Ted Rumley

As counties and agencies across the state lay off or furlough workers to make up for budget shortfalls, Dade and Walker counties have plans ready but not active.

"Right now we're doing whatever we can to cut costs without harming our employees," Walker County Commissioner Bebe Heiskell said.

Two weeks ago, the Catoosa County Commission announced that most county workers would be furloughed one day every two weeks to save money. Last week, commissioners offered voluntary early retirement to employees who are at least 62 and have 10 years of service.

Walker and Dade officials say they aren't yet at the point of layoffs. Ms. Heiskell said the county was "about to do" furloughs for four hours per employee per week but held off when revenues figures came in slightly higher than expected.

Dade County's income is still reeling from the loss of more than 400 jobs when Shaw Industries closed a plant in December, County Executive Ted Rumley said. Mr. Rumley said the county is staring at a potential $850,000 budget shortfall.

"Where we're hurting -- like everybody -- is revenue, money coming in," he said. "They can't spend money they don't have."

Both counties have reduced costs. In Walker County several departments, including the commissioner's office, road department, tax assessor's office, as well as records, planning and code enforcement, have been rescheduled to work four 10-hour shifts rather than work five days a week.

Ms. Heiskell, who said sales tax income was off about 10 percent, said the county saved money on its energy and fuel bills. She also said those would be the first offices furloughed if things get worse.

About 10 workers have been offered voluntary early retirement packages, she said.

"We've just done a lot of cuts that we might not even have considered if it wasn't tight," Ms. Heiskell said.

Dade County's public works department went to four 10-hour shifts and cut hours at the garbage transfer center from six days a week to five, cutting one position. The sheriff, tax assessor and tax commissioner have been told to prepare for 10 percent budget cuts, said Mr. Rumley, who remains hopeful the economy has reached bottom. If sales slow further and tax income declines, the county might have to enact more drastic cuts.

"Everything's on the table if it comes down to that and we're not to that point," Mr. Rumley said.

Both officials said the remainder of the summer vacation season could go a long way in determining the counties' financial standing.

"The next three months is really when most of your sales tax is coming in," Mr. Rumley said.