Kent County Budgeting in Times of Fiscal Stress

The Commission passed our county operating budget for 2012 in mid-November. This budget is for $160.6 million in General Fund expenditures against expected tax revenue of $160.5 million. Only $158,000 is being taken from the General Fund surplus from previous years. We are pleased to be able to adopt a “structurally” balanced budget which means we are spending no more than the revenue we are taking in. Since our revenue has dropped approximately $5 million over last year, this meant a decrease of that same amount in expenditures. This necessitated eliminating 21 FTE positions—most of which are currently vacant—and cutting services in many areas. The county has done a good job of limiting increases in health care and pension costs and is complying with the recently passed state legislation in regards to employees paying 20% of the cost of health care premiums. Like all local governments, the county is experiencing less revenue sharing dollars from the state and less local property tax revenue flowing into its coffers. Our county is similar to more than half of the nation’s counties in the nation who report they are experiencing declining revenues from their state and the federal government to perform mandated services, as well as lessening local tax revenues. Most counties—like Kent—are adopting a “new normal” of less revenues, less staffing, and lowered service levels than in previous years. I will continue to work hard on balancing the needs of my constituents against the need to maintain a conservative approach to using our tax payer’s funds in the most efficient manner possible.