Washtenaw County administrator releases budget recommendations to address $30 million structural deficit
Washtenaw County Administrator Bob Guenzel's budget recommendations to the County Board of Commissioners were released today in the form of a letter on the county's Web site.
Guenzel took a somber tone explaining to commissioners, county workers and the public the hardship he faced making the second set of recommendations to address a $30 million shortfall in the county's 2010-11 budget cycle. Between 21 to 88 county jobs could be cut, depending on certain factors, under plans released today.
"This budget message comes after a long year filled with unprecedented challenges," Guenzel wrote. "Not since the Great Depression more than 70 years ago have we experienced such profound economic loss. As many have said, this is deeper and different than any downturn we have seen."
Guenzel will present his recommendations to the county board at 6:30 p.m. Wednesday at the county building, 220 N. Main St.
Dramatic changes in the auto industry, rapid deterioration of the housing market and the highest unemployment rates in recent history have led Washtenaw County down its current path. For the first time since the creation of the property equalization system 51 years ago, the county’s primary funding source - property tax revenue - has decreased from the prior year.
"Our response to this crisis must be swift yet deliberate," Guenzel wrote. "We desire strategic decisions that will assist the community through these difficult times as much as we possibly can. With the future so uncertain and change all around, it can feel as if our identity is being tested."
Mental health services are tested the most under Guenzel's plans, with $2.4 million worth of cuts proposed. That includes eliminating up to 73 full-time jobs, though about 66 of those could stay - depending on whether the Washtenaw Community Health Organization continues to contract with Community Support and Treatment Services for vocational services. That's an issue yet to be resolved, Guenzel said.
Guenzel is recommending eliminating the assistant to the county administrator for public safety and justice, which will trim $118,000 from the budget. He's also suggesting commissioners approve a new tax of 0.04 mills, which could raise $603,000 a year for economic development activities in the county and free up more dollars from the county's general fund.
The proposed tax is allowed under Public Act 88 of 1913. Guenzel proposes that revenues from the property tax - a levy of about $4 for each $100,000 of taxable value - be used to fund Ann Arbor SPARK, SPARK East, Eastern Leaders Group, 4-H, Horticulture, Agricultural Innovation, Food System Economic Partnership, Heritage Tourism and a director of Economic Development & Energy.
In building inspection services, Guenzel proposes saving $285,000 by cutting two full-time positions, plus other vacant positions. About $167,000 in reductions to general fund support of Head Start are identified in Guenzel's plan, which notes the cuts won't result in loss of positions or significant service level reductions. About $160,000 in cuts to public health are identified, $600,000 in strategic planning, $96,000 in professional development, $750,000 in support services, $731,000 in outside agency allocations and $850,000 in special initiatives.
Guenzel notes in his budget message that a recommendation for modifications to the corrections budget will be brought forward at a later day. He said the county knew when it decided to expand the jail that new positions would need to be created, and talks are ongoing with the sheriff to determine those levels. The recommended budget includes the original assumption of a $1.2 million cost increase in 2010, in addition to a previously allocated $1.5 million reserve for jail overcrowding.
About $1.7 million in cuts to basic county services are identified, including a $1.25 million to the trial court, $47,000 by eliminating one senior assistant prosecutor, $150,000 by eliminating two position in the clerk's office, and $260,000 in the treasurer's office.
"It's going to be a lot for the board to chew on, but we have a couple months with it and we'll get a balanced budget," Guenzel told AnnArbor.com today by phone. "We have to."
Guenzel's recommendations would effectively balance the budget for 2010 at $99.2 million and 2011 at $98.4 million. But 2012 and 2013 are another story, as the county's budget is expected to decline to $90.3 million. The most pressing concern, Guenzel said, comes in 2013 when the county's Revenue Sharing Reserve Fund is depleted.
Guenzel said the county's next steps are to continue dialogue with unions about possible concessions. A budget review is scheduled for Oct. 7, with a public hearing on the budget Oct. 22. The board is expected to formally adopt a budget on Nov. 18.
Ryan Stanton covers government for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529.
Comments
NEWMICHNOW
Sun, Sep 13, 2009 : 8:04 p.m.
Be wary of Barrie you mental health leader. He has no moral conscious and is simply self-serving and a criminal to boot! In the Press Release regarding his hiring earlier this year they forgot to inform you that he was part of the Engler Administration. He was kept on only as a result of several individuals (who regretted it latter) that responded in support of him when he came crying for their help so he wouldnt lose his job. The current administration was going to let him go before the end of his contract but was afraid he might cause them problems. He has a personal vendetta against the local public system as they got fed up with his intentional lies and deceit when he was at the state. This guy is one major psychopath!
Sandy Castle
Sun, Sep 13, 2009 : 12:30 p.m.
Actually, ownrdgd, you don't have to shut your mouth. The more you open it the less people regard what you have to say because it's quite obvious to anyone reading your comments that you are ranting without proof to back up your complaints. Any time anyone sees abuse of the county system they should file formal complaints with the appropriate departments, of which annarbor.com's blog is not one. I do not believe the county arbitrarily disregards formal complaints. However, I am also not a conspiracy theorist. County Commissioners are elected officials. Don't vote yours back in if you don't like their performance, or lack thereof.
ownrdgd
Sat, Sep 12, 2009 : 8:45 p.m.
I've seen a gray ford crown victoria with (washtenaw county commissioner) lettering in black parked at the dentist office on central street at 11 am in recent weeks.(really doing county work isn't he)so don't tell me they don't use county property for personel use.
ownrdgd
Sat, Sep 12, 2009 : 8:36 p.m.
The trucks/pick-ups belong to the road commission and they were reported to the county sheriff,about them buying beer after work and like all counties they will not do anything about their own employees.And to heck with all that think I am going to shut my mouth about what I see.Its morons like sandy castle that close there eyes and let things go on.I am fed up with the waste of tax dollars in washtenaw county I am fed up with the road commission using 4 plus pickups to observe the road project on jackson rd all day parked at the trailer next to country side lawn store doing absolutly zero work for 6 days a week.Open your eyes morons its your tax dollars going down the drain.
David Wallner
Sat, Sep 12, 2009 : 5:49 p.m.
Come on Washtenaw County did you think you were going to dodge the bullet? Pfizer closed up shop in 2007. The auto sector has been going into the dumper for years and trouble in housing is also yesterday's news. Maybe the belt tightening should have started a few years ago. I'm sorry but I really don't have much sympathy and I surely don't want to hear talk about tax increases. What I have to do is cut my spending until it matches my income. You'll get used to it after a while.
Sandy Castle
Sat, Sep 12, 2009 : 4:28 p.m.
ownrdgd, if you have proof that county workers are drinking in county vehicles, please report that to the police or to the department supervisor. The county department that the vehicle is from is listed on the door of the vehicles, underneath the county logo. If you don't have proof, shut your mouth. All your comments do is create ire and negativity. I am not a county employee, but I do buy beer. I do not, however, drink it in my car. So to assume that when you see someone buying beer that they are drinking it in their cars is ludicrous.
ownrdgd
Sat, Sep 12, 2009 : 10:12 a.m.
All we have been hearing about the last year or so is how broke the county is,yet they still let all the big shots and foreman and county commissioners take cars and pickups home every night.I also see many,many county roads pickups hanging out at the local party stores in any direction right after work buying their 12 packs for the long slow ride home.I thought it was against the law to drink and drive. I for one and I am sure many others are also fed up with there wanting to cut services and lay it on the taxpayers back for most of your demise.Clean up your own waste before passing it on to taxpayers.