Addressing our Structural Deficit

I’m asking my fellow Councilmembers to initiate a legislative branch assessment of the structural deficit that has created large annual operating budget gaps in recent years—gaps that are projected to persist in future years.

The County Executive’s recommended FY11 budget includes significant service reductions, no pay increases for County government employees, elimination of more than 450 positions including more than 230 that are currently filled, 10 days of furloughs for many employees and a withdrawal of about $102 million from the County’s “Rainy Day Fund.” This was necessary to close a $779 million gap to achieve a balanced budget.

That’s just next year. Budget gaps projected for FY12-16, respectively, are currently estimated to exceed $212, $303, $417, $464 and $514 million. I, along with other Councilmembers, believe we need to address the County’s structural budget deficit.

Besides resolving the acute FY11 budget challenge that is now before us we need to address the chronic budget challenges that lie ahead. I believe that we must address at least three central questions.
What are the assumptions behind the Executive’s future year gap projections?
What are the cost drivers associated with the structural deficit in future years?
What policy and budget options are available going forward to address the structural deficit?”

I want to start the process by asking the County’s Office of Legislative Oversight to develop a recommended scope of work to address those questions with a completion date of early December. I believe that this project has the potential to produce not only useful information but real results.