NEWTON COUNTY : Revenue shortfall calls for job cuts
Posted on Wednesday, May 7, 2008
JASPER — Jail inmates will clean the courthouse and sheriff’s office in a bid to fix Newton County’s general fund budget.
The county’s Quorum Court voted Monday to lay off two fulltime employees who clean those buildings in the latest round of cuts to the $ 1. 3 million general fund budget.
“It’ll be the thieves and petty criminals that do it now,” Sheriff Keith Slape said.
The cuts come after county officials already shaved 20 percent from the budget at the beginning of the year.
“We’re on a path to cure it,” said Donnie Davis, the county clerk and circuit clerk. “It’s been a long-term thing.
“ We’re not broke, but we’re trying to prevent being broke. To me, it’s good business.” County Judge Harold Smith said Tuesday that he’s likely to ask the Quorum Court to increase the county’s general fund millage to bring more property tax revenue for next year’s budget, and there will be another review by the Quorum Court of the county’s finances next month.
“We’re going to rescope everything, but I think we’ve got a Band-Aid on to sustain us for a while,” Smith said.
The county once had about $ 450, 000 in reserves, but Quorum Court members over the years approved extra spending, Davis said.
The county had $ 45, 897 in its general fund on May 1. There’s also a $ 150, 000 certificate of deposit.
After that, the savings are gone.
“It’s overspending for too many years,” said John Phillips, a Quorum Court member. “Everyone can take a little credit for letting it happen. I don’t want to point any fingers. That’s not good business.” Others blame Smith for the cash-strapped county’s finances, saying he should have pursued new sources of revenue or led an effort to reduce spending sooner than he did.
Smith should have encouraged the Quorum Court not to dip into the savings, too, said Lou Bates, a tax accountant who lives six miles south of Jasper.
“He’s got competition in the election this year,” Bates said. “I’d say that’s a good thing.” Smith concedes he could have been quicker to suggest a millage increase. The Quorum Court would have to approve the increase at its November meeting.
Smith talked Tuesday of increasing the millage from 2. 5 mills to 4. 5 mills, but he wasn’t certain of the amount he’ll suggest. A 2-mill increase would bring in $ 130, 000 a year, he said.
Monday’s cuts also eliminate cleaning and maintenance money from the budgets of the county’s health office and county extension office. The inmates will help out, Davis said.
The Quorum Court also decided not to replace a sheriff’s office secretary who’s retiring this year, and Smith’s secretary will be paid from the road department’s budget rather than the general fund budget. Most of her work is roadrelated, Smith said.
Smith acknowledged that the county’s finances are precarious. He said the county’s monthly spending is about $ 113, 000, but revenue is around $ 90, 000.
Most counties struggle with money at the beginning of a year because real estate and personal property taxes aren’t due until Oct. 10, said David Morris of the Association of Arkansas Counties. Banks hang onto real estate property tax money collected as part of mortgages, and people don’t pay personal property taxes on their cars, pickups and boats until the last minute, Morris said.
Newton County had cut its budget markedly before Monday.
Slape dropped the number of full-time deputies from seven to five, leaving him short-handed trying to provide 24-hour patrols. One deputy remains on-call in the wee hours of the morning.
County Assessor Sheila Mc-Cutcheon laid off one worker for three months on Feb. 1, and then brought her back May 1 so her other employee could start a three-month layoff.
“We’re worried about paycheck to paycheck,” McCutcheon said. “It’s better to do that than not have a job.” There were also staff reductions for the county collector, treasurer and clerk.
Slape said he doesn’t know whether the budget cuts will be enough to protect the county’s savings and balance the budget.
“I try to break my crystal ball out on murders and drug raids rather than the fiscal aspects of the county,” he said.
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