State shifts could sting county budget
Published 11:15 am Wednesday, August 24, 2011
All fingers were pointed squarely at the state Tuesday.
The county is projecting significant budget problems, and could be headed for a double-digit tax levy increase if all services are to be funded in 2012, according to County Coordinator Craig Oscarson.
Due to the state budget agreement, Mower County is expected to lose a projected $1.5 million in 2012 in Homestead Market Value Credit cuts, according to Oscarson.
“This has a huge tax impact,” he said.
“None of us (counties) will get that anymore,” he added.
The Homestead credit was already cut by about $300,000 this year, Oscarson said.
Still, Oscarson and Finance Director Donna Welsh are working to interpret what exactly the cuts will look like.
The one thing county officials know is that the state isn’t making things any easier.
Even if the county board is able to cut rather than levy the differences, property taxes could still see significant changes.
Right now, the property tax burden is expected to shift onto commercial and apartment properties, according to Oscarson.
“If you find a way to cut a million-five out of your budget … it will at a minimum shift it to commercial,” Oscarson said
While the county board can try to keep regular homeowners harmless, it appears like the potential state funding cuts could be a shock.
“A lot of the shock is really not your doing as a board,” Oscarson said. “It’s the state.”
Commissioners said he state has put the county in a difficult spot.
“They’re still forcing counties to come up with a much larger sum of money,” Commissioner Jerry Reinartz said.
Along with increased gas prices and general increases, it could mean the county could be looking to cut or levy for $2 million in its 2012 budget.
A $2 million difference is significant for a $16 million levy, Oscarson said.
“All the state did was shift the burden, in my opinion,” he said said.
Out of home placement costs and other factors are also driving up costs.