Ogle cuts approach $1.9 million in cuts: Lower-than-expected revenue estimates, state cuts could mean layoffs
Layoffs, wage freezes, and early retirements may be what it takes to balance the Ogle County budget in light of dwindling revenues.
Earlier this summer, the county’s Finance Committee asked department heads to cut spending in the General Fund by 10 percent – $1.3 million – over the next 16 months.
But in a meeting last week, committee members discussed an even larger spending cut – maybe as much as $1.9 million.
The General Fund includes the budget for the County Clerk and Recorder; Buildings and Grounds; Treasurer; Health, Education and Welfare; Judiciary and Jury; Circuit Clerk; Probation; Focus House; Assessments; Zoning; Sheriff; Coroner; State’s Attorney; Insurance; Finance; and Corrections.
Several weeks ago, the committee asked for 3 percent, or $403,294, to be cut from the expenditures budgeted in the General Fund for the current fiscal year, which ends Nov. 30, and another 7 percent, or $941,018, to be cut from expenditures in the 2010 budget.
County administrator Meggon McKinley said that department heads have cut $309,737 and another $300,000 from the 2010 budget, still $804,575 short of the 10 percent goal.
The problem is that estimated revenues are projected to be significantly below budget for both years.
County Treasurer John Coffman released an estimate that puts the revenue for 2009 at $12.4 million, well below the budgeted revenue of $13.4 million.
Coffman’s estimate for 2010 puts revenue at a mere $11.7 million.
Making matters worse is the question of whether the state will pay reimbursement for the salaries of some county officials – including the state’s attorney, supervisor of assessments, public defenders, and probation officers.
Those salaries are set by state statute, and the reimbursements total $210,000.
The reimbursement for probation has already been cut, Coffman said, but he’s not yet sure about the others.
Coffman’s figures show that the budget shortfall is due to declining state sales tax and state income tax, as well as a decrease in fees and fines being paid to the county.
Real estate tax revenues, which account for approximately one-third of the county’s income, are expected to come in as expected for 2009 and increase slightly for 2010.
Coffman said approximately one-third of the revenue comes from state reimbursements and one-third from fees and fines.
“From a cash-flow standpoint, we can probably absorb this year’s (shortfall), but not next year’s,” Coffman said.
McKinley said the committee has not asked department heads to lay off workers as part of the cuts.
Committee member John “Skip” Kenney said that the goal was never to cause loss of employment.
However, that may not be possible.
“There is no way to get to 10 percent without laying people off,” said Greg Martin, who heads up the probation department.
Kenney said some of the possible measures discussed were furlough days to avoid layoffs, a shortened work week, wage freezes, eliminating overtime, early retirements, voluntary and mandatory layoffs, and reopening union contracts to ask for concessions.
County board chairman Ed Rice said letters asking for their cooperation will be sent to the unions that represent some county employees.
“The disturbing thing when you look at these numbers is that we can make all these cuts and still be short,” Rice said.
Committee member Pat Saunders said cuts also should be made by committees and the county board.
She suggested eliminating the Finance Committee’s annual contribution of $5,000 to the Ogle County Fair.
She added that not paying county board members mileage reimbursement to attend meetings and workshops would cut $16,000 to $17,000 from the annual budget.
“We need to take these cuts if we expect our employees to,” Saunders said.
Martin suggested a real estate tax hike.
“Besides cutting expenses, you need to increase revenues,” he said.
Sheriff Greg Beitel asked the committee for definitive direction in how to proceed with cutting for this year and budgeting for 2010.
“I have deputies who are concerned they may lose their jobs. We need to know,” he said. “I feel like I’m playing poker and everyone can see my cards but me.”
The committee agreed that they want department heads to report the impact a 15 percent budget reduction would have on personnel and programs in time for the Aug. 26 meeting.
