Mecklenburg County agencies are cut by $17.4 million

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(The following is from Mecklenburg County Government.)

Charlotte, NC -- Mecklenburg County department and agency budgets have been cut by $17.4 million, effective immediately. County Manager Harry L. Jones, Sr., directed the reductions to address a revenue shortfall in the current budget (FY2009) as a result of the recession. The cuts also are intended to help prepare for a projected $70 million gap in funding for next year's budget (FY2010).

The reductions amount to 15% of unspent non-salary accounts within department/agency budgets. As a result, the greatest reductions come from those departments and agencies with the largest budgets, primarily in health and human services. Department and agency directors have focused cuts on the lowest priorities. As a result, the impact on services and customers is projected to be minimal to moderate in most instances. No County positions are being eliminated due to these reductions.

"Mecklenburg County has been invited to the recession, and we don't have the option of saying no," said Jones. "Nearly all our revenues sources are well below budget, which means we need to cut expenses. We are trying our best to limit the impact these cuts will have on the people we serve and the community."

Last month, Jones informed the Board of County Commissioners of a projected $57.1 million shortfall between revenues and expenses in the current year's $1.5 billion budget. Although the shortfall could be addressed by appropriating money from the County's fund balance, this approach would exacerbate the challenge the County will face in eliminating the $70 million gap next fiscal year. Instead, Jones implemented several steps to reduce expenses in the current budget.

In addition to the $17.4 million reductions, Jones also has enacted a hiring freeze on County vacant positions for the remainder of the fiscal year. The County also has eliminated $9.9 million in prior year encumbrances, resulting in additional cost avoidance. Jones also has requested Charlotte-Mecklenburg Schools (CMS) and Central Piedmont Community College (CPCC) to accept reductions in current year funding from the County. In total, Jones has set a goal of reducing the shortfall to approximately $30 million or less, with the remaining gap covered by fund balance appropriation. As a result, Jones said more reductions may be needed in the current year particularly if revenues fall further.

"We will continue to look for ways to cut expenses, while at the same time hoping we see some positive impact on revenues from the federal stimulus package," said Jones.

In preparation for the FY2010 budget, Jones has directed County departments and agencies to develop scenarios that include up to 20% reductions in funding from the current year. He also has requested CMS, CPCC and WTVI to consider 10% reductions in current year funding.

"For the current year, we are reacting to the conditions placed upon us that are largely out of our control, said Jones. "However, as we prepare for next year's budget, we intend to be proactive in identifying the choices and consequences of various funding scenarios based on the Board's priorities."

Attached is a summary of the reductions by department/agency and potential service impact descriptions.

Mecklenburg County

FY2009 Budget Reductions Executive Summary

County departments and business partners were asked to reduce their FY2009 budgets to help decrease a projected budget gap of $57.1 million. With a few exceptions, departments were asked to return 15 percent of their remaining balances not designated for salaries. Below is an overview of the reductions with key service impacts listed. This summary is organized alphabetically by department within focus areas in the following order:

Community Health and Safety: $11,386,049

Growth Management and Environment: $2,661,437

Efficient and Effective Government: $1,988,658

Social, Education and Economic Opportunity: $4,033,031

More detailed information is outlined following this Executive Summary. Questions about this document should be referred to Hyong Yi, Management and Budget Director, at 704-336-6945.

Community Health and Safety

Area Mental Health (AMH) Reduction: $2,495,408 - The majority of reductions, $2,119,413, are to contract agencies that provide services related to adult mental illness, child and adolescent mental illness, developmental disabilities and substance abuse. These reductions will affect the ability of the department to expand services to new clients.

Community Support Services (CSS) Reduction: $79,156 - To the NOVA program, which provides rehabilitation services to individuals with a history of domestic violence, Domestic Violence (DV) Victim Services and Veterans Outreach. These reductions largely affect funds for mileage, training/travel, printing and office supplies.

Health Department Reduction: $2,164,210 - Reduced funding for its contract with Carolina Healthcare Systems (CHS) by $1,470,864, resulting in the elimination of vacant positions and reduced service hours by CHS staff. The department will also eliminate a contract for childhood obesity prevention and not open a new prenatal clinic as previously planned.

MEDIC Reduction: $2,000,000 (from Fund Balance) - MEDIC currently carries an undesignated reserve of $2.4 million. This reduction will decrease MEDIC's reserve by $2 million with no impact on service delivery.

Medical Examiner Reduction: $10,575 - Reduced funding for training and contracted services.

Sheriff's Office Reduction: $3,360,872 - Reduced funding for the opening of the Youthful Offender Facility. These reductions also postpone the hiring of 56 Detention Officers. The Gatling Juvenile Detention Center will close on March 1, 2009.

Social Services (DSS) Reduction: $2,425,104 - Reduced funding for Permanency Planning Services, Adoption Assistance, Child Care Services, In-Home Aide Services, General Assistance

Services, Public Assistance, Adult Social Work Services, Child Protective Services and Mecklenburg Transport.

Growth Management and Environment

Land Use and Environmental Services Agency (LUESA) Reduction: $1,159,653 - Eliminated funding for vacant positions and reduced funding for contracts, auto-allowances, non-essential training, maintenance and studies. The largest reductions include vehicles that will not be purchased in the current fiscal year.

Park & Recreation Reduction: $913,180 - Reduced funding for the opening of Little Sugar Creek Greenway and Shuffletown Sportsplex resulting in a delayed opening of these facilities. In addition, lights at 27 ball fields will not be installed.

Efficient and Effective Government

County Manager's Office Reduction: $402,317 - Funding for settlement claims.

Elections Office Reduction: $60,335 - Reduced funding for Public Official Brochures and delay upgrades to early voting printers, confirmation mailers and ballot on demand printers.

Finance Reduction: $23,470 - Reduced funding for system maintenance, training, audit fees and computer software upgrades.

Geospatial Information Systems (GIS) Reduction: $111,478 - Reduced funding for computer software, maintenance, training, telephones, supplies and land records.

Human Resources (HR) Reduction: $63,830 - Reduced funding for training, contracted services, departmental supplies and some equipment replacement. The reduction may decrease HR's ability to offer conversational Spanish to employees working with Latino clients and residents.

Information Services and Technology (IST) Reduction: $384,665 - Reduced funding for high school internships, travel and training, mainframe software support contract, usage fees, printing costs, hardware maintenance of PCs and contracted services.

Internal Audit Reduction: $800 - Reduced funding for staff training.

Public Service and Information (PSI) Reduction: $66,526 - Reduced funding for public awareness and marketing activities and projects.

Real Estate Services Reduction: $895,596 - Reduced funding for utility costs, maintenance and repairs, fuel purchases and vehicles.

Register of Deeds Reduction: $55,000 - Reduced funding for travel and supplies.

Social, Education and Economic Opportunity

Public Library of Charlotte-Mecklenburg County Reduction: $750,000 - Reduced funding for books, magazines, reference materials and other expenses.

Charlotte-Mecklenburg Schools (CMS) Reduction: $2,500,000 - CMS was asked for this reduction from their FY2009 appropriation.

Central Piedmont Community College (CPCC) Reduction: $147,000 - CPCC was asked for this reduction from their FY2009 appropriation.

Total Reductions: $20,069,175

Mecklenburg County

FY2008-2009 Budget Reductions Details

This document provides details on the reduction amounts by department, as well as potential service impacts. This document is organized alphabetically by department within focus areas in the following order:

Community Health and Safety

Growth Management and Environment

Efficient and Effective Government

Social, Education and Economic Opportunity

Questions about this document should be referred to Hyong Yi, Management and Budget Director, at 704-336-6945.

Community Health and Safety

Area Mental Health (AMH)

Reduction: $2,495,408

AMH identified $2,119,413 in reductions to contract agencies that provide services related to adult mental illness, child and adolescent mental illness, developmental disabilities and substance abuse. These reductions will affect the ability of the department to expand services to new clients; services to existing clients will not be affected. These reductions impact services as noted below:

Delaying the February 2009 opening of a mental health crisis unit until July 1, 2009. The unit will have 12 beds to provide crisis stabilization for walk-in clients and referrals from law enforcement. It is estimated that 45 adults each month may be impacted by this reduction. The delay in the opening of the facility is projected to save $343,716.

Eliminating two initiatives to train adults with developmental disabilities and their family members in self-advocacy. The total reduction is $145,000.

Reducing residential services for adults with developmental disabilities. This will impact service delivery for individuals on waiting lists for these services. The total reduction is $464,404.

Eliminating funds for substance abuse treatment for consumers in drug court resulting in 100 people being placed on a waiting list for treatment. This reduction will also place fifty people not in drug court on a waiting list for substance abuse outpatient services. The total reduction is $250,000.

Reducing rehabilitation services for youthful offenders ages 10 to 17 with emotional disturbances, which may impact recidivism rates for untreated youthful offenders. The total reduction is $742,293.

Reducing funds to purchase contract services for adult consumers diagnosed with a developmental disability or mental illness. This will impact their ability to handle complications with their disability or illness. The total reduction is $150,000.

In addition to contract reductions, AMH has taken $375,995 from administrative and training costs.

Community Support Services (CSS)

Reduction: $79,156

CSS has outlined $79,156 in reductions to come from the NOVA program, which provides services to individuals with a history of domestic violence, Domestic Violence (DV) Victim Services and Veterans Outreach. These reductions largely affect funds for mileage, training/travel, printing, office and food supplies, resulting in the following service impacts:

Reducing the frequency of rehabilitative classes available to participants in the NOVA program. To meet service demand, aftercare group facilitation duties will be shifted to case managers, as contract facilitators will no longer be available. Reductions will also be made to promotion and advertisement, equipment and maintenance. Total reduction is $39,500. In addition, furniture purchases will be postponed reducing costs by $5,000 which has no impact on services.

Reducing travel for continuing education classes, necessary for annual licensing as well as reductions to promotion and advertising, reducing the opportunity for new clients to learn about their services. Total reduction is $14,400.

Reducing travel, promotions, advertising and office supplies in the Veteran's Outreach division. Total reduction is $20,256.

Health Department

Reduction: $2,164,410

The Health Department will reduce its contract with Carolina Healthcare Systems (CHS) by $1,470,864. To meet the reduced contract amount, CHS will take the following actions:

Eliminating 19.1 vacant Full Time Equivalent (FTE) positions for a savings of $532,876, which will result in reduced services at clinics, and school nurses serving multiple schools.

Reducing staff hours for approximately 175 staff, including 142 school health nurses as well as some clinical case management and health education staff. The total reduction is $523,545.

Delaying the hiring of a pediatric dentist. The total reduction is $53,353.

Freezing capital projects and reducing operating costs for a total reduction of $361,090.

In addition to the reductions to the CHS contract, the Health Department will make the following reductions:

Eliminating a new service - a pre-natal clinic scheduled to open in January 2009 - reducing costs by $214,000.

Reducing the treatment of inmates who are tested and found positive for HIV while incarcerated; this service has experienced lower demand than originally projected. Matching expenses to the lower actual demand would reduce costs by $325,000.

Eliminating a contract for childhood obesity prevention (Aerobocop) reducing costs by $35,000.

Reducing funds for contract staff, community-based events, advertising, supplies for health promotion and supplies/funding to serve HIV-positive and high risk clients. The total reductions across these areas are $119,345.

______________________________________________________________________________

MEDIC

Reduction: $2,000,000 (from Fund Balance)

MEDIC currently carries an undesignated reserve of $2.4 million. This reduction will decrease MEDIC's reserve by $2 million with no impact on service delivery.

______________________________________________________________________________

Medical Examiner

Reduction: $10,575

The Medical Examiner submitted reductions in training and contracted services totaling $10,575.

______________________________________________________________________________

Sheriff's Office

Reduction: $3,360,872 ($2,474,511 in salaries & benefits)

The Sheriff's Office will delay the opening of the Youthful Offender Facility until FY2010. The department will also postpone the hiring of 56 Detention Officers (DO) until FY2010 and wait until the second quarter of FY2010 to fill half of these positions. The total reduction is $1,906,776.

Reducing the number of training opportunities for staff, leaving essential training intact for the agency. The total reduction is $45,945.

Reducing consulting fees for the Work Release & Restitution Center; reducing evaluation and training services for residents, TV and Radio ads for recruiting and investigating (this can be reduced because of the delay in hiring DO positions for the Youthful Offender Facility); repair and maintenance for the Immigration and Customs Enforcement (ICE) Program (the current year expense is less than anticipated); service fees for Electronic Monitoring (EM) (there are limited number of deputies to support the program; therefore, less offenders enter the program); and the elimination of lab analysis fees (currently the Sheriff's Office uses an instant drug cup which does not require an analysis company to test). The total reduction is $141,935.

Reducing department supplies including the elimination of lunch at the Annual Work Release Restitution Center Open House (this may result in less people attending the Open House); property supplies (with lower jail population in recent months, consumables can be reduced);

supplies for Youthful Offender Facility due to the delay in opening; and reduced inmate supplies (e.g., property bins, junk food, towels and various other inmate items) for the remainder of the fiscal year. The total reduction is $150,626.

Closing the Gatling Facility on March 1, 2009. This facility, capable of holding 30 juveniles, currently houses about 12 juveniles. This reduction includes salaries and benefits of $567,735 and contracts and supplies of $109,055 for a total reduction of $676,790.

Reducing non-mandated training and equipment by $100,000.

Reducing department supplies and various contracts by $338,800.

______________________________________________________________________________

Social Services (DSS)

Reduction: $2,425,104

DSS will reduce the budget for Youth and Family Services by $449,918. DSS anticipated that a change in payment process would require the division to pre-pay group and foster care homes and then seek reimbursement from the State. The delayed implementation of this new process by the State has freed up administrative funds to cover the process change and ensure no interruption of service delivery. In addition, this division will reduce funds for travel/training, office supplies, food, dues and subscriptions and contracted services.

The Adoption Assistance service will reduce $370,453 from client benefits. DSS has adopted the State's tiered system for paying adoptive parents and therefore is not required to pay a supplement to the monthly payment to families.

Child Care Services will reduce the contract for administrating child care vouchers by $350,000. DSS contracts with a third party non-profit agency, Child Care Resources Inc., to manage the administration of all State and Federal child-care subsidies. These subsidies provide daycare services for low-income working parents that allow them to maintain employment. These reductions may reduce Child Care Resources staff that currently provide this service but it will not reduce the direct subsidies paid to parents.

In-Home Aide services will reduce costs by $182,091. This would not result in the loss of clients, but the service would be unable to add clients as current recipients are lost through attrition. Additionally, the service will reduce funds for office supplies, travel and training.

The General Assistance service will reduce $164,002 in professional services with no impact on service. Other revenues were received that made this unnecessary.

Senior Administration Professional Service will be reduced by $91,350 in professional services. Economic Services division will reduce its costs by $86,763. These reductions will come in the food and nutrition client benefits program. The County was previously required to pay 50 percent of client benefits to assist food stamp recipients in getting job training and other help to maintain employment. Services will not be cut to clients but will be provided through alternative funding and community partner sources. In addition, professional fees, casual labor, furniture purchases and training will also be reduced. Temporary labor is typically hired to assist with filing for the Low Income Energy Assistance Program at a cost of $42,000. This work will be done in-house in FY2009 with existing staff resources.

Adult Social Work Services will reduce purchases of services by $82,320, along with other reductions to training and supplies. It is estimated that 14 fewer clients will be served through FY2009, due to clients not being replaced.

The contract with United Way 2-1-1 will be reduced by $51,419. The United Way will no longer maintain a presence in the DSS call center. 211 calls will be managed statewide out of Raleigh.

Child Protective Services will make reductions totaling $22,460 to travel, office supplies, contracted services, client benefit for clothing and interpreter services.

Mecklenburg Transport will reduce casual labor, or paid transportation by $10,000, along with $7,500 for contract agencies. This will not result in a decrease in service to the customers.

DSS Senior Administration will reduce professional services by $13,650.

The Administrative Support training budget will be reduced by $11,022.

Other reductions will be made to items such as departmental supplies, printing, travel and training, auto mileage, food supplies, professional services and cell phone charges. Total reduction is $176,156.

_____________________________________________________________________________

Growth Management and Environment

Land Use and Environmental Services Agency (LUESA)

Reduction: $1,159,653 ($153,240 in County dollars)

LUESA will delay hiring for vacant positions and purchasing vehicles in addition to reducing contracts, auto-allowances, non-essential training, maintenance and land studies. These reductions will have minimal impact on service delivery.

The largest reductions to the budget include vehicles that will not be purchased in the current fiscal year, green rebate permits that instead can be covered with funds from the reserve account, and printing that may have an impact to the International Organization for Standardization (ISO) rating.

Park & Recreation

Reduction: $913,180

Several projects have already been delayed due to construction and vandalism. Little Sugar Creek Greenway expected to open in October 2008 will be delayed until August 2009 and Shuffletown Sportsplex expected to open in January 2009 will be delayed until September 2009. These delays will result in reductions of $148,435.

Partnership agreement with Pine Valley Home Owners Association has failed due to a lack of available land to construct the site. This reduces costs by $30,134.

Installation of ball field lights in new sports fields has been delayed due to procurement and leasing processes. The reduction includes funds designated for the ball field light lease for 27 ball fields at eight new park sites, six fields having synthetic turf. This will result in a reduction of $616,800.

Expenses will be deferred for field preparation, contract services, maintenance and replacement clothing for maintenance staff reducing costs by $53,811.

Early projections indicate an increase in revenue of $80,000. This revenue is expected from increased parking lot fees, additional events at Grady Cole Center and increased use of indoor pools.

Management has curtailed staff training and travel reducing costs by $30,000.

Reductions for printed materials, news letters and brochures totaling $20,000.

Curtailed spending for promotion of Park and Recreation activities, services and programs reducing costs by $14,000.

Efficient and Effective Government

County Manager's Office

Reduction: $402,317

Manager's Office submitted reductions in claims settlement totaling $402,317.

Elections Office

Reduction: $60,335

Reducing the number of Public Official Brochures printed and staff training opportunities. Brochure will be made available online and department will rotate staff to maintain certifications. Total reduction is $13,775.

Delaying upgrades to early voting printers and plasticade signs, redesign of confirmation mailer and replacement purchase of Ballot on Demand printers. Requires continued use of older technology and supplies. Total reduction is $42,960.

Reducing telephone usage from election and no additional legal advertising. Total reduction is $3,600.

______________________________________________________________________________

Finance

Reduction: $23,470

The Finance Department will reduce expenses related to system maintenance, training, audit fees and computer software upgrades.

_____________________________________________________________________________

Geospatial Information Systems (GIS)

Reduction: $111,478

GIS will reduce funds for computer software, maintenance, training, telephone, supplies and land records. ______________________________________________________________________________

Human Resources (HR)

Reduction: $63,830

The Human Resources Department will reduce funds for training, contracted services, departmental supplies and some equipment replacement. The reduction in contracted services could decrease HR's ability to offer conversational Spanish courses to employees. This could have a negative impact on customer service where coursework is required.

Information Services and Technology (IST)

Reduction: $384,665

Reducing travel and training by 10 percent or more for several divisions resulting in fewer opportunities for staff to increase their knowledge, and earn certificates necessary for work on specific equipment. Savings from travel, training and contractual expenses will be used for contract needs since these reductions may increase dependence upon contracting. The total reduction is $79,560.

Reducing mainframe software support contract, usage fees and printing costs which should have a minimal impact on service since the tax system and pretrial system have migrated off the mainframe. The total reduction is $225,000.

Eliminating high school internships. The total reduction is $21,696.

Reducing hardware maintenance of PCs resulting from Technology Reserve replacements of 1,000+ this year. The total reduction is $35,000.

Professional fee and maintenance and repair reductions. Total reduction is $23,409.

Internal Audit

Reduction: $800

Internal Audit will reduce training funds by $800.

Public Service and Information (PSI)

Reduction: $66,526

PSI will reduce resources for Public Awareness & Marketing, Translation Services/Salud y Vida Show and Storybook Presents Project totaling $66,526.

______________________________________________________________________________

Real Estate Services (RES)

Reduction: $895,596

Reducing utilities in the amount of $381,180.

Reducing maintenance and repairs, as well as materials, for buildings in the amount of $155,000. This could lead to fewer replacement/upgrade projects for county-owned facilities.

Reducing the fuel budget by $173,755. This could result in a shortage of fuel if fuel prices rise steeply.

Reducing the postage budget by $36,076. This could lead to a shortfall if postage prices or mail volume increase.

Reducing the vehicle budget by $40,441.

Savings of $50,000 from reduced cost of vehicle maintenance contract.

Other reductions for uniforms, equipment rental, software, and training totaling $59,144.

_____________________________________________________________________

The Register of Deeds Office will reduce expenses related to travel and supplies totaling $55,000.

Social, Education and Economic Opportunity

Public Library of Charlotte-Mecklenburg County

Reduction: $750,000

The Library will reduce resources for books and materials resulting in the following impacts:

Patron holds for print materials will change from a two month wait for a popular book to a four month wait. Currently the Library purchases one copy for every three holds on a popular book. This will change to one book for every five holds.

Patron holds for non-print materials will increase by two months due to lack of materials in collection. Currently the Library purchases one copy of every five popular titles for CDs, DVDs and audio books. This will change to one copy for every eight popular titles.

The Library will cut approximately $60,000 in database materials including Business and Company Resource Center, What do I Read next, Science Resource Center, Twayne's Literature and New Book of Popular Science Online. These materials will no longer be available to the public.

There will be no new reference materials purchased for the remainder of FY2009.

Reduction in bulk book orders by 50 percent for the balance of FY2009.

The Library was asked to also identify an additional $367,858 in reductions.

_____________________________________________________________________________

Charlotte-Mecklenburg Schools (CMS)

Reduction: $2,500,000

CMS was asked for a reduction of $2,500,000 from their FY09 appropriation.

Central Piedmont Community College (CPCC)

Reduction: $147,000

CPCC was asked for a reduction of $147,000 from their FY09 appropriation.

Total Reductions: $20,069,175

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