University County has a $940 million budget. Revenues of $223 million come from the state. Due to major funding issues with schools ( a state responsibility), the state has made a permanent, non-program related cut of 10% to counties for the upcoming year. That means a $22.3 million permanent reduction of state revenues to University County. General purpose revenues in the county offset approximately $74 million capital improvement budget. The county has 6,500 employees and a $74 million capital improvement budget. The average annual cost of a county employee is $72,000. The county experiences about a 7% employee turnover rate annually. As a budget analyst on the county administrator’s staff, you are assigned to develop a strategy to cut $22.3 million on an ongoing basis from the budget. Your strategy needs to be fully explained to the board of supervisor/county commissioners with targeted savings and expected impacts for each reduction component.