COMMENTARY ANSWERED

By Deborah Newcomb

Ashtabula County Commissioner

March 29, 2005

Government accounting and budgeting can be a very complex subject. The entire County Budget including the General Fund totals $________________. The majority of the “off” general funds has their own source of revenue and cannot be used for “general” fund operations. It’s this way in Ashtabula County, Lake County, Geauga County, Trumbull County and all other Counties within the State of Ohio.

The Gazette has attempted to provide information on the budget and has asked questions. Here are the answers:

QUESTION: If quarterly budgeting was instituted several years ago for purposes of managing the budget, why beginning in 2003 and 2004 with shortfalls was not action taken sooner to constrain expenditures?

ANSWER: In 2001 the carryover was approximately $2.3M, in 2002 and 2003 $2.9M and in 2004 the carryover was reduced to $2.4M. During this time frame the Commissioners did not replace personnel or combined jobs; enacted bulk purchasing measures; worked to reduce workers compensation; enacted quarterly spending plans and re-bid health insurance and went to health insurance pooling. In various departments under “OUR” control, 18 personnel were not replaced. Personnel costs are the bulk of general fund expenditures with the Sheriff’s office the largest department in the general fund. The Commissioners’ budget since 2001 has been reduced by well over 44%. EACH Elected official is responsible for their own budget expenditures!

QUESTION: If shortfalls were this serious, why would the county commission issue budget guidance letters in October that failed to clearly state the dire predicament and seemed to suggest business as usual?

ANSWER:

QUESTION: Why would county judges and department heads express “shock” on January 3 to learn that a “financial crisis” existed?

ANSWER: First of all, the County Commissioner’s department heads were not “in shock” since they were well aware of the situation and took the bulk of the cuts from 2001-2004. The County judges have been told of the situation and asked to find ways to increase revenue at every budget meeting since I have been Commissioner in 1999. However, the judicial system has the power to “Court Order” for their budget.

QUESTION: Why would public financial documents released during the budget process be in obvious discrepancy or error as to accuracy, we mean significant deviations from the official audited financial statements?

ANSWER: First of all the county started this budget cycle with the budget commission “estimated revenue certification” of last July 2004 of $17.4M available for 2005. The County DID NOT have audited financial statements yet for 2003. The 2003 Audited Financial Statements were not completed until 2005. While this paper may call them significant deviations, I disagree. When we compare prior year budgets, we also evaluate appropriations versus ACTUAL expenditures and “estimated” revenues versus “actual revenues”. We have a number of working documents. I have researched what other counties budget process looks like and we could improve. Maybe it’s time to form a budget advisory committee made up of the private sector to help look at county finances and advise the Commissioners on best practices.

QUESTION: IF public officials “saw it coming” why did the call for an additional tax be brought forward after the November election and as an emergency measure?

ANSWER: The last certification from the Budget Commission in 2004 again was $17.4M in JULY and we still did not have AUDIED FINANICAL STATEMENTS FOR 2003. Usually in October, we receive an updated certification from the Budget Commission. WE DID NOT and we knew that the $17.4 was incorrect. The Commissioners did not receive an updated statement from the BUDGET COMMISSION until DECEMBER ___________. Having CORRECT information is imperative to making good decisions. I find it ironic that you blame Newcomb and Boggs for not talking about this during the election when the County Auditor and County Treasurer, the two chief financial people of the county and in control of all the money did nothing to counter.

AGAIN, the sales tax issue was presented as an “EMERGENCY” so that it could be collected in the next quarter and PLACED ON THE BALLOT in November as well.,

QUESTION: Why would county health care benefits remain at “top shelf” levels in the face of private enterprise and private individuals migrating lower cost and lower benefit plans?

ANSWER: Obviously, the health care plan situation has not been followed since the beginning. Health Care in 1994 was $1.2M and now stands at over $6M. The county has NINE union contracts to negotiate and make changes to health care; we added co-pays and increased those co-pays, employee contributions of 10%, added deductibles, went to health insurance pooling and re-bid the health insurance every three years. We cannot arbitrarily change health care plans without negotiations with the unions, but significant changes have been made in health care.

QUESTION: Why would the misdemeanor facility open and close so quickly in 2004 if commissioners knew a financial crunch was imminent?

ANSWER: Let’s answer this question again. This misdemeanor facility was a recommendation from the County Sheriff to handle over 150 pending cases. Money generated from the federal prisoners was utilized to make minor repairs to the building. Projections from the Sheriff hoped to recoup “pay to stay” monies from the misdemeanors. When revenue projections fell short of estimates, the Sheriff closed the facility. That facility can be reopened or leased out.

QUESTION: Why doesn’t the Budget Commission meet quarterly specifically for the General Tax Budget performance reviews?

ANSWER: Good question, since two of the members of the Budget Commission again are the chief financial people for the county and the commissioners are NOT members.

The only questions I did not answer involved the Auditor’s attendance at meetings and the Geauga County financial reports. Those Geauga County financial reports that are done quarterly are prepared by THEIR County Auditor. No reports of that type are generated here in our County.

As Elected Officials, we need to strive to find solutions to problems, not point fingers. We need to cooperate and work together to provide the best service possible to our residents, not complain about our situation. Many county programs are still working well such as “Reverse” 911, new waterlines to help Rock Creek and King Luminaire, Senior Levy Programs, PRC programs, OSU Extension Services, Soil & Water Conservation, , etc. and we need to focus on the POSITIVE side of Ashtabula County and so should the news media in promoting our County.