Pierce County will cut another $2.8 million in spending and make other budget adjustments as it struggles to balance its budget in the face of declining revenue.
It’s the second round of budget cuts this year, and County Executive Pat McCarthy hopes the new round will be the last in 2009. But additional cuts are expected as the county prepares its 2010 budget this summer and fall.
McCarthy said the county is experiencing the same recession-related difficulties that are affecting governments and businesses across the nation.
“This is an exercise everyone is doing, regardless of your business,” she said. “We’re not immune to it.”
In March, the executive and County Council cut spending and made other adjustments to cover an $8 million revenue shortfall in the county’s $289 million general fund. But sales taxes, planning fees and other sources of income have continued to decline as the recession lingers.
That’s left another $8 million budget hole to fill in 2009. And county officials will need to find at least $5 million in additional savings for 2010.
To address this year’s shortfall, McCarthy has proposed an across-the-board 1.25 percent cut in spending for most general fund departments. On Wednesday, budget director Pat Kenney directed department heads to offer a detailed plan for spending cuts by June 26.
Two departments – corrections and human resources – will not be asked to cut their budgets. McCarthy said the Corrections Department is already over budget because of overtime needed to staff the jail, so it’s unrealistic to impose another cut.
She said Human Resources took a huge cut – about 38 percent – in the last round.
In addition to spending cuts, the county will rely on pension savings and lower department contributions to internal funds such as facilities management and self-insurance to cover this year’s $8 million shortfall.
“We realize that departments will have difficulty in meeting this objective, and that staffing and service reductions will likely result from these cutbacks,” Kenney wrote to department heads. “However, the current economic situation and projections for next year require that these reductions be made now.”
McCarthy’s proposal may not be the final word on this round of cuts. There’s a budget ordinance pending before the County Council that includes no detail but which the council could use to place its own stamp on spending cuts.
The measure is on the agenda for Tuesday’s council meeting. Chairman Roger Bush, R-Graham, said he isn’t sure whether the council will be prepared to approve a budget ordinance Tuesday.
He said council members want more detail on McCarthy’s proposal before passing judgment.
“Our responsibility ultimately is to balance the budget,” Bush said. “The executive’s responsibility is to give us recommendations on how to do that.”
David Wickert: 253-274-7341
david.wickert@thenewstribune.com
blogs.thenewstribune.com/politics
