Agenda - 09-13-2005-3 - Laserfiche WebLink

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I ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 13, 2005 Action Agenda Item No. 3 SUBJECT: Fiscal Year 2005 -06 Budget Follow -up DEPARTMENT: Manager /Budget/Personnel PUBLIC HEARING: (YIN) No ATTACHMENT(S): INFORMATION CONTACT: As noted in "Background" John Link or Rod Visser, 245 -2300 Donna Dean, 245 -2151 Elaine Holmes, 245 -2552 PURPOSE: To review various follow -up matters related to 2005 -06 fiscal year operating budget deliberations. BACKGROUND: Recommended Reductions /Savings/ Efficiencies /Revenue Enhancements to Achieve the 500,000 Operating Budget Reduction With the adoption of the fiscal year 2005 -06 County budget, the Board approved a Countywide operational cut of $500,000 along with a $300,000 reduction in the areas of Medicaid, Health Insurance and Energy /Utilities. The Board directed the Manager and staff to identify areas where the cuts would occur and present recommendations at the September 13, 2005 work session. To that end, the Budget Director and staff have collaborated with all departments regarding potential cuts. Attachment 3a of this abstract, "Manager's Recommendation for Short -Term (One Year) Budget Reductions /Savings/ Efficiencies /Revenue Enhancements" reflects the Manager's recommendations to reach the funding reduction target for Countywide operations. The recommendations total $738,545 which is more than the original $500,000 identified by the Board. At this point, based on expenditure patterns driven by factors beyond our control it does not appear likely that the County will be able to reduce expenditures in the areas of Medicaid, energy, utilities, and health insurance. Examples of factors beyond our control include rising energy costs brought on by Hurricane Katrina and announced rate hikes in heating fuel of 30 percent. In addition, according to the statistics provided by the North Carolina Association of County Commissioners, Statewide Medicaid expenditures are running about 20 percent higher than last year at this time compared to the 12 percent included in the County's original budget.