activities and related fees.

· Redirect part of the Real Estate Excise Tax to make payments on bonds sold to finance previous capital investments; accept delays in some future investments.

· Use more of the Road Fund to pay for the Sheriff’s Office to patrol county roads; accept delays in some road projects.

· Implement state legislation to reduce the amount employers invest through 2010 to generate earnings to pay for future pensions from the Public Employees’ Retirement System. Prepare for a projected increase in employer contributions to the investment funds by 2011.

· Reduce the budget for fuel, based on recent experience and projections for gas prices.

The Board endorsed most of the strategy outlined in Part I, but called for more time to consider elements related to Community Development.

Part II – Balancing the Budget in Each Department

Once the policy decisions are answered under “Part I” above, the plan calls for departments to meet targets to reduce projected spending from the General Fund. The Budget office would calculate the targets as a percentage of General Fund budgets previously set for July 2009 through December 2010.

“Part II” would not apply to Community Development, which is facing a major reduction before the “Part II” targets are set.

Department heads will determine how to meet the new targets after considering their circumstances and options. They will make every effort to preserve jobs and services, while recognizing that payroll costs represent a substantial part of the budget, Barron said. Pay and benefits will continue to be among the topics for ongoing contract negotiations.

“Obviously, some things will have to give. We simply will not have the revenue to keep everyone employed full time and meet all of the goals previously set for the next year and a half,” he said. “Even so, I fully expect cooperation, collaboration and innovation to demonstrate our strength as an organization that stands ready to serve a strong community, despite the challenge.”