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 $$22\mathrm{.}3$ million permanent reduction of state revenues to University County. General purpose revenues in the county offset approximately $$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\mathrm{.}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.