The Mecklenburg Board of County Commissioners got some good news from staff on Wednesday, the first day of the County’s 2011 Strategic Planning Conference. Bucking a two-year trend, the County enters the FY12 budget season without the prospect of major cuts in programs, services and people. The County has cut $150 million from its operating budget in the past two years and there had been concern that another round of cuts might be necessary.
In his opening remarks, County Manager Harry Jones reminded the Board about his 2010 budget message where he outlined three objectives to prepare the County to reach its long-term objectives. They are:
- Reduce programs, services and personnel to match available funding.
- Maintain long-term fiscal discipline.
- Redesign and reshape Mecklenburg County government.
The Manager told the Board that it must maintain fiscal discipline in light of the uncertainty surrounding the State Budget. North Carolina goes into its budget season with a deficit of $3.7 billion and some of the cuts the State will make could shift funding for some state-mandated programs to cities and counties.
The Board heard from two noted economists. Dr. John Connaughton of UNC-Charlotte and Dr. John Silvia of Wells Fargo cautioned that the high unemployment rate will be with us for the next five years. Dr. Connaughton said manufacturing employment is all but dried up. He also said that the local economy in general is showing improvement but consumer spending is still cautious. Dr. Silvia said a key for Mecklenburg County is to invest in education, which will result in a better workforce. To view a video of the economic presentation go here.
The Employers Association President Kenny Colbert told the Board that the national trend among public and private employers is to restore salary increases and benefits to employees. County Manager Harry Jones has said that he plans to make employee compensation a priority in his FY12 recommended budget.
The Board heard from Rebecca Troutman of the North Carolina Association of County Commissioners. She identified some of the potential targets the state will focus on when it begins identifying cuts.
The afternoon session was devoted to a status report on the current year’s budget and a look at expenses and projected revenues for FY12. Staff also presented background on the County’s budget model at the request of several commissioners.
Additional information about the Strategic Planning Conference can be found here.
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