As Dane County officials review the specifics of federal and state budget proposals, it has become apparent they face difficult decisions in allocating already sparse funding.

Proposed changes in the initial budgets include reduced funding for the county’s W-2 program, increases in the juvenile corrections rate and elimination of Community Development Block Grants in Dane county.

While Dane County Executive Kathleen Falk says she does not expect significant cuts in services this year, the outlook for the county budget in 2006 is more bleak as the state is expected to pass more cuts later this year. Falk held a press conference Friday to discuss how the state budget affects Dane County.

“The 2006 budget will suffer more significant negative impacts,” Falk said in a release. “Because of the proposed reduction or elimination of federal programs, a wider than usual range of county programs could face reductions, delays or elimination.”

One of the programs that may be in peril when Dane county produces its budget for 2006 is the county-run W-2 program. Unlike other human services programs, Dane county is not required to maintain its own W-2 program. The proposed 17.6 percent cut in state funding for this program and the probability of future cuts has forced county officials to reconsider the viability of maintaining this program.

“W-2 is really going to be tough for us,” Falk spokesperson Lesley Sillaman said. “At this point we’re really going to have to reassess whether or not we can continue administering the W-2 program.”

Additional state budget cuts include a 13 percent increase in the juvenile corrections rate. This would amount to an approximate $546,000 increase in the amount Dane county is required to pay the state for housing its juvenile offenders.

“That is actually going to be okay for this year’s budget because the Human Services Department and County Executive Falk anticipated this increase and have budgeted for it,” Sillaman said. “It will be a major problem in 2006.”

County officials attribute this problem to the uncertain status of the juvenile corrections program in 2006 to the expectation that the next state budget will force more cuts in Dane County. While the county produces an annual budget, the state composes its budget in two-year cycles and will likely not finish until June 30.

From a federal standpoint, the county faces even more difficulties in funding essential programs.

Over the last fiscal year, the state received more than $70 million in CDBG aid. The state of Wisconsin faces a 40 percent decrease in these funds, while Dane County may have all of its CDBG funding eliminated.

CDBG aid funds many human services, including neighborhood revitalization, startup loans for small businesses, senior center construction and affordable housing projects.
“[The elimination of CDBG funding] is something that I’m sure communities around the country are struggling with, and it will be a huge challenge for us.” Sillaman said.

President George W. Bush’s proposed federal budget functions as a guideline for Congress. Proposals may be modified before the final budget is ready for the Bush’s signature.

The final budget might not reach the president until after Congress’ August recess.