BUDGET COMMITTEE
Special Budget Review
August 13, 2008

** NOT APPROVED **

---

Committee Members Present

T. Hopkins, D. Fanton, W. Dibble, W. Hall, T. O’Grady, C. Crandall

Others Present

L. Ballengee, J. Colligan, J. Garmong, D. Horan, T. Hull, C. Lorow, J. Margeson, Y. Rechichi, B. Riehle, D. Roeske, P. Schmelzer, W. Tompkins

Board of Elections – 2009 Budget Review

Deputy Elections Commission Catherine Lorow stated that the biggest increase to their budget would be $77,000 under account A1450.201 for the software license, usage, hardware and installation of all necessary equipment to do ballot definition and programming of memory cards. Ms. Lorow indicated that this will enable Allegany County to comply with the state law that all counties are required to do their own ballot definition. Ms. Lorow indicated that the cost is about $50,000 the first year, and then maintenance will run about $7,500 per year. Legislator Hall stated that there appears to be a few areas where we might experience some savings that will help offset some of the expenses associated with complying with the new HAVA regulations. After September 2009, other entities such as school districts will not be able to use the old lever machines, and it will probably be cost prohibitive for other entities to use our machines due to the cost of transportation, custodians and the programming of the flash cards. Budget Officer John Margeson asked if NYSAC (New York State Association of Counties) has done a survey to see what counties are doing individually about charging back towns. Ms. Lorow indicated that she does not know if there has been a survey, but many counties plan to charge back the towns.

Employment and Training – 2009 Budget Review

Employment and Training Director Jerry Garmong indicated that on the expense side, the only significant change in his budget is in transportation costs. Mr. Garmong explained that they have increased the payment for public assistance recipients that are mandated to come in from $25 to $40. Everything else has gone down primarily because their federal funding has declined about $145,000. Mr. Garmong stated that they have been able to make up about $70,000 of that through contracts with Social Services and another $26,000 through a new program with five school districts. As far as a County commitment, Mr. Garmong is asking for another $23,000 which would boost the County cost from $45,000 to $68,000. Mr. Garmong noted that anyone who is coded by Social Services as employable is mandated to come through the Employment and Training Centers, and that accounts for about a third of the people they see. The unemployment rate is going up, and Employment and Training is seeing more people all the time.

Sheriff’s Office – 2009 Budget Review

Sheriff William Tompkins went through his budget line by line as there were many changes. Many of the increases seen can be associated with the increase in inmate population, as well as costs associated with housing federal inmates. There has also been a huge increase in the cost of ammunition and gasoline.

The A3112.403 (Sheriff – E911 Dispatch) account has increased approximately $100,000 for software support and maintenance costs. The Sheriff indicated that he removed $20,000 from A3112.403 because they will be receiving a member item from Senator Catharine Young, and Mr. Margeson indicated that the $20,000 should be added back in and also reflected under revenues. Sheriff Tompkins also indicated that the $14,000 appearing under A3112.421 was not accurate and should be $8,000. It was noted that the Budget Officer decreased the $412,119 requested for the County match of the NYS Public Safety Interoperable Communications Grant Program to $200,000 under account A3645.217.

Committee members talked about the cost and usage of supplies, noting that the amount expended halfway through the year may not represent half of what may be used or expended during the year, as the bulk of some items may be purchased earlier in the year and used throughout the year. Committee members also discussed the inmate housing summary. We appear to house an average of 61 inmates per day and can expect to receive approximately $2 million in housing revenue.

Public Works – 2009 Budget Review

Public Works Superintendent David Roeske called committee members’ attention to the bridge projects listed under the County Road Fund, noting that they will be transferred to 2009 Capital Projects.

Mr. Roeske stated that Budget Officer Margeson made a few cuts to his Buildings and Grounds accounts, but he believes he can live with them. Mr. Roeske noted that the money to repair the retaining wall by the front parking lot has been removed from his budget again this year. Mr. Margeson suggested that if we have money in Contingency (A1990.4) at the end of 2008, we could place the funds in a capital account earmarked to repair the retaining wall.

Legislator Hopkins questioned the fuel used for the generator, and Mr. Roeske indicated that the generator is required to come on once a week and run for about an hour.

Mr. Roeske stated that the Budget Officer cut $13,000 from his $100,000 request under A8160.497 for sampling of groundwater and leachate, and he is going to either need those funds back or have them taken from another account. Mr. Margeson indicated that he will plan to add the $13,000 back to that account.

Mr. Roeske indicated that they budgeted $487,500 under the County Road Fund for gasoline/oil (D5110.422) based on prices back in July. The Budget Officer recommended reducing the account to $340,000. Mr. Roeske stated that although prices have come down slightly, he still believes that they are going to need at least $400,000 in that account. The state bid price for diesel is currently $3.60 and for unleaded the price is $3.19. Mr. Margeson suggested they monitor the prices, and the number can be adjusted toward the end of the budget process if necessary.

Legislator Timothy O’Grady talked about the four-day work week and asked if there would be any savings in having the four-day work week year round. Other committee members thought it could be difficult with having to plow snow, etc. Mr. O’Grady also mentioned that he did not understand the advantage to having towns plow County roads, and Mr. Roeske and Legislator Dwight Fanton, Chairman of the Public Works Committee, indicated that much of the savings comes from not having to replace equipment. Committee members also talked about the CHIPS funding and how it affects the Public Works budget.

Mr. Roeske stated that the Budget Officer cut his $280,000 request under DM5130.204 by $100,000. Mr. Roeske indicated that $200,000 is earmarked for the reconditioning of the bridge maintenance unit which they are required to refurbish every two years as a safety measure. Mr. Margeson indicated that $20,000 can be added back to the account so that the bridge maintenance unit can be reconditioned.

Social Services – 2009 Budget Review

Social Services Commissioner Patricia Schmelzer stated that her budget is about the same as last year, but she is nervous about the state cuts proposed in Albany. Legislator Dibble suggested that we should ask the state to revamp and drop the programs that they will not be funding.

Mrs. Schmelzer briefly explained how the HEAP Program works and indicated that she put some extra money in for emergency fuel situations.

Mrs. Schmelzer talked about a few positions that she would like to leave in the budget, and she mentioned the cuts made to her .2 equipment requests. Mrs. Schmelzer’s $15,000 request under the A6010.204 motor vehicle account was removed by the Budget Officer, and committee members suggested that Social Services might be able to use some of the old Health Department vehicles. It was noted that Mrs. Schmelzer should submit a request to Mr. Margeson regarding the usage of the Health Department vehicles.

Budget Committee Chairman Hopkins questioned the $76,220 expense listed under A6010.421 for school and training. Mrs. Schmelzer indicated that is education for Social Services employees, and it is all funded with state and federal money with no local share. Legislator Hopkins pointed out that we are getting charged on the other end if someone attends a community college.

Mrs. Schmelzer talked about the contracts they have with others such as the Health Department, ACCORD, Office for the Aging, Sheriff’s Office, Information Technology and County Attorney’s Office.

Medicaid costs (A6101.4) were budgeted at $10,230,435 and are based on a fixed annual three percent increase.

County Administrator – 2009 Budget Review

County Administrator John Margeson reviewed the budget requests for County Administrator (A1011), Auditor (A1320), Budget (A1340), Assigned Counsel (A1171), and Risk Retention Health (CSH Fund). The County Administrator’s requests for his account are slightly less than last year as he does not need any equipment, and the LaBella contract is over. There were no changes to the Auditor and Budget accounts from the previous year.

Mr. Margeson indicated that he increased the Assigned Counsel A1171.430 account by $50,000 for a total of $350,000 as hourly rates rose significantly a few years ago. County Treasurer Ross reported that we have spent about $236,000 so far this year, and we spent $372,000 last year.

Mr. Margeson indicated that he increased the Risk Retention Health Fund by $530,000 for a total of $5.8 million, but it might not be enough. Our increases have been running about eight percent. Ms. Ross indicated that the net General Fund contribution for this fund was about $5.85 million in 2007. So far this year, we’ve spent $2.65 million and claims tend to run late. It was noted that if additional monies can be put in the County budget, this is where they should be put.

Miscellaneous Questions, Etc.

Legislator Timothy O’Grady asked when we are going to talk about money for the Court Facilities addition. Legislator Hopkins stated that we need to start building money in there. It was noted that $500,000 has been placed in Contingency. Legislator Hopkins suggested that another meeting should be scheduled once everything is put together regarding the new Court Facilities.

Legislator Fanton asked when we can expect to receive the total assessed value figure for the County, and Ms. Ross indicated that the figure is usually available right before the final budget is adopted.

Chairman Curtis Crandall stated that on the revenue side of the Sheriff’s Budget there is $1.5 million for housing in, and the bond payment is $1.6 million. In the 2008 budget, we have monies in there that were taking care of the debt service so we should have some overall gain. Mr. Margeson stated that although we are bringing in more revenue in 2008 than budgeted, the expenses in the jail will be higher than originally budgeted. Mr. Crandall indicated that he is not totally comfortable with the way the expenses for the new Public Safety Facility are being tracked especially when expenses for different items appear in different budgets, and he expressed concern about being able to easily see the bottom line of what it costs to run the new facility. He said we need to have a good handle on the bottom line so that we can have an accurate history when we are looking at the 2009 budget.

Health Department – 2009 Budget Review

Legislator Theodore Hopkins, Chairman of the Budget Committee, stated when you cut something out of your budget because it’s losing money, why is it costing more the next year? Ms. Ross noted that some of the savings will not show directly under the Health Department, and Ms. Ross also reminded committee members that the figures they were looking at when they were deciding to sell home care were cost figures rather than budget figures. Public Health Director Lori Ballengee stated that we never hit our projected revenues in the past, and we should have a better handle on revenues when home care is gone.

Terri Ross distributed a spreadsheet revised from yesterday’s meeting showing the 2009 budget requests minus the nursing expenses associated with the Certified Home Health Agency and Long Term Program that are being sold. There appears to be a $464,158 increase in local share from 2008 to 2009. It was noted that the bulk of the increase in County share comes from a $228,500 increase in the Special Education PHC Program (A2960). Why has this category increased so drastically? One reason is that more children are being diagnosed with conditions that qualify for services. It was also noted that the program is controlled by the State Education Department, and with every child there is a care plan that tells what services are needed. Mrs. Ballengee briefly talked about how providers bill for services. Mrs. Ballengee also talked about costs associated with sending children to a learning center versus having a therapist going to a home. Funding for this program has been a huge argument for the County for years – it should be an education expense.

The County tax dollars needed to support the Health Department for 2007, 2008 and 2009 are as follows:

FY 2007 (Using actual expenditures as of 12/31/2007) $1,693,693

FY 2008 (Using amended budget as of 08/12/08) $1,761,543

FY 2009 (Using Budget Officer recommendations) $1,726,280

A motion was made by Legislator Dibble, seconded by Legislator Fanton and carried to accept the budgets as presented with recommended changes by the Budget Officer.

Future Meetings

Ms. Ross indicated that she will have the budget workbooks to committee members on August 25. The next special Budget Committee meeting will be held Monday, September 8, at noon.

Adjournment

There being no further business to come before the committee, a motion was made by Legislator Fanton, seconded by Legislator Hall and carried to adjourn the meeting.

Respectfully submitted,

Brenda Rigby Riehle, Clerk of the Board

Allegany County Board of Legislators