While Gov. Rick Snyder was giving his State of the State address Wednesday night, the Washtenaw County Board of Commissioners received a report on a $3.9 million structural budget deficit it may face in 2014.
County Administrator Verna McDaniel gave commissioners a preliminary look on the county’s finances over the next four years Wednesday, and urged them to consider making a four-year budget plan instead of a two-year plan to give the county more fiscal stability.
The county will be spending $3.9 million more than its revenue forecast for 2014.
It’s not as tall of an order as the $17.5 million in cuts that the county faced two years ago at the beginning of its 2012-13 budget cycle.
General fund revenues by source, of which property tax accounts for 59 percent.
Courtesy of Washtenaw County
McDaniel if the board chooses to make $6.9 million in cuts for the 2014 budget, the structural deficit would be eliminated from the county’s finances in the future.
It can be done, according to McDaniel, who presented this approach: Raise $1.2 million more in revenue while cutting operations by $2.96 million, employee compensation and benefits by $2.62 million and $100,000 from its funding of outside agencies.
Employees have made a number of concessions in previous budget cycles, including banked leave days.
McDaniel wants to eliminate furlough days and banked leave days for employees in future budget cycles - though personnel costs account for 67 percent, or $65 million, of the county’s general fund expenditures.
How the county spends its money: 54% is on public safety and 18% is on judicial services; 23% is for general government activities.
Courtesy of Washtenaw County
Property tax revenues continue to decline for the county, though McDaniel said she anticipates stabilization within the next four years.
A number of uncertainties with the state’s plans for personal property tax, as well as some federally-funded programs, are also in the mix as the board considers cuts.
The board seemed receptive to McDaniel’s presentation, but most commissioners kept their reactions and recommendations quiet during the Wednesday meeting.
The Commissioners will be convening in a retreat to hash out budget details in February. A budget will be finalized by September, and the public will be able to give comment in October before the board adopts the plan in November.
Amy Biolchini covers Washtenaw County, health and environmental issues for AnnArbor.com. Reach her at (734) 623-2552, amybiolchini@annarbor.com or on Twitter.