The long wait by the Yavapai County Board of Supervisors for the state budget is finally over.
“This is the most irresponsible budget created by the state, ever. [The state legislature] didn’t balance the budget, and shifted the cost to the counties and cities,” District 1 Supervisor Carol Springer said.
Springer said the state legislature balanced the budget with “gimmicks and loans.”
By Greg Nix
Larson Newspapers
The long wait by the Yavapai County Board of Supervisors for the state budget is finally over.
“This is the most irresponsible budget created by the state, ever. [The state legislature] didn’t balance the budget, and shifted the cost to the counties and cities,” District 1 Supervisor Carol Springer said.
Springer said the state legislature balanced the budget with “gimmicks and loans.”
The coming fiscal year 2008-09 state budget is only going to prolong any economic recovery, since the budget shortfalls and $1 billion loan will still have to be paid for later, according to Springer.
$1.3 million error
Board of Supervisors County Administrator Julie Ayers reported the $1.3 million “erroneous figure” appears to have happened through a spreadsheet math error by the state legislature’s fiscal office.
The error is the amount the county must pay back to the state for the Arizona Long Term Care System.
In January, the legislature’s fiscal office informed the board the amount to be paid to the state would be $7.9 million.
On July 1, the state said the actual amount is $9.2 million.
Ayers said there was no answer to when the legislature became aware of this error.
Joint Legislative Budget Committee Fiscal Analyst Jenna Goad said she hoped the explanation of the spreadsheet error clarified the increase of payment for FY 2008-09.
Roads and Highways
The county lost $2.025 million in revenue for roads and highways due to $1.25 million in cuts by the state from the Highway User Revenue Fund, a $550,000 loss from the non-renewal of Federal Forest Fees Program and $125,000 less revenue from gas and vehicle license taxes.
Yavapai County Public Works Department Director Phil Bourdon created a Three-Tier Plan of budget cuts which will save $3 million if each step of the plan is put in place.
There will be an impact to the level of service or maintenance of the county’s highway system, Bourdon reported.
“My job is to convey to the board the impact of these cuts and the need to create contingency plans for addressing these revenue shortfalls,” Bourdon said.
The board directed Bourdon to start the Tier One cuts. A total of $2.015 million will be saved.
A hiring freeze will save $300,000, meaning any vacancies now or in the future will not be filled.
The chip seal program is cut for the year, saving $450,000. Planned road improvement projects totaling $600,000 will be cut, and $815,000 will be saved by not purchasing one dump truck and two graders.
The trigger date for Tier Two is October, should estimated revenues drop by $100,000. This tier will save the department $400,000. It eliminates $150,000 for the contract hauling of materials, $25,000 for renting equipment, cuts out $25,000 for traffic signs and barricades at construction sites, $100,000 for road materials, $50,000 for bridge repairs and $50,000 for new guardrails.
The trigger date for Tier Three is January 2009 if another $100,000 disappears from revenues. Bourdon will save $500,000 by cutting out $150,000 for repairing road cracks and repainting stripes, $50,000 for repairing guardrails, cattleguards and fences and $300,000 for the entire overlays maintenance program.
Paying the state’s bill
In addition to the $1.3 million error, the state will now be billing for urinalysis, blood and DNA analysis through the Arizona Department of Public Safety’s Crime Lab.
The estimate from the legislature is $209,534 during FY 2008-09.
Ayers said the legislature has not said whether the money will be billed in one lump sum at the end of the year or on a month-to-month basis.
Springer said this is the county’s contribution to the state budget deficit, and she does not want the Yavapai County Sheriff’s Office to begin contracting out to other testing agencies because the state has not said when the bill is to be paid.
“It doesn’t make sense to pay twice because the $209,000 is going to the state one way or another,” she said.
The state legislature changed the law on taking money from various tax districts to pay the state any money owed to Arizona Long Term Care System and the new DPS crime lab fees. Now it’s legal.
Yavapai County District 3 Supervisor Chip Davis said the legislature was giving the county board permission to steal from others to pay them the money the county now owes.
Managing shortfalls
Ayers said there are three options for managing the budget shortfall.
The first is to raise taxes.
The second is to direct all departments to further reduce costs, but this will lead to layoffs.
The third option would be to dip in to the Capital Projects Reserve Fund which has $18 million available.
Yavapai County District 2 Supervisor Thomas Thurman said raising taxes was not favorable and doing what the state has done by “sweeping” money from other tax districts was not a clean way to pay the bill.
Springer said the only clean way to manage the cost is to dip into the capital reserves.
Davis opposed taking money out of the reserves and recommended “layoffs through attrition,” which would prevent departments from hiring to fill even necessary vacancies until the shortfall is made up.
The board decided to extend the current hiring chill, but will direct the departments to fill only vacancies which are absolutely necessary.
Greg Nix can be reached at
282-7795, Ext. 122, or e-mail to gnix@larsonnewspapers.com
