Employees on block as county looks at budget

Whitman County leaders may have to lay off employees to meet this year’s spending target.

The “crystal ball prediction,” as Commissioner Michael Largent tagged it, from the beginning of the year has the county’s government spending $570,000 more than it will collect in revenue.

“I get a feeling it’s going to rise,” Commissioner Greg Partch said after a workshop session on the year’s first budget amendment Monday afternoon.

Increases in the county’s contribution to employee retirement, health insurance and disability benefits could add as much as $70,000 to the various departments within the county’s $12.3 million operating budget.

Revenues may help offset the increased costs with sales tax returns coming in better than expected, according to Treasurer Robert Lothspeich.

County leaders will try to fill the gap by amending the 2011 budget. Commissioners started the amendment process by asking department leaders to prepare their rest-of-the-year spending plans Monday.

Once those plans come in, county finance officials Gary Petrovich and David Ledbetter, Jr., will determine how far they go to closing the gap.

The budget amendment will be put before the public in a hearing Aug. 15.

Leaders were instructed to slice 2.81 percent from their 2011 spending plans before commissioners passed the 2011 budget last December.

Of the total budget, employee salaries and benefits are expected to account for almost three-fourths of the county’s operating costs.

Partch said that means department cuts will have to primarily come from their payrolls.

“All the paper clips and pens are gone,” he said. “We don’t make a product, we’re in service. When you’re in service, the only real expense you have is people.”

The alternative is to cover the expected spending gap out of the county’s $2.5 million cash reserves, which is about one-fifth of the budget.

But Partch said that cash is used to cover monthly bills, as payments go out before revenues come in.

Commissioners also hold the strings on a $1,119,029 restricted reserve that can only be tapped at their discretion.

“I will not agree to touching the restricted reserve to fill that gap,” avowed Commissioner Pat O’Neill. “We’re in the negative, but we have to figure out another way to fill that gap.”

Commissioner Michael Largent maintained a broader look at the spending in each department may narrow or expand the deficit. He was hesitant to discuss the matter before taking that bigger picture.

Commissioners noted their hands are tied as far as developing new revenue to cover spending.

“There just are not a lot of options for counties,” said Partch, noting towns and cities have the option of increasing utility rates to generate more revenue.

The county does have the option to ask voters to increase the local sales tax by as much as three-tenths of one percent.

None of the commissioners were in support of asking for that increased tax, saying it would worsen the lives of citizens while making only a small dent in the revenue shortfall.

Partch said construction of First Wind’s Palouse Wind project in the northern part of the county would help generate additional revenue once it is in operation.

As for the long-proposed stateline strip mall of Boise-based Hawkins Companies, Partch said that project may not provide additional revenues for quite some time.

“There’s really no rumblings on that that I’ve heard anywhere,” said Partch.