The following speech was delivered to the Board last evening, before they voted to make public the FY 2010 budget. Pat has preached to his fellow board members since December 2008 that they faced tremendous revenue shortfalls. His predictions in that regard varied with that of the county’s administration and proved to be closer to reality.
10/21/09
To: Boone County Board & Public
Re: 2010 Boone County Budget
From: Patrick B. Mattison, County Board Member District 3
My perception of revenues for the Boone County Government is they will be substantially less in the coming year than they are this year--and this year, depending upon which figures are being used--expenditures exceeded revenues from $600,000 to $900,000, not including unexpected costs like having to drill another test well ($10,000) on the landfill next to Maple Crest because of potential toxicity. If it tests positive, the cost may substantially escalate next year. The Boone County Board Finance Committee, in December 2008, adopted a policy of a balanced budget for each operating fund in which expenditures do not exceed current revenues. If current revenues are less than expected or expenditures are greater than expected due to an emergency, the board will reduce other spending to maintain a balanced budget." It passed unanimously. Expenditures exceeded revenues from $600,000 to $900,000.
As I understand the 2010 Budget scheduled for layover tonight, there is a $275,000 deficit projection.
The projected Budget has not been reviewed by the total Boone County Board.
Substantial costs that may impact the 2010 budget, to name a few:
* Unknown Landfill expenses
* 3 percent raises for non-union personnel
* Selective raises for Elected officials from 3.5 percent to 5 percent
* Purchase of vehicles for the Sheriff's department ($100,000+)
* Replacing a Dispatcher ($35-$50,000)
* Unknown IMRF mandated retirement costs that will impact other tax levies because of Tax Caps
Tax revenues that will be down:
* State Income Tax ($200,000?)
* Boone County Public Safety Building Sales Tax ($200,000?)
* Boone County Sales Tax 1/4 Cent ($200,000?)
* Boone County Sales Tax 1 Cent ($220,000?)
* Business and Residential owners will seek to lower their assessed valuations, and the Boone County Property Tax will be impacted ($100,000's?)
The figures given me from the administration office indicate the reserve balance at the beginning of Fiscal year 2009 was $3,557,078. On October 10, 2009, the reserve balance was $2,910,933. If we are to maintain a reserve of 2 to 3 months for emergency, with a $13.1 million budget we are at our reserve limits now.
As Mitch Daniels, Governor of Indiana has written, relative to the economy, "We ain't seen nothin' yet. What we are being hit by isn't a tropical storm that will come and go, with sunshine soon to follow. It's much more likely we're facing a near permanent reduction in state tax revenues that will require us to reduce the size and scope of our state governments."
Reducing the size and scope of the Boone County government should be our debate and on the table. We will not be able to sustain raises! We will not be able to sustain full work weeks! We will not be able to fund vehicles for every deputy in Boone County and have extra Pool cars. We need to explore managing for efficiency, rather than spending. We should explore using facility on a 2 shift basis. We should explore outsourcing in every area possible (maintenance, copying, plowing).
My suggestion is we go back to the table and work until we balance the budget based on conservative and realistic projections!
