Wednesday, Mar. 17, 2010

Wake braces for shortfall

County has no plans to raise taxes

Nearly every department of Wake County government is shedding staff and bracing for cuts to erase a $6.6 million deficit and a projected shortfall of at least double that for the next fiscal year.

A "handful" of employees were recently laid off to help make up for the county's current $6.6 million hole, County Manager David Cooke said. The sheriff's department, for example, cut three of its 814 employees last week. All three were support staff.

Many of the employees already laid off, including two of the three from the sheriff's office, were placed in vacant positions in other departments.

But Cooke said the county expects a $12 million to $18 million shortfall next year, which will almost certainly mean eliminating more of Wake's 3,700 employees.

"I'm not sure this is any different than what families and businesses are having to do when revenue isn't there," Cooke said. "I figure it's still better here than most places."

In addition to current cuts, every county department except the Wake County School System had identified 7 percent of its budget that could be slashed next year. Cooke said not every department will have to cut the entire 7 percent to balance the budget, and there are no plans to raise the county's property tax rate.

The county's budget this year amounts to about $965 million, but the cuts must come from the part of the county's operating budget that doesn't involve schools or state and federal programs, which amounts to about $225 million.

The cuts come as the county builds a $190 million justice center in downtown Raleigh. But money for the tower comes from the county's capital budget, which is separate from the general operating budget that department heads must slash.

Using money from the capital budget to cure the current deficit could be done once, said Tony Gurley, chairman of the county Board of Commissioners, but it's not a long-term solution.

Gurley said such a move would also reflect poorly on the town's financial status, potentially putting its coveted Triple A bond rating, the highest possible, at risk. Wake is one of fewer than 30 counties nationwide with a Triple A rating.