El Paso County News Release
www.elpasoco.com

For Immediate Release  

Contact: Alan Blanchard, Ph.D.
Finance & Budget
Phone: 520-6482
alanblanchard@elpasoco.com
  
COUNTY USE & SALES TAX DECLINING
 
COLORADO SPRINGS, Aug. 21, 2008 – El Paso County   Budget Director Nicola Sapp announced  in her monthly report to the  Board of Commissioners that the  county’s  sales &  use  tax  revenues for June, 2008 had decreased 3.91  percent  compared to June,  2007.  The loss of anticipated revenue represents the first monthly decrease in taxes   that the county has experienced in 2008, with total sales & use tax revenues for the year showing only a modest increase of only 1 percent over the same period of 2007.
 
In June, the Board of County Commissioners approved a mid-year reduction to its original 2008 budget due to a projected shortfall of $9.1 million in county revenues, resulting in serious cuts to nearly every department and the loss of many full-time positions.  Sapp said that if the projected monthly revenues continue to decline at the rate shown in June that other revisions to the 2008 budget may be necessary and would most likely influence the 2009 budget.
 
In late July, the newly appointed Citizens Budget Oversight Committee made its recommendations to the commissioners for the 2009 budget. The group of volunteer citizens spent several months studying the financial condition of the county and weighed the level of importance for each department and the services each provides.  CBOC considered and prioritized every office and department's programs in relation to the needs and desires of the community. The committee made several suggestions to the Commissioners about how they might address revenue shortfalls in the immediate future, including the need for county residents to consider a small sales tax increase for public safety and public health needs.

The Board of County Commissioners will meet on Thursday, Aug. 28, to review a proposal from Citizens for Effective Government (CEG) to and will decide whether to place a referendum for a sales tax increase on the Nov. 4 ballot. The meeting will be held at the Pikes Peak Regional Building Development Center at 2880 International Circle (just east of Memorial Park) and begins at 9 a.m.  The public is encouraged to attend.   
 
Additional county budget discussions will take place on Sept. 22 to review the financial trends within the region and discuss the recommendations made by the members of CBOC regarding the proposed 2009 budget. The Board of County Commissioners will meet again on Sept. 29 to finalize its budget recommendations and provide a balanced budget as required by state law.  It is expected that there will be two concurrent county budgets, one based on increased revenues as it relates to a potential tax increase and a second budget which utilizes only the revenue currently available to the county.