County spending lags behind budget projection

Spending by the various departments in Whitman County’s $12.7 million current expense operating fund has been held under year-to-date projections.

Administrative Director Gary Petrovich reported Monday the county agencies have spent just shy of $7.3 million through August, about 58 percent of the yearly budget. That total lags behind the $8.5 million total expected to have been spent two-thirds through the year.

More than 70 percent of the expenses, $5.1 million, was for salaries and benefits for county employees.

Spending may increase, though, as grants from the state and federal governments expected to run many county programs have yet to be received. That money is not spent until the grants come in.

Petrovich added that revenues are also at their annual low point. September revenue totals typically lag as the county awaits receipt of second half property tax payments.

Through August, the county had collected about $2.4 million of the expected $4.3 million 2011 property tax revenue.

The lag in revenue dipped the county’s cash reserves to nearly $1.1 million.

“It’s pretty worrisome that we’re down that low,” said Petrovich.

That total does not include a $1.19 million reserve commissioners have set aside for emergency use.

Cash reserves have been used to balance the county’s budget for each of the past two years.

Initial budget requests for 2012 have county departments expecting to spend $1.5 million more than projected revenue totals.

One of the major factors sapping county revenues is the Federal Reserve’s continuing decision to keep the prime interest rate at essentially zero. Petrovich said interest from county investments has generated $84,000 through August of this year.

Prior to the financial collapse of Sept. 2008, the county regularly earned six-figure interest on its short term investments, primarily of certificates of deposit in local banks.