2012 Budget Presentation to Council
Executive Pat McCarthy
Sept. 27, 2011

Mr. Chairman and members of the Council,

I'm Pat McCarthy, Pierce County Executive. Thank you for this opportunity to present my proposed Pierce County budget for 2012.

This is my third annual budget since I took office in 2009. And like the two earlier proposals, this budget is the result of careful analysis, tough decisions and partnerships with our employees.

Above all, this is a responsible and stable budget. It reflects our emphasis on sound fiscal policies and decisions. That is a credit to both the legislative and executive branches of Pierce County government.

There is a lot of attention and clamor these days to fiscal crises at the state and federal levels. Just last week, we learned that the Washington Legislature will meet in special session this fall to make deeper cuts in state spending because revenues are still coming up short.

In comparison, my budget proposal is relatively quiet and steady.

That's because the Council and I have spent the past three years making strategic reductions so we can continue delivering quality services to the public.

This budget is based on conservative, reliable and realistic revenue projections. That is a key point, and it's a credit to Gary Robinson, Aaron BeMiller and the rest of the Budget and Finance Department staff.

We are being conservative in our outlook because of uncertainty in the economy. My budget assumes the local economy will remain sluggish.

As you know, my budget does not propose cost-of-living increases for our employees. In addition, some departments will continue to implement unpaid furloughs in 2012.

Every day, our employees rise to the challenges presented by our local and national economic troubles. They know these are difficult times, and I appreciate their willingness to help us control costs while delivering outstanding service.

The action you took last week to eliminate the automatic cost-of-living-adjustment for elected officials helps. It sends a message to our employees. It shows that we stand shoulder-to-shoulder with them.

This isn't to say we are not still reducing the size of government. The fact is we must live within our means. And that means we have to make some further reductions.

My budget proposes cutting approximately 32 General Fund positions - about half of which would be layoffs, and the other half are vacant.

Let's put this in perspective. Including the cuts in my budget proposal, we will have cut 294 General Fund positions since 2008. When you look at total county spending, we will have cut approximately 487 positions.

In terms of dollars, my General Fund proposal for next year is about 274 million dollars. That's 13 million dollars less than the budget for 2008.

In total county spending, my proposal is for 799 million dollars. That's 91 million dollars less than total county spending in 2008.

Now, despite those cuts, we are still focused on the priorities.

The Number One priority for our citizens is to live in safe communities. Our discretionary spending reflects that. In my budget, 79 percent of the General Fund is dedicated to public safety and judicial services.

These include investments in specialized programs. I'll highlight one: I've agreed to maintain funding for the Prosecuting Attorney's Gang Unit, even though grant funding has expired. This is similar to the way our community responded to the meth problem. We are at a critical juncture in crime-fighting in our community, and the Gang Unit is demonstrating successful outcomes.

Besides criminal justice, we also understand what makes a community livable. This budget proposal continues support for parks and other programs that contribute to healthy communities. Among other things, this budget supports the re-opening of Sprinker Recreation Center's popular ice arena.

Economic development is another priority. Among other things, we are working to improve practices and processes at Planning and Land Services to make the process of obtaining a permit fast, fair and predictable.

And finally, a word about fiscal policy. Like the Council, I share the goal of maintaining a healthy fiscal reserve. My budget continues the county policy of maintaining a General Fund balance of 10 percent. This helps maintain our excellent bond ratings, which saves taxpayers a lot of money.

Overall, this budget proposal demonstrates that we are reducing and resetting Pierce County government. We can make strategic reductions while maintaining quality services within available revenues.

I want to thank all of the department directors and Budget and Finance staff who have spent many months working on this proposal. Now, of course, it's your turn.

The budget and its related ordinances guide the fundamental policies that set direction for Pierce County. As you begin your review, it's important to leave enough flexibility to respond to changing economic conditions. I know we'll be asking the same of the state as it considers shifting responsibilities to local governments.

The department directors and I stand ready to work with you. A collaborative effort by our respective branches of government will benefit all of our residents.

In fact, the Juvenile Court performance audit you received last week shows there is still room for improvement in some areas. I intend to work with you in engaging Pierce County's other elected leaders to keep looking for ways to serve the public more efficiently and effectively.

Thank you for the opportunity to present this budget proposal.

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