In contrast to recent news articles about failing Michigan businesses and municipalities, this update focuses on successful strategies that have allowed the Washtenaw County Road Commission to balance their 2009 budget. Our current funding challenges, like other Road Commissions, stem from a continuous decline in our Michigan Transportation Funds (MTF). In fact, the 2010 projections for MTF are at similar levels as 10 years ago, while the cost of doing business has increased significantly during this timeframe. Despite these economic challenges, we continue to perform essential routine maintenance and leverage outside funding opportunities.
Our staff deserves much of the credit for balancing our budget. We have downsized our organization and our staff continues to “rise to the occasion”. Since 2007, we have reduced our staffing level by 17%, while outpacing peers with the most outside revenue in 2007 and 2008.
Now that many traditional outside revenue opportunities have disappeared, we have begun exploring new partnerships and resources. These new sources of revenue have manifested into 50+ federal aid projects and have provided critical funding to address our failing paved roads and bridges. These grants have provided opportunities to cover a significant amount of staff and equipment costs as well. Our staff has been recognized by the Michigan Department of Transportation (MDOT) as one of the leaders amongst our peers as it relates to these types of innovative project initiatives.
Pavement Condition Summary »
Bridge Condition Summary »
WCRC Cost Saving Measures
Road Commission staff have worked diligently to implement organizational-wide cost saving measures. Some of these measures include:
- Reduced utility consumption
- Reduced material inventory
- Renegotiated contracted services
- Truck idle reductions
- Inter-agency collaboration
- Self-funded health care programs
- Increased brine well production by 75%, which reduces our dust control costs
In addition, the Board of Road Commissioners approved certain service level adjustments in an attempt to contain costs without compromising safety. Some of these service adjustments will realize savings immediately, while others derive savings as we begin new projects or refrain from performing routine maintenance in certain areas.
WCRC 2010 Budget Challenge
The Road Commission strives for continuous improvement and greater efficiencies in all areas of our organization. However, improving efficiencies only takes us so far. Amidst a prolonged economic downturn, the Board of Road Commissioners is committed to reassessing our service levels on a semi-annual basis, assuring that we utilize our resources to the best of our ability.
The WCRC ended 2009 with a fund balance of $9.6
million and a balanced budget. The 2010 budget envisions a
very ambitious workload, resulting in $1.6 million in deficit
spending. We will work diligently throughout 2010 to reduce
this deficit spending while pursuing our organizational
objectives. Clearly, we face tremendous
challenge in meeting our goals. I am confident that with
careful planning and fiscal controls, we will endeavor to balance
our budget as we accomplish our 2010 workload.
A message from Steve Puuri, WCRC Managing Director