For the last two weeks at the Monday briefings our county commissioners have been discussing the guidance for the 2011 budget.
As I mentioned last week, Tim wants to start out with a goal of $22.9M which is $.5M less than budgeted in 2010. Tim's reasoning is that union contracts still must be settled and they've got to figure out how to fund within a flat revenue stream. Lynda wants to do a zero based budget and scrutinize every expenditure thereby finding savings. Tim and Lynda reiterated their positions again yesterday at the briefings. Saying as little as possible, Ross appears to be going along with Lynda on this specific budget issue.
Here's what I see as a reality that must be dealt with head on in the Mason County 2011 budget development process.
Let me paint the picture. Currently for the County General Fund we spend 73% of our total funding for personnel salaries and benefits. But that's not enough for the current staffing of about 350 employees. There are three problems that I see which need some fix'n starting with the 2011 budget if we are to hold the line on critical services. These three problems are Accrued Leave Fund, retirement contributions, and union contract settlements.
As I've mentioned many times in this blog our BOCC has ignored the Accrued Leave Fund. There's a shortfall there of at least $1M. This fund pays for the unpaid leave days that eligible employees receive when they leave the county. Not only is it underfunded but in 2009 the BOCC actually borrowed from it and then forgave the loan. (Honest, I couldn't make this stuff up.)
Now comes the news that we have a "brewing pension problem" in Olympia which will be pushed down to the local jurisdictions. A recent Municipal Research and Services Center of Washington paper says that we can expect employer contribution rates for some employee pension plans to nearly triple over the next several years. This will most definitely put a strain on the Mason County budget. While it's true that we cannot dictate the contribution rates- in fact, the state will tell us what they are going to be. We must have a plan to absorb these rate increases not just in 2011 but for the following years as the rates continue to increase.
We know from BOCC proceedings that the Jail and Corrections Staff settlement will cost the county an additional $200K in 2011. This covers about 40 employees. There are another approximately 260 or so union employees still under negotiation. At this time of course, we don't know how much that will cost in additional salaries and benefits. But just going by what happened with the Jail and Corrections Staff, we can expect to see more than the modest $500K that Tim Sheldon has proposed to cover known or expected future liabilities.
The challenge for the county commissioners is to balance the budget while holding the line on critical services. The elephant in the room is absorbing 73% of the General Fund and that's not enough given current staffing levels and the realities that are looming ahead of us.
Tuesday, June 29, 2010
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I cannot wait for you to start your new job as Commissioner; I don't know why anyone would want it, but if you love a challenge... we have one for you! Thank you for continuing to inform.
ReplyDeleteFrom Paul Lovgren (paullovgren@hotmail.com)
ReplyDeleteThe kernel of the fiscal issues facing state and local governments, as I see it, are two-fold:
1. Government operations have traditionally (at least in modern times) operated on projected revenues – rather that what has already been collected and put in the bank.
2. Obligations (pension funds, etc.) - that is their realistic funding - in recent times have been pushed into future budgets for immediate political expediency.
Ideally, the solution is to require government to operate only on revenues collected for the previous two years. This should include fully funding future obligations as the priority – with funds remaining after to be used for general government operations.
Realistically, this is the worst – and the best – of times to effect needed change. Worst in that we have painted ourselves into a fiscal corner. Best in that the problem can no longer be ignored.
But how to attain the ideal – THAT- is the challenge.
One possible step towards this end would be to establish - by amendment to the state constitution - for the state and its political subdivisions to have permanent funds wherein a modest percentage of revenues, say two percent, is deposited. Once the balance accrued in the permanent fund equals or exceeds the actual revenue collected for the general fund for the previous biennium, thereafter government must operate only on a “cash on hand” basis.
An additional option would have contributions to the permanent fund continuing into the far distance future until such time as the earnings generated by the permanent fund equals the needed spending – then we could truly “retire the taxpayer”.
A friend of mine and a County Commissioner told me one time, "Everyone ought to have to spend one term as County Commissioner. No one can appreciate the job you do and how hard it is to please everyone." I agree. You've got your hands full, Lady, and as long as you can maintain an openness, people will respect you for it, I'm sure. Good blogs you've written here. Keep on keeping on.
ReplyDeleteBill said; ..."No one can appreciate the job you do and how hard it is to please everyone."
ReplyDeletePerhaps true, but as a Commissioner representing the people they must honor their constituents and the office by listening to the people. Preventing a former Commissioner to share her comments is an insult to the office and the people served. Using the public forum to instead air the "dirty laundry" as Commissioners did earlier was an embarrassment to the entire community. Mason County deserves better. Time for change and giving the office a little dignity that it deserves will in itself be a huge improvement in what we have now.
Steve