Auditor says county coffers full – for now

New revenue sources are needed,

or the red ink will flow by 2012.

San Juan County will have a little more cash at the end of the year than was expected just several weeks ago, according to Auditor Milene Henley.

And though it offers a bit of wiggle room for the County Council in crafting next year’s budget, Henley on Tuesday warned that the county will likely run out of money by 2012 unless new revenue streams can be found.

Henley said collections for the year remain on track with projections and that expenses are running “slightly lower” than expected.

The result, she said, is that the county should have about $300,000 more in the bank by the end of the year than expected.

But that silver lining will be short-lived.

Henley said the county budget, as is, cannot be sustained over the long haul, even given the numerous cuts proposed for next year. Those cuts include the layoff or reduction in hours of roughly 10 percent of the county workforce, closure of seven day-use parks and several public restrooms, a slash in spending on senior and youth programs, elimination of several health programs, such as flu-shot clinics, the elimination of a juvenile probation officer and cutting funding from the county for the fair.

“We still don’t have a sustainable budget,” Henley said.

Henley said Initiative 747 is largely to blame. Sponsored by Tim Eyman and approved by voters statewide in 2002, I-747 restricts the amount that property taxes, with exception of new construction, can be raised without voter approval to only 1 percent annually.

Prior to I-747, local governments – cities, towns, fire districts, ports and counties – could raise property taxes by up to 6 percent.

Contact Islands Sounder Scott Rasmussen at srasmussen@sanjuanjournal.com or (360) 378-5696.

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