10/23/08

Leaders struggle with revenue forecasts

by Beckye Randall

The county’s leaders are predicting even more bad news in preparation of the biennial budget, although they tend to disagree on the extent of the expected revenue shortfalls.

County Council chair Dave Somers claims the general fund revenue shortfall for 2009 has grown from $9 million to nearly $21 million, based on current spending levels. Executive Aaron Reardon responded that the council’s estimate doesn’t take into account more than $9 million in cuts already in place in his proposed budget.

However, all concede that tough times are ahead for county services and that personnel cuts are inevitable. Just how deep those cuts will go remains unknown.

In a memo dated October 13, Reardon wrote, “the national economic crisis continues to erode the county’s general fund revenue projections for 2009-2010.” Revenue from taxes on retail sales, property and business operations has been impacted by slowed economic growth and cuts in consumer spending.

The executive urged “a realistic assessment of the difficulties ahead” in a “reasoned and thoughtful” approach by the County Council.

The County Council held a special open meeting Thursday, October 16, which was attended by Reardon, elected officials and department directors. In an occasionally tense exchange, Reardon requested that the council act “as quickly as possible” to help employees better plan for impending layoffs at the beginning of next year. He has suggested that the council submit the two-year budget by October 31, with final approval by November 5. According to an ordinance passed last year, the budget for 2009-2010 must be approved by late November.

When councilmember Dave Gossett asked the executive to help identify $5 million in possible cuts, Reardon replied, “If you’d like my office to prepare a new budget, we’d be happy to do that.” Reardon’s proposed budget, submitted in early September, was discarded when the council decided it would start from scratch.

With county employees and elected officials looking on, Reardon continued, “I don’t think it’s appropriate for us at this table today to start throwing around half-baked ideas” for budget cuts.

The county has not yet received definitive figures and forecasts from the state Department of Revenue, so analysts are preparing high and low scenarios based on best estimates.

Citizens are encouraged to comment on the budget by sending an e-mail to contact.council@snoco.org, or by letter to Snohomish County Council, 3000 Rockefeller Ave. M/S 609, Everett 98201. Comments can also be made online at the county’s Web site, www.snoco.org, by entering “comment on the budget” into the search box.

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