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St. Mary's tightens its budget belt
Copes with state cuts
Friday, Sept. 18, 2009
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St. Mary's government already figured on $4 million in cuts from state aid for the county in preparing its fiscal 2010 budget. But there were more reductions last month, so Tuesday the county commissioners agreed on a plan to reduce county spending by nearly another $4 million.
"That's the August activity," said Elaine Kramer, chief financial officer for county government. There could still be additional cuts in state funding.
The county plan, which still requires a formal budget amendment, makes $3.9 million in reductions. The College of Southern Maryland sees a reduction of $109,450 and the St. Mary's County Health Department's budget gets a further reduction of $435,387 outside of the cuts to county government. How the health department will deal with the latest cuts hasn't been presented yet.
In county government, there is a hiring freeze on all positions, excluding sheriff's deputies and 911 dispatchers, which should save $750,000 in 2010. In addition, the sheriff's office takes a $300,956 reduction. County departments will be reduced by another $300,000 on top of the scrubbing they received from the finance department. The board of education will get $750,000 less.
The commissioners' emergency reserve account is $747,150 — $200,000 will be left in it. Debt service payments on equipment replacement will be put off by a year, saving $450,000. Operating funds that were going to pay for building projects, saving on borrowing and interest payments, are being pulled out ($500,000). That will cost county government $40,000 more in debt payments per year in the future. Another $289,000 will be refunded from bonds not sold.
"It strikes at the heart very much of what county government is about," Kramer said about the cuts.
"We're laying out a lot," said County Administrator John Savich, but the state isn't done with cuts, "and we don't know what revenue will come in.
"We can't fold up. This is county government. We can't go away," he said. Services must be maintained and the commissioners want to avoid any layoffs in personnel.
Commissioner Larry Jarboe (R) asked if the hiring freeze affected department heads. Bennett Connelly, director of human services, is retiring Oct. 15. His salary is $95,000, but is mainly paid by grants. The process to find his replacement has been suspended, Savich said. The human services council will take the helm in the meantime.
The second phase of potential cuts would look at employee benefits. "A large percentage of the county's cost is people and benefits," Kramer said.
