The commissioner of Property and Procurement on Thursday echoed the refrain of most department leaders who have testified at Senate budget hearings in the last two weeks: no more cuts.
P&P Commissioner Marc Biggs told Finance Committee members that in light of the government’s dire financial situation, the department’s budget has been reduced 11 percent compared to its earlier funding request.
"Our budget has been cut so deeply that we are now cutting into the marrow of the bone," he said. "We simply cannot survive a deeper cut."
Biggs said the department’s funding request of $6.8 million reflects a "truly" effective attrition program. In 1989 he said there were 332 employees in the department compared to the current 188. Biggs added that more cuts would be "counterproductive."
Of the department’s $6.8 million budget request, however, 83 percent will go toward payroll, leaving some of the agency’s divisions short of supplies. Compared to the fiscal year 1998 budget, funding for supplies in FY 2000 will be cut by nearly 85 percent.
Biggs said the actual amount recommended by the Office of Management and Budget is $22,800, which is "less than the amount we normally receive in a single quarter."
One problem area is the Central Motor Pool and its task of maintaining more than 1,200 government vehicles. Biggs said the division has been hurt by the government-wide financial situation, which has caused a dismal revenue and collections problem.
While the motor pool provided $960,000 worth of services to other government agencies in fiscal year 1999, only $250,000 was collected, leaving a delinquency rate of almost 74 percent, Biggs said.
"Clearly we cannot continue to operate under these conditions or a complete collapse of the system will occur," he said.
The problem, Biggs explained, is that government agencies are suffering from cash-flow problems, so payment from one department to another is not a priority. He said the Central Motor Pool is essentially another vendor, paid only when the government’s cash flow permits.
Biggs said the need for the motor pool and whether it can be properly maintained and funded are questions that must be considered. The request of $838,690 to keep the motor pool "afloat" for FY 2000 will allow for only basic and essential services, he said.
On a more positive note, Biggs said that in FY 1998 more than $848,000 was collected from the nearly $1.2 million the department generates from leases each year. For FY 1999 collections are projected to increase to $1.1 million.
Yet another challenge facing the department, and the government as a whole, is the problem of some 19 underground storage tanks, primarily used to hold fuel or oil. The federal government has mandated that the tanks must be removed by Dec. 31.
"If these tanks are not removed by (then), the United States Environmental Protection Agency will immediately impose civil penalties at the rate of $11,000 per tank, per day of each violation," Biggs said.
Under the department’s Home Protection Roofing Program, 95 homes at a cost of $5.2 million still must be completed. Biggs said the program is operating under a $1.3 million Federal Emergency Management Agency grant and will attempt to complete an additional 20 homes from the remaining 95 eligible applicants.
