Calhoun commission looking at a 'bleak' budget

Sept. 23--Increases in health insurance costs and stagnant property tax revenue have the Calhoun County Commission considering a fiscal 2016 budget that acknowledges those harsh economic realities.

"It is bleak right now," assistant county administrator Melissia Wood said of the budget Tuesday afternoon. Wood was tasked with sifting through the county government's expenses, trimming spending to reach a balanced budget.

In order to pass that balanced budget, Wood and other county administrators are discussing spending cuts for many departments, no raises for employees, and a hiring freeze.

Even reducing the amount of money spent on government won't by itself keep Calhoun County from running a deficit; administrators will still need to dip into reserves to the tune of $345,655. Commissioners aren't happy with any of that, but are set to adopt the budget on Thursday.

Wood's projections show the county spending about $16.1 million out of the General Fund over the coming fiscal year, which starts Oct. 1.

Revenue for the fiscal year is only estimated at about $14.1 million. Wood's balanced budget relies on transferring just over $1.6 million into the General Fund from accounts that pay for road and bridge upkeep and health care for jail inmates.

"The rest comes from our reserves," Wood said.

There's no money for new full-time employees or cost-of-living raises for current employees. The county last gave its employees a raise in 2013, the only one they've had in six years.

"I'm just concerned with us not being able to give employees a raise," Commissioner Don Hudson told other members of the body during a work session Tuesday morning. "I just hate it."

The rest of the commission and county administrators shared Hudson's concern, but said the lack of a growing source of tax revenue was the problem.

"You can look at the General Fund revenue and it tells the whole story," county administrator Ken Joiner told commissioners at the work session.

Property taxes account for a little more than one-third of the county's revenue. The taxes are the single largest source of revenue for county government, but have been "flat to decreasing for the last three or four years," Wood said by phone Tuesday afternoon.

"People are saying the economy is better ... that's just not what we're seeing." Joiner said Tuesday morning.

Health insurance costs are also up, with Calhoun County still owing about $700,000 in the next year on claims made when the government was self-insured.

That number could climb higher, and the county must also pay monthly premiums to the local government insurance group it joined after moving away from self-insurance in July.

"The bottom line is, there's some folks that are looking at a little bit of a cut," said Joiner.

What exactly will be cut from the budget depends on each department, Wood said.

Some will get less money for office supplies, fuel, or tires for vehicles, she said. There will be no new capital purchases unless absolutely necessary.

While Wood feels the budget looks bleak now, she's "optimistic that somewhere down the road, things will get better."

At least one longtime commissioner shares her optimism.

"I've been there 21 years," J.D. Hess, the commission's current chairman, said Tuesday. "We've had to make cuts before, but it seems to bounce back ... once it gets better, we'll make it up."

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