Published: August 26, 2009 09:43 pm      

County must reduce costs

THE ISSUE: County government budget talks.

OUR VIEW: However unpalatable, the council must cut its work force.



County governments, municipalities and school corporations across the state currently are cobbling together fiscal plans for 2010. And they’re in the grip of a powerful vise.

At one end, the Statehouse’s property tax caps are reducing tax collections. At the other, a deep, 20-month recession is diminishing real estate values and escalating home foreclosures.

It’s a pretty tight squeeze.

But nowhere in Indiana is financing government more difficult than in Kokomo and Howard County. Compounding an already abysmal fiscal forecast, the former Chrysler LLC is refusing to pay personal property taxes for 2009 and 2010, which would result in lost revenue of up to $4 million to county government alone.

Laurie Martin, chief deputy to the Howard County auditor, said Monday that if the county council approves a requested $19.5 million budget, “we will have a zero operating balance.”

The Howard County Council this week is reviewing budget requests from each county department. Sheriff Marty Talbert asked councilmen Wednesday to consider across-the-board pay cuts of 5 percent in lieu of layoffs. He said he needs every employee he has.

Councilman Paul Wyman noted later that would amount to a $400,000 savings to the county – significant, but not nearly enough.

However unpalatable, the council must cut its work force of 596. It must reduce the number of paid holidays, which could be as many as 16 in 2010. It must require its employees to contribute a portion of their Public Employee Retirement Fund payments; currently, the county pays the entire amount for each of its workers. It must stop paying employees while they’re at lunch.

The vise won’t loosen its grip any time soon.