Houston County’s projected spending for the current fiscal year is $3.3 million more than projected revenues.
During budget discussions last year, County Administrative Officer Bill Dempsey anticipated a financial shortfall. Now, the county needs to decrease spending in the upcoming year by about $3 million.
"Revenues in the coming year (2009-2010) are not expected to be higher than that reflected in the current year's budget," Dempsey told county commissioners Monday morning during Phase I budget discussions focusing on capital expenditures and personnel.
The county will finish the current fiscal year on Sept. 30 with approximately $4 million – a balance that needs to be maintained, Dempsey said.
The county is handling budget planning differently this year by dividing expenditures into the categories of capital improvements, personnel and operating expenditures. Discussions on Phase II – operations – will be in July.
“We are talking about the people we need, how many trucks we need and how many pieces of paper,” Dempsey said in characterizing expenditures.
The county’s largest expenditure by far is labor and benefits, accounting for more than 40 percent of the budget. At full staff, the county employs 420.
Since sales taxes and interest income are down, the county is not filling some vacant positions.
Commission Chairman Mark Culver said openings in the jail and in sanitation will be filled as both jobs are seen as critical.
The largest departments are the sheriff’s, with 93 jobs; road and bridge, with 92; and the jail with 78 positions. The probate office employs 37 and the sanitation department 25.
July budget discussions will include manpower cost based on the approved head count, and will reflect the findings of a wage study. Officials said the county might have to get by with less workers who are paid more based on the study.
“If everybody's pay goes up per position, we can only afford fewer of them,” Culver said.
Personnel Director Sheri Stephenson said in looking at salary alone, the county should be considered “extremely competitive.” The study will also look at benefits.
The county is considering more cost-saving measures. “Even in telephone, electric and gas, there are some savings out there,” Culver said. “With enough analysis, there are some savings we can get to. We are not going to be approaching zero at the end of all this. We just have to make some tough decisions.”
Culver said he is hoping the county can finish the year $1 million under budget, increasing the reserve fund to $5 million. Finding another $1 million in cuts puts the reserve at $6 million.
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