Next Year Looks Even Wor$e by County Commissioner Jeff Koons

July 15, 2008

A couple of months ago, I explained how the housing slump, state-mandated revenue cuts and voters' adoption of an additional homestead exemption (Amendment 1) would make this an especially difficult budget process. Well, things are worse than we thought. And I'm sorry to say next year looks even bleaker.

Unlike several cities facing similar revenue shortfalls, the BCC is not raising the millage rate this year to make up the difference. We have decided to get by with whatever revenue has already been collected. Each week it seems there is a new list of county jobs, programs and services on the chopping block. Making these cuts is painful, but it's what the voters said they wanted.

We've cut funding for road construction, median landscaping and beautification, building permit processors, vegetation inspectors, sheriff's vehicles, business incubators, and teen residency shelter beds, and we're not done. Some of these cuts have been initiated now to reduce the hit on reserve funds. We can't afford to deplete our reserves in case we have a major storm or some other catastrophic emergency.

Next year (FY-2010), Palm Beach County is anticipating at least a 5 percent loss in property valuation, and our administrator says to expect a $110 million budget shortfall if the millage rate remains at 3.78 mills. Even if we decide to raise the millage rate - something the BCC hasn't done since 1998 - to the state-allowed rollback rate of 4.07 mills, we will still be looking at a deficit of $60 million.

So, how do we close this shortfall? Tapping reserves again is out of the question, and there's nothing left in the capital budget because we killed just about every project this year. That leaves a huge hit to the operations budget; major layoffs and deeper service reductions are inevitable.

Besides trimming everywhere we possibly can, I think we need to look at some new revenue sources, such as user fees. For example, boaters may have to pay $10 a year for a permit to use our county boat ramps.

Parking is currently free at county-owned beach parks, while most municipal beaches have meters. Maybe the county should start charging for beach parking, too.

The Juno Pier charges a nominal admission. Why not ask a dollar or two to stroll out on the boardwalks at the Wakodahatchee and Green Cay Wetlands facilities?

Golfers pay greens fees. Wouldn't tennis players kick in a few dollars to play on our county-owned tennis courts?

How about $1 to borrow a book or a DVD from the library? It's still a lot cheaper than buying them.

Palm Tran and Tri-Rail are experiencing record ridership. Maybe their fares should be increased to cover more of their operating costs.

I realize that none of these options will be very popular, but lawmakers and citizens who demanded property tax relief had to know there would be a trade off in public services. That's just basic economics.

As always, I welcome your comments and suggestions. Please feel free to call me or my staff at 355-2202.