County budget talks winding to a close

Next year’s budget will be down approximately $900,000, or six percent, from this year’s $14.1 million budget. That’s the second straight year of significant cuts to the county budget.

Commissioners and other county tax levying boards were able to hold tax rates steady this year despite revenue shortfalls. However, the state is also facing revenue shortages. And legislators eliminated the Homeowners’ Tax Relief Grant, which added roughly $240 to local homeowners’ bills. Though the general assembly ended the grant for 2009, they rejected the governor’s request to take back the grant for 2008, a measure that ultimately would have added yet another $240 to homeowners’ payments this year.

While the economy has floundered, the BOC has met repeatedly over the past few months, reviewing each line item in the county budget, cutting numerous figures in hopes of bringing anticipated expenses in line with projected revenues.

One cost saving measure is the elimination of some employee holiday pay. The board discussed eliminating all holiday pay, but after insurance premium tax revenues came in higher than initially projected, the group decided to cut five, rather than 10, days of employee holiday pay, which will decrease county expenses by $112,500.

Commissioners spoke at length last Wednesday about next year’s budget. And they expressed dismay with delinquent property taxes, noting that the failure of many property owners to pay their taxes is putting local governing bodies such as the BOC and school board in a financial bind.
“Some people who could pay just aren’t paying,” said Commissioner John Pethel.

The county has over $3 million in unpaid property taxes. Those delinquent taxes date back to 2004.

The tax commissioner’s office has a list of delinquent property owners that runs approximately 250 pages.

“I know that some of these people can’t pay,” said Commissioner Bruce Scogin. “But I saw a world of people on there (the list) that we know are able to pay their taxes.”

Scogin said that he would like tax commissioner Louise Watson to let the board know when she plans to hold a tax sale and how much money she thinks such a sale could produce.

Scogin said he’d also like to know if the county has enough money in reserves to cover revenue shortfalls in the 2010 budget.

The state government recommends that counties keep reserve funds equaling at least 15 percent of their operating budget.

Commissioner Stanley Thomas said the board needs to be very careful with its reserves. He said he attended a recent meeting with commissioners and legislators from various counties.

“They (the legislators) didn’t paint a pretty picture,” said Thomas. “They said in a year their (the state’s) reserves will be empty.”

Thomas said counties will be expected to shoulder more responsibilities as the state government struggles through its funding issues. He said Madison County needs to maintain an adequate reserve balance to weather likely troubles in 2011.