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Posted on Wed, Aug 26, 2009 : 8:21 p.m.

Washtenaw faces greater budget challenges than most, county administrator says

By Ryan J. Stanton

County Administrator Bob Guenzel says when the bubble burst, it hurt Washtenaw County a bit more than other counties in Michigan that are now left picking up the pieces.

Guenzel presented a report to county commissioners tonight, outlining how other counties facing financial troubles are taking steps to address major budget deficits.

The report shows few counties face the level of challenges seen in Washtenaw, where a healthy rise in the tax base in recent years is now coming crashing down.

"In some ways, our problem is bigger because we had - I call it a bubble - but a real increase in value in residential property," Guenzel said. "Now that that's gone down significantly, we're also recognizing (the loss of) our two largest taxpayers - Pfizer is now off the tax roll, and General Motors will be leaving in 2010."

Guenzel says it's crunch time for the county's budget. Over the next two weeks, he'll be finalizing recommendations to make massive budget cuts - including potential program eliminations and staff reductions - to address a $30 million structural deficit in the 2010-11 budget cycle.

Guenzel told county commissioners at tonight's administrative briefing that he'll have a list of recommended cuts available shortly, which they'll take up for consideration at the Sept. 16 County Board meeting.

"This really is a tough process," Guenzel said. "We've been balancing union negotiations and trying to juggle that with the necessary dollars from departments, trying to get more revenue, and looking at all kinds of programs and positions."

Commissioners agreed tonight that, because the financial situation is worse in Washtenaw County, it could take longer to recover than other counties.

Guenzel's report shows other counties are looking at targeted reorganizations, across-the-board reductions, use of fund balance and budget stabilization dollars, reductions in employee compensation and benefits, structural position eliminations and millage increases.

Kent County has a $15 million deficit projected for 2010, and is looking at increasing taxes in addition to cuts. Ottawa County, anticipating a $4.4 million deficit, is reviewing cuts to juvenile detention, drug enforcement and parks.

In Kalamazoo County, a $1.8 million budget deficit has retirees paying a portion of their health care premiums for the first time. Ingham County, which anticipates a $5 million deficit in 2010, now faces an $8 million shortfall ,and is looking at cutting 30 positions and eliminating road patrol.

Macomb County is facing a $15.7 million deficit for 2010, even after imposing $10 million in pay and benefit decreases and eliminating 134 jobs. Livingston County, facing a $4 million shortfall, is looking at layoffs and reorganization. Meanwhile, Genesee County is facing a $15 million budget deficit, and is evaluating a reduction plan that includes the elimination of 59 positions.

"I think we learn that we're all in this together," Guenzel said, "but it certainly varies by community."

Guenzel is scheduled to give a brief budget update at next Wednesday's Ways and Means Committee meeting at 6:30 p.m. in the county administration building at 220 N. Main St. After Guenzel makes his recommendations to the County Board on Sept. 16, commissioners are expected to weigh the options and approve the budget in November.

On the chopping block, as part of $12 million or more in budget cuts, are several programs, including the MSU Extension, 4-H, Head Start, and mental health services. Several other departments and programs face cuts or elimination, and more than 180 jobs are on the line.

"There's a tremendous amount of anxiety within the organization," said Joanna Bidlack, the county's management analyst. "Sept. 16 will be a major budget milestone for the county."

Guenzel said he isn't yet ready to reveal what cuts he might recommend in the coming weeks.

Barbara Levin Bergman, D-8th District, said she hopes a compromise can be reached to keep 4-H programs alive. She said she's approached 4-H to see if the nonprofit organization could supplement the county's funding.

"They're very difficult decisions," she said. "We're not going to be able to maintain services for vulnerable people, people the county serves, the way we would all want. It's very sad and the decisions that we're going to make are painful."

Comments

BobbyJohn

Thu, Aug 27, 2009 : 4:55 p.m.

County still wastes too much money. For example, yesterday walked by the new county building at a2 Main st., the exterior lights were on during the daytime. I went into the building to report it to a county employee. She looked at me like I was from Mars. She was not interested in the county saving money nor was she interested in the county not polluting. Multiply this in the county (and Ann Arbor)and we have hundreds of thousands of dollars a year in waste. Just driving and walking around the area, I see numerous municipal examples daily.

Roy

Thu, Aug 27, 2009 : 1 p.m.

This is mis-use of data on Mr. Guenzel's part. There was not a bubble here in housing although prices have retreated to where they were 10 years ago but our property taxes have not retreated to where they were 10 years ago. Mr. Guenzel has been a part of leadership in the area that has spent money that was not theirs. They had neither discipline nor foresight. They've written employment and retirement packages that are inconsistent with economic reality. Why are some of the new township and county buildings some of the fanciest in the area?

sageaa

Thu, Aug 27, 2009 : 9:19 a.m.

Maybe County Government could help fashion some public-private partnerships with local churches and service groups to support some of the programs that will be trimmed or cut. There are many service groups and interested citizens in Washtenaw County. Perhaps the UM School of Social Work could provide some student internship resources to help organize.....a win-win all around. Let's be creative.

DagnyJ

Thu, Aug 27, 2009 : 8:08 a.m.

Local government, county and municipal, lived fat and stupid for the last decade or so. Property values went up, and so did taxes and spending. Now government officials have to deal with change, just like the rest of us. Washtenaw is hardly unique. Get over it, Guenzel.

antikvetch

Thu, Aug 27, 2009 : 5:12 a.m.

Gosh, however did we survive fifteen years ago, pre-bubble?

treetowncartel

Wed, Aug 26, 2009 : 9:30 p.m.

Tax on entertainment and sporting event ticket sales. People will still buy these items regardless of a feew bucks extra.