The various elected offices, departments and independent boards have submitted their tax budgets for next year and based on raw data tabulated by the Journal-News, total expenses for all funds amount to around $381 million. The total does not include the commissioners’ office budget which totaled $17.2 million this year.
Finance Director David McCormick said they haven’t vetted the numbers yet so exact general and other fund expenses and revenues won’t be ready until closer to the filing deadline in July, and “nothing has been finalized and everything is subject to change.”
“From my rather brief time in Butler County government, the commissioners and the county administrator are intent on maintaining good fiscal responsibility and wise use of the county’s resources,” McCormick said. “Hence, the reason the county’s financial position continues to be strong.”
Commissioner Don Dixon said a year ago it was impossible to predict where the economy would wind up, but all predictions were dire.
“Nobody knows the timing, that was uncertain, but the economy has held up stronger than what I think everybody anticipated,” Dixon said. “But six months doesn’t make a projection, in this economy you just have to play it quarter-by-quarter and see where it is.
Sales tax is the largest engine driving the general fund and collections for the first six months total $28.7 million versus $21.9 million pre-pandemic in 2019 and the collection is better than a year ago, when billions of dollars in COVID relief money still being being pumped into the economy.
“We’re still dealing with the after COVID effect, they’re just starting to end the subsidized programs,” Dixon said. “We haven’t gotten all that washed out yet as far as what’s real money and COVID money. I think you’re going to see some more pressure on the economics to stay where they are right now because there’s going to be less free money out there.”
Another big unknown for next year is the amount of property taxes the county will collect. The budget this year called for $19 million in the general fund and the first half collection totaled $9.3 million. The county and state lawmakers are currently on a legislative crusade to slash the 42% property value hike recommended by the state commissioner to 25%.
It remains to be seen whether the proposed new law ordering a three-year, equally weighed average will remain in the new two-year state budget or not. Dixon said the outcome won’t have a big impact on the 2024 budget.
“We don’t live on property taxes,” Dixon said. “The county runs on sales tax.”
It may seem odd — since the county and other jurisdictions do rely on property taxes to a varying degree — but the commissioners and other county leaders are pushing for legislation, beyond the “band-aid” budget fix, to reduce reliance on property taxes for government operations.
During a recent strategy session, the three commissioners agreed they are on sound financial footing but need to remain vigilant. Commissioner Cindy Carpenter said that’s approach for the upcoming budget.
“I think our message should be the same that it has in previous years, that we expect the office holders and agencies to give conservative budgets, to hold the line on spending to the best of their ability,” she said. “But I don’t think the board of commissioners should be telling departments how much it takes to run their departments, it’s not our field of expertise.”
McCormick puts out a monthly general fund financial snapshot and it shows revenues were up nearly $10.6 million or 29.6% as of April 30 over the same time period in 2022. On the flip side expenses were down 16.6% or $7.3 million. The county has an unencumbered cash balance of $92.7 million.
Commissioner T. C. Rogers said with a half a year to go before they must finalize the spending the plan for next year, he is comfortable they can weather any financial storms that might be brewing on the horizon.
“We’re in a good financial position as far as reserves so we’re ready for whatever is going to happen,” Rogers said. “But we want those levels to remain as is, so we’re not going to accept any growth on our operations, we’re going to maintain what we’ve got.”
Sheriff Richard Jones’ budget consumes the largest portion of the general fund — the general fund budget is $116.1 million this year — and next year early estimates show he expects to spend $54.6 million compared to $54 million budgeted for this year.
They are expecting 403 full-time staff next year compared to 404 this year and 408 last year. The sheriff lost 14 positions when the commissioners ordered sizeable cuts in 2020. Chief Deputy Anthony Dwyer said they are at a comfortable level now but, “we’re always chasing our tail, I don’t think I’ve ever had a month where every division in my agency was at budgeted numbers.”
“We’re close, we constantly deal with that, it’s a moving target all the time,” Dwyer said. “I hire somebody in this agency every other week, be it a corrections officer or somebody. We’re constantly shuffling people, it’s the nature of our business.”
The commissioners will pass the tax budget in early July and the final spending plan in December.
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