County budget gets boost

Spokane County commissioners plan to balance their 2008 general-fund budget with a combination of rising sales tax revenue and limiting new expenditures.

So far, only three new positions are included in the tentative budget, but additional requests are pending.

On paper, the tentative 2008 budget seems to be up 9.75 percent from this year’s budget, but county officials say the increase actually is 5.69 percent after allowing for a new state-required method of accounting for grant receipts.

Disregarding $5.7 million in grant money that doesn’t show up in this year’s $141.2 million budget, the tentative 2008 budget would be approximately $149.2 million.

Chairman Mark Richard said county commissioners don’t intend to exceed the 1 percent property tax levy lid imposed in 2001 by Initiative 747 even though the state Supreme Court overturned the initiative last week.

“Until the courts and the Legislature iron this issue out, we’re going to respect what we believe to be the voters’ wishes,” Richard said.

However, the initiative allowed governments to collect the full measure of property taxes on new construction, and construction this year added about $900 million to the tax rolls. The increased value will add about $1.2 million to the county treasury next year, Chief Executive Officer Marshall Farnell said.

Sales tax revenue was budgeted at $21 million this year, but now is expected to total more than $22.5 million. If the revised figure holds, next year’s projected $23.2 million would be up about 3 percent from this year’s collection.

This year’s larger-than-expected sales tax income and next year’s growth may allow the county to increase its standard 10 percent budget reserve to 12 percent. Excluding grants, the rainy day fund could grow from $13.8 million to $18 million.

The largest initiative in the new general fund budget is a $3 million transfer to the county road fund to support a faltering program that has paved more than 700 miles of gravel road since 1955.

With projected road fund revenues down about $5 million next year and prices for road-construction materials rising more than 30 percent, the Roads Division was no longer able to help residents pave their roads by paying 15 percent of the cost. The county contribution represents the value to residents throughout the county.

“It’s a priority of ours,” Richard said. “We see it as a reasonable partnership.”

With more than 1,000 miles of gravel roads, paving projects improve quality of life, public safety and air quality, Richard said.

Harper said the $3 million allocation will allow the Roads Division to proceed with 47 requests to form neighborhood taxing districts and lay 94 miles of asphalt at the rate of 15 to 20 miles a year.

The tentative budget also includes slightly more than $1 million in contributions to private economic development organizations and more than $3.3 million for governmental programs, including $2.9 million to the Spokane Regional Health District.

Farnell said the budget allows for 3 percent cost-of-living raises for the county’s 2,133 full-time employees, but negotiations with some 20 bargaining units are still in progress. No increase for medical insurance and other fringe benefits has been budgeted.

Nor is there any allowance for Sheriff Ozzie Knezovich’s proposal to restore the Crime Check crime-reporting hotline even though voters have just rejected a sales tax increase for that and other emergency communications needs. If restored throughout the county, with help from cities, the cost would be $1.3 million.

“We’re going to have that discussion on the 29th,” Farnell said.

County officials will have their final budget workshop on Nov. 29.

The final budget is to be presented in a public hearing at 10 a.m. Dec. 3. Commissioners may take final action at the hearing or delay their decision up to five days.