Fiscal court facing $673,000 deficit

The Whitley County Fiscal Court could be looking at either levying a payroll tax, layoffs of county employees, or other cutbacks when they meet in special session Monday morning to consider how to deal with a budget shortfall of nearly $673,000 to $773,000 this fiscal year, which ends June 30.
“I think that is a good idea to step back and take a whole long look at the total situation here, and see what steps need to be taken, and what options do we have to try and bring this thing in control,” said Whitley County Judge-Executive Mike Patrick. “I don’t say that any option is off the table from layoffs to trying to increase revenues in some way or another. Everything is up for consideration.”
Patrick didn’t say that the entire fiscal court is considering the possibility of implementing a payroll tax, but added that “It is something that has gone through my mind.”
During their monthly meeting Tuesday, magistrates voted to authorize Patrick to borrow $153,000 to cover revenue shortfalls through the end of the fiscal year in the jail budget, and to borrow between $220,000 and $320,000 to offset the cash flow situation in the general fund.
This sum is on top of $300,000 that the fiscal court borrowed in the fall to offset shortfalls in the jail and general funds caused by the opening of the new jail, and bills not going out to surrounding counties for two months for the housing of Knox and McCreary County prisoners.
Patrick said the fiscal court can’t continue borrowing money forever.
“We are still trying to catch back up from those days,” Patrick said. “It is kind of like the horse got out of the barn, and although he has come back in the barn, we are playing catch up here. The time for catching up is upon us.”
Patrick blamed the money problems largely on higher than expected expenses at the new jail, which opened in August, and on a pay raise magistrates approved for 911 and EMS workers this past January, which were expected to cost the county an additional $100,000 a year in payroll.
“When you look at the support that the general fund has had to give to the jail, has had to give to 911, and had to give to the ambulance service this year, these are the items that have led to this point,” Patrick said.
Patrick said things seem to be improving in terms of the monetary situation at the jail.
“Number one they are doing a much better job of billing and collecting. I believe we are seeing things where some of the other expenses may be coming down, but we still have to get through this period, and somehow be able to continue on, or come back and start taking some real drastic measures to pull back the expenses,” Patrick said.
In a report presented to the fiscal court Tuesday morning, the jail reported $118,153 in revenues to the fiscal court, which were paid largely through the housing of prisoners from Knox and McCreary counties.
Knox County closed its jail last year, and began housing inmates in other counties. The McCreary County Jail doesn’t house female inmates.
Fiscal court members agreed to meet in special session Monday morning to discuss the budget.
During Tuesday’s meeting, fiscal court members also delayed approval of Sheriff Lawrence Hodge’s budget and salary cap for the next fiscal year, which starts July 1.
Magistrate Burley Foley said he felt approval of all budgets for county offices needed to be delayed in order for the fiscal court to further review those budgets. The sheriff’s budget is expected to be taken up during Monday’s special called meeting.
For the last two years, the fiscal court has contributed $107,280 annually to the sheriff’s budget.
“I think what Magistrate Burley Foley said in that we need to take a good hard look at it all is what I think we need,” Patrick said.