County seeks to offset shortfall

New short-term predictions showing Salt Lake County revenue streams under siege — to the tune of $50 million — have prompted a fresh round of budget-slashing proposals, including a countywide wage freeze, extending the current hiring freeze and making reductions in county contributions to retirement accounts.

The proposals come just three months into a year that saw $12 million trimmed from 2008 operating expenses. The proposed budget cuts are expected to be put up for a County Council vote next week.

Darrin Casper, Salt Lake County Mayor Peter Corroon's chief financial officer, said revenue predictions through the end of 2010 show the county's general fund — and related funds — coming up short by $49.6 million. Though this year's budget is balanced, unanticipated cuts to state-level funding, coupled with continued declines in revenues, signal the necessity for swift fiscal action.

"As you know, these are challenging economic times," Corroon said in a letter to employees. "To balance our budget through 2010 and protect our workforce, we must take some additional steps to tighten our belt both this year and next. Our budget proposal requires difficult choices, however, I can assure you that we are making our best efforts to reduce negative impacts on our employees and their families."

Another factor playing into the need for an expedited response is an upcoming annual bonding agency review, which evaluates the county's rating for issuing bonds-currently a top-tier AAA, Casper said. Maintaining the high rating, which potentially saves the county millions in interest payments on funding bills, will require county officials to present a viable plan for dealing with predicted shortfalls.

To address the dwindling flow of dollars into county coffers, Corroon's office is proposing to increase the 5 percent work-force reduction plan enacted in this year's budget to 8 percent. The plan, which seeks reduction through attrition and has already reduced employee roles by about 140, will now apply to some areas previously held in a "no-harm" status, including the district attorney's office and Salt Lake County Sheriff's corrections officers.

Cost-of-living and merit-pay increases will be stricken for 2010, and the county's 3 percent contribution to employee 401(k) accounts will be suspended effective March 31 through the end of 2010.

The county will also tap some $7 million currently in a solid waste reserve account, previously slated for establishing a new landfill when the current facility maxes out in the 2050s. Another $3 million will be garnered from under-expenditures in a fund for zoo, arts and parks.