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