Cuts may be coming

The Jay County Council's forecast for next year's budget is downright gloomy.

And it was the first time the word "layoff" was floated in a public meeting as a consideration in reducing costs.

"It's not going to work as we're doing it now," council president Gerald Kirby said of the county's spending and budgeting.

And the news on the financial front Wednesday night kept getting worse.

Jay County auditor Nancy Culy informed the council that she would need a $750,000 loan from the county's rainy day fund to hold over the county general fund until the June tax draw. The operating balance of the general fund, which is the source used to pay the majority of the county's departments, will drop to $143,618.08 after paying the bills this month.

The council approved that temporary loan later in the meeting.

Then Culy informed the council that the property tax circuit breaker had been tripped, costing the county $480,955.62.

The circuit breaker stems from property tax caps, which state that properties cannot be taxed more than a certain percentage of their total assessed valuation.

After that news, Kirby took time to discuss options for next years budget and how to deal with shortfalls expected to be even greater than this year.

Kirby said it may be time to consider increasing the Local Option Income Tax and then unveiled his idea to announce to department heads that they will need to cut 8 to 10 percent further from what had already been cut this year.

"I don't care how they do it," he said. "Reduce their budget by 10 percent."

Kirby said those cuts could be made from any non-essential line item, perhaps even including personnel if the department head deemed it the best option.

"It's a step," said councilman Dan Orr on the idea. "We've got to do something."

The 10 percent trim idea also came with the notion that it might be the only conceivable way to find money to fund raises, which county employees did not receive this year.

Councilwoman Marilyn Coleman, however, stressed that even with the cuts, raises should not come as a guarantee.

"Ten percent may not even be enough," Coleman said.

"It is, however, the only hope (for raises)," Kirby said.

Kirby suggested that the department heads do the major trimming since they know better than the council how their department operates. He said it would be better than the council member attempting to randomly find cuts when the budgets are sitting before them in the fall.

"We don't want to be arbitrators," said Orr, agreeing with that notion.

"Let them start planning now," said councilman Fred Bailey.

Kirby asked council members to give the idea, and other ideas such as increasing LOIT, some thought before next meeting. He stressed that council members Coleman, Mike Leonhard, Orr and Gary Theurer especially will have to face the effects of the decision, since Kirby, George Meehan and Bailey are not seeking re-election and will not have to manage the county's finances in 2011.

In other business Wednesday night, the council:

•Approved a transfer of $199 in the Jay/Portland Building and Planning Department budget to be used to purchase a new computer.[[In-content Ad]]