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Published: Jan 10, 2009 12:30 AM
Modified: Jan 10, 2009 02:22 AM

County cuts budget, groups pinch pennies
Organizations depending on county for supplemental funding are squeezed even tighter as recession hits
 
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The Durham County Board of Commissioners meets at 7 p.m. Monday in commissioners chambers on the second floor at 200 E. Main St.

To read County Manager Mike Ruffin's plan, go to http://www.co.durham.nc.us/index.html and click on "County Manager's Proposed Budget Actions."

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For the most part, those who would be hit by Durham County's proposed budget cuts seemed to take the news in stride this week.

"We understand the times are what they are," said Simon Woodrup of the Animal Protection Society of Durham, which runs the animal shelter under contract with the county.

"It's a tough year all around," said Julie Ketner Rigby of the Museum of Life and Science, which would lose just over $43,000 in county funding. "We really understand the county's position."

County Manager Mike Ruffin, facing a $14.25 million shortfall this fiscal year, gave the board of commissioners a budget-balancing plan Monday that cuts spending across county government and to outside agencies that receive county money.

Come Monday

By mid-week, commissioners reported little reaction from citizens, but acknowledged that could change when they hold a public hearing on the budget cuts Monday night.

"I'm thinking people are having a chance to think about it," said Brenda Howerton, who joined the board of commissioners in December.

"The biggest discussion will come Monday," said veteran Commissioner Becky Heron, who expects more than a few voices of complaint.

One is likely to be that of the Durham Public Schools, which faces a loss of more than $3 million, about 3 percent of its 2008-'09 appropriation. That comes on top of a $1.3 million loss from state budget cuts in November.

"We're still reeling from that," schools CEO Hank Hurd said. "Our options are really limited."

Hit here, hit there

"I think people understand what the real deal is," said county Commissioner Joe Bowser. "People understand that something has to be done."

The economy is affecting Durham County's $684 million budget in several ways. For one, sales-tax receipts are projected to come in more than $1.2 million below what was anticipated when the 2008-09 budget was approved last June. Here are some other projections:

* Sales-tax reimbursement from the state, down more than $1 million;

* Investment earnings, down $1.14 million;

* Deed-registration fees, down $1.25 million.

Bonding

Besides the fiscal prudence of a balanced budget, the cuts protect a $13.5 million "fund balance" -- money held in reserve -- that helps maintain the county's Triple-A credit rating.

A high rating allows the county to borrow money at favorable rates, and makes county bonds attractive to investors. Bonds are how the county pays for improvements such as new schools and libraries, the planned new human-services complex and courthouse, and an anticipated expansion of the county jail.

Those, though, are in the future. In the here and now, agencies ranging from Downtown Durham Inc. to the Triangle Radio Reading Service face trimming more than they may have already.

"We're always pinching our pennies," said Aurelia Sands-Belle, director of the Crisis Response Center. Her nonprofit would lose 3 percent of its $52,000 county appropriation.

"We'll have to pinch them a little more and make it work," she said. "It's very hard, that's all I can say."

All in this together

Ruffin's proposed cuts spread the pain around. Each funding recipient outside the county's own departments takes a hit of 3 percent.

"I think he's doing what he's got to do," said Bill Kalkhof, president of Downtown Durham Inc. "It's really no problem with us, as long as we're treated the same as everyone else."

Kalkhof said he's also glad the cuts were announced now, with half the fiscal year left in which to absorb them.

The Museum of Life and Science, vice president Ketner Rigby said, had already been planning for a financial downturn -- deferring some maintenance, leaving vacant jobs unfilled -- but, like others, wants to keep its visitors unaffected.

The Durham Public Library may buy fewer books than planned, director Skip Auld said, and the refreshments may be skimpy at library functions for a while.

"We'll live with it, it'll be fine," he said.

Greg Rowland, vice chairman of the Urban Ministries of Durham board, said the cuts will affect services but just how has yet to be decided.

"We certainly intend to be at the county commissioners meeting Monday," Rowland said.

Agencies are also hoping for help from their friends.

Senior PharmAssist, a nonprofit that helps needy older people pay for medications, has diligently worked over several years to diversify its funding, director Gina Upchurch said. Now, that's paying off: "People have been very generous," she said.

"We certainly hope people will step up," said Woodrup, at the Animal Protection Society. "I am sure everyone else is in the same position."

jim.wise@newsobserver.com or 932-2004
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