From a 14 percent tax increase to just 2 percent and under the tax cap.
That’s where Schoharie County’s tentative 2021 now-$80.5 million budget sits as of Monday.
The plan also hits the Finance Committee’s other goals: no layoffs and nothing additional from the fund balance.
“Frankly, this budget seems like a miracle to me,” County Administrator Steve Wilson told supervisors at Monday’s public hearing.
“Earlier in the year…I was convinced there would be layoffs and a very significant tax increase. But the way the Finance Committee and department heads worked together…this is where we are now.”
Going through the budget line-by-line, the Finance Committee made $500,000 in cuts.
Anticipated sales tax revenues are also up slightly--$250,000--from the first-round budget.
But to get it below the tax cap, supervisors needed to find $2.7 million in savings and it came from the department heads.
They did.
“It isn’t a perfect budget, but it is an excellent budget,” Cobleskill Supervisor and Finance Committee Chair Leo McAllister said, praising their efforts.
The tentative budget uses $1.2 million from the fund balance, leaving what Mr. Wilson feels is a necessary 10 percent reserve.
Mr. Wilson explained that each department was given a “target” of cuts, based on the department’s size.
The revised budget also includes $500,000 for unexpected expenses—money that will be allocated back to the department using the same formula if it’s not needed.
“There are going to be a lot of uncertainties in 2021,” Mr. Wilson said, a reason to be extra-conservative with the budget, adding, “There are going to be problems executing this” with some departments better than others in anticipating unexpected costs.
“We tried to get ahead of that [with the $500,000 buffer.]”
There are no layoffs under the tentative budget; the hiring freeze on 39 positions however, remains in place.
The public hearing on the budget will remain open until supervisors meet on November 20.