FREEHOLD – County officials are meeting the challenge posed by a reduction in revenues by ordering all county department heads to prepare their 2009 budgets with 10 percent cuts in salaries and 15 percent reduction in operating expenses, Freeholder Director Lillian G. Burry announced.
 
The reductions will result in some work positions being merged and others left unfilled, Burry said.
 
“As everyone knows, the national economy is experiencing significant difficulties,” Burry said. “It is only reasonable, therefore, to ask how this affects Monmouth County. The fact is, the prolonged downturn in the housing market reduced the rate of growth in the county from double digits to single digits last year, and could slow even further if conditions persist.
 
“A slowdown in the broader economy could well lead to a reduction in revenues and it is possible they could fall short of anticipated levels,” Burry continued. “The good news is Monmouth County is fortunate that decades of careful planning and vigorous leadership have given us a county government with mature, high quality public institutions that do not require major spending increases to maintain them. We also have had exceptionally strong financial management.”
 
Burry noted that Monmouth County is one of only two dozen counties in the nation that enjoys a Triple-A bond rating from all three major rating agencies – Fitch, Standard & Poor’s and Moody’s.
 
“This puts us in the strongest possible position should we need to go into the credit market, where we will be assured the lowest possible interest rates,” Burry said. “I am confident we will be able to weather what I am hopeful will be a transient national adversity. I have no doubt we will rebound strongly as overall conditions improve.
 
“In the interim, we will continue to pursue every opportunity to contain and reduce the cost of government,” Burry added. “We will do it while maintaining the high quality of government services that clearly contribute to the quality of life we have all come to enjoy in Monmouth County.”
 
County Administrator Robert M. Czech said the housing slump is causing significant revenue problems, and fees collected by the county for recording real estate transactions have fallen off. In addition, state funding for a number of services is being reduced.

 

“Next year will be a tough budget year, but we will get through it,” Czech said.
 
The current $281 million budget is supported by a $286 million tax levy. Department heads are in the process of submitting the individual spending requests. The freeholders will begin to analyze those requests in December, in preparation for a budget adoption in late February.
 
The county took several steps at reducing spending earlier this year by eliminating overtime in all cases except where there is a critical need. For example, overtime was eliminated for the county’s annual surplus property auction, as it was conducted entirely online this year.

 

#     #     #