Potential Impacts

from
State Budget Delay
May 6, 2014
FY 2014 Impacts
! Potential delay of June State or Federal pass-through reimbursements
! Compensation Board reimbursements
! Social Services State and Federal reimbursements
! Comprehensive Services Act (CSA) reimbursements
! Airport maintenance/capital grant reimbursements
! Potential delay of May/June revenue receipts that are distributed at
State level
! Sales Tax, Communications Tax, etc.
! Potential delay of some local revenues processed at the Circuit/
General District Court level such as local recordation/deeds tax, local
fines, etc.
! The impact from these items, on average, would delay approximately
$3.4 million to the County between July-August.

FY 2015 Impacts
! All agencies contacted have said they have no direct guidance at this time,
but they will relay information as it becomes available
! Indirect guidance notes that reimbursements and distributions of revenues
will be delayed

! State-Supported Positions
! Approximately 184 positions with the County receive some level of State funding
! Directly impacts 8 department/divisions of County government
! State funding supports approximately 50% of the total cost for these positions or
approximately $6.8 million
! Level of funding varies by department and positions, ranges from 8-90% state
funded

FY 2015 Impacts Contd
! State direct, indirect, or Federal pass-through funding provides approximately
$28.9 million towards County operations in the FY 2015 budget
! 60% is local funding that support all County operations
! 40% is direct funding that supports specific County departments
! State funding impacts all areas of County services from Bluemont matching
funds to Conservation Easement funding to Landfill Litter Control grants
! Indirect state funding are items such as reimbursement from the State for
rental space
! DSS space in AJC Building
! Health Department
! Federal pass-through funding
! DSS operations and 100% funded programs such as special adoptions
! DFREM/VFRA grant funding

Impacts on School Division
! FY 2014 end of year revenue delays
! State sales tax distributions for Schools
! Federal pass-through grant funding
! FY 2015 budget includes $44.8 million in state funding or 34.5% of
their budget
! Normal monthly distribution of local funding is insufficient to fund
cash flows
! Total salary and benefit costs within Operating Fund exceed local
funding amount

Other potential impacts
! VDOT managed grants
! Revenue share grants
! Vint Hill Roads Network and Brookside Parkway
! TEA-21/MAP-21 Grants
! Salem Meeting House and sidewalks
! Marshall Main Street
! Various Parks and Recreation trail projects
! Historically, 45 day stop work notices were provided and reimbursements
were made after a budget was in place. However, this is only a historical
guidance and no direct guidance is available from VDOT at this time.
Cash Flows
! The Treasurer reviewed historical cash flow need through the first quarter of
the fiscal year and indicated the following:
! Funds should be sufficient to cover all cash flow needs through the month of August
! Excludes anticipated revenues/reimbursements from the State and Federal pass-through
sources
! Excludes the use of the 10% reserve - $15,949,166 for FY 2015 and $16,622,908 for FY 2015
! Drops all accounts to required minimums
! The need for use of a short-term loan or access to the 10% reserve would most
likely occur in September
! Cash flows will be further restrained if the annual PPTRA state payment is not
received in November, approximately $10.2 million