2007 LEGISLATIVE STUDY OF COUNTY FINANCIAL HEALTH AND GOVERNANCE ALTERNATIVES

The 2007 legislature directed the Department of Community, Trade and Economic Development to present a study of county financial health and governance alternatives to the Governor and Legislature by December 1, 2007. The study request emerged as a result of legislative debate over increases in state funding for counties. The legislature recognized that counties have limited revenue options and capacity that has been further limited over the last decade. Counties in Washington also have limited organizational structure options compared to other states and Washington cities. The legislature was concerned that these limitations may lead to inefficiencies. The state has an interest in assuring that any increased state funding goes to those jurisdictions that need it the most and that all counties have an opportunity to organize in a manner that is the most effective and cost efficient for their local circumstances.

Study Questions

Based on legislative direction the following "Study Questions" were developed:

• What factors contribute to county fiscal health?
• Which Washington counties are the most fiscally distressed?
• What potential efficiencies, cost savings and/or improved level of service opportunities may be gained "by authorizing non-charter counties greater flexibility in altering their forms of governance, including consolidating or merging constitutional or statutory functions or structures" within or among counties?
• What changes to constitutional or statutory law would provide counties with the legal authority necessary to implement changes in governmental structures or functions needed to optimize efficiency and/or improve service?

County Participation

County elected and appointed officials will be asked to contribute to the study in the following ways:

• Participate on a thirteen member advisory committee that will provide feedback on various study components as they are developed.
• Participate in a statewide survey of county officials
• Provide information to consultants that will be selected to complete case studies related to cost savings or level of service improvement gains realized through existing consolidated or merged service arrangements in selected counties of various sizes across the state

Study Components

The study has several components:

• Background on existing county financial structure and governance
• An evaluation of county fiscal health and factors that contribute to health and/or fiscal distress
• Survey of county elected and appointed officials
• Specific case studies of existing county government service consolidation/mergers
• Evaluation of potential alternative governance structures
• Legislative language recommendations for selected governance alternatives

Contacts

CTED Project Manager: Anne Pflug 509-925-2608

County Association Contacts: Debbie Wilke, Washington Association of County Officials (360) 753-7319 and Bill Vogler, Eric Johnson or Julie Murray, Washington State Association of Counties (360)753-1886