Jefferson County to tighten belt

$350,000 in monthly spending cuts needed, officials say

Correction: Jefferson County officials on Tuesday came up with $340,000 in spending cuts to make until the end of the year, but were aiming for $350,000 in reduced spending. This article and headline misstated the time period in which officials tried to reduce spending by $350,000.

PINE BLUFF -- Jefferson County's elected officials have a tall task to tackle on Tuesday in aiming to trim their collective spending by about $350,000 monthly so the county's budget won't break before year's end.

ADVERTISEMENT

More headlines

The decision came after a nearly two-hour meeting of the Jefferson County Quorum Court's Finance Committee on Friday, at which justices of the peace and Dutch King, county judge of Jefferson County, debated ways to keep its general fund fiscally sound and to ensure that employees still get paid.

In all, about 160 workers receive their pay from the county's general fund.

Over the past several weeks, payrolls have barely been met, and King said that as of now, there won't be enough money to pay workers in August unless strict austerity measures are put into place immediately.

The county needs to cut around $350,000 from its monthly budget to make it through the end of the year. Justices of the peace have floated several ideas, including laying off workers and cutting salaries by 20 percent, but none have gained enough momentum to pass.

Some officials, such as Jefferson County Sheriff Gerald Robinson, have already made temporary moves to help bolster the county's finances. Robinson shifted six deputies who were paid from the county general fund to the Public Safety Sales Tax fund instead.

Justice of the Peace Ted Hardin and other justices of the peace said Friday that they are in favor of allowing elected officials to decide how to cut their budgets.

Robinson spearheaded that proposal at Friday's meeting, saying: "We, the elected officials, are all friends. We know each other well, and we can work this thing out if we get a chance to. We could have already worked it out."

The county spends $600,000 each month on salaries out of $750,000 allotted for expenses -- a figure too high to sustain, county officials said.

For now, the cuts that elected officials will suggest at their Tuesday meeting should allow the county to remain solvent for the rest of the year, said Justice of the Peace Herman Ginger, who chairs the finance committee.

The county will be better off financially once tax collections begin in October and November, officials said, but layoffs will likely be needed to permanently relieve the financial burden.

The reason for the county's financial problems is complex. Jefferson County has lost significant population over the past several years, causing its tax base to dwindle. Property and sales taxes make up the backbone of a county's budget.

Since 2000, Jefferson County has lost more than 11,000 residents, according to the U.S. Census Bureau. The county's current population is 73,191, according to a 2013 Census estimate. King said the losses are crippling the budget.

Additionally, Jefferson County Treasurer Elizabeth Rinchuso said spending has outpaced revenue over the past several years, resulting in budget shortfalls.

For example, Jefferson County began 2008 with more than $3.4 million in its county general fund.

To start 2015, the county general fund held just $1.1 million, Rinchuso said, adding that county offices and departments are spending more money than they were appropriated.

Rinchuso also said there have been about $250,000 less than expected in fines and fees collected from the Jefferson County sheriff's office and the circuit and county clerks' offices because judges have been allowing residents to perform community service instead of paying fines.

Leaving Friday's meeting, some justices of the peace were smiling, hopeful that they will soon see an end to their financial crisis.

Justice of the Peace Bruce Lockett summed up the situation: "We have been at this a long time, and I think we finally have the answer. I sure hope we do. I know everyone is tired of having to deal with this."

State Desk on 07/20/2015

Upcoming Events