FREEHOLD – Before mismanagement on Wall Street, Freddie Mac and Fannie Mae caused problems in the stock market and credit markets, the Monmouth County Board of Chosen Freeholders was already busy implementing cost-saving measures in anticipation of an economic slowdown.

 

 

In August, Freeholder Deputy Director Robert D. Clifton, who oversees the county Finance Department, met with Finance Director Mark E. Acker and County Administrator Robert M. Czech to discuss the county’s financial picture. Aware that the downturn in the housing market was affecting revenues, Czech ordered all county departments to hold back 5 percent of the discretionary/other expense portion of their 2008 budgets.

 

“We also directed every county department to submit their 2009 budget requests with a 15 percent reduction in their operating expenses and a 10 percent reduction in salaries and wages,” Clifton said. “We are certain that holding back spending this year and by continuing to reduce county spending next year we will be well positioned to overcome the economic challenges in the coming year.”

 

In addition to making those spending cuts, the Board has been busy implementing many of the recommendations contained in the 2007 report by the Budget Review Committee.  

 

Growing the county’s economic base as Fort Monmouth readies to close, filling vacant engineering positions to reduce consultant fees, and developing the county’s strategic plan to help maximize county services were among 37 recommendations the bi-partisan budget panel made in an effort to make Monmouth County more efficient and cost conscious. The Board also hired an economic development expert to help attract businesses to Monmouth County.

 

“Despite the current economic forecast, Monmouth County is in a good financial position due to years of sound fiscal management and a Triple-A bond rating,” Clifton said. “Because we have been going consistently forward with a plan as outlined in the Budget Review Committee report, we are well positioned to ride out this economic downturn and rebound stronger than ever.”

 

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 Ratings, Standard & Poor’s and Moody’s Investors Service. That means Monmouth County is in the very best possible financial position.

 

Monmouth County was the only county in New Jersey to not impose a tax increase this year. “One reason is because we wanted to limit the economic impact this downturn in the economy would have on residents,” Clifton said. “We are working hard to minimize the tax impact again this year.

 

“We are certain these reductions can be accomplished without impacting essential county services,” Clifton added. “We are looking at all discretionary services to see if they can be provided more efficiently and economically through other sources, including community-based, nonprofit and private industry.”   

 

Other counties across the country are not so fortunate, with many grappling with budget shortfalls as the weakening economy takes its toll. In Washington, King County is reporting an $86.5 million budget shortfall for 2009, and Snohomish County is projecting a $30 million shortfall. In Maryland, Anne Arundel County is facing a $21 million shortfall, and Montgomery County and Prince George’s County are facing shortfalls of $250 million and $67 million, respectively.

 

The Board hopes to achieve a reduction in salary growth through the merger of some work positions and by leaving others unfilled. “When a staff member leaves the county, we look to see where the work can be absorbed,” Clifton said. “While there have been exceptions, this has been a policy of the Board for the last two years and it has worked to our advantage.”

           

In addition, the Board of Chosen Freeholders has implemented the following cost-saving measures:

 

·        Reduced the number of county employees this year by 28;

·        Eliminated overtime whenever possible;

·        Re-examined and eliminated initiatives that have not delivered anticipated results;

·        Limited all out-of-jurisdiction travel;

·        Extended the replacement period for vehicles and tied vehicle replacement to mileage and condition of the vehicle;

·        Reduced the cost of leased property by consolidating offices;

·        Increased employee co-pays for health benefits;

·        Developing a schedule for ensuring reasonable shared costs of shared services;

·        Evaluating opportunities for accessing trust accounts to reduce the tax levy, and

·        Wherever possible, ensure that the county is providing in-kind match for grants rather than a cash match.