How far can El Paso County budget stretch?

No autopsy is needed to pinpoint the cause of death of the coroner's histology machine.

Diagnosis: old age.

The 20-year-old machine was used to prepare slides of organ tissue for examination under the microscope - an important step in determining why people die and issuing death certificates.

In recent years, El Paso County coroners have resuscitated the machine to extend its 10-year life expectancy. But last week, it went kaput.

"There are no parts available," said Dr. Robert Bux, county coroner. "It is like you trying to find a carburetor for a 1954 Chevrolet."

Today, El Paso County Commissioners must decide whether to give Bux $50,000 to replace the machine.

It will be the fourth high-dollar emergency request made to the board this year. And it will come the day commissioners get a more detailed look at the Finance Department's assessment of the county's financial outlook for the rest of 2008.

Based on preliminary numbers released Thursday, it won't look pretty.

Figures through February are showing a potential shortfall of more than $1.2 million. Final numbers for the first quarter won't be available until the end of the month.

Sales tax collections through February are $53,000 less than planned for in the 2008 budget, Financial Services Director Nicola Sapp told commissioners Thursday.

Interest earnings on county bank accounts are down almost $237,000.

And fees collected by the Clerk & Recorder's Office are down almost $171,000 through February, a less obvious consequence of the dwindling economy, since fewer real estate transactions are being conducted or recorded.

The $225,000 budgeted for payouts of unused sick and vacation time for retiring and resigned employees is gone, and the Finance Department foresees a need for $500,000 more to keep up with the controversial payouts through the year.

The board's $500,000 fund to address county "emergencies" took hits this year to address the assessor's $71,775 Web site upgrade, the sheriff's $38,626 digital video recording need and to bring Commissioner Amy Lathen's salary in line with state statute.

"This is really early in the year to see that fund being depleted like that," said Commission Chairman Dennis Hisey. "Every one of them has been a ‘we-can'tdo-our-job-without-it' type of request."

Beyond the coroner's needs, which eventually will include at least $3 million for a new or expanded facility, the facilities department is anticipating a request for a $125,000 chiller for Centennial Hall's air conditioning system.

The Fleet Management department anticipates needing an additional $500,000 for fuel by the fall in what would be one of the biggest components of the potential shortfall.

And with a high likelihood of more departments coming to the board with hands out to address failing infrastructure, the general consensus is that cuts have to be made - and soon.

That's more cuts than the $10.9 million trimmed from the 2008 budget in December after 2007's sales tax revenues were short by $4.1 million.

In all, the county has cut $25 million from its budget in the past five years, and needs like the coroner's histology machine have been put off.

"We're all kind of in the same boat," Bux said.

"We don't have enough money, and TABOR keeps ratcheting it down. If people don't want service, then they should be very happy with what they've got. 'Cause next year it is going to get worse."

On Thursday, commissioners rejected a staff proposal to refinance certificates of participation, a borrowing tool used to finance high-dollar projects such as the courthouse expansion.

Two of the county's COPs are set to be paid off in 2009, but refinancing to spread the payments over the next 20 years would have given the county $2 million in the next two years.

Commissioners shot down the chance to shore up budgets in the short term because refinancing would have cost taxpayers $2.1 million more in the long run.

"It is important that everybody knows that we're looking at options. We're ruling out some. We're realizing we may be making more cuts here soon," Hisey said.

The biggest departments, such as the Department of Human Services and the Sheriff's Office, may be hit first and hardest, Hisey said.

"It will be less to do with who is not needed than who can absorb it and survive," he said.

On the horizon for potential budgetary relief in coming years is a possible November ballot initiative for a county sales tax increase being researched by Citizens for Effective Government.

Still hanging over the county's head is the discrepancy with the state over sales tax collections in 2005 and 2006.

For months, the state has been investigating hundreds of thousands of sales tax collection discrepancies the county discovered when comparing collection data with the Rural Transportation Authority, which became a taxing entity in 2005 and shares the same taxing constituency as El Paso County.

The county thinks it may have been shorted by $2 million to $4 million in sales taxes collected by the state on the county's behalf, but there is little chance of any money soon flooding the county's coffers and temporarily easing budget concerns.

Last week, Sapp and County Treasurer met with Colorado Department of Revenue Executive Director Roxy Huber. Sapp will discuss the details of that meeting with commissioners at today's meeting.

"I believe we're on track to identifying what the discrepancies are," Sapp said. "Whether that will result in additional revenue to the county remains to be seen."

The state requested that El Paso County businesses perform a self-audit in its initial investigation of the discrepancies.

Forty percent of those audits have been returned, and in those, $130,000 has been identified as owed to the county.

Meanwhile, Bux and other department heads and elected officials are bracing for more cuts this year and next.

"We're unraveling, and unless I get more help next year, we're going to be in huge trouble," Bux said.

CONTACT THE WRITER: 636-0232 or carlyn.mitchell@gazette.com

PROBLEMS

Commissioners reserve balance: $363,659

NEEDS

Coroner histology machine: $48,000

Centennial Hall chiller: $125,000

Employee sick/vacation payouts: $500,000

Fuel: $500,000

REVENUE WOES

Clerks fee: Down $170,879 through February

Interest earnings: Down $236,833 through February

Sales tax: $52,998 through February

Potential shortfall: $1,270,051

El Paso County Commissioners will hear a full 2008 financial report at their regular meeting at 9 a.m. today in the third-floor hearing room of the County Administration Building, 27 E. Vermijo. The meeting can be viewed live online at www.elpasoco.com/meetings.asp