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Home > Blogs > Butler County News and Issues > Archives > 2010 > July > 26 > Entry
Next time the budget axe falls, commissioners have a plan
How Butler County spends and cuts in future boom and bust years will be guided by a new budget plan adopted by commissioners this month.
The plan follows a recession-driven financial free-fall as the county’s revenues have shrunk $15.4 million, or 16 percent, since 2008. This has led to several rounds of cuts, more than 100 jobs lost and rancor among elected officials.
Here is a copy of the budget plan:
Analysis:
The new budget plan makes a big part of future decisions an automatic process, county officials say, taking some politicking and grandstanding out of the process.
When revenues start to inch back up, it directs the county on what to do with any surplus revenue. It says 20 percent will bolster reserves, 20 percent will fund capital expenditures, 30 percent will pay down debt and 30 percent will fund budget increases.
The plan also caps the ceiling on debt obligations the county can take on at 12 percent, about where they are now.
In down years, it sets minimum cash reserves at 10 percent of the budget and allows commissioners to use only a quarter of any amount over 10 percent to balance the budget. It also sets the goal of having a cash balance of 20 percent.
For example, the county’s projected budget next year is $78 million, and reserves are expected to be $8.7 million. This means they can only use $225,000 to offset any budget shortfall next year.
“This prevents you from using half your reserve in one year,” said Pete Landrum, county management and budget director.
Those reserves are necessary to maintain the county’s high bond rating, which the investment service Moody’s agreed to do last week in part because of the budget plan, Landrum said. This keeps interest rates low when the county borrows money or refinances loans.
Commissioners have relied heavily on reserves to stay in the black in recent years, dipping into it for $900,000 in December and another $500,000 in June. The fund totaled $13.5 million in 2009.
Landrum crafted the budget plan with input from the ad hoc budget advisory group, business and government leaders who met to form such a plan.
Do you think commissioners will stick to it?
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Comments
By Fred
July 26, 2010 2:10 PM | Link to this
Oh they will stick with it until Rick Jones or Betty McGary needs money to hire friends and supporters. Then Donnie will be all about spending.
By EthicsWatch
July 26, 2010 3:08 PM | Link to this
We spent, we spent and we spent…now the money is all gone. I don’t want to blame the 3 Commissioners, but the money is just gone. Poof. This is how Sheriff Jones described the current County’s fiscal state to Bill Cunningham. But I’m sure the 3 Republican Commissioners and our Sheriff have learned their lesson. We won’t do it again. Yeah, right! Fiscal genius at work.
By How do we cut now
July 26, 2010 3:22 PM | Link to this
We built and we built and now we are broke. We build a new jail that cost millions when we had a jail, we built a new government building when we had one, we built a board of elections building and a agriculture building when we had a building, we built a new building at the airport, we built a new dog pound, and now we’re building a new communication center for emergency management and the sheriff. County government has just gotten too big, it’s time to downsize and stop spending.
By ray
July 27, 2010 1:57 PM | Link to this
A rare moment of honesty from Spotlight Jones in that he admits he was involved I the spend, spend, spend that has put the county in this mess.
By Bstrong
July 29, 2010 8:02 AM | Link to this
We did have a jail, although not up to par….But!! we had a Government civic Bldg!! What city are you in!, the old court house and county admin acrossed the street hardly qualify for what we have now.
By Tired Taxpayer
July 29, 2010 10:01 AM | Link to this
Bstrong, the jail wasn’t up to par??? Doesn’t the sheriff still insist on keeping that sub-par jail open? You also made the point stronger for the earlier posting, we have an administration building and a court house, thus why build another building while the court house isn’t fully used?