brs

							                  DRAFT
Presented to the Accomack County Board of
                Supervisors
            September 16, 2009
               p
On September 8, 2009, Governor Kaine released his
budget reduction strategies intended to rebalance the
b d        d i              i i     d d        b l      h
Commonwealth’s budget for Fiscal Year 2010.
This “rebalancing” is necessary to address the
    j t d             h tf ll identified in th
projected revenue shortfall id tifi d i the
Commonwealth’s August interim revenue forecast for
FY2010.
   total, these strategies t t l over $1 2 billi n and are
In t t l th      tr t gi total      r $1.2 billion nd r
in addition to the “aid-to-locality” reductions adopted
earlier this year.
All reduction strategies will be reported in the
introduced caboose budget however the Governor
does have authority to implement many of these
strategies immediately.
Major Reductions:
 “Aid-to-locality” reductions approved by the
 General Assembly earlier this year totaled
 approximately $225,000.
 Eli i i of state f di earmarked f
 Elimination f        funding        k d for
 school construction/school debt service of
                 $456,000.
 approximately $456 000
No Commonwealth tax increases p p  proposed
50% of State “Rainy Day” funds tapped
                y                    pp    public
Transfer literary fund balances to support p
school employee retirement contributions
600 state layoffs
One day furlough for all state employees
Close two state prisons and juvenile justice center
State General fund programs transferred to Lottery
funding (may impact future cash flow)
          d ti
HB599 reductions
Compensation Board Funding Reductions (Total
$171,234):
  Sheriff’s Office-4.7% Reduction ($121,048)
  Treasurer-15% Reduction ($10,013)
  Commissioner of the Revenue-15% Reduction ($6,954)
  Clerk of the Circuit Court-15% Reduction ($23,492)
                             y               (
  Commonwealth’s Attorney-5% Reduction ($9,727)    )
Elections including Registrar-10%Reduction ($5,339)
VJCCCA Grant (Juvenile detention)-5% Reduction
($ ,
($2,471))
Teen Pregnancy Prevention Grant reduction (To be
determined)
Litter Control Grant reduction (To be determined)
Supplant State funding for K-12 education with ARRA/SFSF
(Stimulus) funding.
             funding
   This will reduce ARRA/SFSF funds that would have been
   available for FY2011 by 33%.

Reduced public school teacher retirement, group life and health
credit contribution rates effective April 2010 – June 2010.
  The School Board will see some savings as result of this action.

Adjusted sales and use tax revenues to schools based on
August revenue reforecast.
                                     q                  g
 A reduction in sales tax revenues requires an offsetting increase
 in education formula $ by State and County. We are awaiting
 information from DOE on the impact.
    Page 3 of the Governor’s reduction plan states “no reductions to k-12
    funding pending approval by the federal government of an
       li ti to further       federal ti l funds”. We h ll
    application t f th use f d l stimulus f d ” W shall see.
Other County Organization s Impacted:
             Organization’s
 Community Service Board-5% Reduction
 Libraries-5% Reduction.
 Soil & Water Conservation District-10% Reduction
 Planning District Commission
 EMS Council-Portions of the “4 for life” fund are
 being redirected towards the Department of State
 Police.
 Social Services-Reductions in “Other purchased
 services” funding and core/companion funding.
Reduction:                                  Amount
Compensation Board related                  $171,234
Election related                              $5,339
VJCCCA Grant                                  $2,471
                                              $2 471
Teen Pregnancy Prevention Funding
Reductions                          To be determined
Social Services related             To be determined
Litter Control Grant reductions     To be determined
K-12 funding                        To be determined
     Total Known At This Time               $179,044
Service level reductions for grant programs are an option. This
can have a negative impact when preventative type services are
reduced.
  Example: One of the goals of the VJCCCA program is to keep or treat at-
  risk juveniles in a less restrictive and less costly community setting.
  Failure to do so may lead to an increase in the number of juveniles
  detained in the Norfolk detention center thus increasing local costs.
The County’s debt restructuring plan yielded $72,000 more in
savings than budgeted.
                                  offset.
  These funds could be used as an offset
Undesignated fund balance estimate at 6/30/2009 is $1.1 million.
  These funds would normally be used to fund one-time expenditures in
  upcoming fiscal years. (It is likely some of these funds may be needed to
                                          revenue.)
  offset projected reductions in landfill revenue )
County Rainy Day Reserve at 6/30/09 equal to $1,894,000.
  Staff does not recommend using these funds as they represent only 2.8% of
  General Fund and School Fund revenue. The goal is 8% per the County’s
              plan.
  restoration plan