County proposes cuts, may need more

Thurston County staff members have proposed laying off 7 percent of the county's work force to balance next year's budget, but a shortfall of at least $1.2 million remains.

The budget proposal presented Monday would eliminate more than 80 full-time-equivalent positions. But revenue forecasts continue to look grim and some departments did not reduce their operating budgets enough.

The Thurston County Commission must pare down the operating budget to $75 million from $76.2 million, or raise additional revenue. They will spend the coming weeks determining priorities in the budget. They can increase fees and charges to raise revenue for some programs and services, but can't raise taxes; they also can shift funding from department to another.

As proposed, the budget calls for fewer deputies to respond to and investigate certain crimes, less help at the Permit Assistance Center and more delays in resolving court cases.

Chief Administrative Officer Don Krupp said the proposed reductions would set back the staffing of county government at least a decade. Three-quarters of the county's operating budget pays for the criminal justice system, which includes the clerk's office, jail, prosecutor's office, sheriff's office and courts.

"We're turning back the clock in spite of a growing population," Krupp said.

The worsening economy means commissioners might need to readjust the approved budget after it takes effect Jan. 1 if sales-tax revenue and fees continues to slump beyond forecasts. Two of the three commissioners, Diane Oberquell and Bob Macleod, will leave office at the end of the year.

The county has less money to pay for 30 departments that cost more to operate. The county can increase property taxes only 1 percent a year plus any new construction, an amount that county officials said doesn't keep up with inflation.

It is receiving less sales-tax revenue because residents, worried about their jobs and mortgage payments, are buying fewer taxable goods in a weak economy. Krupp said it's the first time in recent memory that sales-tax revenue has declined. The county doesn't have another major source of revenue, such as business, occupation or utility taxes.

Meanwhile, the county is receiving less in charges and fees because fewer people are selling their homes (real estate excise tax), taking their garbage to the Waste and Recovery Center (tipping fees), and developing their land (building permits).

On the other side of the ledger, meanwhile, costs for labor, utilities and fuel continue to rise.

The county's planning department is particularly vulnerable to this downturn in fees. It expects to receive $500,000 less next year than in 2008 and will lay off 17 employees as a result. The layoffs will reduce the number of employees who work at the Permit Assistance Center from 10 to seven. Employees at the center help residents, contractors and property owners who want to develop land.

Several building inspectors also will be laid off. The county has issued 29 percent fewer building permits than a year ago, Community Development Director Michael Welter said.

"Obviously, it's a tough time for everybody," he said. "Our bottom line is to keep in play the best possible service that we can, given the reductions."

The sheriff's office could lose as many as nine patrol officer positions, although Chief Criminal Deputy Jim Chamberlain said he hopes commissioners will keep it to the seven positions that already are vacant because of a hiring freeze. The office already has shifted the front-desk deputy and plans to move three traffic deputies into patrol.

The cutbacks will reduce investigations of some property crimes, cut out responses to low-priority calls and cut out responses to vehicle collisions on private property and state lands.

"It's not a good situation by any stretch as far as maintaining services," Chamberlain said.

The budget calls for laying off five deputy prosecuting attorneys as well as nine court-appointed attorneys and support staff members. Combined with proposed cuts in Thurston County Superior Court, the offices expect more court delays.

The total county budget is $374 million, $10 million more than this year. The budget is higher because the county will finance construction of the Accountability and Restitution Center and other capital projects with $45 million bonds to be sold next year.

In June, the county enacted a hiring freeze. The following month, they directed departments to reduce their current-year spending by 5 percent. Commissioners also asked departments to reduce spending by another 5 percent for 2009 and pay for the increased costs within those budgets.

The commission makes the final budget decision but it has no authority over elected officials who manage county departments.