Bob's Update: The Financial State of the County

I’m sure many of you have heard about Friday's Group of 180. It was our first presentation of the “Financial State of the County,” the same presentation on the agenda for this Wednesday’s Ways & Means meeting of the Board. 
 
The presentation we’re using is available for you now and, as I'm sure you’ve surmised, the financial state of the County, like much of the world, is critical. We are facing revenue shortfalls for the foreseeable future.  In a little less than 2 years, since 2007, we project that Washtenaw County will have lost more than $1.5 billion in state equalized value on property.  And taxes on property make up the lion's share of our General Fund.

This is easily the most difficult financial situation that I've seen in my 36 years with the County.

The presentation has a lot of information that includes the economic reality and how it will continue to affect our budgeting; what we've done already to shore up losses on the revenue side in '08 and '09, and what the best current projections are for 2010, 11, 12 and 13.  We developed different projection lines and possibilities: one for a best case, and another for a "worse" case scenario.  It's not a worst case.  No one knows at this point how deep it will be or how long it will last.

Our best case scenario projected for 2010/2011 is an imbalance of $18,787,751 which would equate roughly to losing 211 full time employees.  The worse case scenario is certainly that: a deficit of $28,076,776, equivalent to 318 FTE. 

These FTE figures offer you a way of comprehending the dollars lost.  The loss of positions is by no means a given.  The numbers are there to help keep in mind what we're trying to avoid.  

The financial state of the County presentation has facts, figures and information that may be difficult to quickly comprehend.  I hope you’ll take the initiative to ask questions.  It’s hard for me to convey more forcefully how important it is that you become familiar with the facts as we know them.  It’s your responsibility to the organization, and to your own self-interest to see where we are.

The presentation also includes a number of "benchmarks" from a few of the hundreds of other government jurisdictions across the country and how they’re choosing to deal with these new deficits.  Some are doing large across-the-board cuts, some shortened workweeks, some are eliminating programs through strict community impact prioritization. There are so many ways to come at such challenges, and none will be easy to implement - in any way.

Now, that said, let me tell you what we can do with you becoming aware of this staggering challenge.

For fifteen years we have set as goal and culture to be a "world class" organization.  With our emphasis on continuous improvement, on abundance and framing what is possible instead of what is not, we have exceeded some of our own expectations.

So, let's remember something: we are a world class organization. We have you, our employees who have chosen public service for a living and have learned what has to be done to provide those services.  You haven't been standing still. You have been growing this culture of excellence - you are our "well-developed assets".

No. I don't expect you to be able to tell us, point by point how we will find new revenue, off-lay expenses through collaboration or prioritizing services.  What I do expect is that, in your own field or in your own program or department, you will take this situation to heart and think, discuss and suggest.  And at this point, especially during this intense beginning part of the planning process, any idea you have is worth discussing, or sending my way.

In coming weeks and months, you will hear more about our all-out effort to clarify what we’re up against with a series of open Town Halls starting in March with Board and Administration attending; departmental-level meetings with employees and Administration as requested, and frequently updated information on eCentral through blogs, articles and more.  We'll also be looking for answers, together, throughout this time.

As we move forward with this 2010/2011 planning process, please take a look at the Mission Statement we developed.  Commissioner Conan Smith helped us with the wording, and I think it helps remind us of who we are and what we need to do.

To provide leadership to stabilize Washtenaw County communities and families in these trying economic times and to enhance our long-term prosperity through the strategic direction of County human and financial resources.

It’s a tall order, but it is being asked of one of the best organizations in the country.
I value your opinions.  Let me know what you think, below or by email.

Thanks,

Bob