Snow aside, MontCo’s budget gap widens

Officials recently pegged next fiscal year’s estimated budget gap at $690 million, up $90 million from previous estimates.

The increase is a result of lower-than-expected revenues from speed camera tickets, less federal and state money than the county anticipated, and, of course, the ever-accumulating snow removal costs, officials said.

A budget gap that large leaves the county with unpopular options, such as layoffs and unpaid leave for county employees and big reductions to county services.

The County Council approved $70 million in midyear budget cuts this week that included across-the-board cuts in county services. But the council rejected a proposal by County Executive Ike Leggett to trim county bus service, by far the most contentious proposed cut and one that would translate to future savings.

Steps the county is likely to take to bridge next fiscal year’s budget gap, such as freezing pay increases for county employees, halting pre-funding of retiree health insurance and reducing county reserves, would save the county only $285 million — less than half of the current gap.

The Examiner first reported in December that Leggett’s staff asked department heads to suggest ways of trimming their budgets by up to 21 percent.

The county has not made the department heads’ specific recommendations public, but county budget director Joseph Beach said the proposed cuts combined with the wage freezes and other steps would still leave a roughly $100 million budget gap.

“Even if we took all of the recommended reductions that came in, we’re still not able to balance the budget,” Beach said.

Leggett has floated the idea of furloughing county employees to make up for budget gaps, but has been able to avoid them. Last year, when the county closed a budget gap of more than $550 million, Leggett eliminated 400 positions but was able to find other jobs for affected employees.

This year may be a different story.

“Obviously furloughs would be an option,” Beach said. Giving all county employees unpaid leave, including teachers, would save nearly $10 million a day.

Councilwoman Duchy Trachtenberg, who heads the County Council’s Management and Fiscal Policy Committee, said furloughs aren’t a long-term solution, and said she’s “assuming” there will be layoffs in Leggett’s proposed budget.

Leggett is set to present his budget to the public and the County Council on March 15, with the fiscal year starting July 1.

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