County facing another revenue shortfall

Wahkiakum County government may be facing yet another revenue shortage.

Treasurer Paula Holloway reported Tuesday that although revenue from timber harvest may be up for the year, other revenues are down about $450,000, and the trend will likely continue next year.

State Criminal Justice money is coming in at reduced rates, she said. An installment is due this week, and state officials have said it will be 65 percent of original allocation. Criminal Justice money funds law enforcement, courts, and prosecution and can be used for other services. Officials deposit it in the Criminal Justice Reserve and transfer it as needed.

"To be prudent, don't spend Criminal Justice funds," Holloway said. "That means cuts big time."

Also, Holloway said, revenue from trust timber harvests expected in 2012 has come in 2011 as the timber sale purchasers are advancing their harvest schedule. That could reduce the amount of timber revenue available for 2012.

The county has borrowed from its reserves to cover its cash flow, Holloway said, but it has always had the revenue to cover the loans. It now appears that the revenue stream may not be sufficient, she said.

Commissioner Dan Cothren commented that Commissioner of Public Lands Peter Goldmark has assured him that the county will receive at least $1.2 million in 2012. However, Cothren said, the Department of Natural Resources is selling county trust timber that should be sold in a few more years while backing off of sales that include potential habitat for endangered species. He plans to raise the issue at the October 10 meeting of the Board of Natural Resources, he said.

Meanwhile, commissioners and Holloway will monitor developments. Commissioners will begin working on the 2012 budget in October.

"We're a half million (dollars) light," said Commissioner Blair Brady. "We'll have some tough decisions."

Holloway cautioned that the situation could change quickly, especially if the state makes up its Criminal Justice Funding.

Holloway said officials should meet in October to evaluate the developing situation.