FOR IMMEDIATE RELEASE: November 20, 2001

Contact:     Don Krupp, Chief Administrative Officer, 360-786-5440

PUBLIC INVITED TO COMMENT ON THURSTON COUNTY BUDGET

OLYMPIA -- Thurston County Commissioners are deliberating the preliminary 2002 budget and will need to make some very difficult decisions, especially as things move to 2003 and beyond.  Four years of initiative driven revenue losses and new revenue restrictions have caused the county to use up limited reserve funds in order to maintain current service levels, but that will no longer be possible after next year.  Chief Administrative officer Don Krupp says, however, that major program and personnel cuts will not be needed in 2002.  “The proposed 2002 budget is really a ‘hold the line’ type spending plan. Total expenditures are down about 4% and staffing is up less than 1%.”

Krupp says, “We have been using our reserves to maintain current program levels, but we will go into the red if we continue that pattern after next year.  The challenge is overcoming revenue losses due to Referendum-47, the loss of motor vehicle excise taxes after Initiative-695 and losses from recently passed Initiative-747.”  To help ease the crunch, the Board of County Commissioners has asked county officials to-

ü  Observe a special management program for personnel vacancies.

ü  Practice zero based budgeting for certain line items.

ü  Find spending efficiencies.

ü  Reexamine which services to the public are mandatory and which are discretionary.

Officials are also comparing notes with other counties to find out how they are handling budget shortfalls.

For the 2003 budget, Krupp says the county hopes to balance expenditures to revenue without use of reserves, maintain mandated services and set aside a 5% reserve.

Discussions on ways to do that will begin early in 2002.  If those steps are not taken, the general fund would be in deficit by the end of 2004.  State and local governments are prohibited from adopting deficit budgets, so a plan must be adopted to reconcile spending with income and that could involve program and personnel cuts.

Thurston County Commission Chair Kevin O’Sullivan says, “These are very important issues because we want to provide the best services for county residents.  That’s why we will be very deliberate in formulating a plan to account for these cuts in revenue.”

Thurston County Commissioners will hold a budget hearing at 6:30 PM December 3^rd in room 280 of Building One at the Thurston County Courthouse.   Commissioners are scheduled to discuss the budget on December 4^th, 5^th, 6^th and 7^th.  The 2002 spending plan is to be adopted on December 17^th.