By Mark Waite
TONOPAH — Nye County is looking at a shortfall of $2.66 million in the upcoming fiscal year, as declining revenues due to the economy continue to impact its budget.
The three legs of the stool that comprise 73 percent of the general fund budget — property taxes, net proceeds of mining and consolidated taxes — will drop from $24.4 million to just under $23.2 million, a 5 percent decline, according to a tentative budget presented by county Comptroller Susan Paprocki. She relayed figures from the Nevada Department of Taxation.
“Our revenues are still steadily declining,” Paprocki said.
Property tax collections will drop 13.6 percent from $11.3 million to $9.7 million, but fortunately consolidated taxes, which include mostly sales taxes, will increase from $11.2 million to $11.37 million and the net proceeds of mining are projected to increase from $1.9 million to $2.04 million.
Property taxes for the 2012-13 fiscal year starting July 1 will have dropped 31.2 percent since the 2010-11 fiscal year ending last June 30, 2011, when the county collected $14.2 million, as a sign of the declining economy.
When combined with other funding sources, general fund revenues will drop from $33.45 million to just under $32 million.
Expenditures will increase from $33.06 million to almost $34.36 million, leaving a deficit of almost $2.66 million.
The county could save $3.04 million by not filling vacant positions $1.2 million , no overtime $1.09 million , mandatory furloughs $587,477 and no STEP increases $145,659 , according to Paprocki’s estimates.
“I don’t know how you ever totally discontinue overtime, particularly when 42 percent of your budget is public safety. They don’t get to schedule when there are emergencies,” County Commissioner Joni Eastley said.
“It would be total fiction to say you could live without overtime, especially with the short staffing we have currently,” Paprocki said.
The public safety budget was decreased slightly to $14.3 million, out of the $34.36 million general fund budget. General government costs rose from $10.5 million to $12.12 million. The budget includes a $300,000 contingency.
Paprocki outlined a way to balance the budget, eliminating the almost $2.7 million deficit.
The county would have to negotiate with the unions over the elimination of STEP increases for the next year, which would save $145,659, and a mandatory furlough program for everyone, a savings of $728,885, Paprocki said. She also suggested cutting public safety overtime in half, saving $484,850. The elimination of all overtime, except for public safety, would save $120,100, then there’s the $1.2 million by not filling positions.
Paprocki also directed the commissioners’ attention to services that aren’t mandated by state law, continuing a discussion that took place during last year’s budget debate. That would be senior nutrition, a $238,747 savings, animal control and the animal shelter, $443,515 after $91,000 in revenues are factored in, and veterans’ services, $36.075 after deducting the brothel fees dedicated to that office. Cutting those services weren’t included in her calculations for balancing the budget but for commissioners’ information.
Talk about eliminating veterans’ services was the only item that aroused a question from Commissioner Gary Hollis. County Clerk Sam Merlino said the $38,000 net savings would be about what she spends on printing the list of bills for payment every year.
Commissioner Butch Borasky didn’t have any comments on the tentative budget figures, which were handed out at the meeting.
Paprocki said salaries account for over half the budget, benefits for another 26 percent. Commissioner Dan Schinhofen questioned the increase in salaries from $17.12 million to $17.62 million and the increase in benefits from $8.3 million to $8.9 million. Eastley said the cost of medical insurance has been increasing, though Schinhofen noted Nye County went to a different medical provider last year.
Eastley thought when Nye County gave employees an early retirement buyout in the past years they had to pay for accrued leave. The county will spend less on salaries than the 2010-11 fiscal year, when salaries were $19.6 million, they are $17.62 million for 2012-13, because of the early retirement buyout.
Commissioner Lorinda Wichman only asked about $45,000 in the budget for community support, instead of $15,320. Paprocki said that will go to the county natural resources department.
Paprocki increased the budget for information technology by $100,000 to accommodate prior maintenance agreements with Tyler Technologies. The Buildings and Grounds budget was increased $250,000 due to higher utility costs, she said. A category for other judicial costs was increased to deal with conflict attorneys, Paprocki said, an issue Eastley said she wanted to discuss further with the district attorney.
Eastley said she’s been hearing reports Corrections Corporation of America hasn’t been making its $780,000 annual, guaranteed property tax payment, under their development agreement. Paprocki said they have.
The increases in salaries and benefits in the general fund leave 23 percent left, $7.79 million, for services and supplies, which Eastley said includes utilities, fuel costs and everything else.
Paprocki suggested a budget workshop at the end of April or early May to go over the budget draft. The county should have some reaction from the employee bargaining units by then, she said.
In one of the 23 items on the consent agenda, commissioners without comment, approved an increase in the budget for consolidated taxes for this fiscal year by $326,185, from $10.1 million in the original budget, due to better collections. The sales tax is the primary driver of the consolidated tax. The money was diverted to services and supplies.
It’s time for the commissioners to do their fiscal duty and cut spending. Re-opening any and all bargaining agreements with county employees sounds like a no brainer. Placing other employees on part time of four day work weeks is probably another. Employers across the land face these type of issues and deal with them. Hand wringing only wastes time and bleeds for red in the budget.
He He He He. As I have repeated in many of my postings
THAT WHICH CANNOT BE PAID WILL NOT BE PAID
“Paprocki said salaries account for over half the budget, benefits for another 26 percent”.
Maybe it’s time to start some serious belt-tightening?
I can say that county employees are sick and tired of hearing this each year and they will not go for a Furlough or frozen step increases as we have elected officials that blow thier departments funds and make 70 plus thousand a year and are not forced to take a furlough. Its time to take a look at other places than the employees that give thier all to get slapped in the face.
To kvb, Nye Commissioners make about $26,000 a year and the salary is written into law. It is not subject a labor agreement.
When there is 3/4 spending on labor, which is kind of low compared to other areas of government in Nevada, there is only one area to cut and that is labor, unless you raise taxes.
You also cannot propose new spending, like on a bus system, that was proposed recently.
Nye county needs to cut back. We all do, and so should they. NO MORE new taxes to cover this spending either.
forcing the employees to make cuts while administration continues to spend (see duck pond, well for duck pond, monthly water bills, new buildings, new vehicles, etc for examples) is unfair. if the employees are going to take pay cuts, then administration needs to do the same or at least STOP SPENDING.
How much would the county save each year if they got rid of redundant services? Get rid of the oversite of Nye County EMS and let each town run their own Fire and EMS. Im pretty sure that each town already has people in place that order supplies and run the departments. Just get rid of the county oversite and let them report to the county manager. Do we really need an entire staff based in Pahrump to do what that Town pays people to do already? Time to consolidate and cut the fat. Buildings and gounds in Pahrump, for what there is no county parks or fairgrounds, and Im pretty sure that if the county needed something in one of there buildings they could contract it out with a private company or the Town? Time to think outside the BOX. Plus how about those lazy commisioners that work a whopping 2 days a month, why dont they give back there pay to help cover expenses of the real working people of the county. The town boards all do………
JJ, the town boards didn’t give any of their pay back to the communities they represent because they are essentially volunteers and don’t receive compensation for serving. As for me, I voluntarily gave back 10% of my salary many months ago and know that my colleagues also took voluntary pay cuts. I can only speak for myself, but as for working “a whopping 2 days a month”, I doubt very seriously that you would want to keep pace with my schedule for the amount of money the legislature has set for what they define as the part-time position of county commissioner.
I consider our employees some of those “real working people of the county” that you refer to, and they’ve already taken voluntary pay cuts and furloughs. Vacant positions are not being filled in their departments and in most cases that means they’re carrying the burden of additional workloads. It has become critical in many areas because although the funding is decreasing, the demand for services is increasing. From the Sheriff, to the Clerk, to the District Attorney, the Justice Courts, and all other departments, they’re all struggling to keep pace with societal demands.
The county has not imposed a tax increase on Nye County citizens in the entire 11 years I have served on this board. Please remember what you say when you demand that we “trim the fat”. Right now the only “fat” that can be trimmed is in the area of services that we are not mandated by law to provide. Those services include Senior Nutrition, Veterans’ Services, and Animal Control over Nye’s 18,000 square miles. I doubt there will be much cheering from you or anyone else if the budgetary crisis forces the knife to be directed there.
Painful austerity is necessary for our economic survival, but we’ll all have to share that pain and I’m not sure people are ready for it.
“Painful austerity is necessary for our economic survival, but we’ll all have to share that pain and I’m not sure people are ready for it.”
Then the people should look to Greece as that is what America is eventually going to have to do.
THAT WHICH CANNOT BE PAID WILL NOT BE PAID
I sure hope the people understand what that means and start preparing for it.
The people who comprise the greatest threat to American national security
and the American Dream and our way of life are concentrated at the US Capitol and the New York Financial District.
Rise up
and rise up again
until lambs become lions
William, I agree with you. However, America has been too busy living high on the hog – completely oblivious to what is going on and what is starting to transpire. Most are not prepared.
NCEA did agree to furloughs last year with the understanding that ALL county employees would experience the same percentage of lose, roughly 3.5%. That should include even elected positions and law enforcment. Some elected did but many did not. There was to be NO overtime or step increases, yet you could drive by the courthouse and see a few people working on weekends and extended days. One in particular is a supervisor in a fully staffed office. Then there is the office that gave promotions to employees so they could enjoy a pay raise. Law enforcment had ni furlougha and yet received overtime and will also receive last years step increase that where frozen, not NCEA members. What about the Golden Parachute to Osborn, if the man was not performing his duties to the BOCC expectations why give him 1/4+ million dollar gift? Service and supplies do not have to purchased from the General fund, use the Pilt money, oh yes it can be used for that as well as attempting to keep water in a duck pond. I wonder if I walk into the commisioners chambers if their personal AC unit will be set at 78, I wonder. What happened to all the savings the county would see from the buyouts? How crazy to buyout an elected official and entry level employees. The elected position will be filled by the voters, short lived savings. Insurance for a lifetime, wow! I would be totally upset with our leaders if I had lost 3.5% of my wages then see others get overtime. Susan, Pam and BOCC remember all employees should mean just that ALL. County employees are tax payers too.
PILT, or Payment in Lieu of Taxes, funds already go directly into the General Fund when it’s received from the federal government. You’re probably referring to PETT, or Payment Equal to Taxes funds that we receive from DOE as the site county for Yucca Mountain. By ordinance, that money goes into endowment funds and the principal is spent on various projects around the county.
Oops! Screwed that one up. I meant to type that we spend the INTEREST on capital and other projects around the county, not the principal. Sorry about that. The reason we don’t use any of the PETT funds on salaries and benefits is because we cannot rely on that funding as a dependable source of revenue. If we did, and the money dried up, then we’d have significantly bigger problems.
What I see is what I believe: When ever I go to the Recorder / Assessor’s office in Pahrump, I see the employees with very little to do. They sit around & talk to each other. Then when a customer comes in, they are not eager to do their job. I think that the Recorder / Assessor’s office should be open only 3 days a week. If that would happen, the county would save money. Also, the unions spoil the potential for Nye County to balance the budget. What are the unions going to do when there is not enough money to pay the union guys? Unions were great when there were New York sweat shop in the early 1900’s, but come on, do we really need unions now? I think most Americans employers have an awareness of the need for correct behavior between labor & employers. The unions have developed into not so much as an advocate for the employees, but an advocate for the “power” of the union to influences the outcome of elections. Furthermore, the cost of public safety is high because of the amount of criminal activity in Nye County. How does Nye County curtail criminal activity? Look at what makes a person a criminal: mostly drugs. Taking & selling drugs & the results of those activities are Nye County’s biggest public safety issue. Sheriff DeMeo is one tough Sheriff, I cannot understand why he has not cleaned up the drug issue in Nye, unless there is a political agenda that has tied his hand?
The answer is in your last question – “Animal Farm” and “1984″.
Why are WE paying for old people’s food? Do they have some “right” that forces us to work so they can get food? It’s their problem, not ours.
And we provide free lunches to over half the school kids too, right?
So there’s just the middle aged folks that are expected to support everyone else?
Is this Greece?
It’s the young people who are working that are supporting those who do not work or are retired. And from history we have learned that the young people are the ones who make political change happen………….such as the Berlin Wall coming down………and the Soviet Union disintergrating……….and then we have Egypt. Learn from History what is going to happen here in America.
I tell people, watch Greece. Watch how it goes down over there, watch how the people react. Learn what becomes valuable and what does not.
You will need to use that knowledge in 2 to 3 years if we make it that far, because as we can see with this story, whats happening there is happening here soon.
This is very cold of you but then again, this is what America has created by not caring for the elderly. This is also the consequence for all the abortions that have been committed – there will less people to pay into the social security system and therefore there won’t be any for us. The American people have allowed themselves to become desensitized. We are a glutonous nation and therefore we are now reaping the consequences.
A question for Joni and Dan. With the current state of county finances, and the number of investigative reports surrounding employees and managers of the county, what makes you think the county can run a water and sewer district?
As far as county employees needing to take wage and benefit cuts, why are you still dragging your feet. Contact the unions and open up the contracts. I’m sure there are clauses in the existing contracts that allows this to occur when finances are what they are. And of course you need to cut funding to non mandatory spending. And of course some will suffer as a result. This is real life Joni and Dan, not a video game here. The tough decisions need made now, it’s what you agreed to do when you ran for the office.
Dwight, you obviously haven’t been following the commission meetings. I believe I’m the only commissioner who is speaking against the proposed purchase of a private water system in Pahrump. I have said on the record that I lack any confidence of the county’s ability to operate this system as efficiently as the private owners are now. I have also said that not we should not be increasing the size of government by acquiring and operating any private system, which would require incresing our workforce.
Staff has already scheduled meetings with representatives of the various bargaining units. These meetings were held last year, also, and the members agreed to several concessions, including furlough days and delay of annual increases.
Thanks Joni for the reply. and yes, I’m aware that of all the commissioners we have, you have been the one who is the fiscal conservative of the bunch. And the one who brings up the warts that others would just as soon ignore. In a way, I will hate to see you leave, since getting well intentioned and competent local leadership is near impossible here in Pahrump and the county as a whole. Keep swinging away Joni, some of us out there appreciate the job you are doing.
Yes, Joni was one of the good guys? gals. The other 4 are so bent on having the county buy a public utility that maybe an investigation should be conducted to see if everything is on the up and up. It is so dumb to even consider buying Hafen and Utilities Inc. Government should not be in this business. Everything that can be privatized should be. Even the school bus transportation system should be privatized.
Soooooo, if the 4 county commissioners want this I guess we can safely say there is a pot of gold waiting for them at the signing of the buyout? Other than that there is no good reason for purchasing PRIVATE UTILITY COMPANY’s.