According to preliminary estimates, Allen County government will collect about $1.73 million less in 2014 than it is budgeted to spend this year. But how the city chooses to address its projected budget shortfall will help determine how much spending County Council will have to cut – if any.
County Auditor Tera Klutz told council members Thursday she expects revenues from property and income tax and other sources to total about $82.52 million next year. This year's budget is about $84.55 million, which if nothing changed could indicate the need to cut current spending by about 2 percent.
But a lot is expected to change before council meets over the summer to establish next year's spending plan. Changes in state law could reduce property tax collections, she said, and city proposals to increase property and/or income taxes could either increase or decrease funding available to the county and other local governments.
Klutz's projects also do not include any money left in the budget at the end of the year. That amount could be larger than expected after Klutz told Council the county had received an unanticipated $400,000 payment from the state. Her estimates also do not include the still-unknown cost of implementing the federal “affordable care act” among county employees.
Whatever the final numbers, council President Darren Vogt said an across-the-board solution similar to last year's 2.3 percent cut will not be used to balance the budget. “We need to be more calculated – use a 'scalpel' approach. So do your homework (looking for places to cut),” he said.
