In order to preserve some operating funds for the next six months, Cumberland County Board of Supervisors on June 29, 2009, appropriated only half the years budget. The gap was $3,742,341, and various ways to close the gap were being discussed.
The county appropriated half of the budget approved in the first half of this calendar year, as if there would be funds that would meet the budgeted amount of $28,430,087. $14,215,043.50 was appropriated on the 29th.
Jill Mathews, Assistant Administrator for Finance, said, “I think it is going to be difficult but I think it is manageable.”
Mathews had been tasked with the job of reducing expenditures in order to close the budget gap. She explained what some of those are at the meeting. The proceeds from selling the Community Center complex to another county entity (IDA) would bring $2m into the county coffers, and will now close in FY 2009-2010 instead of having closed in FY 2008-2009. All of the carry-over funds from the schools, the Social Services agency, general funds will be used to close the gap partly.
Reductions in budgeted salaries due to turnover, salaries for part-time employees and interns in various departments would also contribute to closing the gap, for a total of $47,500.
Mathews remarked that with various cuts and changes, the budget deficit could shrink to $700,000. Piedmont Regional Jail could potentially need less of a contribution from the county, and that would total $30,000. A discussion of the money from other counties in connection with Cobbs Creek Reservoir revealed that the $819,000 received would not likely be matched in fiscal 09-2010.
“There was $819,000 included in payments from partners in the reservoir project,” said Ms. Matthews during the meeting with Supervisors. “As we will be proceeding with that project with other partners potentially in the future that is not going to likely be revenue that we will see in the (20)09-(20)10 fiscal year.”
The payment of $500,000 (not sure if this is income or outlay) will be recorded in FY 2009-2010, in connection with Permit Part B from DEQ for the landfill supposedly being built in the county.
Several Supervisors mentioned that it would be great to hear from the School Board to find out what cuts are being made in its budget for the coming year. A letter had been sent sometime in the past about delineating those cuts, without an answer from the School Board. It was discussed that the Supervisors would like to know which policies had been put in place to deal with the budget shortfall. A letter was to be sent to the School Board again, asking for a joint meeting of the two boards. (The joint meeting will take place on July 20, 2009, a Monday at 6PM in the Cumberland Middle School Media Center.)
Constitutional Officers then spoke at the meeting, detailing their thoughts on the budget problems. Treasurer Lee Pfeiffer Jr. remarked that the rollovers of funds could not be re-appropriated, and they would be gone forever. He said that he appreciated the work done by the Supervisors, but he wishes they would look at the long-term, instead of only how to get through this fiscal year.
Anita French, Commissioner of Revenue, remarked that she has not gotten any preliminary information about the re-assessment this year, and that her office has been working hard to post Personal Property Tax payments. She said that the information has been being given to the Supervisors at the earliest possible moment for them to do budget work with.
This brings me to my comments on all this. The county several years ago started borrowing money, and they forgot to stop. Now, with the horrible economy and State cutbacks in the budget, they are forced into emergency situations that will hurt the county.
Cobbs Creek Reservoir has a terrible reputation after Powhatan and Henrico Counties dropped out of the program, after commenting that Cumberland was charging too much for the service of storing and releasing water. The landfill was never a popular idea in the county, and now we will be paying the price for slow permitting from the DEQ, and possibly some hesitation from the company, which is a new company that swallowed the contracted company in a merger late last year.
Since the assessment is ongoing, one has to wonder what tax rate the county will have, either in the name of development, or in the name of saving the status quo.
No administrative personnel salaries were reported as being cut or eliminated.
