Ingham County expecting drop in revenue

County expects to have about $5M less in 2012

By DEREK MELOT
dmelot@lsj.com
March 12, 2011
From the Lansing State Journal

Ingham County Controller Mary Lannoye gave commissioners their first look at county finances for the next budget year.

Once again, the county faces a shortfall between its current spending and the revenue it expects to have in 2012 - a difference of about $5 million.

It will be the fifth consecutive year that the elected Board of Commissioners will address a deficit in the county's general account.

The culprit, as has been seen in local governments all across Michigan, is the combination of dwindling property taxes and faltering state aid.

In a presentation to commissioners Wednesday night, Lannoye reported the county stands to see a $1.9 million drop in property tax revenue and another $2 million drop in state revenue sharing aid should Gov. Rick Snyder's budget proposals become law.

Property taxes and revenue sharing account for more than half of the county's current $74 million budget.

County Commissioner
Andy Schor

"Compared to other years, the initial budget for 2012 looks almost manageable ... almost," said Commissioner Andy Schor, D-Lansing, chairman of the county's Finance Committee.

"Initial projections show a $5.5 million deficit. We have made big, controversial structural changes in the past that have tempered the deficit going forward. It is now the job of the Board of Commissioners and our staff to figure out the best mix of short-term fixes and long-term solutions."

The county's general budget peaked in 2008 and 2009 at nearly $82 million. The 2011 budget is set at about $74 million.

"It's always darkest before the dawn, and the budget is always most out of balance around March 1, before the controller has had a chance to do anything but put together a list of all the problems," said Commissioner Mark Grebner, D-East Lansing, chairman of the county board.

"As the budget staff starts assembling their recommended budget, various things will resolve themselves, either by improving or being written off as hopeless, and we'll finally get to the point where we just have to make some hard decisions, and maybe give up on some programs that nobody wants to end."

Law enforcement and courts consume about $43 million of the general fund right now, with human services and general county programs taking about $29 million.

The county's total budget is more than $192 million, included restricted accounts for such things as health programs, child services and help for the elderly.