Extra money in public treasury is not a surplus in these times

If the projections of the auditor’s office hold firm, Mahoning County government will end the year with a $363,478 surplus in its operating budget. That will be quite an accomplishment, given the slow recovery of the national economy from the recession that began in late 2008, and the high unemployment rate in this region.

But the surplus can be as fleeting as jobs in the private sector, which is why the commissioners should stand firm against any attempt to spend the money. The future is uncertain, and governments at all levels must maintain a rainy day fund.

In a report last week to commissioners Anthony Traficanti, John McNally and Carol Rimedio-Righetti, county Chief Deputy Auditor Carol McFall said income from sales taxes will be higher than what had been estimated when the budget was prepared, and that proceeds from the real-estate tax will also increase. State revenues will be higher than what had been forecast, but the interest earned by the county will be lower. That reflects the roller coaster nature of the stock market.

Although Mahoning County began the year with a $5,035,400 carryover from 2010, and will receive $500,000 in leftover money from the veterans service commission, it must make a $10,776,122 debt payment Dec. 1. However, it will refinance $6.5 million of the amount.

Other than adding $1.1 million to the sheriff’s budget so the department can maintain current jail operations to the end of the year, Traficanti, McNally and Rimedio-Reghetti should make it clear to officeholders that the extra money in the budget isn’t an invitation to go on a spending spree. Whatever money is in their operating funds is the money they will be expected to manage until the end of the year.

In the past, department heads have threw caution to the wind and spent recklessly in the belief that the commissioners would find the money to help them keep the doors open. Politicians are rarely eager to lay off employees during the Christmas season.

But that was then. Now, given the weakness of the national economy and the challenges confronting the state of Ohio, governments at all levels have no alternative than to follow the private sector.

Layoffs, pay cuts, pension freezes and even benefit givebacks have become the norm. Private sector workers are being forced to live with the uncertainty of their employment and to recognize that retirement at a relatively early age is no longer an option — the way it is in the public sector.

No raises

Mahoning County government employees should quickly disabuse themselves of the notion that pay raises will be on the table when new contracts are being negotiated. Private sector taxpayers are demanding that government do more with less — less tax money, which mean less employees and a reduced payroll.

Any elected official who ignores this demand does so at his or her political peril.

It’s a good thing that Mahoning County government will end the year with $360,000 in the bank, but with all the uncertainties and challenges ahead, it’s money that should be socked away for a rainy day — which undoubtedly will come.