Cobb County is facing a double-digit budget gap this year and “unsustainable” healthcare costs, county leaders heard Thursday during the annual retreat with commissioners and department directors.
The budget deficit for fiscal 2011, which began in October, is close to $20 million in the general fund, and increases to $28 million with all funds -- including fire and debt service -- combined.
Cobb, like many jurisdictions, has taken a double hit to its budget with declining property tax revenues due to the depressed housing market, along with increased healthcare costs. About 55 percent of the county’s $720 million budget is funded with property taxes, and health benefit costs for employees account for about 13 percent of the budget, making them unsustainable, said Finance Director Jim Pehrson. “We’re at the point where the ship is running out of gas,” he said.
A meeting on possible budget cuts is scheduled for Friday with the county manager and commission chairman.
Counties will continue to see lagging revenues through next year, said Mercer University economics professor Roger Tutterow, who serves on the state tax reform council which has provided recommendations on expanding the tax base beyond property and income taxes.
To cut costs in the 2011 budget, Cobb offered an early retirement plan lto eligible employees last year. Overall 236 employees took the incentive saving the county $6 million.
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