By MIKE HUFFMAN
Managing Editor
Spokane Valley News Herald
With a goal of cutting expenses without resorting to unnecessary future layoffs, Spokane County commissioners gave a lesson in “Budgeting 101” to county employees on Monday night, June 1.
The 150 or so in attendance were told by board chairman Todd Mielke that a $10 million budget shortfall was more than likely in 2010 – and that “no decisions have been made.” Payroll and benefits fall into one of the areas that the commissioners have some discretion in closing the rift between revenues and expenditures.
“We understand we have a gap,” Mielke said at the meeting, which was held at the Spokane County Fair and Expo Center in order to accommodate the expected large gathering of county workers. “It's how we're going to close it.”
Starting with a Benjamin Franklin quote – “By failing to prepare, you are preparing to fail” – Mielke outlined how the incorporations of Liberty Lake in 2001 and Spokane Valley in 2003 have eaten into the property and sales tax revenues of Spokane County. Coupled with the annexation of the Division Street Costco area by the city of Spokane and dwindling gas tax revenues, the county is finding itself in a position where costs continue to outstrip its ability to bring in money.
If the proposed West Plains annexation near Airway Heights – an area which includes a Wal-Mart store -- goes forward, it could cut $2.5 million out of the county's sales tax revenues.
“We don't have a lot of tools to fight annexation,” Mielke said, adding that it is difficult for the county to keep urban retail areas under its jurisdiction due to the Growth Management Act.
With employees' paychecks, benefits and growth in criminal justice costs each exceeding 1-2 percent each year – payroll alone could reach $112.5 million in 2010 where it was closer to $75 million just five years ago. Something has to give, Mielke said.
“We want as few layoffs as possible,” he said.
With 1,355 employees, Spokane County surveyed its workforce to gain a better understanding what it considered the best option. Most preferred some ability to retire early but still able to keep their medical benefits until able to collect Medicare once they reached 65. The county is looking to provide supplemental health benefits to eligible employees who agree to retire by July 31 of this year.
Other options being considered include eliminating the 2010 cost-of-living adjustment for county workers (1 percent of the overall budget, or $800,000 in the general fund), furloughs for employees, eliminating raises, centralizing staffing, and reducing health benefits but allowing employees to pay for additional coverage if they want.
Spokane County's budget is about $558 million overall with $170 million in the general fund. Over 73 percent of the general fund is spent on public safety – an area that the public says is its No. 1 priority, Mielke said.
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