Wednesday, July 17, 2013

News-Sentinel Reports Cash from Fort Wayne's Tax Increase Eases County's Budget Woes

From the Fort Wayne News-Sentinel:

For the first time in years, Allen County Council will begin its annual budget deliberations Wednesday knowing it won't have to make deep cuts in departments' spending requests.
The following day, the Council is likely to take a non-binding vote rejecting the very thing most responsible for the change: the city's recent decision to increase local income taxes by 0.35 percent, part of which will be shared with the county and other local governments.
“I don't think (the increase) was necessary,” said President Darren Vogt, adding that the county has no choice but to accept the anticipated $3.9 million that will turn the $1.73 million deficit projected by County Auditor Tera Klutz just last month into a virtually balanced budget. Although Vogt believes Council could have found cuts if necessary – and still may reduce specific departments' requests if appropriate – he acknowledged that “This is the first time in the 10 years I've been on Council I've been confident” in a minimal amount of budgetary pain.
This year's general budget is about $84.6 million, and departments have requested nearly $87 million for 2014. Next year's estimated revenue is now $86.68 million, producing a projected deficit of just $13.8 million. Klutz said she will recommend a salary increase of 2 percent, which could be funded through $1 million already set aside for a merit-pay system that cannot be implemented until 2015 at the earliest. Vogt also hopes to award a cost-of-living raise.
While most departments previously proposed flat budgets for next year and four even decreased their requests – and one is even under state scrutiny for not spending more – nine departments have requested increases totaling about $1.27 million. The largest include the juvenile justice center ($446,000, Superior Court ($309,886) Sheriff's Department ($283,524) and the Election Board ($125,705).
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See the full article here: