COMMISSION TAKING DRASTIC BUDGET STEPS - Health Insurance Cut, Layoffs Pending

(01/20/2005)
It was Black Wednesday at the county commissioner meeting yesterday.

Or maybe it should be called Red Wednesday.

The Calhoun Commission began taking what Commission President Larry McCallister called "drastic measures" to keep the county in the black.

"We have been holding this problem at bay for a while, but it is now here, difficult and painful," said McCallister.

There is at least a $70,000 shortfall in the budget that must be corrected.

Commissioners McCallister, Sampson and Weaver voted to cut all health care benefits to elected officials and lay-off the maintenance man who maintains Calhoun Park.

Further lay-offs of other county employees are pending.

McCallister said "It is a terrible thing to sacrifice county services and employees to pay for inmates in the regional jail," referring to the county's rapidly rising jail bill.

The bill more than doubled in 2004, jumping from about $65,000 to $145,000. If the bill continues at its current rate, the annual cost of incarceration could be $200,000 or more.

The county's tax revenues actually declined last year, which also contributed to a shortfall. "Our income is down and just like household budgets, the costs have risen," McCallister said.

Counties in West Virginia have been hit with mandates and increases from Charleston, everything from buying computer systems for state-wide programs for county assessors at $60,000 to State Tax Department audits increasing from $3,500 to nearly $10,000.

The county's liability insurance policy has risen from about $35,000 to $70,000.

"The pressure of keeping up is enormous," said Commissioner Rick Sampson. "We have to figure out a way to fix the county's finances. Commissioners are held accountable by law to do that."

Sampson said "It is with deep regret we have to lay people off." The commission has been able to keep the county in the black in recent years with several one-time shots to the budget.

The county has among the lowest tax assessments in the state.

An overriding issue is the pressure from Charleston for small, rural counties to consolidate. Consolidation proponents believe that such measures will save taxpayers money.

There is yet to be any evidence that "bigger works better." In all cases it has cost more.

"The problem is serious and it won't go away," said McCallister.