PORT ANGELES — Clallam County hit the halfway mark of the year in better financial shape than it began, according to officials.
County officials are projecting a $1.75 million structural deficit by year’s end, a marked improvement from a budgeted $2.95 million shortfall in the general fund for day-to-day operations.
Mid-year projection
The mid-year projection shows $34.49 million general-fund revenues and $36.24 million in expenses.
“Positive changes are on both sides of the spreadsheet with significant revenue increases projected for sales taxes, state and local criminal justice taxes, federal Payment in Lieu of Taxes and investment interest,” County Administrator Jim Jones told the three commissioners Tuesday.
“On the expenditure side, savings are projected pretty much across the board, but particularly in sheriff’s operations and jail, juvenile services and superior court, which more than offset the increased spending of reserves to settle claims not covered by insurance.”
One-time spending
About $1.2 million of the projected structural deficit is one-time spending, leaving a relatively modest ongoing operational deficit of $550,000.
“That’s as good as it’s been in many, many, many, many, many years,” said Commissioner Mike Chapman, who is running for state representative after 16 years on the county board.
“That number jumps out at me as ‘What a difference.’ ”
Increased staffing
The ongoing structural deficit is primarily the result of increased staffing in 2016, Jones said.
Chapman noted that Jones’ budget projections are traditionally conservative.
If the mid-year projections hold true, the general fund reserve balance would be a “healthy” $10.19 million going into 2017, Jones said.
Non-general fund revenues and expenditures “appear to be pretty much as expected, and within budget,” said Jones, who prepared the mid-year report with Budget Director Debi Cook.
Predicted deficit
Chief Accountant Stan Creasey of the county Auditor’s Office, who makes his own budget projections, predicted a structural deficit of $1.15 million, Jones said.
“The difference between his almost $1.2 million and my $1.7 million is also ‘within the noise’ on this size of a budget,” Jones said, quoting Creasey.
“So yes, we have done this year significantly better. It’s primarily a revenue issue, but also on the expenditure side. Some things that we budgeted for in case they happen clearly [did] not.”
Commissioners voted Tuesday to formally accept the mid-year budget review.
County officials have already begun to prepare departmental budgets for 2017.
After a multi-step process and a series of public hearings, commissioners will adopt a final budget for 2017 in early December.
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 56450, or at rollikainen@peninsuladailynews.com.
