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Austintown looking at deficit of $500,000 for 2011 budget
By Elise Franco
Austintown
The township has balanced its budget for 2010 but faces a $500,000 deficit in 2011.
Trustee Lisa Oles said the board had no issues balancing the more than $14.2 million budget. Of that amount, the general fund for operations equals about $2.3 million.
“We’ve been very frugal, not spending more money than was necessary,” she said. “The department heads stayed within their budgets, and I think it also helped us that in the contracts there were no pay increases” in 2010.
Oles said a $457,000 civic donation from First Energy Solutions given to the township in 2009 for signing up for an electric aggregation program added some cushion.
“That contributed greatly to our carryover,” she said.
Fiscal Officer Michael Kurish said the 2010 budget leaves little wiggle room.
“It’s very tight. The room for contingencies is very small,” he said. “But it’s balanced.”
Though the 2010 budget is balanced, the trustees already are looking ahead to 2011.
Trustee David Diztler said the township will need to come up with a large chunk of money to balance the budget next year.
“We’ll need about a half-a-million dollars to balance next year,” Ditzler said.
Oles said several things contribute to the potential deficit, including the state’s phasing out of tangible personal-property tax that applies to property used in business in Ohio; and an increase in workers’ compensation rates after a township employee was injured on the job in 2007.
Oles also said the township lost a tenant in the township-owned Westchester building, costing the township $23,000 per month. She said the trustees are looking actively to fill that vacancy.
“It’s the combination of all those things that we’ve had no control over,” she said.
Kurish said the trustees have limited options to balance the budget in 2011.
“There are really only two things: We cut our services or we increase the revenue,” he said.
Ditzler said the first things the trustees are likely to look at are projects that use general-fund money, such as paving.
“We’re obviously going to have to look at things this year to get to that point next year,” he said. “You have to look at the specific plans that come out of the general fund ... and what we have the ability to cut back on.”
The news comes in the middle of contract negotiations with the township’s major labor unions, and though Oles said she couldn’t comment extensively about the ongoing talks, she did add that cooperation from the union leaders is important.
“We’re hoping the employees work with us to help us balance the budget,” she said. “It’s going to have some impact on our negotiations, and they have already agreed to take some concessions.”
Oles said 2011 wouldn’t be the first time the township has faced tough times since she’s been in office.
“The first year I was a trustee, we had police officers laid off and fire stations closed,” she said. “It’ll certainly be a challenge, but we’ve done a pretty good job. It speaks volumes that we’re able to balance the budget this year in light of the current economy.”