Columbiana commissioners on right track with budget
It would have been relatively easy for Columbiana County commissioners Jim Hoppel, Penny Traina and Mike Halleck to justify using the $1.3 million from oil- and gas- drilling leases for general operations, given the loss of state funding over the next two years. But they chose, instead, to make up the shortfall by reducing the general fund budget. That kind of decision-making isn’t often found in the public sector, which is why Hoppel, Traina and Halleck are deserving of praise.
Indeed, they have earned a tip of the hat from Republican Gov. John Kasich, who has urged local governments to adopt cost-cutting measures rather than seek new sources of revenue to make up for the reductions in state dollars.
The governor and the GOP-controlled General Assembly slashed $630 million from the Local Government Fund in the biennium budget, triggering widespread consternation on the part of counties, cities, villages and townships. Kasich and the Republican leadership in the House and Senate have contended that there is money in the state’s biennium budget for communities that work together on cost-reduction measures, such as central purchasing of goods and services.
In Columbiana County, the $1.3 million that could have gone into the general fund is anticipated from the five-year lease of 568 acres of county property by Chesapeake Energy, which is paying $2,250 per acre to explore for oil and gas. The company will also pay the county 17.5 percent in royalties if and when drilling takes place.
What are the commissioners planning to do with the money?
Halleck, who had served in county government in the 1990s and returned in January after winning last year’s election, offered an explanation for why he and his colleagues decided not to take the easy way out with the operating budget: It wouldn’t be financially responsible to spend one-time money for day-to-day operations when there are infrastructure projects and capital improvements that can be undertaken.
For example, the carpeting in the commissioners’ office was put down in 1968, while the ceiling was painted in 1934.
Halleck also noted that Columbiana County has been hamstrung in its pursuit of federal and state grants because it has not had the local matching funds that are almost always a requirement.
Budget shortfall
But the commissioners must still deal with a budget shortfall of about $300,000, which means spending cuts will have to be made. Last October, when the 2011 budget was being developed, Traina said commissioners weren’t inclined to tell officeholders to keep their spending requests lean. They know what they need, she said, and “We respect that.” While concessions, such as wage freezes in the sheriff’s department, have been made, the idea of two administrators at the board of elections getting 5 percent raises is a bitter pill to swallow for battered private-sector taxpayers.
With the cuts in state funding and the state and national economies on shaky ground, county officials at all levels must tighten their belts. The 2012 budget will be lean.
The $1.3 million could cause dissension among the ranks of elected officials who are rarely satisfied with their appropriations. We would, however, urge caution. One-time money only takes care of the short term. Like other local governments, Columbiana County is facing long-term challenges.
43
