County Staff Proposes $40 Million Budget Deficit

Proposed Budget Workshop Document 2011-2012

http://www.news-press.com/article/20110628/NEWS01/106280362/Lee-budget-proposal-Spend-less

Lee County government staff Monday recommended an overall $604.6 million operating budget for 2011-12, which includes a $17 million reduction, or 2.8 percent less than this year.

The proposed budget, presented to county commissioners in their first budget workshop, also includes a $42.8 million cut in general fund expenditures, a $30 million cut in revenues and a $40 million deficit.

The revenue from property taxes fell $10.9 million – from $193.3 million to $187.3 million – reflecting a 5.6 percent drop in property values in the general fund.

The new spending plan would eliminate the furlough program for 2,400 county employees, a proposal that sparked friction among county commissioners.

The furloughs amounted to a 4 percent salary cut for employees this year.

Frank Mann, commission chairman, said stopping the furloughs amounts to a 4 percent raise for county employees in the face of a $40 million deficit.

“It is grossly irresponsible and I can’t believe staff made the recommendation,” Mann said.

“I would at the very least continue the furlough program until such time as our budget revenues begin to stabilize or come back somewhere near to the point that it used to be,” he added.

Mann and Commissioner Brian Bigelow voted against the move.

Commissioners Tammy Hall, Ray Judah and John Manning voted for stopping furloughs.

They pointed out that effective Friday, the state is requiring employees to contribute 3 percent of their pay to their pensions for the first time, which amounts to a 3 percent pay cut. Continuing furloughs would make the total 7 percent cut for employees.

The financial burden on employees has increased with rising insurance premiums, co-pays, no salary raises in the past three years, furloughs and now the 3 percent contribution to their pensions, Judah said.