County facing budget problems

Spokane County will be broke and $2.5 million in debt by 2009 unless leaders cut expenses or raise more money.

The decline of the county’s reserve fund, which will hold about $14 million at the end of the year, was one of the top concerns among county commissioners Monday as they met in a daylong session aimed at helping them identify and solve their biggest challenges.

“We don’t have a revenue problem,” said Commissioner Phil Harris. “We have a spending problem.”

This year, the county is expected to spend about $6 million more than it collects. Without changes, the gap would reach close to $10 million in 2008, and the county’s reserve fund, once more than $20 million, would be gone at the end of that year.

For 2007, the county is forecasting a $6.7 million gap between the money it collects and what it would spend if leaders maintain current staffing, programs and policies.

County commissioners Chairman Todd Mielke said it’s too early to say if there could be job losses, but changes are on the way.

“We have pretty much decided no matter how painful it is, we will not adopt a budget that exceeds projected revenues,” Mielke said.

If that happens, the county would be left with reserves of about 10 percent of its annual budget, an amount Mielke said is healthy.

Officials outlined numerous budget challenges, including:

“The skyrocketing costs of incarcerating inmates at the Spokane County Jail and Geiger Corrections Center.

“The difficulty of gaining new revenue from the federal and state governments.

“Expected annual jumps of 10 percent to 12 percent in employee health-care costs.

County Chief Executive Officer Marshall Farnell said the health-care increases must be considered when the county negotiates contracts that will expire at the end of 2007.

Mielke said the county and cities should consider “increased coordination, cooperation, collaboration and possibly consolidation.”

The county and the cities of Spokane and Spokane Valley could save money by combining some services, including animal control, solid waste and wastewater management, commissioners said.

The county’s bottom line was not the only challenge considered at Monday’s meeting, held at Wandermere Golf Course.

Commissioners also discussed the need for more jail space and a new wastewater treatment plant.

Among numerous goals, they said they want to communicate better with county employees, earn more revenue from the county’s Fair and Expo Center and golf courses and create a better Web site.

The county paid consultant Daniel J. Distelhorst $1,800 to plan and lead the “strategic planning” session.

Commissioner Mark Richard said the meeting helped him focus his energies on key areas.

“Sometimes we get so lost in our meetings and board commitments and so on,” Richard said. “It’s critical that we step back and say, ‘Where do we want to go?’ “