Deep Deficits Projected for Washtenaw County
County administrator Bob Guenzel is interviewed by WEMU reporter Andrew Cluley during a break at Wednesday night's board of commissioners meeting.
Washtenaw County Board of Commissioners (Feb. 4, 2009): Faced with sharply lower revenues in the coming years, Washtenaw County government will be dealing with staggering budget deficits and must start making some tough decisions about where to cut costs. At their Wednesday night board meeting, county commissioners heard that grim report from county administrator Bob Guenzel, who estimates the budget deficit in 2010-11 could reach $28 million under a worst-case scenario. And it likely won’t end there. “We don’t know when we’re going to hit bottom,” he said. “It’s just too hard to predict that.”
Guenzel called the financial situation the worst he’s seen in his 36 years with the county, but noted that this was a nationwide crisis. Falling property values and a sluggish housing market have eroded tax revenues – property taxes and fees related to building inspections, real estate transfers and other housing-related services account for roughly 75% of the county’s general fund, he said. [Full Story]