Minutes 02-22-2011 - Laserfiche WebLink

Browse Search

Frank Clifton said that some of the things that have hit the County substantially are the sales tax refunds that have been withheld by the State. Clarence Grier went over Attachment 2, which is the financial dashboard for January 2011. The County is in a good cash position as of January 31, 2011. Discussion ensued on the unfunded mandates that the State is passing along to counties and the money that the State is sequestering. Frank Clifton clarified that as the Board does things for economic development this year, the debt will not impact the County this fiscal year, but it will impact next fiscal year. Commissioner Gordon made reference to the goals and priorities and asked if Clarence Grier meant the ones that were already adopted. Clarence Grier said that he would like to get direction from the Board on this. Commissioner Gordon said that there are overall goals and priorities for the budget, but then there are more specific budget goals. Frank Clifton said that the Board of County Commissioners' goals and objectives are what drive the budget. Commissioner Pelissier asked how much the debt service would have to be increased to fund the first year of the capital investment plan. Frank Clifton said that this is not a proposed CIP, but just items that have been requested by various departments. To fund all of those, it would be a 3-cent tax increase. Commissioner Jacobs made reference to page 7 under sales tax and the "hold harmless for State" and asked what this signifies. Clarence Grier said that this is the money that is expected from the Medicaid sales tax swap. Commissioner Jacobs said that this is another thing that the State could take from the County. Frank Clifton said that when the Medicaid sales tax swap took place, one of the provisions was for the County to hold the towns harmless. The $2.6 million reimbursement is only a guesstimate. Commissioner Foushee said that this figure is not etched in stone either and the State can take this money as well. It is still vulnerable. Commissioner Jacobs said that Governors and legislators will take whatever monies they want from counties. He said that at one point, the County hired Bob Segal to do a sales tax investigation and he found over$1 million, but he had problems getting cooperation from both school systems. Commissioner Jacobs said that at some point he would like to discuss the reductions coming from the County side versus the schools. He said that the County has been taking all of the cuts and he would like to have an honest conversation with the school boards, if needed, about how to share the cuts. Commissioner Jacobs said that his concern is that the Board is not being presented with the worst case scenario. He would like to have a range of projections. He would like to see a more realistic picture. Clarence Grier said that this budget package went out after the Governor's proposal and the staff can revise this to reflect her package. Frank Clifton said that they could create different scenarios, but he would hate to put information out to the Board and the public, when he has no idea what is going to happen and the County has no control over it. He would rather present on things that the County has control over. As far as that is concerned, the County is in a good position with the things that it controls. Commissioner Yuhasz said that as they move through this process, it would be helpful for him to know what services might have to be cut in order to make up for lost revenues. Commissioner Yuhasz said that he appreciates all of the projections forthcoming and starting with no property tax increase.