HomeMy WebLinkAbout091509 GOVERNOR'S BUDGET RED
I
Impact of Governor's FY 10
Budget Reductions
As of September 15, 2009
What's Going on with the State Budget?
· The general fund forecast has been reduced four times
since the original 2008-10 budget (Ch. 879) was
adopted:
- October, 2008 based on FY 2008 collections (total of $2,514
million);
- December, 2008 budget as introduced ($400 million);
- February, 2009, reforecast ($822 million); and
- August, 2009, reforecast ($1,209 million).
Source: VML presentation to VML Legislative Committee dated September 10- 2009
2
i I
9/15/2009
1
II II
9/15/2009
2008-2010 GF Operating Budget = $32,038.0*
Chapter 781
($ in millions)
State Agencies
$9,777.0
31%
Debt Service
$1,019.7
3%
Aid to Individuals
$4,390.0
14%
/
Public Education
$10,927.5
33%
car Tax
, $1,900.0
6%
Community Service Boards
$1,242.0
4%
Local Sheriffs
$955.8
3%
. General Fund reductions may be partially or fully restored with federal funds
available under the American Recovery and Reinvestment Act of 2009.
\ Other Aid to Localities
$1,825.9
6%
Source: VML presentation to VML Legislative Committee dated September 10, 2009
ESTIMATED CURRENT BUDGET IMPACTS
ON VIRGINIA BEACH (FY 2010)
2
9/15/2009
Approximate FY 2010 Impacts
· Reduction in 599 Funding: $867,198
· 15% reduction to Commissioner of the
Revenue: $101,661
· 15% reduction to City Treasurer: $106,393
· 15% reduction to Clerk of Circuit Clerk: $269,333
· 5% reduction to Commonwealth Attorney: $120,677
· 4.7% reduction to Sheriff's Office: $721,643
Approximate FY 2010 Impacts (cont.)
· 5% reduction in Human Services (MH/MR,
Social Services, Juvenile Detention Center,
Pendleton):
· 5% reduction in General Registrar:
· 5% reduction in State Aid to Libraries:
· {(4 for Life" to Emergency Medical Services:
· Court Service Units (Juvenile Probation) took
several reductions:
- This is not an impact to VB since this is a totally state funded
unit, but local services could be reduced. Vacant positions
were eliminated and support costs reduced.
$521,996
$ 10,552
$ 12,695
$ 14,449
Unknown
3
II
ESTIMATED CURRENT YEAR REDUCTIONS FOR
VIRGINIA BEACH = $2.75 MilLION
VRS Changes
. Governor's proposed 4th quarter holiday on VRS Retirement &
Life Insurance payments does not Affect Local Governments
but will Generate Some Savings for Schools
- Reduces School's 4th quarter contribution rate from 13.88% of
payroll to 5% of payroll. Total Estimated savings is $10 million
- State will "take back" basic aid funding in the amount related to the
SOQ funded salaries. Roughly between $5 to $7 million
- City supplements beyond SOQ funded salaries and we have a
substantial number of teachers who are 100% locally funded
. According to VRS the Governor's reduction in 4th quarter VRS
contributions will not affect the contribution rates for the State
and Teachers during this upcoming Biennial Budget. . .but it
might for the next one
· Governor may propose that employees begin contributing with
the upcoming biennium
III
9/15/2009
4
II
Other Unknowns
· In two instances the Governor's reductions moved funding
out of dedicated funds and replaced them with a "Iine-of-
credit". . .it is unclear what this means exactly
- Fire Programs Fund
- Clerk of the Court's Technology Fund
. Awaiting information from Department of Education on
true impact on Schools after Federal Stimulus funding
· Awaiting information from Compensation Board on true
impact on Constitutional Offices
· Exactly when and how these cuts will be implemented
III
9/15/2009
5
City e>f -V-irgirria Beach
OFFICE OF THE CITY MANAGER
(757) 385-4242
FAX (757) 427-5626
TTY 711
October 30,2009
The Honorable William D. Sessoms, Jr., Mayor
Members of City Council
Subject: Reductions to State Aid
Dear Mayor and Council Members:
VBgov.com
MUNICIPAL CENTER
BUILDING 1
2401 COURTHOUSE DRIVE
VIRGINIA BEACH. VA 23546-9001
On September 8, Governor Kaine announced mid-year FY 2009-10 budget reductions
to close the projected state deficit. Some of these reductions will apply to State Aid to
Localities. Management Services briefed Council on September 15 on the amount of
these estimated reductions. We wish to provide refined estimates of these reductions
as cited in the table below, and the specific programmatic impacts known at this time.
Reductions in State Aid to Virginia Beach for FY 2009-10
Clerk of the Circuit Court
Commissioner of the Revenue
Commonwealth Attorney
Sheriff
Treasurer
General Registrar
Human Services
599 Monies
State Aid to Libraries
"4 for Life" Funding
Total
$ 259,122
104,523
210,130
935,384
104,930
10,552
521,996
867,198
12,695
14,449
$3,040,979
II
The Honorable William D. Sessoms, Jr., Mayor
Members of City Council
Reductions to State Aid
October 30,2009
Page 2
The following represent the known, programmatic impacts of these reductions as of this
writing:
Programmatic Impacts of Reductions in State Aid to
Virginia Beach for FY 2009-10
Clerk of the Circuit Court: Eliminated eleven filled positions, furloughed existing
employees, and reduced operating hours.
Commissioner of the Revenue: Laid-off a part-time Revenue Investigator, will not
fill a vacant Auditor position, and will not hire temporary/seasonal Income
Processing Agents.
Commonwealth Attorney: The State reduction amount will be offset by savings
from vacant positions, funding through DEA seized assets, and reductions in
various operating accounts (i.e., training, computer software, peripherals and
support costs.) The use of DEA funds will require a transfer, which will be shown
on the next monthly transfer report to City Council.
Sheriff: Because the Sheriff operates in a Special Revenue fund, he is managing
expenses to remain within anticipated revenues.
Treasurer: The amount of the State cut will be absorbed through delayed hirings of
vacant positions.
General Registrar: By law, the City is required to fund the Registrar's salary and
the salaries of the electoral board. The department will try to absorb their
reductions.
Human Services: The department is working to absorb reductions in State
revenue while minimizing the impact to the community and clients.
599 Monies: The City eliminated funding ($401,552) for Fire Truck replacements,
but the remainder ($465,646) is being absorbed within the General Fund. The Fire
Department was able to complete the replacement of the fire trucks for the current
fiscal year without this funding.
State Aid to Libraries: The department has reduced book and material acquisitons
due to lower State funding.
"4 for Life" Funding: The department is addressing this State reducton by
reprioritizinq funding within their budQet.
The Honorable William D. Sessoms, Jr., Mayor
Members of City Council
Reductions to State Aid
October 30,2009
Page 3
Management Services will be lowering the budget for each of these agencies to
maintain appropriations within anticipated revenues. It is highly anticipated that these
reductions will be included in the Governor's proposed FY 2010-11 budget. There is a
precedent for the mid-year reductions becoming permanent. If you have any questions
please contact Catheryn Whitesell at 385-4593.
With Pride in Our City,
)
JKS/CRW/ph
c: Dave Hansen
Bob Matthias