County sees light at the end of its financial tunnel

Revenues are up and expenses are down from last year, but Whitman County officials are still concerned about the outlook for year-end finances.

“Our cash flow, revenue and expenditures are looking better,” Sharron Cunningham, assistant county finance director, told county leaders in her monthly finance report Monday. “But that budget deficit is pretty worrisome.”

County officials currently expect to end the year $338,000 in the hole, nearly twice the $162,000 deficit the county had at the end of 2009.

That gulf is expected to widen further as several departments account for $32,000 in increased Labor and Industry workers’ insurance.

To help close that gap, the county has moved $272,004 into its cash account. That money was given to the county by the state to account for revenue lost by the passage of Initiative 695, which limited car tab fees to $30.

County Commissioner Greg Partch said that money has been accounted for all this time, but was not figured in the county’s cash balance to keep as a reserve.

Last year, the county created a restricted account designated for reserves.

“Originally that 695 money was a rainy day fund, but when we actually created a rainy day fund, we realized we could fold it in to our overall cash position,” he said.

Now that money can be used to plug the end of year gap if needed. Partch, though, sees more revenue coming the county’s way.

“We have to watch that deficit real closely,” said Partch. “But there’s some new revenues coming our way.”

Partch said sales tax revenue will increase when the new Wal-Mart Supercenter opens its doors in Pullman this fall.

“We all know that it’s going to add significantly, but we’re not going to pencil it in until we get it,” he said.

Even with that extra revenue coming in, the county is holding firm on its request to freeze the wages of county employees.

The county’s contracted negotiating team is scheduled to meet with county labor representatives this week to continue union contract negotiations that began last fall.

The county is asking the union to give up scheduled tenure, or step, raises for this year. The union has fought that request.

“I would like to say it would be resolved this year, but I don’t think either side is moving off their position,” said Partch. “I think we’re totally hung up on this three percent.”