Durham County will not have to layoff workers to combat a massive budget shortfall, according to County Manager Mike Ruffin.

"I mentioned in January that slumping sales taxes and lower property tax collections would likely add millions to our $14.2 million deficit," Ruffin told commissioners Tuesday night. "Both occurred and we now estimate that deficit to be more than $18 million."

Ruffin suggested that reducing spending is the best option at this point. On average, all county departments and agencies are facing 6.6 percent reductions, which is less than the 10 percent cuts originally proposed.

"In some cases, it meant deep reductions in service levels that included the layoff of County employees," Ruffin said in his address. "I could not accept some of the choices that were brought forward."

Instead, the County will eliminate 33 vacant positions. That should save about $1.7 million, according to a report prepared by the County Manager's office.

Public Health will take the hardest hit. Sixteen currently vacant positions and three grant-funded positions are slated for elimination.

"It's going to require that they rethink service delivery," Ruffin told reporters in an afternoon meeting with local media. "It may mean longer wait times in some of the clinics. But it will not mean elimination of any services."

Four Sheriff's Deputies spots will also be closed after those employees retire. Ruffin said federal stimulus money helped save more jobs. But he fears, if things get worse, so will the outlook for next year's budget.

"We have pared these budgets back literally to the bone so I think we will be going to bone and organ if we have to make further reductions," Ruffin said. "I'm actually worried about this year in terms of what the state may do."

New residential construction is one of those indicators. Ruffin said new residential construction here dropped from 1,700 permits in 2007 to less than 300 this year.

"Payment plans for property taxes are up fourfold," Ruffin said. "Bankruptcies are on the upswing and foreclosures in Durham County for the first four and a half months of this year are already over twice what they were for all of 2008. Our families are struggling to make ends meet."

Ruffin said the only expenditures not reduced to the average 6.6 percent level were Durham Technical Community College and Durham Public Schools. There are recommended reductions of 2.8 percent for those systems.

The proposal says county employees should not see a reduction in benefits, including the county's 5 percent contribution to employee 401(k) benefits. Also, no county employees will see annual salary increases.

The budget hearing for Durham Public Schools is Thursday morning at 9:00. The County Manager's office will post the budget to Durham County's website Wednesday morning.