By Mary Drier
Staff Writer
CARO — Months of careful financial planning to ensure a balanced 2015 county budget without use of fund reserves was altered after an unscheduled appeal for funding.
Along with approving the 2015 county budget at the last meeting, commissioners approved a last-minute request by Michigan State University Extension Director Joe Bixler to increase the 4-H Program Coordinator position from a part-time to a full-time position at an additional cost of $29,175.
After a brief discussion, commissioners approved the request with the stipulation that at least 10 hours of the additional 20 hours per week be spent working with at-risk youth programs in coordination with courts’ expanded efforts to help troubled youth and their family, and that a matrix be created on work done.
During his request for more funding, Bixler noted there are about 491 kids in 4-H clubs. Bixler said statistics show 58.5 percent of those in 4-H attend college, while only about 32 percent of those who are not in 4-H go to college.
“With more time spent with them, we could bump that number up,” said Bixler. “We want to be part of the solution of lowering (the number of) youths involved in courts and out-of-home placement. That would help lower child care costs.”
Depending on the type of services needed, it could cost the county $100,000 for each court-placed youth.
“The amount he is asking for is less than one third of the cost of putting a child in a (court) program,” said Commissioner Roger Allen.
Commission Chair Thom Bardwell also supported the additional cost.
“We spend thousands on troubled youth and fall short for the good kids. This is an imbalance,” he said noting that out of a $50 million budget, the amount needed for youth programs “is decimal dust.”
Overall, the county has a budget of $49,059,598 in 54 different accounts. The general fund budget is the county’s primary operating budget. That budget is set at $13,122,000 and was balanced without use of fund reserves. There was only a $45,000 contingency balance to draw from before increasing the MSU appropriation. Plus, there are other funding demands that could take all of the fund balance.
“While the county’s financial picture has improved compared to the 2008-2012 period, there is still areas that are a financial concern,” cautioned county controller Mike Hoagland, noting land values remain flat and that one saving grace for finances is the tax money generated by wind-farm development. “Without more wind turbines, this new important revenue source begins declining after 2015, which will likely create fiscal problems in balancing future year budgets.”
Hoagland also warned there could be significant additional visiting judge costs as 40 pending International Transmission Company (ITC) goes through circuit court because the current judge represented ITC back when she was an attorney.
While working to balance the budget, commissioners decided to trim back the amount of money put aside for capital improvements. Even though it was calculated that at least $460,000 needed to be set aside annually to keep pace with maintenance needs to 15 buildings, the budget for that was set at $253,000, which is $207,000 less than recommended.
Also, there are about $117,000 in undecided funding requests from department heads.
At the same meeting, commissioners approved putting two millage issues before voters in February 2015. One is to support veteran affairs department operations and the other is to support Tuscola County Economic Development operations for job development. The county supports veteran affairs with a $70,000 appropriation from the general fund, and supports EDC with a $49,000 general fund appropriation. The commissioners’ rational for asking for those millages to support those programs was to take the $139,00 pressure off the general fund.
In addition, it has not been determined if the county has to provide medical coverage to the five county commissioners under the Affordable Care Act mandate. If the county does, it would cost about $14,000 per commissioners to for medical coverage for a total of $70,000.
Despite those undetermined cost, the commissioners’ consensus was that a budget is a “snap shot in time” of when it was set, and is routinely changed and adjusted throughout the year.