More belt tightening may be in Crow Wing County's future as state deficits roll downhill to county government.
Auditor Deborah Erickson said the state is projecting a $935 million deficit. Some forecasters are predicting cuts at the state level that could mean a loss of $500,000 for Crow Wing County in aid and programs, Erickson said.
The governor's proposed budget balancing plan has stated there will be no new taxes, no cuts to education funding and no reduction in funding to local government aid, Erickson said. And, she said, for the most part the governor is recommending a 4 percent reduction in most state agencies operating budgets.
While the county previously heard the governor's plan didn't include levy limits, Erickson said further research indicated there may be levy limits perhaps of 3 percent or the consumer price index - whichever is lower.
"The deepest cuts are in costs shifts and cuts in the health and human services budget areas," Erickson said.
The state along with Todd, Cass and Stearns counties have adopted a hiring freeze. Erickson said the leadership team is looking at how the county can address the issue besides a hiring freeze, which can have deeper future effects looking at past experience.
"About 12 percent of our annual revenues comes from aids that we get from the state to basically administer certain programs," Erickson said. "We also get about 33 percent of our revenues from intergovernmental agency sources - federal grants, state grants, local match grants - those kind of other dollars that come from the state or federal governments."
That leaves Crow Wing County with 45 percent of its revenues from state, federal and other agencies. On the other side of the coin, Erickson said revenues the county gets from planning and zoning and recorders' fees are in a downward trend with the current economy. More of that downward trend is expected for 2009.
Looking at the county's business plan through individual departments and as a whole, Erickson said the leadership team thought it was important to be proactive by asking department heads how they would operate with a 20 percent revenue reduction.
It's a head start for the 2009 budget process, Erickson said, adding the process is a way to look at a broader picture extending several years into the future.
RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.
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