County Executive News

County Executive Plans for Budget Cuts to Close Mid-Year Budget Gap

Economy, Significant Revenue Losses Create Budget Shortfall

County Executive Mike Breslin called on County agencies today to reduce spending to address a County budget shortfall of $20.5 million in 2009 due largely to a significant decline in sales tax revenues and State budget cuts.

"There are no clear signs that we will see an upturn in the local economy soon," said Breslin. "We expect continued decreases or a lack of growth in sales tax revenues and increases in unemployment. It is critical we take actions now to address this shortfall."

The most significant revenue losses for the County in 2009 are in the following areas:

• Sales tax receipts are estimated to be down over $12 million for 2009;
• State budget cuts have decreased revenues to the County Nursing Home, Correctional Facility and for other County programs, for a total loss of $7.8 million; and
• Interest earnings are estimated to be down $5 million.

The County is also facing unexpected increases in expenditures, including:

• $600,000 for the Safety Net program, which provides assistance for individuals and families who are ineligible for other federal public assistance programs;
• An additional $2.3 million for community college tuition; and
• $550,000 for road salt for next winter.

In spite of $12.1 million in federal stimulus funds allocated to the County this year through the Medicaid program, the County is still left with a shortfall of $20.5 million. This represents approximately 30 percent of the County's tax levy of $67.9 million.

Departments Directed to Drastically Reduce Spending

Breslin called on County departments today to re-examine their 2009 budgets, giving each agency a target, which they must meet by decreasing spending and making programmatic and operational cuts. The County will also consider countywide expenditure reductions including:

• Furloughs,
• Pay and benefit reductions,
• Separation incentives; and
• Layoffs.

The County will examine all expenditures, large and small, including restrictions on out-of-county travel, non-mandatory training and purchases. In addition, Breslin will begin to look at ways to reconfigure functions and review non-mandated programs to determine if the County can continue to provide those services.

Breslin said, "We remain committed to our core mission of assisting the less fortunate, children and seniors, but we must look closely at each function the County performs and develop a plan to provide only those services within our resources. In the coming months, we will be making difficult choices and looking for new and innovative ways to serve our most vulnerable residents."

Breslin will present a plan to close the budget gap to the County Legislature next month.

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