Crawford County facing $150,000 budget deficit

The Crawford County Quorum Court's budget committee began meeting with department heads on Thursday (Nov. 21) to address a $150,112.76 budget deficit.

According to Justice of the Peace Mary Jan Blount, chair of the budget committee, the group is meeting with department heads to see where cuts can be made so the county can have a balanced budget by its Dec. 16 regular meeting.

"We're just going to each department head – for instance the county clerk is on the agenda for tonight – we're going to be asking why they're asking for money. We're going to give them the opportunity to make their own cuts first," she said. "If that does not happen, then we'll make the cuts we deem necessary."

For now, Blount does not know where those cuts may come from, though everything is on the table at this point, including limiting how many vehicles can be replaced in anyone department's fleet.

"That is probably one area we will look at, but I'm not sure about that."

County Judge John Hall said the county is also trying to encourage employees who meet the eligibility requirements for Medicare to enroll in the program in order for the county to save money. There are 10 county employees over the age of 65 and therefore eligible.

Should those employees forgo county-provided health benefits, they could be given a $200 per month supplement which would still be a cheaper cost for the county rather than the $590 per month the county spends on each employee for health coverage. Once the payments are factored in, the county could expect to save $46,800 next year in up front costs.

Hall said having older employees off the county's insurance plan, which is provided by United Heath Care through a contract with Brown-Hiller-Clark & Associates, would also save the county money in the long run.

"What it is is a risk factor," Hall said. "The over 65-year-old is a higher risk when they figure our rates. So it would help us if they would go ahead and get on (Medicare)…It would lower our risk by probably 2% to 3%. Maybe 4%. So that's what we're looking at right now. I don't know if we can make it work yet or not."

And while other municipal and county governments have seen substantial increases in insurance costs that could be tied to the Affordable Care Act, Crawford County's costs have remained lower. But it has not been without working with their insurer to secure a better deal, Hall said.

"They started out this year with a request from us for a 16% increase in rates which was 170-something some odd dollars. And we negotiated with them and wrangled with them and begged and pleaded and got them down to 4%, which was about $40,000," he said. "If we can make this deal work on the supplement, we can save almost $30,000. So that would mean we would actually still exactly the same amount (expended for health insurance that) we had last year."

And while it appears as though the county negotiated a good deal for themselves and the employees, Hall was very clear in saying that the good rates and good coverage is unlikely to last beyond FY14.

"I have warned all the employees that they better be happy with this one because it will not last. Unless we do something to lower our risk rates, because we pay 100% of the insurance. We have a good plan and we it's one that they've had for 14 years. And so we get to keep that plan without increasing deductibles or decreasing benefits."

Even though county employees are getting to keep a health insurance plan that is paid for by the county, there is a trade off this year as county employees will not be getting any raises. That includes the highest paid county officials, Hall and County Sheriff Ron Brown, who are both paid slightly less than $51,000 per year.

Blount said even though the budget is not yet balanced, the county is in far better financial shape going into FY14's budget proceedings versus FY13.

"I am pleased so far at how the elected officials have worked toward making the budget as small as possible," she said. "I think they have tried to look at ways to cut. That has helped us a lot. Last year, we were looking at a $850,000 deficit. They have really stepped up to the plate and tried to help out."