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County looks to cut $2 million to stay within state levy cap |
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By Patrick Tepoorten
When you add it all up - 2009 Chisago County revenues versus expenditures - it looks like the county commissioners will have to cut just above $2 million from next year’s budget to meet the 3.9 percent levy increase cap mandated in the last session of the state legislature. The county board met last Wednesday to start the difficult process of making those adjustments.
There are many things contributing to the difficulties heading into 2009. Some, like higher than estimated fuel costs and lower Environmental Services revenue because of stagnant growth, are shortfalls left over from 2008. Others, like projected reductions in revenue from the state toward Health and Human Services and the Public Defender’s office, and expected increases in employee wages in 2009, must be accounted for as well.
The question for the board is whether it will very strictly follow the 3.9 percent cap, or will it utilize any of many “loopholes” from the state that will allow the county to pull certain funds out of the regular budget process and will therefore not count toward the 3.9 figure.
Commissioner Mike Robinson was against using any exceptions. “Forget loopholes,” he said. “People want their 3.9 percent.” Robinson proposed simply taking the 2008 budget, adding 3.9 percent, and letting department heads determine how best to achieve the desired result.
For his part Commissioner Bob Gustafson chastised the state for enacting the 3.9 percent levy cap, but then allowing counties so many exceptions, suggesting they were there to make county boards look bad if they were used. He also suggested it was too soon to “close the door” on using exceptions to balance the budget.
Commissioner Ben Montzka lobbied for using the exceptions if necessary, saying, “I would support doing as much in the margins as we can.”
Montzka also proposed a way to save roughly $2 million dollars from next year’s budget: utilizing a voluntary wage freeze for the county’s union employees. “I think there is a big possibility we can make up the funds through negotiation. If we partner with our fine employees we can get through this,” he said.
County unions have a wage re-opener in contracts for this year, and it is Montzka’s belief that, if the situation is explained, unions might agree to no cost of living adjustment (COLA), freezes to raises and step increases, and to take on any additional benefit package increases in 2009.
Robinson replied that he was skeptical Montzka’s proposal would work.
Another idea that was floated regarding union employees was cutting hours instead of freezing pay, but Commissioner Lynn Schultz said hours cut would impact programs. “If we eliminate hours aren’t we eliminating services?” she asked, and added, “We’re about as efficient as we can get,” before stating the county was “close to the breaking point.”
With the 3.9 percent levy increase cap in effect for the next three years, future expenditures like a new county jail, or road projects, present the board with having to make cuts in other areas to provide funding. “If we cannot pay for programs we’ll need to get the revenue or make cuts,” warned County Administrator John Moosey.
Moosey was instructed by the board to ask department heads to submit two 2009 budgets; one that includes no COLA, a wage freeze, and no increases in employer share of benefits, and one that includes a COLA of 2.5 percent and a 15 percent in employers share of benefits. He was further instructed that both department budgets should use the cap as a basis for planning.
In closing, Gustafson called working with the cap over the next three years “the most important problem we got,” adding, “If we don’t inform the public why we are in this pickle, it’s our own fault.”
Robinson also spoke, saying “homeowners get by, we should be able to.”
The next budget session is loosely scheduled for the second week in August. Since the board meeting, wage re-opener discussions have begun with the county’s unions. According to Moosey, union representation has made an offer for a COLA for 2009 and there was no serious discussion regarding a wage freeze.
In other news:
• In an emergency meeting preceding the budget session, Susan Johnson was appointed interim County Recorder.
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