Council approves further budget cuts

Tuesday Jun 16 2009 5:15 PM

The Pierce County Council today further adjusted the county's 2009 budget due to lower-than-expected tax collections caused by the ongoing economic recession.

The year's second supplemental budget (2009-7) closes an $8 million funding gap partly by reducing expenditures in the county's General Fund to $276.9 million from $281.4 million. The action reflects an economic picture that has continued to worsen since councilmembers approved a previous $8 million in budget reductions on March 31.

"This recession has gone deeper than anyone anticipated, and we have been forced to make reductions we had hoped to avoid," Council Chair Roger Bush (District 3) said. "But we remain committed to providing our citizens the core services of county government they pay for and rightfully expect."

Of the $8 million in savings needed, $4.5 million will come mainly from a 1.25 percent reduction in most county departments' budgets that the County Executive proposed earlier this month. Pension savings and lower contributions to internal county funds will make up the remaining $3.5 million difference.

Councilmember Shawn Bunney (District 1) noted that although all county departments are being asked to reduce their budgets, the Prosecuting Attorney's Office and the Sheriff's Department received less than the mandated 1.25 percent cut to help spare the county's law enforcement and criminal justice functions from further reductions.

The council chose not to borrow any cash from the General Fund balance, the county's savings account. The fund's balance stands at about $23.6 million, or 8.3 percent of the total General Fund; county practice is to keep between five and 10 percent of general fund balance available for use in time of emergencies such as natural disasters.

An amendment asks the executive to provide weekly reports beginning July 6 on details of all grant applications and how federal and economic stimulus dollars are being used. Applications for grants of $100,000 or more would be required to receive council approval before they are submitted.

"If we had not begun in early 2008 to adjust the budget for this recession, things would undoubtedly be worse," Bush said. "Today's action puts us in a better position as we move forward with the executive in preparing the 2010 budget."

CONTACT: Brad Chatfield, Council Communications Manager, 253-798-6626