Tough York Budget Puts Schools, Public Safety, Parks in Danger of Funding Cuts

By Sam Thrift Thursday, December 08, 2011

Facing a seven million dollar reduction in revenue, the York County Board of Supervisors this week examined the difficult decisions that will have to be made when drafting the 2013 budget over the next five months.

Uncertainty concerning the amount of money York County will receive from the state and the cost of meeting EPA regulations to clean the Chesapeake Bay left board members questioning the position they will be in when they create the budget.

“I think it comes as no surprise that over the last several years we have been impacted by the state of the economy, with our budget going down from $130 million to a little under $123 million at this point in time,” County Administrator James McReynolds said during the board's work session Tuesday.

McReynolds added that the closing of the Yorktown Refinery and Altria – a smokeless tobacco manufacturer – over the past two years are also causes for concern, saying the county is expecting a $2.2 million loss from the closings. Western Refining, Inc. announced Dec. 1 that it has entered into agreements with subsidiaries of Plains All American Pipeline, L.P., who said they do not intend to reopen the refinery. McReynolds said the county is leaving no stone unturned in trying to find a new owner to operate the refinery.

“I am quite concerned about the plant, although it’s not going to fall down around our ears tomorrow,” McReynolds said. “But I am saying that if we don’t begin reinvesting in the infrastructure, it is going to begin to decline.”

The county expects a 2 to 3 percent reduction in property assessments, resulting in a loss of $1 million, an $800,000 increase in the county’s contribution to the Virginia Retirement System and a 10 percent increase in health insurance premiums, equating to $400,000 to $500,000. In addition, McReynolds predicts a reduction in state revenues, which could potentially affect agencies the county has to support, such as social services, the regional jail and Colonial Behavioral Health.

“The picture from the state is not very rosy at all moving into fiscal year 2013,” McReynolds said. “The state is facing a number of large ticket items [in 2013] that will likely consume any increase in revenue and result in them also going in and cutting other programs. I believe over 50 percent of the state budget goes to localities, either through education or constitutional officers.”

It is estimated schools will see a $1.2 million reduction in funding from the state as a result of the local composite index changes, according to McReynolds. School funding could also be on the chopping block in York County if faced with budget cuts. McReynolds told the board places with significant amounts of discretionary funds — including schools, public safety, parks and recreation, libraries and the recycling program — would be the most likely targets.

“You are only required to provide the level of funding that the state mandates under the standards of quality,” McReynolds said. “We are far exceeding the standards of quality for the school division ... the expectations of school in York County are very high, and if you were to go by the standards of quality [for our schools] there would be a revolt.”

The cost of meeting the EPA's Total Maximum Daily Load (TMDL) plan to reduce pollutants in the Chesapeake Bay also caused concern among board members. District 5 Supervisor Tom Shepperd questioned whether the county could even budget for the environmental plan, saying the lack of information, cost and timeline of the current plan is an unreasonable expense for the county. According to Shepperd, the county has to come up with a plan to meet their portion of TMDL by 2017, with few guidelines provided by the EPA, which would cost the county an estimated $94 million over 14 years.

“We can’t tell them where we want to go and they can’t tell us where they want us to go, so it’s just a massive circle,” Shepperd said. “They will start withholding funds if we don’t meet our obligations.”

Shepperd mentioned the City of Chesapeake has already put $10 million aside without knowing exactly what they are going to spend it on. York County has not set money aside in anticipation for the EPA mandating more regulation.

“Unless we are planning on putting something aside, I do not anticipate that we will have a bill put before us in this budget cycle,” Shepperd said. “I don’t want this to become a major issue for the board because of the gross uncertainties surrounding it.”

McReynolds said the county debated whether to include the TMDL in the 2013 budget, but wanted to make sure that it was not left of the list of items to consider in case the federal government considers the plan in the next fiscal year.