The conditions for a fiscal watch should disappear when commissioners pass next year's budget.

The conditions for a fiscal watch should disappear when commissioners pass next year's budget.
By BOB JACKSON
VINDICATOR COURTHOUSE REPORTER
YOUNGSTOWN -- Mahoning County commissioners have asked the state auditor's office to begin the process of declaring a fiscal watch for the county.
But the issue should become moot when commissioners pass the county's 2003 budget in two weeks, said Gary Kubic, county administrator.
He said commissioners want to send a message to elected and appointed officials that things must change when it comes to spending.
Under Ohio law, fiscal watch can be declared if a county's projected general fund deficit exceeds one-twelfth of its general fund revenue from the preceding year.
In years past, fiscal watch or emergency could be declared only at the end of a year, when actual revenue and expense figures were in the books.
But a change in the law allows the fiscal conditions to be declared in advance, based on projected amounts, said Kim Norris of the state auditor's office.
Expected revenue
Commissioners expect revenue of about $45.3 million next year. Based on the current spending level and on what officials have requested for next year, expenditures would be about $55.1 million, creating a deficit of about $9.8 million.
But Kubic said that's not likely to actually happen because commissioners don't intend to dole out enough money next year for officeholders to spend at this year's levels.
"We fully intend to approve a balanced budget on Dec. 19, based on the money that will be available," Kubic said.
They'll accomplish that by slashing budget appropriations for each office, cutting back to levels comparable to what was available in 2000.
Officeholders have been instructed to adjust their operations to live within those reduced amounts, which could mean layoffs.
"If someone has to lay off 10 people so he can buy a supercomputer, that's his call," Kubic said. "We're not telling them how to run their office, we're just letting them know how much money they've got to live with."
Kubic and Elizabeth Sublette, budget director, sent three memos to officeholders, beginning in July, telling them to hold the line on spending for the rest of this year and to brace for a 20-percent budget reduction next year. Some complied, but several others have asked for more money.
By passing a balanced budget, the projected deficit will be erased and the need for fiscal watch will no longer exist, Kubic said.
Commissioners chose to begin the fiscal watch process anyway because they don't expect their budget appropriations for next year to go unchallenged.
Judge Theresa Dellick of juvenile court already has ordered commissioners to provide her with about $6.9 million for next year. That's $2.6 million more than commissioners plan to allocate.
"We've already seen one court order and, quite frankly, we expect more," said Commissioner Ed Reese.
No-cost look at finances
Commissioners also chose to go ahead with a fiscal watch request because part of the process is an examination of county finances by the state at no cost to the county.
That's important because it will provide independent verification of the county's dire financial condition, Reese said.
"It's procedural, in effect. It's a verification of what we have available," Reese said. "We need the auditor to come in here and look at our situation and see that what we have been saying is true."
Kubic said commissioners want other officeholders to realize that if they do something to alter the county's budget strategy, it could result in a fiscal watch situation.
"We cannot adjust the budget for million-dollar court orders," he said.
The move comes less than a month after voters renewed a 0.5-percent sales tax for five years. The county has two 0.5-percent sales taxes, which combine to make up about half the general fund revenue. The other half of the twin taxes expires in December 2004.
Fund isn't growing
But even with the taxes in place, commissioners say the general fund is not growing. Slumping local economic conditions have caused sales tax revenue to decrease and caused the county to lose about $3 million in investment interest.
At the same time, the cost of housing inmates at the county jail has gone up about $3 million because the inmate population has grown from 400 in 2000 to 550 this year.
Kubic said a large part of the problem is that the county is forced to spend more than 60 percent of its money on criminal justice.
"We're paying a deep price for high crime," Kubic said.
Commissioners plan to meet next week with judges and other safety officials to talk about ways of reducing the number of inmates.
bjackson@vindy.com