State of Kansas Employees Budget Cuts - PowerPoint

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					         2009 Revised & 2010
Unified Government Proposed Budget
            July 13, 2009
   Bright Future – 2013 and beyond
   Lean years between 2009 and 2012
   Symbolic continued decrease in property tax rates
   Maintained Commission goals and priorities
   Expanded targeted service levels
   Diversify Revenues
   To Control costs
     Implemented hiring freeze
     Delayed Capital projects
   Anticipated new Casino Revenues
   Decreased property tax rate slightly
   Planned Prudent use of fund balance
   Maintained service levels
                      City & County General Funds
                       Revenues Vs. Expenditures
$200,000,000

$180,000,000

$160,000,000

$140,000,000

$120,000,000

$100,000,000

 $80,000,000

 $60,000,000

 $40,000,000

 $20,000,000

         $0

               2002    2003         2004   2005        2006   2007      2008           2009


                         Expenditures             Revenues           Ending Fund Balance
 National Collapse of Housing Market

 Credit Markets close down

 Financial Institutions default

 National Economic Recession

 Unemployment skyrockets

 State of Kansas Budget Crisis
 $6.4 m cut from anticipated revenues
  Machinery & Equipment Tax elimination
   results in major revenue loss;
   reimbursement payments stopped
  Special City-County Highway Fund
   State Funding gone    $2.7m
   Property Tax          $5.5m
   Sales Tax             $2.5m
   Mortgage Tax          $1.1m
   Building Permits      $1.4m
   Gaming Revenue        $1m
   Investment Earnings   $1.2m
        $15.4 Million
 Money we had expected to
 receive, must NOW be cut from
 the Unified Government Budget
 7% reduction in property values

 15% Tax Delinquency rate

 Continuing Sales Tax decline

 Further reduction from State
                      City & County General Funds
                       Revenues Vs. Expenditures
$200,000,000

$180,000,000

$160,000,000

$140,000,000

$120,000,000

$100,000,000

 $80,000,000

 $60,000,000

 $40,000,000

 $20,000,000

         $0

               2002   2003          2004    2005   2006       2007   2008         2009         2010
                                                                                             Projected

                             Expenditures          Revenues                 Ending Fund Balance
                                      “KC Council OK’s
                                          pact with                      “City lays off
       “Police, Fire, Grass          Firefighters Union                 employees as it
          Streetlights,                 that includes                   tries to address
         among City of                  concessions”                   budget shortfalls”
          Topeka Cuts”
                                   Kansas City Star                  The Olathe News
        WIBW.com
                                                “Wichita considers
  “City Budget crisis                             layoffs to cover
   may take officers                             budget shortfall”
                                                                            “Overland Park
      off streets”       “Dallas City Council
                                                                              wants to cut
                           knows “brutal”       Wichita Eagle
                                                                           budget by $67 m in
Cincinnati.com              budget cuts
                                                                               5 years”
                              coming”
                                                                     Kansas City Business Journal
                  The Dallas Morning News
   On the Expense Side
     Cut personnel expenses
     Eliminate non-essential services
     Reduce primary essential service levels
   On the Revenue side
     SALES TAX - Give serious consideration to increasing sales
      tax , which requires public support and referendum
     ECEP - Economic Crisis Emergency PILOT
     Temporary inter-fund deferrals
     Federal Stimulus Dollars
   $ 1,000,000*               COPS (GF per year – over 3 years)
   $    TBD *                 SAFER (GF per year – over 4 years)
   $ 500,000*                 Byrne Grants (2) (GF- over 2 years)
   $ 840,000                  Justice Assistance Grant (GF-up to 3 years)
   $ 204,000                  Justice Assistance Grant (GF-up to 3 years)
   $5,000,000                 State Avenue – 47th to 69th Streets
                               (CMIP Project long-term impact to B& I Fund)
   $ 650,000                  CDBG
   $1,398,000                 Energy Efficiency and Conservation Block Grant

   $2,000,000                  Transit (Buses and Preventive Maintenance)
   $3,600,000                  NSP
   $1,003,000                  Homeless Prevention
   $2,700,000                  Adult Employment & Training
   $2,200,000                  Summer Youth Program
   $ 98,000                    Community Health Centers
   $ 85,000                    Aging
   $1,200,000                  Weatherization Assistance Program
   $ 775,000                   I-435 & Woodend Road – Edwardsville
   $ 440,000                   138th Street – Bonner Springs
    *Competitive grant application pending
   EXPENDITURES - Implement overall reductions in
    expenditures across the organization generally of 10% or
    more
   REVENUES - Selectively increase revenue opportunities
    to offset funding losses
   SERVICES - Minimize impact on citizens by maintaining
    essential services and reducing non essential services
   TAXES - Hold the line on the Property Tax Mill Rate; thus
    NO increase in Property Taxes and in fact
    most will see an average 7% reduction in
    their UG property tax bill for 2010
                         City and County Mill Levies: 1996 - 2009

             100
                    97


              80

                                                                                                                 70
Mill Levy




              60



              40



              20



               0
                    1996   1997   1998   1999   2000   2001    2002   2003   2004   2005   2006   2007   2008   2009
            County 32.784 31.255 27.526 25.725 24.255 24.190 36.228 36.335 32.693 32.664 31.279 30.399 30.539 30.477
            City   64.220 62.116 58.439 55.927 52.237 53.555 48.847 48.925 46.449 43.952 42.742 41.588 40.685 40.258
            Total  97.004 93.371 85.965 81.652 76.492 77.745 85.075 85.26 79.142 76.616 74.021 71.987 71.224 70.735

                                                              Budget Year




If current tax rate is maintained Tax payers would a see an average 7%
decrease in UG tax bills resulting from a 7% average reduction in property
values.
   HIRING FREEZE and retirement incentives will result in a
    reduction of more than 300 positions/15% of workforce by April 1,
    2010

   AVOID LAYOFFS while positions will be eliminated, every effort is
    being made to avoid layoffs

   REDUCTION IN PERSONNEL EXPENSES
     Must honor the collective bargaining process with the multiple labor
      unions representing more than 60% of the workforce
     Continue Salary/COLA freezes
     Furloughs begin this August through the end of 2010;
      general fund employees would be off one day a month
      without pay excepting sworn public safety personnel
     “Sacrifice of many to avoid layoff of individuals “
        2009           Date or Day to be determined*       Operational
                                                           Status*
               Proposed Furlough Schedule - 2009
        August         Floater                                   Open
        September      September 4                         Buildings Closed
        October        October 12                          Buildings Closed
        November       Floater                                   Open
        December       December 24                         Buildings Closed

*Furlough Floater Day off to be scheduled similar as vacation
**District Court may be required to be open, thus courts buildings only may be open on
limited basis. Other offices such as D.A. and grant funded units such as Health Department,
may be operating on limited open basis as well on dates scheduled for closure.
    2010                    Date or Day to be determined*   Operational Status**

    January                 Floater                                   Open
    February                February 12                          Buildings Closed
    March                   Floater                                   Open
    April                   Floater                                   Open
    May                     May 28                               Buildings Closed
    June                    Floater                                   Open
    July                    July 2                               Buildings Closed
    August                  Floater                                   Open
    September               September 3                          Buildings Closed
    October                 October 11                           Buildings Closed
    November                November 12                          Buildings Closed
    December                December 23                          Buildings Closed

*Furlough Floater Day off to be scheduled similar as vacation
**District Court may be required to be open, thus courts buildings only may be open on
limited basis. Other offices such as D.A. and grant funded units such as Health Department,
may be operating on limited open basis as well on dates scheduled for closure.
       To Reduce Major Costs
          In Jail Operations
Unprecedented Cooperation Underway



  Moe Ryan                      Joe Reardon,           Wayne Lampson
  Municipal Court Judge         Mayor/CEO              Chief Judge




 John Mendez           Jerome Gorman                             Tom Cooley
 Commissioner                                  Don Ash, WYCO
                       District Attorney                         Commissioner,
 At-Large District 1                           Sheriff
                                                                 District 7
               To control the skyrocketing costs of housing inmates
                  Immediate efforts are underway to reduce the
                         average length of stay including:

   FARM OUTS - Shift to alternate, lower cost facilities to house inmates that are farmed out
   HOUSE ARREST - Expand options for utilizing House Arrest for inmates not posing a threat
    to the public
   PROCESSING OF INMATES - More timely and efficient processing of inmates in and out of
    the WYCO facility
   TRANSFER OF INMATES – Reducing holding times of inmates transferring to other
    facilities such as Kansas Department of Corrections (KDOC)
   SENTENCING GUIDELINES – Review of practices in both District Court and Municipal
    Court but assuring steps taken do not endanger
    the citizens of Wyandotte County

   Efforts underway estimated to reduce expenditures by:
    2009 - $1,050,000
    2010 - $2,700,000
   Review of long-term need and options being undertaken as well
   Public Safety recruit classes limited to funding from COPS/SAFER Grants
   Major reductions in funding for Parks and Recreation
   Reduction in funding for Snow Removal; Weed cutting; Street Cleaning
   Decrease in Public Transportation Services
   Cut UG funding for the County Historical Museum/limited operations only
   Suspend County CiFi Program to KCK/Bonner Springs & Edwardsville
   Reduction in Building Security expenses by closing access points
   Staffing adjustment for Public Safety 9-1-1 Dispatch Center
   Reduction in funding for Senior Citizen Utility Rebate
   Scale back 3-1-1 Program

   Freezing of all Capital expenditures excepting Grant
    and Federal Stimulus Funded projects
   Mental Health – reduced from $628k to $565k
   CVB – reduced from $750k to $675k
   County Fair Board – reduced from $198k to $77k
   Extension Service –reduced from $431k to $388k
   Kaw Valley Arts – reduced from $48k to $18k
   Neighborhood Group’s NBR – cut 10%
   WYEDC – cut 10%
   WYEDC – Assuming greater Eco Devo role
   Parks Rangers to Sheriff/PD First Responder to 9-1-1
   Manager of Accounting and Payroll merged
   Shifting responsibilities of Risk Management/WC
   Shifted Constituent and Organizational Affairs duties
   To avoid layoffs – shift and retrain
   Inter Fund Transfers and Deferrals – one time
    shift from existing UG accounts that must be
    repaid
     Employee Health Insurance Fund
     Environmental Trust Fund supported by the
      Residential Solid Waste Management Program
   Last year we increased the UG/BPU PILOT fee to
    9.9% and would require reauthorization in 2010
   Reluctantly propose increase to 12.8% as an
    emergency economic crisis relief measure
   Increase would phase out 1% per year over the
    next three years
   Temporary in nature - burns off in 3 years
                  Economic Crisis Emergency PILOT
                            BPU PILOT Percentages
          14.0%
                               12.8%
                                         11.9%
          12.0%                                     10.9%
                     9.9%                                   9.9%
          10.0%
PILOT %




           8.0%
           6.0%
           4.0%
           2.0%
           0.0%
                     2009      2010      2011       2012    2013

                                         Year
The Current 2010 Unified Government
  Annual Budget - $250.1* Million
              All Funds

                  Reserves 3%
                                Debt Service
                                    7%

                                    Capital 10%




                                      * Not including grants
      Operating
        80%
       2010 UNIFIED GOVERNMENT EXPENDITURE
              BUDGET TOTAL $250,182,790
                                Administration,
                                    $0.09



  Debt Service, $0.11




                                                                      Public Safety, $0.51
Public Works, $0.13




              Community
             Services, $0.11
                                                    Other Services,
                               Judicial Services,       $0.01
                                     $0.04
 SOURCES OF SUPPORT - 2010 PROPOSED BUDGET
                  Fund Balance           Other
                   $6,874,187         $12,970,222
Fines/Fees             3%                 5%
$8,660,000
    3%                                                        Property Tax
Interest Income                                               $71,046,532
  $2,929,800                                                      28%
      1%

  Intergovt.
  Revenues
 $13,067,575
      5%


                                                                      Sales Tax
 Charges for                                                        $36,276,000
  Service                                                               15%
$41,184,635
    17%
               Other Taxes
               $20,308,839
                   8%                               Franchise Tax
                                                    $36,865,000
                                                        15%
                             TOTAL = $250,182,790
              SOURCES OF SUPPORT - CITY GENERAL FUND
                      2010 PROPOSED BUDGET
                                       All Other
                   Interest Income    $10,884,007
                      $172,300             9%
                         <1%
   Intergovt.                                               Property Tax
   Revenues                                                 $23,839,475
   $764,400                                                     21%
       1%

Charges for
  Service
$9,706,200
    8%

Other Taxes
$6,945,466
    6%
                                                                      Sales Tax
                                                                    $28,300,000
                                                                        24%
                Franchise Tax
                $36,350,000
                    31%
                                     TOTAL = $116,961,848
           SOURCES OF SUPPORT - COUNTY GENERAL FUND
                    2010 PROPOSED BUDGET
                                All Other
                               $3,846,291
                                    8%
            Interest Income
              $2,429,200
                  5%

 Intergov. Revenues
     $2,030,000
         4%

                                                      Property Tax
Charges for Service                                   $25,843,471
   $2,577,000                                             55%
       6%

           Other Taxes
           $6,113,333
              13%


                   Sales Tax
                  $3,935,000
                      9%
                               TOTAL = $46,774,295
   Must carefully monitor the situation as fund
    balances remain low
   No room for slippage or surprises
   Must be cautious and conservative in managing
    through these difficult financial times
   Must also focus on restoring fund balances to
    adequate levels to maintain favorable
    credit status and bond ratings
May 7           7pm      1st Budget Public Hearing (CDBG)
July 9          7pm      Public Comment on proposed budget
July 13         5pm      Budget Presentation followed by Work Session
July 16         4pm      Budget Work Session – Set Maximum Mill Levy
                                                 Set Furlough Schedule
July 20         7pm      *Budget Work Session
July 23         4pm      Budget Work Session
July 27         4pm      Budget Work Session
July 30         4pm      Budget Work Session
                5PM      Public hearing
                7pm      Adopt Budget & CDBG Consolidated Plan
   ECEP Initiative will require meet and confer meeting with Board of Public Utilities
       BUDGET WORKSHOPS WILL BE HELD IN 6TH FLOOR TRAINING ROOM
                *Budget Work Session to be held immediately following
                              Standing Committee meetings
   Our Bright future
     Casino dollars – est. in 2011/2012
     STAR BOND pay-off – est. in 2013

   The future will be different, and even after the recession
    recedes, the fundamentals for local government will
    evermore be changed from what we know from the past

   Future remains bright, we will manage through the
    current challenges and be in a better position
    our organization and our community to be
    able to take advantage of opportunities
   Our Citizens
   Outside agencies
   Other stakeholders such as Neighborhood Groups
   Board of Public Utilities
   Our 13 Labor Unions
   The Unified Government Employees
   The Unified Government Commission
May 7           7pm      1st Budget Public Hearing (CDBG)
July 9          7pm      Public Comment on proposed budget
July 13         5pm      Budget Presentation followed by Work Session
July 16         4pm      Budget Work Session – Set Maximum Mill Levy
                                                 Set Furlough Schedule
July 20         7pm      *Budget Work Session
July 23         4pm      Budget Work Session
July 27         4pm      Budget Work Session
July 30         4pm      Budget Work Session
                5PM      Public hearing
                7pm      Adopt Budget & CDBG Consolidated Plan
   ECEP Initiative will require meet and confer meeting with Board of Public Utilities
       BUDGET WORKSHOPS WILL BE HELD IN 6TH FLOOR TRAINING ROOM
                *Budget Work Session to be held immediately following
                              Standing Committee meetings

				
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