Wal-Mart tax, prisoners and reserves will balance budget

Wal-Mart sales tax revenues, farm implement taxes, an extra influx of federal prisoners and a third of a million dollars from cash reserves are being used to put Whitman County’s 2011 operating budget in the black—sort of.

“I’m not smiling,” said Greg Partch, chair of the county commission. “We’re still gonna have to burn our cash to balance it.”

Unexpected revenue gains erased $213,437 from the anticipated $539,012 year-end deficit.

Commissioners have committed to plug in $330,000 from the county’s cash reserves, but at present the tap could be $317,236.

“I’m concerned, though, that as we move forward, this type of spending is not going to be sustainable in the future,” said Partch.

Bottom line on the budget amendment is a revenue increase of $337,155 and a spending increase of $123,718. The amendment bumps the 2011 operating budget from $12,306,932 to $12,767,805.

County office heads were instructed to slice 2.81 percent from their 2011 spending plan after commissioners passed the 2011 budget with a $660,000 deficit last December.

Biggest factor in the plus column is Treasurer Robert Lothspeich’s adjustment of sales tax revenues.

Lothspeich expects the county will receive $260,000 more in sales taxes over the $302,230 he originally forecast at the start of the year. Most of that additional revenue comes from sales at the Pullman Wal-Mart which opened last October, and from new taxes coming in from farm machinery sales after an exemption expired earlier this year.

“There’s some money coming in,” said Commissioner Pat O’Neill. “Wal-Mart’s made a huge dent.”

Despite the strong revenue returns, O’Neill, like Partch, was pessimistic about future spending.

“I think we may have a lot of future bumps in the road,” said O’Neill. “We’re fortunate, because we have not had to cut service to the public or cut employees yet.”

Fran Martin, director of the county health department, noted her staff has been stretched thin. Martin said she has left an open nursing position unfilled to balance her department’s budget.

With only six nurses on staff, she now expects her department will not be able to provide schools with their requested level of nurse staffing during the upcoming school year.

Martin cut $30,000 from her health department budget in the proposed amendment.

Sheriff Brett Myers also adjusted his spending down because of staff gaps. Myers delayed replacement of a retired deputy earlier this year, saving payroll for that period. The new deputy was also hired at a lower pay rate.

That delayed replacement saved Myers $11,000 from his budget.

Myers also added an extra $30,000 in expected revenue for this year because he is housing more prisoners in the Whitman County jail for the U.S. Marshall’s office.

“Obviously we’re not in the money making business in law enforcement,” said Myers. “But when we get a chance to help out the general fund, we will.”

Three years ago, Myers began housing federal prisoners here. The feds pay about $1,800 per month per prisoner. At first, Whitman County only kept three prisoners, but that number ramped up to five last year and as many as eight for most of 2011.

Thus far, the federal inmates have not prevented the county from housing local inmates, but Myers said eight federal prisoners may be the maximum his jail can accommodate.

Prosecutor Denis Tracy added $16,000 in new revenue in his amendment proposal. Tracy said that sum came from a higher number of pre-trial dismissals this year.

Tracy said his office gives some less serious offenders an option of dismissals if they pay for costs spent on the case. He has had more of those cases this year than originally anticipated.

Additional expense in next Monday’s budget amendment will be in the commissioners’ budget, primarily due to an assessment from the county’s property and liability insurer.

Maribeth Becker, commissioners’ clerk, said the Washington Rural Counties Insurance Pool has paid out more in claims this year than it has taken in premiums. That means each county in the pool has had to feed more into it.

For Whitman County that means an additional $216,354.

Commissioners will hold a public hearing on the budget amendment during their regular meeting Monday, at 11 a.m.