Layoffs are coming for Yavapai County employees due to the deepening economic crisis.
County Administrator Julie Ayers gave the Board of Supervisors an update on the budget during the Monday, Oct. 6, meeting.
Ayers painted a grim picture of the county’s income and said if the economic crisis continues to deepen there will be a $5.9 million shortfall in the budget.
By Greg Nix
Layoffs are coming for Yavapai County employees due to the deepening economic crisis.
County Administrator Julie Ayers gave the Board of Supervisors an update on the budget during the Monday, Oct. 6, meeting.
Ayers painted a grim picture of the county’s income and said if the economic crisis continues to deepen there will be a $5.9 million shortfall in the budget.
She asked the board for permission to take immediate corrective action within the departments to cut back on spending and to get rid of unnecessary projects or programs.
District 1 Supervisor Carol Springer asked Ayers if this includes layoffs. Ayers said it did.
Ayers quoted a recent statement made by Marshall Vest, a professor in the Eller College of Management at the University of Arizona, who said, “The financial crisis continues to deepen; housing markets continue to swoon; consumers are in full retreat; jobs are disappearing; inflation is accelerating; and wages are stagnating.”
She reviewed the income sources for the General Fund, showing 42 percent, or $40 million, comes from property taxes; 28 percent, or $26 million, comes from the state’s Shared Revenue Tax; 9 percent, or $8 million, comes from the vehicle license tax; and the remaining 21 percent comes from county sales taxes and other unlisted areas of revenues.
Ayers said August was the 12th consecutive month which has shown a decline in the state’s shared sales tax. In July, the income from this fund dropped 10 percent, costing the county $313,564. In August, the income fell another 12 percent, costing the county $262,763.
She said if the trend continues it will create a $3.9 million shortfall from this revenue source for the county in the current fiscal year.
The vehicle license taxes also showed a decline. In July the shortfall was 2 percent, which cost the county $33,497. In August the shortfall was 7 percent, which cost the county $92,115. If this trend continues, Ayers said, the county can expect to lose $753,672 for the year.
She said the Development Services Department reported that fees for new construction and other private business projects show there will be an estimated $1 million shortfall due to a loss of applications. This is a 31- percent drop from FY2007-08.
The board granted Ayers the authority to take drastic steps to cover the shortfall.
