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County sales tax, investment revenues down
This was not a good Christmas for Butler County. And if revenues don’t improve, the county may be eying more budget cuts by Labor Day.
Sales tax collected in December dropped 5.5 percent from the prior year, according to numbers Butler County received from the state this week.
This number is adjusted to take into account quarter-percent sales tax reduction commissioners enacted in 2008. In total, the amount collected dove from $4.5 million to $3.2 million.
County Administrator Tim Williams said this is even worse than the county projected when they drafted this year’s grim budget. “It’s more off than I’m comfortable with,” he said.
The last month has delivered a one-two punch to the county, with projections three weeks ago that the county’s investments will return roughly $1.5 million less than expected. This is in addition to a $3 drop in returns they were expecting.
And recent action by the Fed could widdle down investment returns further, Williams said.
“There is a very good possibility that we’re going to have to make some additional cuts,” Williams said.
The county has already cut roughly 63 positions over the past year and worked will into this year to shoehorn through a budget with revenues projected to drop $7 million because of the recession.
Now that appears to have been optimistic.
Williams said the county is looking at its other revenue sources, such as building and zoning fees, to identify other potential shortfalls.
Commission President Donald Dixon said county commissioners and the other county offices that share the general fund will form a budget commission in April to identify future areas to cut.
Dixon said the cuts likely won’t happen until September.
“If that (revenue declines) continues the next couple of months, we’re going to have to come up with a plan,” Dixon said. “It doesn’t appear anything is going to turn around anytime soon.”
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Comments
By Rick
March 21, 2009 11:15 AM | Link to this
I was just wondering how many workers are in the commissioners office there on High Street. Have they laid off any off their own staff yet? I’m sure they are all over paid and that one good worker to do the work of three of them.
By County seems to serve itself first
March 21, 2009 4:29 PM | Link to this
I’m truly sorry for those who have lost, and/or will lose, their jobs, but given this county’s small circle of tenured leaders, I’m not convinced that they ever had it right. That is, I suspect that far too many people have been employed, that many enjoy pay, perks and benefits well above what should be provided and that spending as a whole is more than it should be. That’s not to say that they’re aren’t good people doing good deeds, just that its about time that the County starts from zero to plan and move forward.
By Mort
March 22, 2009 1:07 PM | Link to this
The problem is things are only getting worse at the county government level. I just don’t see the two newer members of the county commission as having the experience for temperment to lead the county out of this mess. Voters wil have the change to elect a new county commissioner next year and a change should start then.
By Disgusted
March 22, 2009 9:51 PM | Link to this
I love how everyone gets excited when workers lose their jobs. I’m sure if you were one of the hard working county employees you would sing a different tune. Don’t worry though, Dixon is salivating over getting to ruin more lives, he lives for it. He’s a millionaire, what does he care!!!!!!!