Cobb County commissioners began the process of closing a $31.5 million mid-year budget gap Tuesday offering a range of options that included employee furlough days and cuts to the county’s bus system.
Over the next few years, Cobb could look drastically different from a county that has become known for its low taxes and plentiful services and amenities, depending on service cuts and fee increases.
As soon as May, county employees might be faced with taking a week of furlough days spread over the remaining five months of the fiscal year. Commissioners could consider cutting library, senior center and park hours, and eventually selling an amphitheater and golf course that are not self-supporting to balance future budgets.
Commissioners will vote on the options and a revised 2011 budget on April 12.
Similar to other jurisdictions, the county’s budget gap is largely tied to declining property tax revenues from the still lagging housing market. Property tax revenues make up 55 percent of Cobb’s general fund and 99 percent of the fire fund in the $403.5 million fiscal 2011 budget, spending that began in October.
The county’s shortfall also comes from utility and maintenance costs for the county’s new jail and superior courthouse, built with money from a voter-approved 2005 special purpose local option sales tax levy. Health care costs have increased 10 percent annually, and pension costs have also increased.
Commission Chairman Tim Lee called this budget relief in the lead-up to 2013, where revenues could drop $30 million a year.
Cobb’s property tax digest -- the value of real and person property which officials use to estimate revenues and determine budgets -- will be released this summer, and could decrease further dependence on the housing market.
Despite the dire outlook, most commissioners are not willing to raise property taxes in the county, which has a millage rate of 9.6 mills, one of the lowest in the area.
Before increasing taxes, the county must get its spending under control, Commissioner Bob Ott said. The county’s fund balance, a mixture of net revenues and reserves, has dropped from $60.0 million in fiscal 2006 to $39.7 million in fiscal 2010, Ott said, and $29 million are reserve funds.
“The county has been spending more than it brings in and we can’t keep doing that," Ott said. "We have to be able to afford what we offer.”
On Tuesday,commissioners heard from the sheriff, tax commissioner and district attorney. All were protective of their budgets, reminding the board that their services, and the money needed to fund them, were mandated by law.
"What we got today was a definition of constitutional officers," said Commissioner Helen Goreham, who strongly warned against saving any departments or services from possible budget cuts. "I wish we could have heard from them more about their progress in decreasing costs."
To save money, the county implemented hiring freezes in fiscal 2007 and an early retirement incentive last year, saving $6 million annually. The county also cut library hours and increased a range of fines and fees, including bus fees, which are slated to increase again in June.
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