Expect more cuts in the next few years as Jefferson County tightens its financial belt to match lean times ahead.

Cutbacks for 2009 include the loss of six employees in the Department of Community Development (DCD) announced last month, as well as voluntary reductions by employees and vacant positions left unfilled. The various measures represent a total reduction in staff of the equivalent of 13.33 full-time positions.

No new layoffs are being proposed for next year in the preliminary 2009 budget, which commissioners are set to approve Dec. 15.

However, Jefferson County Administrator Philip Morley, on the job for less than two months, told commissioners and an unusual audience of more than 40 elected county officials, county employees and citizens Monday that the county does not expect the economy to improve immediately.

Morley noted that there is a gap between income - sales tax, real estate excise tax and new construction, specifically - and anticipated expenses that grow with inflation. Families can't spend more than they earn and neither can the county, Morley said. He said the county will need to continue to look at making efficiencies to trim $350,000 a year between 2010 through 2012.

"Perhaps the big silver lining in all this is to see the county staff all pull together and see how they are responding together. That gives us the ability to respond in the future," Morley noted.

"Our work in 2009 will be to look at ways to find more efficiencies to provide programs and services with fewer resources and also to look for further reductions," Morley said.

For 2009, Morley is proposing a $47,964,300 overall budget that shows $561,196 in cuts made since October in a preliminary budget. The proposed budget shows the county with 297.6 full-time-equivalent (FTE) employees, down 4.3 percent from 2008.

Morley noted that 53.7 percent of the general fund budget, an estimated $8.2 million, goes to salaries and benefits as does much of another 18 percent of the budget, $2.7 million, that is earmarked for transfers to other county budgets.

In the past, property tax income generated from new construction helped "float the budget," he said. But with new housing starts tanking - and county fees generated also drying up - those days are over and not expected to rev up again anytime soon.

Morley noted while the federal government restored $1.3 million in funding in Title I federal funds in the county roads, there has been a 50 percent decrease in the real estate excise tax (REET) from 2006 levels.

"Revenue was $1.4 million in 2006," the presentation noted, and for next year the REET tax is estimated to bring in $650,000.

Earlier this month, in a 2-1 vote with Commissioner David Sullivan dissenting, the county commissioners decided to take its banked capacity in property taxes, giving the county another $473,000 in revenue in 2009. The change is expected to cost the average property owner an estimated $25 more next year.

Still, despite that extra property tax money, Morley said the county needs to "tread lightly" and retain programs and services as much as possible to meet community needs.

"When the economy goes south, you can see more people needing help with public health," he said, later adding, "In tough times public reliance on some county services may increase."

Morley and other officials, including health director Jean Baldwin, also noted that the state has yet to announce cuts that could trickle down to impact county services - mostly in public health, but also in other budgets, perhaps including drug court. Prosecuting Attorney Juelie Dalzell noted she would know the fate of that drug-court funding Friday.

Still, the budget Morley presented has a rainy-day fund. He's proposing to start 2009 with a balance of $1.1 million and end the year with more than $900,000, depending on how the economy goes.

Collaborative effort

Morley and others said the cuts were made thanks to a new collaborative effort to respond to the financial downturn.

It was the first time in recent memory that so many elected officials and county employees showed up to attend a budget hearing.

Reductions and cost savings include the following: The assessor is postponing vehicle replacement; the auditor has reduced one position's staff hours and expects reductions in elections printing; district court is cutting $25,000 in salaries and benefits by reclassifying positions; the prosecutor is not filling an office manager position, thereby saving $52,000; and the sheriff's office also is not filling a deputy position, for a $92,000 savings.

The county's land-use and building department took the brunt of cuts already by laying off six full-time employees for a savings of some $229,000. Director Al Scalf and other employees reduced their hours and took a 10 percent pay cut.

Andrew Shogren, who was hired last June as Public Health Environmental Health/Water Quality Division director, also was laid off. The health department reduced its budget by $151,000.

Public comments

While county employees and elected officials were new to the public hearing process, a number of regular county commentators made suggestions.

Joe D'Amico, who is still embroiled in a battle with the county over expansion of his armed security training business, suggested the county shift its attention to promoting business and perhaps even require business licenses.

D'Amico said he has governments and people wanting to use his service, but he can't offer it to them because the county hasn't been "business friendly" and has restricted his operation. D'Amico also suggested the county put the animal control service out to bid.

Jim Hagen applauded the new theme of collaborative work and agreed that the economy is not going to turn around soon.

Fred Hill Materials Inc. attorney Jim Tracy echoed comments by Hagen and D'Amico and said one of the most dangerous assumptions the county could make is that things could get better.

"Everyone is saying it's going to get worse in 2009," Tracy said.

Several people warned against taking positions away from the sheriff's department as the economy crumbles. Sheriff Mike Brasfield said he was comfortable with not filling a deputy position as a temporary decision and hoped the position could be reinstated.

"Hopefully you won't forget this was a real position," Brasfield said of getting two deputy positions last year after fighting for them for several  years.

Tom Thiersch, who frequently comments on computer issues, suggested websites within the county should be unified and managed more efficiently.

Assessor Jack Westerman III noted that the proposed budget includes veterans' benefits that some had voiced concern about at a previous meeting. He also said if circumstances change mid-year, the budget committee would stay on top of that and could recommend amendments.

Morley noted at one point that supplemental requests, which frequently come in on a quarterly basis, will be a thing of the past.