Budget shortfall has Cowlitz County looking for cuts
Tuesday, September 9, 2008 12:30 AM PDT
By Tony Lystra
Cowlitz County faces a budget shortfall of at least $2.4 million this year and an additional shortfall of at least $2.7 million in 2009, county officials said Monday
Specific cuts are not yet being discussed, but county commissioners said they will ask all of their departments to reduce spending by a total of 4 percent of the county’s $40 million general fund.
“We’re going into tough times,” Commissioner Axel Swanson said. “I’m really worried. ... It’s the most important thing on this desk right now.”
Claire Hauge, the county’s finance officer, said the shortfalls are the result a reorganization of world financial markets following a national credit meltdown; a slowing local economy that has brought layoffs among the county’s major employers; and state statute, which limits the county’s property tax revenues to annual increases of 1 percent.
Sales tax revenues are flat, Hauge said, and low interest rates have deflated the county’s returns on its investments.
The news comes just seven months after commissioner George Raiter predicted in his State of the County address that new manufacturing jobs and a diversifying economy might stave off the effects of this year’s national economic slump.
“That didn’t happen,” Raiter said Monday. “We don’t expect growth in the economy.”
The county’s financial outlook is, at best, expected to remain strained for the foreseeable future, he said. If it worsens, Raiter said, “drastic cuts” will be necessary.
The shortfalls affect 34 departments, including the Sheriff’s office, jail and courts. Hauge noted that departments usually finish the year at least 4 percent under budget. But, she said, the county is now making the reductions mandatory for this year and 2009.
The reductions, Hauge said, will be left to the discretion of department heads, and some departments will be asked to scale back more than others.
“I’m hoping the departments will cooperate,” she said. “They understand the situation we’re facing.”
If all goes according to plan, Hauge said, the county will be able to use its reserve fund to offset the deficits.
The county receives property tax payments twice each year and uses its reserves to operate during the months between those payments. If the economic picture doesn’t worsen, Hauge said, the county will have enough reserves to last through 2010. But there is “no margin of error,” she said, and the 2010 budget “must be in balance.”
Hauge said the situation closely resembles that of 2001, when manufacturing plants closed, the state’s 1 percent cap on property tax revenues was being implemented and a national slump undermined the economy.
In that case, as with this one, the county could have weathered any single problem, she said, but all of them combined forced commissioners to scale back spending.
“It’s like the perfect storm we had in 2001,” Hauge said. “This is another perfect storm.”
Only two years ago, the county appeared to be emerging from its economic troubles. In 2006, with revenues forecast to increase, commissioners added 28 new employees to the county payroll.
Hauge recalled Monday that she’d been “nervous about adding that many staff positions that quickly.”
A year later, commissioners approved what they called a “hold-the-line budget” for 2008 and 2009. At the time, Swanson said 2008 would be a “hold-your-breath kind of year.”
Asked if the county had hired too many employees too fast, Swanson, who began his first term in January of 2007, noted that he was not on the board when the 2006 budget was drafted.
Although revenues were increasing, he said, the commissioners “probably could have been a little cautious.”
Still, Raiter said Monday that he doesn’t believe the county overextended in 2006.
“You have to go on the best economic information you have,” he said.
The new employees, Raiter said, included public defenders, whose expense was offset by the elimination of contracts with freelance lawyers. He also noted that the county didn’t add employees in 2007.
Raiter said continuing interest from new employers could bounce the county out of this slump faster than the rest of the country. A glass company is expected to open in Kalama, he noted. A new grain elevator should begin construction at the Port of Longview. And, although he wasn’t specific, Raiter said an additional new employer may soon bring 200 jobs to the county.
“We will see a quicker upturn than the national economy,” Raiter said.
feistyone wrote on Sep 9, 2008 6:01 AM:
bizowner wrote on Sep 9, 2008 6:44 AM:
Rural Citizen wrote on Sep 9, 2008 8:03 AM:
Oh, I forgot. You're NOT allowed to speak at ANY meeting unless you were there the very first meeting the subject was brought up. In other words, you can't participate in any decisions or have any input in this county unless you attend each and every single meeting from start to finish, WITHOUT PAY that the commissioners have.
With exclusionary rules like these it's no wonder you are planning to put an explosive grain elevator in Longview that if it explodes, can wipe out half the city. "
DW wrote on Sep 9, 2008 8:10 AM:
overeducated wrote on Sep 9, 2008 9:21 AM:
overeducated wrote on Sep 9, 2008 9:30 AM:
TDN Bad Boy wrote on Sep 9, 2008 9:44 AM:
Louie wrote on Sep 9, 2008 9:44 AM:
If my home is now increased in value by $40,000 yet property tax revues can only go up 1% I don't understand how that computes. I know my taxes will go up more than the voter mandated 1%. Can anyone explain that to me?
The credit crunch with the housing fiasco has been coming for quite a long time and if the commissioners didn't see it affecting Cowlitz County they were asleep on the job. "
My Kids' Mom wrote on Sep 9, 2008 10:12 AM:
Lucky7 wrote on Sep 9, 2008 10:47 AM:
jessizmomma wrote on Sep 9, 2008 11:09 AM:
DW wrote on Sep 9, 2008 11:53 AM:
Gondolapete wrote on Sep 9, 2008 12:16 PM:
speak into the microphone wrote on Sep 9, 2008 12:28 PM:
DUH wrote on Sep 9, 2008 12:44 PM:
Lucky7 wrote on Sep 9, 2008 1:27 PM:
Louie wrote on Sep 9, 2008 1:45 PM:
RealityCheck wrote on Sep 9, 2008 1:46 PM:
Atrucker wrote on Sep 9, 2008 1:46 PM:
this family belongs to the Alumanati and if you think they care about what happens to you think again . The S!@#$ is about to hit the fan folks . Werther it be county , state , federal it will not matter. The new world order is about to happen . "
TDN Bad Boy wrote on Sep 9, 2008 1:48 PM:
skeezix wrote on Sep 9, 2008 1:51 PM:
DW wrote on Sep 9, 2008 1:52 PM:
country gal wrote on Sep 9, 2008 1:54 PM:
Gondolapete wrote on Sep 9, 2008 1:59 PM:
#1 kelso mom wrote on Sep 9, 2008 2:23 PM:
Taxpayer & Voter wrote on Sep 9, 2008 2:44 PM:
DUH wrote on Sep 9, 2008 2:51 PM:
cheney119 wrote on Sep 9, 2008 3:43 PM:
flatbakman wrote on Sep 9, 2008 4:40 PM:
PanDering wrote on Sep 9, 2008 5:10 PM:
US for that matter.
What did we all expect? That the county had some kind of miracle child budget and cuts or belt-tightening (which is what Longview reportedly needed to do!) could be avoided?
As far as assessment of property. That's a job that is done for all of the above stated "agencies"/cities so they can have revenue, including the county and the state. Taxation is how government gets revenue. Got a better plan?
I haven't looked at my property tax statement totals lately, but I remember it does have line items of: At least 50+ % for our schools; some for Fire Districts; Some for diking districts; some for veterans; some utilities; some for mental health and so on.
It doesn't take a rocket scientist to know we have to pay for services.
Geez Louise move to some other country and see what that governement would do to your wages, taxes, home ownership, gas, roads etc. Grow up and get a life and "quitcherbeefin". "
msfans wrote on Sep 9, 2008 5:13 PM:
DW wrote on Sep 9, 2008 6:26 PM:
Cheney119 wrote on Sep 9, 2008 6:45 PM:
cynic954 wrote on Sep 9, 2008 7:54 PM:
dsd wrote on Sep 9, 2008 8:05 PM:
bizowner wrote on Sep 9, 2008 10:11 PM:
Clearly our County leadership has been acting without regard to these limits and now are caught looking surprised. They have been living off new construction taxes which are outside the limits and those have slowed - no surprise there.
http://dor.wa.gov/content/getaformorpublication/publicationbysubject/taxtopics/propertytax/onepercentqna.aspx "
PatRiotic wrote on Sep 9, 2008 10:43 PM:
Old Charlie wrote on Sep 9, 2008 11:35 PM:
Drayvan wrote on Sep 10, 2008 9:55 AM:
r-man wrote on Sep 10, 2008 1:16 PM:
Common Sense wrote on Sep 10, 2008 2:20 PM:
If taxes pay for cops, firefighters, hospitals, etc...then we are safer.
If taxes pay for better roads, better education, better health care systems, etc...then we are safer and happier community.
If taxes pay for the assisted living for those that can't help themselves (children, mental health issues, loss of work, insurance for the under insured) then that spells a better place to raise children and families.
Everyone needs to put taxes and lawmakers in perspective. It seems that many people are placing the word taxes and lawmakers into the arena of "us against them." Call me an idealist here, but I feel living in a safer state, a better community, a better served population regarding healthcare and education is much more important than a small tax increase would cost. Do you folks realize that by not paying now, we will be paying triple when everything hits the fan. Look at the drug problem for an example. For the conservatives out there, your complaint is why should you pay more than the rest. My answer; $30 a month in taxes is relative to a young couple scraping by and paying $20...Put life into perspective!
~Common Sense "
country gal wrote on Sep 10, 2008 7:30 PM:
PanDering wrote on Sep 11, 2008 11:35 AM:
I am with you. But to pander to "country gal's" statment, I guess we need to think technology to take the place of more county workers so they can be unemployed, and to let the tax payers can save money???? What?
To me that is what is being said here.We want the services, but we don't want to pay the people to do them. That isn't very well thought out. You, the voter ???? hired some authority figures: Sheriff, judges, Assessor, Auditor, Clerk, Treasurer and some financial overseers called Commissioners, but you object to paying them? Then they hired professionals to oversee the work. Who hired people to do the work. Does anyone realize what services the county provides? How does the work get done if we don't pay them. And please drop the argument that "You" the tough-minded would do it for free. Yeah, that would last about the first time someone sues you for your decision making, which would be on a daily basis. If you don't know "What's Cookin' and "How to cook", or you haven't ran for one of those positions, please do us all a favor and stop blogging nonsense. I want to hear real solutions. I will ask a Commissioner. I believe there is more to the story than what TDN reported. "
country gal wrote on Sep 11, 2008 1:16 PM:
PanDering wrote on Sep 11, 2008 4:17 PM:
I don't think it is me that isn't looking at the full picture. Either you don't work or you don't have respect of the person who works for a living.
With the union demands as they are now days, which means dedicated worker representation, to even entertain a pay cut, for 600 or so public agency workers, would take months of negotiations, thousands of dollars of attorney fees, and no resulting savings. A reduction in force, due to loss of revenue, translates into a free pass to have employees cut, not our pay. "
PanDering wrote on Sep 11, 2008 4:23 PM:
I get it your house, property,farm, or whatever went up in value. How does that relate to higher property taxes? I got my statment and it didn't give a new tax value. "
PanDering wrote on Sep 11, 2008 4:27 PM:
Now I have questions.
Drayvan,
What $9M Juvenile Center? They built that without asking. We voted no on funding the adult jail. "
country gal wrote on Sep 11, 2008 6:38 PM:






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