COLUMBIANA COUNTY Officials to consider borrowing

Failure to address the shortfall could mean layoffs and lawsuits from creditors, officials said.
By NORMAN LEIGH
VINDICATOR SALEM BUREAU
LISBON -- Columbiana County commissioners say they will probably have to borrow to help stretch the county budget through the end of the year.
Some county departments and programs are running out of money to pay bills, make payroll and meet other expenses, commissioners and county Auditor Nancy Milliken said Wednesday.
"We are most probably going to have to borrow some money to get us through," Commissioner Dave Cranmer said.
Decision pending: It's unclear how much would have to be borrowed, Cranmer added. A decision could be made by month's end.
Departments or programs running short include the sheriff's department, data processing, prisoner housing and a fund to pay attorneys to represent indigents accused of crimes, a service the county is required to provide.
Commissioners sent a letter to county department heads last week, urging them to restrict spending to essentials.
Milliken said the county needs at least $2 million, maybe more, to make it through the year.
More revenue: In coming months, the county expects to receive about $2.8 million in additional revenue from the sales tax, fees, interest income and other revenue, Milliken explained.
But most of the outstanding funds will come in too late to address current needs, which is prompting commissioners to consider borrowing.
The loan could be paid back when outstanding funds become available, Cranmer said.
Unless the shortfall is addressed, some county departments may have to lay off or reduce staff hours, Cranmer said.
Milliken noted that creditors could sue if the county delays paying them.
Conservative budget: When commissioners adopted the 2001 general fund budget near the beginning of the year, they conservatively budgeted $12.1 million for general fund spending.
They acknowledged that the spending plan would likely leave some county departments short near year's end.
Commissioners were forced to craft a tight budget because revenue from the 1 percent sales tax, restored in November 2000, would not start coming in until April.
Additionally, commissioners knew that they would receive about $2.5 million less annually because they promised to forgo 2 mills of property tax to induce voters to pass the sales tax.