Council creates 12 points for budget cut considerations

ByMatthew Crane Reading Time: 2 minutes

The Dubois County Council plans on taking a stand against propping up the general fund with Economic Development Income Taxes (EDIT).

The county’s budget took an influx of $1.685 million from the EDIT fund to float through 2016. This is the fifth year in a row the EDIT fund has been tapped to supplant the shortfall of property tax income for the county.

According to Councilman Jerry Hunefeld, the council has seen property tax caps, as well as the after-effects of the recession, continue to impact the county’s income. The recession has impacted the assessed value growth quotient (AVGQ) of the county. The AVGQ is essentially a cost of living adjustment for property taxes for all local units of government — the maximum amount by which local units of government are allowed to increase their controlled property tax levies by.

That quotient’s growth has slowed but it is climbing as the area continues to recover from the recession.

Another outlier revealed at a special meeting held Monday, is that the special jackpot fund is not performing well. This fund is used to invest excess cash into short-term CDs to bring in more income for the county.

According to County Treasurer Chad Blessinger, since 2008, those CDs have performed at a much lower rate. In 2016, the county earned $47,000 in interest while in 2000 investments earned the county about $800,000. Blessinger reported the interest rates had fallen significantly since the recession.

During the meeting, the council outlined several points they would explore to assist in cutting the budget deficit.

Those included:

  • Exploring the use of grants and user fees to fund items in the general budget.
  • Reduce hours of operation at county facilities which would cut costs on employee benefits.
  • Cut a $5,000 stipend the county pays to each judge, Dubois County Prosecuting Attorney and the Deputy Prosecuting Attorney for a total of $20,000.
  • Freeze wages.
  • Freeze the budget at its current level. Councilwoman Charmian Klem said if the council froze the budget, it would take three and a half years to get back in the black.
  • Examine employee insurance benefits.
  • Repair and maintain equipment rather than replacing it.
  • Consider reducing future budgets.
  • No longer use EDIT funds for equipment purchases.
  • Refrain from expanding the county’s workforce.
  • Don’t replace retiring personnel.
  • Attempt to cut 2016’s budget.

The council will meet with department heads to work on potential budget cuts in time for the 2017 budget process. Those meetings will occur on March 15 and 16 at 5:30 p.m. in the council chambers at the Annex Building.

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