Shrinking revenues, lower property values, and higher costs could cause Schoharie County taxes to rise by eight percent and the loss of 30 full-time county jobs next year.
Supervisors Tuesday began working on a proposed $59.7 million spending plan for 2012 which could increase the average tax rate by eight percent for next year.
Though expenditures have been cut by 7.7 percent from $64.7 million to $59.7 million, taxes may still rise from a low of 2.3 in the Town of Summit to a high of 8.9 percent in the towns of Blenheim, Fulton and Richmondville.
Jobs could be eliminated in 11 county departments with corrections being the hardest hit with 10 jobs targeted. Four of those positions are vacant leaving six possible layoffs.
In all, 30 positions could be eliminated in 11 departments totaling 18 layoffs and there could be more as the county's finance committee will begin work on the budget this week.
Almost 60 people attended the beginning of the public hearing on the spending plan Monday morning.
Most of the people attending were deputies from the Sheriff's office. The hearing will be kept open at this Friday's regular meeting of the county board.
The budget has to be approved by the county board by December 20.
Many factors have made the 2012 budget one of the more difficult in years, said co-budget officer Alicia Terry.
The August 28 flood from Hurricane Irene has severely reduced two revenue streams, and increased costs, she said.
"It's not pretty," Ms. Terry said Monday.
The budget could get uglier for county employees and there may be more layoffs once the finance committee and full board review the plan.
The tax rate hike was sliced to eight percent but Ms. Terry said, "We are fully aware that's not acceptable."
Layoffs and excised positions are targeted in the following departments: motor vehicles, safety, corrections, public health, emergency management, transportation, social services, the Old Stone Fort, economic development, planning, and Youth Bureau.
With the future of the flood-damaged public safety facility still undecided, the correction departments took the biggest hit with 10 jobs eliminated including six layoffs.
The flood from Hurricane Irene hit two areas of county revenue, Ms. Terry said.
Since the jail cannot be used to board prisoners from other counties, Schoharie County may not see any revenue from that area next year. In 2010, the county generated over $900,000 from boarding of prisoners.
The county will also not be able to hold the annual tax sale in May since some paperwork was destroyed in the flood.
In all, revenues dropped by 12.6 percent from $45.2 million to $39.6 million.
The county also has to reserve more fund balance for flood related repairs which will decrease the amount of fund balance that could have been used to reduce the tax levy, Ms. Terry said.
In addition to declining revenue, expenses for health insurance and state retirement are increasing, Ms. Terry said.
Further complicating the matter is that for the second year in a row, the full value of all taxable real property in the county declined. It is expected to decline again next year, Ms. Terry said.
The county has routinely seen growth in its total taxable value in past years but saw the total drop by 1.54 percent for 2012.
The proposed elimination of 30 full-time and part-time positions was not easy, said Ms. Terry and co-budget officer Paul Brady in their budget message to the board.
"We would not have proposed taking such action if we did not think it was truly necessary," they wrote.