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County anticipates cutting positions in 2009 CROW WING COUNTY BOARD Senior Reporter Facing a substantial budget deficit for 2009, Crow Wing County may have to cut 20 to 30 positions.
That budget message was before the county board Tuesday and was going out to employees in the afternoon.
County Auditor Deborah Erickson said a combination of events - economic conditions, rising personnel costs and taxpayer levy limits - mean the county cannot continue business as usual because it doesn't have the money. Without making changes, Erickson said the county may face a $2 million deficit for 2009 and deficits may be larger in coming years.
"Things are going to get worse before they get better," Erickson said.
She said the county already included many cost-saving plans to meet its 2008 budget. Last year, the county board voted for a 3 percent levy increase. This year, the Legislature imposed levy limits of 3.9 percent through 2011. Erickson said the county's personnel costs alone are expected to increase by 6.03 percent for 2009, creating a gap of $1,719,968.
Declining revenues are adding to the woes for 2009. The county expects its investment income to decline by about $700,000. Revenue from fees and charges collected by the county, such as building permits, are expected to decline by about $300,000. At the same time, prices for utilities and fuel are anticipated to increase. Erickson said with inflation at its highest rate in many years the county expects costs could increase by $650,000 or more for 2009. Forty-six percent of the county's expenditures are personnel costs.
"It's not just the levy limits," Erickson said. "It's not just the declining revenues. It's not just the economic downturn. It's everything. It all happened at one time."
When the economy is at its worst, government is needed most and the challenge is to provide the services residents need and do it more efficiently, Erickson said.
"A lot of this is not of our own making," said board Chairwoman Rachel Reabe Nystrom. "The fact that the federal and state government is shifting programs to us without providing for the fact that our revenues are down because of the economy, the downturn in building permits. Those are things we do not have control over. What we can control now is how we go forward."
Options include more collaboration with other agencies and staff involvement in problem-solving.
The county employs about 450 people. Employees were receiving the budget report via e-mail Tuesday afternoon. Meetings were planned with employees at 10 a.m. and 2 p.m. Wednesday. Erickson said staff members will be able to ask questions and are encouraged to participate in suggesting new ways to operate in these challenging times.
Commissioner Paul Thiede praised the work of the leadership team and said the tone of the budget message going out to employees was exactly what was needed, a blend of harsh reality and optimism.
In part the report states: "A multi-year strategy is needed to review the business model for Crow Wing County and determine how we can provide the needed services and programs to the public within our shrinking resources."
RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.
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