Dips and Cuts Move Budget Forward

After months of debate and cuts, the Jefferson County Budget Committee Approved a recommended budget for the fiscal year 2015-2016. Against advise from Jefferson County Finance Director Potts, the Committee voted 7-2 ( with Gaut and McGraw voting No) to send a recommendation to the full body that includes no property tax increase. Instead the Committee used a combination of funds from several sources to balance the budget. Director Potts informed the Committee early in their May 26th meeting that $1,099,000 in deficit still needed to be addressed to have a balanced budget. Potts advised that $238,000 from Debt Service, $70,000 from a portion of funds set aside to pay for the Justice Center, and $13,900 from additional departmental cuts ( largely the County Commission) could be applied to the deficit, leaving $777,043 still in the red. The Finance Director advised that 7 cents on the property tax rate would address that deficit and still leave fund balances, which were hovering at the allowable level mandated by the County’s Debt Service Policy, in tact.

Director Potts informed the Committee that it was not sound fiscally to pull from already distressed fund balance and that the Committee cannot afford to continue to use fund balance to balance the budget, as they have done in the past, because the fund will not hold out. With the hospital lease money already committed to balance the budget, the hospital lease fund will not be replenished. Committee Member Blevins made a Motion to use the $238,000 from debt service, $70,000 from the Justice Center and $13,900 in departmental cuts to balance the budget. He was 2nd by McGraw ( sitting in for Committee Member Turner) and the Motion Passed 9-0.

Committee Member David Seal made a Motion to use $320,000 from the General Fund Balance and $457,043 from the hospital reserve fund to balance the remaining $777,043 deficit. He was 2nd by Blevins. Commissioner McGraw stated that, while he does not want to raise taxes, he was unsure if it is wise to dip into a dwindling fund balance when the situation could be worse next year, as this is a multi year situation that is facing the County. Committee Member Kesterson inquired what the cost increase would be on a residential $100,000 property. Tax Assessor Susan Gass stated that it would be a $17 per year increase for a residential $100,000 property. Director Potts cautioned that the use of fund balance in the past is why the County is in the current situation. Committee Member Seal stated that he wanted to spread out the impact across both funds rather than one fund taking the full hit and that he did not feel good about a tax increase when there are funds that can be used. The Seal/Blevins Motion will go as a recommendation before the full body of Commissioners and will require a change or set aside in the current debt service policy. To that point, Seal made a Motion to suspend the rules and was 2nd by Blevins. The motion to suspend passed 8-1 with Gaut voting No.

Director Potts informed the Committee that a current year deficit of $135,000 for health insurance premiums that was incorrectly figured in this year’s budget will have to be addressed. Committee Members discussed the line item budget of the Schools, with some expressing dissatisfaction that text books were cut and others questioning raises for high salary employees. Chairman Scarlett reminded the Committee that they cannot address individual line items in the school budget and can only vote up or down. He confirmed that the Committee approved the funding minimum at last year’s level of $16,201,000. McGraw made a Motion to Approve the County Portion of the General School Budget and was 2nd by Committee Member Beeler. The Motion Passed 7-2 with Blevins and Solomon voting No. The School Federal Budget was Approved 9-0 with a Motion from Blevins and 2nd from McGraw, as well as the Student Nutrition Budget with a Motion from Solomon and 2nd from Musick.

Source: K. Depew, News Director