With Clallam County revenues improving since a huge dip last summer, commissioners discussed lifting the county’s hiring freeze, directing staff on Dec. 14 to come back to the board in February with a list of priorities of which positions were the most important to fill.
County commissioners imposed the freeze shortly after the COVID-19 pandemic began because of its effect on the county’s economy and tax revenues.
Mark Lane, the county’s chief financial officer, told commissioners during a Monday work session that he was confident those positions can now be filled. He said leaving at least 11 positions unfilled saved the county an estimated $85,000 a month, and as a result, the county is now under-spending its budget to the tune of $1.9 million to $2 million.
“We were able to achieve what we were looking for,” Lane said. “There was a high level of uncertainty and concern about our revenue streams during the early months of COVID-19.”
Lane said the county’s sales taxes were down 15.6 percent in May and 10 percent in June, as the county’s economy was largely shut down by Gov. Jay Inslee’s order as the COVID-19 pandemic began to worsen.
“Hitting the pause button on hiring those positions was warranted,” Lane said.
However, the picture has changed dramatically since then, he reported.
“The rather grim prospects that various economists and forecasters even at the state level were calling for as far as budget shortfalls are coming in substantially lower than what we were expecting,” he said.
“Our sales tax revenues have held up remarkably well. For the year, we are projected to be up 4.1 percent for the year. It wasn’t too long ago when we were in the midst the roughest patch of COVID, we were assuming our sales tax revenue was going to be down 4 to 5 percent.
“That 8 percent swing certainly has put us in a position that lifting the hiring freeze from a budgetary standpoint makes sense,” Lane said. “I do believe the worst is behind us.”
Commissioner Randy Johnson said the county should remain cautious about assuming the economic downturn from COVID-19 is over.
“We’re not out of this by any stretch,” he said.
Johnson said that, if at the end of 2021 and the county is “only” $2 million underwater in its budget, “what are you going to do the following year? I’m just telling you, we need to be safe when we think about this.”
Commissioner Bill Peach likewise said the county should at least prepare for the possibility of downsizing in the long term in case there continues to be a loss of revenue from the pandemic.
Commissioners asked staff to bring back a priority list of positions that need to filled first. For instance, an appraiser’s position in the county assessor’s office can help create revenue and is likely a high priority, they said.
Commissioners decided to wait until mid-February to make a decision on lifting the hiring freeze because they will know the year-end sales tax revenue by then, commissioner Mark Ozias said.
