Salt Lake County Budget Strategies

Budget Strategies
Pay Off
For Salt Lake County



Two years of spending adjustments and two rounds of its early retirement program are paying off for Salt Lake County. “We made choices that share the burden of the economic downturn,” says Mayor Peter Corroon, “These decisions led to the largest budget reduction in the history of Salt Lake County.”

The annual budget in 2008 was $827 million; in 2010 it amounts to $705 million; and that figure includes $22 million in pass through funds for the Hogle Zoo.

A public hearing to adopt the County’s Mid Year budget adjustments will be held at 6 p.m., June 17, 2010 in the County Council Chambers.

Specifics of the County’s budget strategies for the past two years are below:

The Problem – The national recession beginning in late 2008 hit Salt Lake County’s revenues. Sales taxes fell dramatically due to lower overall employment, less discretionary income and the tightening of credit markets. The demand for services increased. Sales taxes are down between 19 and 30% (six different types of sales taxes) from 2007. Many county funds were thrown out of structural alignment – meaning expenditure appropriations were greater than available revenues. Early estimates showed an imbalance of more than $70 million.

Decisive Action – Mayor Peter Corroon proposed and implemented several strategies that resulted in downward budget adjustments that significantly reduce expenditures. The measures were proposed before the recession arrived in Utah. The primary budget reductions are the result of fewer employees. Since 2008, Mayor Corroon has proposed two hiring freezes, two early retirement programs and directed department directors to reduce middle management. The results:
    · The County workforce has downsized by 187 FTE’s (full time
      equivalent positions).
    · In addition, the County has held more than 200 positions vacant.
    · The County is providing services to citizens with approximately
      10% smaller workforce than 2008. Nearly all eliminated positions
      are vacant due to natural turnover.

Fund Balance Adjustments – Since November, 2008, Mayor Corroon has proposed specific adjustments of more than $79 million that impact the general fund. The result was that the projected 2010 end of year general fund balance went from a negative $41 million to a positive $36.9 million. This budget management has not gone unnoticed as Salt Lake County recently received a ratings upgrade for its Municipal Building Authority debt.

Appropriations - Total appropriations in 2010, inclusive of operations and capital, are more than $120 million lower than appropriations in 2008.

The Future – While the budget situation has stabilized, Mayor Corroon continues to look for operational efficiencies.


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