BOC members approve budget, express fundamental fiscal differences

Though BOC expenses are down, that decline is outpaced by a drop in projected revenues. Madison County leaders expect to bring in about $13.3 million in revenue in 2012. That means projected revenues fall $404,000 short of projected expenses next year.

So, how will the county make up the difference?

Well, it could happen in several ways: 1.) the county budgeted $325,000 in contingencies (emergency funds) for 2011. However, none of that money has been spent. If the county government makes it through 2011 without using any of its emergency funds, it could apply that to next year’s budget, reducing the shortfall to $79,000. 2.) If Madison County departments manage to come in under budget for 2011, then the surplus funds could be applied to next year’s budget, reducing or eliminating the shortfall. 3.) The county can dip into its reserves (savings) to cover any shortfall at the end of the year. Officials anticipate a $5 million reserve balance at the end of 2011.

No one spoke at a recent public hearing on the 2012 budget and no citizens spoke Aug. 15 at the sparsely attended meeting. But commissioner Pethel broke the silence, offering his summary of the county budget just prior to its approval. He was not pleased.

“Every county in the state of Georgia has been making adjustments,” said Pethel. “A lot of them have been furloughing their deputies — all kinds of things to try to come up with money to cover the shortfall so that you can balance the budget some way other than taking it out of the taxpayers’ pocket. Last year, we did make a little bit of an effort to make adjustments, but this year we haven’t made any effort whatsoever to make any adjustments.”

Pethel said the BOC voted for increases rather than decreases. He noted that the 2011 budget shortfall was projected at $478,000 and that the 2012 budget shortfall is anticipated at roughly $400,000.

“A little over four weeks ago we had a little over $300,000 shortfall,” said Pethel. “Rather than make adjustments to bring that down, it was a 4-1 vote to put another $130,000 in the budget (for four patrol cars), which put us over $400,000 for the year. That’s $900,000 in two years that we’re taking out of the taxpayers’ pocket that we should be providing services for the people … To me, that’s just absolutely uncalled for. I cannot vote for a budget like this.”

During the patrol car discussion, Pethel suggested the board approve two, not four, new patrol cars. Commissioners typically approve the purchase of patrol cars each year to phase out high-mileage vehicles.

Commissioner Thomas adamantly refutes the $900,000 figure presented by Pethel. He said the shortfall includes money that hasn’t actually been spent, such as the $325,000 now in contingencies and the $100,000 budgeted for contingencies for next year.

Thomas said the county has reduced overall expenses in 2012 despite an increase in costs that can’t be controlled by the board, such as insurance premium increases and fuel costs. The 2012 budget also includes mandated expenses related to next year’s elections, which aren’t in the 2011 budget.

“This is not a situation where there has been a spending spree,” said Thomas. “It’s not like you’re spending more. It’s costing you more to do business. And your revenues are short.”

Thomas asked Pethel and other board members for suggestions on specific cuts to the budget.

“So when we start talking about cutting and we’ve been through this budget process for several months now, where are the cuts going to be?” asked Thomas. “What program do you want to cut out? Do you want to cut out the number of EMS workers or rec department workers?”

Thomas noted that the recreation department cut a position, reducing the full-time staff from seven to six.

“And we had absolutely nothing to do with that cut,” said Pethel. “Robin (Pendleton) did that herself. We’ve done nothing to try to do anything about this shortfall, absolutely nothing.”

Thomas asked again for specifics on what should be cut.

“You can say we didn’t do this, my question is, what do we want to do?” asked Thomas.

Pethel said he didn’t understand why Madison County isn’t making the cuts some other counties are.

“I don’t know how it is that Madison County can do what we’re doing and all the other counties everywhere are making adjustments,” said Pethel. “We’re not handling this like it ought to be handled.”

Thomas said Madison County is in much better shape than many counties.

“A lot of those counties are making adjustments because they’ve got to,” said Thomas, referring to Barrow County and Jackson County. “They’ve got bond debt where they’ve built these courthouses for $15-18 million and these jails for $25 million.”

“Well how about Franklin County, how about Hart County?” asked Pethel.

Thomas said the county has made major cuts in recent years, adding that there’s nothing left to cut unless commissioners begin eliminating services.

“You’re talking about the past; I’m talking about today,” said Pethel. “In two years you’re taking around $900,000 out of the taxpayers’ pocket to balance the budget.”

Like Thomas, BOC chairman Anthony Dove said that $900,000 figure is not accurate. He said the money pulled from reserves to balance the budget comes from money saved over the years.

“Now, that’s kind of a misstatement too,” said Dove of the $900,000. “It’s never left. It’s always been in reserves. We saved it one year and we watched what we’re doing. And we haven’t raised the tax rate.”

Commissioner Mike Youngblood was quiet through most of the discussion. But he spoke up toward the end.

“What is it $404,000 (the difference between projected revenues and expenses next year)?” asked Youngblood. “Well, it could have been $700,000 if we had went along with you and installed that bridge (on Sam Bruce Road).”

Pethel said the bridge would have cost $170,000, not $300,000, adding after the meeting that the bridge would be paid for with sales tax revenue, not general fund money.

Madison County commissioners were engaged in a lengthy lawsuit with a private property owner on Sam Bruce Road that was finally resolved last year. The owner didn’t want the bridge repaired. The commissioners fought to maintain the right to repair the road, with the county spending roughly $300,000 over several years in the lawsuit. After the suit was finalized, Pethel pushed for the bridge repairs to proceed, but no one on the board supported his motion for action.

On Aug. 15, Pethel pointed out that roadwork was recently done in Youngblood’s district.

“We did all that down on Glenn Carrie Road,” said Pethel, referring to the installation of turn lanes at the intersection of Hwy. 29 and Glenn Carrie. “That’s in your district, not in my district.”

“That benefits the whole county,” said Youngblood.

“That up there benefits the whole county,” said Pethel of the Sam Bruce Road bridge.

“You the one that likes to spend the money,” said Youngblood to Pethel.

Dove then called a halt to the contentious discussion. Commissioner Escoe has raised the possibility in recent budget meetings of giving all employees a raise, but Escoe didn’t speak at all Aug. 15 regarding the budget. However, he submitted a letter to The Journal Tuesday in which he questioned his fellow commissioners’ training expenses.
Dove said the day after the meeting that he feels Madison County is in good shape financially despite the deep disagreements at the BOC table.

“During the worst economic time in modern history, Madison County is in as good a shape as it’s ever been as far as revenues to expenses to debt ratio,” he said.