THE SKY ISN’T FALLING!!! The first time we have heard that from an Executive – City or County – IN YEARS! 10 or more . . . and yes, that was a COMPLIMENT for Joe Parisi. Thank you!
June 5, 2013
To: Elected Officials and Department Heads
Dane County Board of Supervisors
From: Dane County Executive Joe Parisi
Re: 2014 Budget GuidelinesWhile rare to begin this annual communication to county managers with such a favorable tone, it is worth recognizing that from a fiscal accounting standpoint as we begin work on the 2014 budget, Dane County government is in the strongest fiscal position it has been in since 2004.
Our general reserve fund is currently at $18.9 million – a $20.6 million swing to the positive from just two years ago. A tremendous change my administration achieved with the support of you and the county board, through our hard work over the last couple of budgets to resolve variances in line items that consistently under-performed expectations, combined with an uptick in our local economy.
The work of “right sizing” individual budget line items is far from glamorous or worthy of press announcements otherwise saved for new initiatives and expenses. However, the reality is that by addressing more than $6-million worth of these chronic variances in the past two budgets we have better positioned county government to weather future uncertainty.
The cost of running county government – – its services, programs, and people who deliver them – – will be $7.5 million more in 2014 than this year. This cost to continue, combined with continued state constraints on the ability of local governments to raise new revenue, is the challenge we will address in the coming months.
There are variables that will affect the projected deficit and our strategies to cope with it. Sales tax collections to date have been favorable and running ahead of projections – – this type of conservative budgeting of revenue estimates is another one of the reasons why our general reserve figure is the highest it’s ever been.
Delinquent property taxes are down and collections are up. Revenues directly related to the performance of our local economy are showing encouraging signs – – homes are selling again and the pace of construction is the most brisk we have seen in several years. There are many reasons to be optimistic.
It’s important to note, however, that these revenues have been prone to swings due to economic factors and conditions out of the control of county government. Relying on revenue sources with inconsistent performance to fund the creation of new programs and services the public will expect – – even if the revenue sources to pay for them subsides – – requires us to continuously re-visit how we manage the operation of the county as a whole.
In that spirit I am asking managers to take a bit of a unique approach in preparing their 2014 budget proposals. In the past, we have placed an emphasis on preparing budget reduction scenarios and identifying potential reductions through spending cuts. As we have seen on numerous occasions however, the ability to partner with other public and private agencies on service delivery has a similar net effect and results in less reliance on county general purpose revenue (tax dollars).
The recently announced five year tentative agreement with the Friends of the Zoo exemplifies what can be accomplished when county government seeks partners with shared values and spirit of achieving a common goal. Pending review and approval by the County Board, this agreement will secure well over $4-million to fund zoo operations – – including staff, utilities, and other operating budget expenses in the coming years.
As you begin compiling budget proposals for next year, please identify a potential innovation or partnership your department could pursue to help reduce the reliance on county tax revenues next year. This could be done through a partial merger of service delivery, sharing of staffing or other resources, or other means you feel will ensure the public will be effectively served in 2014.
Partnerships or innovations that increase efficiency or bring in new, sustainable sources of revenue should take priority as you compile your requests for next year. The Department of Administration and my staff will evaluate these ideas in the context of aiding you with 2014 budget development preparations.
Given our over $7-million challenge, while I am not asking to identify specific cuts per se, I should emphasize that departments should not request new positions unless they are funded substantially by grants or outside funded project positions. With the exception of maintenance contracts, and cost to continue built into base budgets, total department budget requests for 2014 should not exceed this year’s level.
I would also urge continued restraint in capital budget requests. In addition to the effect that debt service has on our county’s overall levy in subsequent budgets, the county is in the midst of numerous, substantial capital improvement and construction projects. Once complete, these projects will help us achieve operating budget savings, and in the case of the Alliant Energy Center, generate new revenues to ensure facility operations won’t be subsidized with tax dollars otherwise needed for human service and public safety programs in the coming years.
Thank you for your efforts and I look forward to your innovative ideas for 2014.
Joseph T. Parisi
