Officials crunch numbers for a 'tighter' budget

Commissioners have adopted a policy requiring an annual cash reserve.
By BOB JACKSON
VINDICATOR COURTHOUSE REPORTER
YOUNGSTOWN -- Elizabeth Sublette summed up Mahoning County's budget outlook for 2004 in one word: worse.
That's the message being sent out to the county's general fund departments as officials crunch numbers to prepare for the next year's budget.
"It's going to be worse," said Sublette, county budget director. "Next year's budget will be tighter than this year."
Sublette said she's projecting an overall general fund budget of $47 million for 2004, a reduction of some 13 percent from this year's budget.
In the past, the county would appropriate virtually all of its anticipated revenue, plus it would dig in to any carryover from the previous year to make ends meet.
Sublette said she's not budgeting everything available for next year because the county now has a policy requiring that the annual budget includes a carryover of at least 5 percent to 15 percent.
"If you budget everything and don't have a carryover, then you have nothing to turn to for emergencies or contingencies," Sublette said.
She said such a policy is in keeping with Ohio's general accounting standards for governments. Commissioners adopted the policy earlier this year.
After 2003
Next year will be the second straight year of cuts for the county, which has seen a stagnation or decline in revenue from sales tax and investment earnings, its primary sources of revenue.
When commissioners approved the budget for 2003, they said it had been pared back to about the same level as what was appropriated in 2000. The flagging economy, they said, has not allowed revenue to keep pace with the rising cost of operating.
Sheriff Randall Wellington laid off more than 50 deputies in March, but later was able to recall them after the county budget commission certified that he'd get more revenue by housing more federal inmates at the jail.
Layoffs
Commissioners laid off 33 employees in the spring, though a handful have been recalled to take jobs in other departments.
"We just don't see things getting any better next year," said Sublette, noting that the county expects to lose about $500,000 in local government funds. That's discretionary money the state doles out to local governments each year from various state taxes.
She was not sure whether next year's deeper financial cuts will translate to more layoffs. It will be up to each officeholder to determine how he or she spends the money, Sublette said.
She said if officeholders decide to give raises, they'll probably have to lay people off to come up with the money.
This year, general fund appropriations were made according to a "target number" the budget office established for each department in mid-2002.
That won't be done for next year, Sublette said.
Public hearings
Instead, commissioners will hold a series of public budget hearings at locations outside the courthouse. Officials will be invited to attend the hearing, present their budget request and make a case for why they should get that much.
County Administrator Gary Kubic said the public will be allowed to attend and participate by questioning the necessity of funding for each office and the services provided by each department.
"We think it's important to get out and let the people know how the money is being spent, especially in these dire times," said Commissioner Ed Reese said. "We need to let people know some of the problems we're seeing, not just here but all over the state."
Sublette said the hearings will be in the evenings, beginning Sept. 15, at the Boardman and Austintown township administration buildings and the Canfield municipal building.
Budget hearings for departments outside the general fund will be after commissioners' weekly meetings in the courthouse.
Sublette said she has asked office holders to differentiate in their budget requests what services they provide that are mandatory and which ones are discretionary.
That's so if further cuts are necessary, officials will know where to start.
"When we've got cuts this significant, we need to look at the discretionary services that are provided," she said.
bjackson@vindy.com