Logan County Board discusses next budget, deficit, department cuts and non-union employee pay

 

[October 18, 2021] 

At the Logan County Board Workshop Thursday, October 14, one focus of discussion was the 2021-2022 budget.

Board members present were Board Chairman Emily Davenport, Vice Chairman Scott Schaffenacker, David Blankenship, Janet Estill, Bob Farmer, David Hepler, Steve Jenness, Keenan Leesman, Bob Sanders, Annette Welch and Jim Wessbecher. Dale Nelson was absent.

The Logan County Board’s Finance Committee has been working on the budget the past few months. Committee Chairman Steve Jenness said they have made several adjustments to this year’s budget.

Right now, when looking at revenue minus expenses, the deficit would be $821,679 without scaling back. When talking to the committee, Jenness said the county has had similar deficits in previous years. The county anticipates a negative balance and after the audit finds they expense more than is needed.

The auditor has told Jenness the county should have $2 million of expense funds in an untouched line to use in emergencies.

After a long discussion at the Finance Committee meeting on Tuesday, several items were brought forward to the full board.

Motions Jenness will bring forward Tuesday include:

Cutting 5% of the budget of departments with budgets over $500,000.

Putting 50% of the 5% cuts made to the departments into a contingency fund. Money from that fund could be disbursed by two-thirds vote of the board.

Adding anticipated [Wind and Solar Farm] permit fee revenues into the contingency fund.

Setting a hiring freeze for all departments.

Board members had questions and concerns about some of the motions.

For example, if they cut 5% of the budget of departments with budgets over $500,000, there are just a few departments affected. These include the Sheriff’s Department, Dispatch, State’s Attorney’s Office and Circuit Clerk’s Office.
 

The Sheriff’s Department had negotiated a good faith budget with some reductions. Sanders asked why the Sheriff’s Department is facing more adjustments. He said it seems like the county is defunding the police.

With the economy getting worse, Sanders said crime is likely to go up. Cutting the budget of the Sheriff’s Department could make it a part-time department. Sanders said he is not sure how they are operating now. The county could end up being like southern counties where they shut up shop when business hours are over. Sanders does not think that is what voters would want.

To Leesman, 5% cut from budgets over a certain threshold does not necessarily look at an equitable scenario. The Sheriff’s Department already cut 3.4 % from their budget. Therefore, Leesman said it does not seem fair to cut another five percent on top of that.

Since many departments have a smaller budget, Leesman supports a tiered approach to reductions. This is an idea Blankenship has too.

What Blankenship does not support is cutting payroll in critical departments such as law enforcement.

The tiered approach would be an incremental reduction based on the overall budget of each department. Leesman said with this approach everyone would have some skin in the game.

The 2020 Census showed the county has lost population, and Leesman said that has not helped increase revenues. There was no discussion Tuesday of revenues the county could improve on to balance the budget. He would like to assess those factors.

If the board approves putting half of what is cut from budgets into a contingency fund, it could build up a fund to use in emergencies.

A contingency fund would provide money to cover unexpected issues in departments. Departments could request funding when something happens. Leesman said he is in favor of the solar and wind farm permits going into that fund, too.

Though Hepler wants permit fees to go into the contingency fund, he is not comfortable with the over $800,000 deficit. He would like to include the anticipated $400,000 revenue infusion from a wind farm likely to take out permits in 2022. If this amount is put in the budget, Hepler said it would cut the budget deficit almost in half. He prefers that to having to reduce budgets.

Since hiring freezes are being considered, Welch asked about what freezes would mean. She wondered if the hiring freezes would include open positions or just new ones.

There are some open positions, and Jenness said they could still be filled.

It is already hard to fill deputy’s positions. Sanders said having to go through a long process to replace essential people is not good.

Some areas have struggled to find people. If some are unable to hire, Welch said it could mean forced overtime for those still working.

Several county employees were in attendance. When it was time for public comments, two employees addressed the board about some of the budget issues.

Lisa Bobb, a Victim Witness Coordinator in the Logan County State’s Attorney’s Office, had concerns about non-union employees not getting raises this year. Bobb said they did not get raises last year either. She did not hear of any salary freezes and knows the union people still got raises.
 

To Bobb it seems like every year when it gets to budget time, there seems to be no money for raises for non-union employees.

The county employees in the courthouse are working hard and taking care of the taxpayers and customers. Bobb said they are the county’s best assets. However, she feels they are always at the bottom of the pile.

Many non-union employees are females. Bobb said some of them work more than one job. They want to be appreciated for the work they do by getting raises. Bobb reminded the board they are not only county employees but voters who talk to others.

Bobb asked how the county got to the point of having an over $800,000 deficit. She said a contingency fund is good, but the county will not dig themselves out [of a hole] in one year.

After thanking the board for their diligence on the budget, Logan County State’s Attorney Brad Hauge had some concerns. Hauge said he did not want to be adversarial but asked the board to consider whether cuts discussed are necessary. Hauge does not think any more cuts are necessary. If the board does make cuts, Hauge asked them to avoid cutting salary line items.

Several department heads at Tuesday’s Finance meeting expressed similar concerns over how reductions could affect their departments. They do not want to have a reduction in force especially when some already have small departments.

Board Chairman Emily Davenport said in her eight years on the board, last year was the first one they did not give raises.

In 2014, 2015, 2016, 2017 and 2019 non-union employees received a three percent annual raise. In 2018 and 2020 they received a two percent raise.

The board did not give raises last year because they did not know what the revenue would be like especially with Covid. Davenport said they did not have to lay off people like other counties did. Everyone kept their benefits.

These are reasons Davenport did not vote for raises last year. She understands the frustration of not getting raises but said the board does think of the employees.
 

Bobb appreciated Davenport’s research and the numbers but wanted to check them herself. In the 14 years Bobb has worked, she remembers several years she did not get raises. Bobb said she loves her job or would not be here. Bobb said that 20 years ago she was making more than she does now. She feels a tension. She wants everyone to be able to discuss, ask questions and work together.

The Board looks at these numbers and Bobb feels they sometimes forget the people behind these numbers.

In dealing with the public, Bobb said county employees are in the trenches doing the best they can. It is not getting any easier. With non-union employees not getting raises, Bobb said they feel devalued. She feels the board could show they appreciate the employees by giving them raises.

There has been talk about using American Rescue Plan Act (ARPA) Funds for “bonuses” for non-union employees. Hepler asked if that was still a plan.

ARPA funds can be used for a one-time premium pay. Jenness said the finance committee has looked at that option. Giving premium pay would offset the increases non-union employees did not receive. If approved, Jenness said they hope to give out the premium pay in November or December.

With premium pay, Bobb said she is concerned about how it would be taxed.

Schaffenacker said the board could confer with a state revenue tax specialist.

If the proposed budget and any amendments brought forward pass, the board will vote whether to put it on display for the next thirty days. They would then vote on the 2021-2022 budget next month.

[Angela Reiners]