On Oct. 1, Dane County Executive Kathleen Falk introduced the county’s budget for the 2010 fiscal year.

The economic downturn, along with other factors, caused her to make some difficult and across the board cuts, resulting in a budget that is smaller overall than the previous year’s.

While the budget is not yet complete, as it still has yet to face almost six weeks in the hands of the Dane County Board of Supervisors, the fundamental goals and cuts of the budget can still be brought to light.

Problems

There have been many factors that have resulted in the deep cuts made by Falk in the budget, all relating back to the national economic recession.

“The perfect storm has caused this is to be by far the toughest budget this county has seen since the Great Depression,” said Falk spokesperson Josh Wescott.

The perfect storm Wescott refers to is the decline in revenue the county has received in 2009, specifically from sales taxes. According to Falk’s transmittal letter detailing the budget, sales tax revenue dropped from 2008 to 2009 by $8.5 million. That, coupled with the projected sales tax revenue in 2010, brings the total deficit to about $17 million.

Other budget deficits come from the $4 million cut included in Gov. Jim Doyle’s state budget in July as well as an increase in health insurance, workers’ compensation and the Wisconsin Retirement System, according to Falk’s letter.

Solutions

With a daunting deficit ahead of the county, Falk’s budget includes many ways to overcome the missing revenue, including taxes, reducing spending and non-tax revenue.

Falk worked closely with Dane County Board of Supervisors Chair Scott McDonell in creating a property tax levy increase in the budget to offset costs while also avoiding drastically cutting public safety and human services.

“There’s a fundamental choice between two options: very painful cuts or preserving services,” Wescott said. “Dane County Executive [Falk] … certainly felt it was most prudent to preserve certain services.”

Therefore, instead of the usual 1.19 percent tax increase, which takes into account inflation and population growth only, Falk has proposed a 7.9 percent property tax increase. This translates to a property tax rate of $2.55 per thousand, an increase of 18 cents per thousand from last year, the county’s share of which is an average $38 increase.

Other cuts are also underway, as the county is in the middle of negotiating with employee unions. In total, the county needs to cut $4.7 million from employee salaries and wages, which equals a 3 percent cut in wages across the board. While negotiations have not yet been completed, Falk said in her letter that she is optimistic they will achieve agreements with most, if not all, unions.

While trying to avoid layoffs, Falk said they might be necessary if no agreement is met with the unions.

Wescott also said the county is leaving 20 positions vacant — saving $1 million — as well as renegotiating health contracts for all employees.

One of the major non-tax revenues included in the budget is the conversion of methane gas emitted from the county’s landfills into electricity, which will then be sold to Madison Gas and Electric for a profit of $1.3 million for 2010.

The Conservation Fund and the Land and Water Legacy Fund will see a decrease in funding by $6.5 million from last year, totaling $2.5 million — the lowest it’s been since the funds were first created 10 years ago. Initiatives to restore drained wetlands, improve water quality and reduce flooding are also down $2.25 million, leaving $1 million.

Increased aid

While most of the budget contains cuts, taxes and other ways of saving money in this declining economy, some departments are actually seeing an increase in funding in the upcoming budget.

The Dane County Sheriff’s Department is one department receiving more funding in 2010 — $3.4 million for new equipment, squad cars, body armor and other departmental needs.

Another $4.54 million has also been allocated for road improvement projects across the county.

As for the 911 Center, capital increases were allocated to continue with technological improvements. Overall, $2 million was set aside to continue improvements to the computer-aided 911 dispatch system and $12 million was set aside to continue work on the interoperated communications network, which is the single largest item in the 2010 budget, according to Wescott.

The Henry Vilas Zoo will also receive an additional $900,000 as announced Sept. 29 in order to maintain and improve the zoo, as well as helping it remain free to the public.

The next step

With the budget’s completion on Oct. 1, it now moves onto the Dane County Board of Supervisors.

McDonell said he expects a lot of changes to be made. He added he agrees with the salary savings and health care re-negotiations because “the budget would not work without it.”

He also said he expects the levy to stay roughly the same.

However, he said the Sheriff’s Office budget will be examined closely.

“Everyone needs to share the pain and we need a solid budget,” McDonell said.

Wescott said Falk should expect the budget back from the board by the end of November, when she will vote to veto the budget, should she disagree with the changes, or pass it.

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