1. Public Hearing on the 2009 Skagit County Budget December 2, 2008

2. 2009 Budget Process July – Budget call and software training July – Budget call and software training August – Departments submitted budgets August – Departments submitted budgets September through October – September through October – Administrative Staff met with departments, Administrative Staff met with departments, reviewed requests, compiled recommendations October – Individual Department meetings with Board of County Commissioners October – Individual Department meetings with Board of County Commissioners November 18 – Preliminary Budget Available November 18 – Preliminary Budget Available December 2 – Public Hearing to consider testimony December 2 – Public Hearing to consider testimony

3. 2009 Budget Process Departments asked to maintain 10% reduction in supplies and services Departments asked to maintain 10% reduction in supplies and services Departments asked to submit a budget that provided the same level of service for 2009 Departments asked to submit a budget that provided the same level of service for 2009 Requests from departments showed a $3.7 million shortfall Requests from departments showed a $3.7 million shortfall

4. 2009 Budget Process Departments given further instructions by the Board to assist in balancing the budget. Departments given further instructions by the Board to assist in balancing the budget. Responses included: Responses included: Increased Revenues Increased Revenues Reduction in supplies and services Reduction in supplies and services Reduction in programs Reduction in programs Reduction in staffing Reduction in staffing General Fund – 12.475 FTE’s, 4.875 Vacant General Fund – 12.475 FTE’s, 4.875 Vacant Non General Fund – 24.2 FTE’s, 7 vacant Non General Fund – 24.2 FTE’s, 7 vacant

5. 2009 Budget Process Other items to balance the budget included: Other items to balance the budget included: $500,000 - Increased PILT revenues $500,000 - Increased PILT revenues $350,000 - Levy banked capacity / Levy shift $350,000 - Levy banked capacity / Levy shift $350,000 – Attrition $350,000 – Attrition $500,000 – negotiated concessions $500,000 – negotiated concessions General Wage Adjustment exceptions General Wage Adjustment exceptions

6. 2009 and Beyond Quarterly budget reviews Quarterly budget reviews Uncertain revenues Uncertain revenues Sales Tax Sales Tax Change from 2007 to 2008 is -7.8% Change from 2007 to 2008 is -7.8% Similar decrease from 2008 to 2009 = $637,500 Similar decrease from 2008 to 2009 = $637,500 Uncertain expenses Uncertain expenses Extraordinary Criminal Justice Expenses Extraordinary Criminal Justice Expenses

7. What’s Next? Final Budget Adoption on December 9 th Final Budget Adoption on December 9 th 8:30 am in the Commissioners’ Hearing Room 8:30 am in the Commissioners’ Hearing Room Public Hearing on Property Tax Levies on December 16 th Public Hearing on Property Tax Levies on December 16 th 1:30 pm in the Commissioners’ Hearing Room 1:30 pm in the Commissioners’ Hearing Room Adoption for Property Tax Levies on December 23 rd on Consent Agenda Adoption for Property Tax Levies on December 23 rd on Consent Agenda 8:00 am in the Commissioners’ Hearing Room 8:00 am in the Commissioners’ Hearing Room

8. Public Hearing