Washoe County budget faces hefty reductions

It's too early still to determine exactly what effects a projected $25 million cut from Washoe County's 2010-11 budget will have on Incline Village and Crystal Bay, commissioner John Breternitz said last week.

"At this point, we have tasked the heads of each department to formulate necessary cuts and then come back to the commissioners with proposals," he said.

The county recently announced the cut, meaning $25 million must be slashed due to declining revenue for the county, as property taxes are down 7 percent and sales tax is down 2 percent.

Breternitz, who represents Incline Village as part of District 1, said it will be difficult for the county to make cuts without constituents feeling the impact.

"There was a time when the cuts were easy to make," he said. "The county has gotten down to the bare bones, and when it is forced to make the sort of difficult decisions it is facing, the people of Washoe County will notice."

Kathy Carter, Washoe County community relations director, said the county has cut more than $100 million from the budget in the last three and a half years.

"(County) staffing levels are currently where they were 10 years ago, with 500 positions defunded through vacancy freezes, layoffs and separation incentives," said Carter in a written statement. "Washoe County now has fewer than 6 employees for every one thousand citizens we serve - one of the lowest staffing rates in the United States for a county our size."

The cuts

County staff formulated a three-tier strategy to make up the $25 million deficit:

• Wage reduction. Labor comprises about 75 percent of the county budget. Commissioners recommended cuts of $11.4 million to wages for the upcoming budget, Carter said.

• Continued prioritized budget reductions. Commissioners prioritized departments and proposed budget reductions accordingly, said Breternitz. Public safety will receive the lowest reduction, while culture and recreation will be tasked with cutting the most from its budget. Commissioners requested the department cuts total $7.8 million.

• Redirect revenues and reserves. Financial staff recommended the commissioners utilize $5.75 million worth of reserves. The country has reserves which function as a savings account. The county has restrictions on how it can allocate reserve funds, but commissioners are exploring easing those restrictions in light of the dire economic conditions.

"Once the department heads come back to the commissioners in March, the specific impacts of the reductions will become clearer," Breternitz said. "We are attempting to make the cuts with a minimal impact on the constituents, but, in my opinion, there will be a measurable reduction in service. We hope the people understand the county does not have a lot of options at this point."

County financial staff informed the commissioners that economic growth trends are unlikely, which requires a rebasing of the cost structure.

Commissioners will hear from the department heads in March and will continue to have conversations, public and off-line, in lead up to the mid-May deadline when the budget must be approved in time for the July 1 fiscal year turnover.