PRESS ROOM

Final Report notes 7.3 Percent SPSA Budget Reductions
~ Report Cites Challenges in Cutting Operating Budget by 20 Percent ~

(May 23, 2007 Chesapeake, VA) – Today, the Southeastern Public Service Authority’s (SPSA) Board of Directors received the final report of the Intergovernmental Coordinating Committee (ICC) on possible cuts to the SPSA FY 07-08 operating and capital budgets. In January 2007, the Board asked the ICC to review the SPSA budgets to evaluate the impact of proposed reductions on member communities. The ICC is a panel of primarily local public works officials from the eight SPSA member communities.
In its final report, the ICC repeated its earlier statement that a 20-percent operating budget reduction “will be non-attainable, absent corresponding reductions in levels of service or corresponding shifts in costs to member-communities.”
            Mr. Michael Johnson, Southampton County Administrator and spokesman for the ICC, indicated in the report that budget reductions in excess of 7.3 percent will likely create adverse operational impacts on member communities and other SPSA customers.
            The Board was first informed of this preliminary finding at its April meeting.  The areas where significant savings are possible represent small segments of the agency’s overall $88.6-million budget, the ICC report explains.  The report indicates the following:

“While we may identify operating deficiencies, the fundamental balance sheet problem won’t be solved by cutting operations.  Hampering the ability to hit the 20-percent target is built-in inflexibility: 41 percent of SPSA’s budget must go to debt-repayment.”

            Cuts made will be reflected in the FY 07-08 budget, which takes effect July 1. The ICC’s preliminary April report and its final May report are available at www.spsa.com/whatsnew.
For additional information, contact Felicia Blow at (757) 420-4700.

SPSA has been providing efficient and environmentally sound waste disposal services to the region and its residents since 1985. SPSA’s solid waste management system includes waste-to-energy, yard waste composting, drop-off and curbside recycling as well as other recycling programs, household hazardous waste collection, landfilling, landfill gas-to-energy and education programs. This integrated waste management system enables SPSA to put 57% of the waste it receives to a beneficial use, thus allowing the region to reduce its dependence on landfills.