Pandemic revenue hit puts Porter County on lean footing as 2021 budget talks begin
Porter County council members said during their first budget meeting Thursday that raises for county employees might be in question given tight finances because of revenue decreases from the COVID-19 pandemic going forward.
The approved budget for the general fund for this year was $41,756,690 and the 2021 budget is expected to be $1 million more. At the same time, the local income tax revenue fund is expected to drop $529,000, said Auditor Vicki Urbanik, adding the state will certify the amount on Oct. 1.
That leaves the county with a net gain of around $500,000, said Councilman Bob Poparad, D-1st.
“It’s the same pair of pants, different pocket,” he said.
Officials said while the county is in good shape going into 2021, the county’s actions on the budget for the coming year will impact future years. The state’s growth quotient, Urbanik said, is 4.2% for the coming year, better than expected.
It’s based on statewide levy increases for all taxing units, based on six years of income, but starting next year, that calculation will include income for 2019, which is expected to make the growth quotient drop, she said.
Department heads were asked to turn in the same budget as last year and include a letter to explain any requested increases, said Council President Jeremy Rivas, D-2nd.
“It’s clear this budget is going to be one of the toughest budgets that we’ve experienced and part of that is uncertainty of what’s to come,” said Councilman Mike Jessen, R-4th, adding that the $1 million increase for the general fund, if it’s available, will get eaten up quickly by raises and requests for special raises. “We’re going to have to scrutinize more closely than ever before.”
If there was ever a year to hold the line on wages, the coming year might be it, he said.
“We’re in a good position, which is terrific, but we don’t want to do anything in the budget that’s going to impact that,” he said.
Council members agreed that the Board of Commissioners will have to limit its spending from the local income tax fund to preserve what’s there.
Councilman Greg Simms, D-3rd, also suggested council members talk with the department heads to whom they serve as liaisons about shrinking their budgets where they can “so there’s no surprises. I think we’re all aware it’s lean.”
Even if the general fund can grow by $1 million, Rivas said, that doesn’t mean the council can budget it since the county needs to build up its cash reserves going forward.
Poparad asked if the council could even entertain special raises or an across-the-board increase.
While the council has granted some great raises in the past and raises are always the goal, “I don’t know that we’ll be able to reach it,” Rivas added.
Requested special raises for the coming year total $420,000, he said. That includes almost $237,000 for the prosecutor’s office, part of a five-year plan of increases that totals $1.25 million, Rivas added.
Even a 2% across-theboard raise would cost the county $500,000, he said.
“The problem is, we don’t know what our future is,” said Councilwoman Sylvia Graham, D-At large.
Council members Jeff Larson, R-At large, and Dan Whitten, D-At large, were not at the meeting.