Pierce County officials are considering job cuts and fee hikes to balance the 2010 budget even as they consider additional measures to keep the county in the black this year.
Increases in building, planning, and parks and recreation fees likely will be part of the 2010 budget to be unveiled by County Executive Pat McCarthy next month, budget director Pat Kenney told the County Council at a budget meeting Tuesday.
Kenney also spoke of job cuts – possibly in the form of layoffs or furloughs – and said the county will seek to raise the cost of health care for county employees.
Kenney’s message was short on details, which will come when McCarthy unveils her budget. But he made it clear that even with fee increases, big spending cuts are coming to county government.
“We are going to be having more cuts that have a bigger impact in 2010,” Kenney told the council.
Pierce County already has been through two rounds of budget cuts this year. The executive and council have cut more than $12 million – or about 4 percent – from the general fund, which includes basic services such as law enforcement and elections.
Results have varied by department. The Planning Department, for example, is closing its development center for nine days this year because of furloughs. And the Parks Department is cutting back on maintenance.
Despite those budget revisions, Kenney said the county is still expected to finish the year with $4.5 million less revenue than budgeted. That could be higher or lower, depending on what happens later this year with sales taxes, property tax receipts and other income.
About $1.5 million of the revenue shortfall will be offset by pension savings. Kenney hopes departments also will save more money by not filling vacant jobs in coming months. And he said McCarthy plans to cover any remaining 2009 shortfall by tapping balances in the county’s self-insurance and facilities management funds.
Still, some council members are talking about a third round of 2009 budget cuts sooner rather than later.
“Things could turn significantly worse, and then we’re in a world of hurt,” said Councilman Shawn Bunney, R-Lake Tapps.
Next year looks even worse.
If preliminary estimates are accurate, Kenney said the county will have to find $5 million to $10 million in cost savings.
Kenney said job cuts of one kind or another are likely. Some vacant jobs could be cut. But layoffs or furloughs also are possible.
The county also will begin union negotiations over health care costs next month. Kenney told the council that health insurance costs are expected to rise 13 percent to 15 percent next year.
He said employee costs under the county plan are low but will have to increase in the face of rising costs.
McCarthy will present her proposed 2010 budget to the council Sept. 29. The council will have the final say about spending priorities and fee hikes.
David Wickert: 253-274-7341
david.wickert@thenewstribune.com
blogs.thenewstribune.com/politics
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