Preliminary figures indicate Douglas County revenues have dropped $2.3 million for the upcoming fiscal year, from $153.4 million for fiscal 2006-07 to $151.1 million for July 2007 to July 2008.
"Last year we barely made it," said Jim Baushke of the Douglas County Board of Commissioners. "We're in a position and there's no way to balance this budget without taking drastic action. That sets the road map for what we are going to tell you."
Baushke spoke Tuesday during Douglas County's first round of budget hearings. The second round is scheduled for 4 p.m. today in the courtroom of the Douglas County Administration Building, 1616 Eighth St. in Minden.
A 7.6 percent decrease in sales tax through January of 2007 was partially responsible for the $1.8 million deficit in Douglas County's general fund.
"We also saw a shift of room tax revenues into promotion in 1997," said County Manager Dan Holler. "We were able to get a quarter-cent sales tax to replace that, but that leaves us even more reliant on sales tax dollars."
In fiscal 2006-07, a transfer of $128,000 from the general fund was required to meet the requirements of the room tax fund and $280,000 for social services. Another $100,000 was siphoned off for the DART system and $32,000 for senior center operations.
"State law requires us to balance the budget," Holler said. "We can't deficit spend and we had to use these reserves to do so. We can't continue at that level, or we will have real problems in the future."
