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County sees revenues drop

By BRIAN LEAHY
of The Gazette
County officials developing next year's budget are finding usual revenues will come in less than expected just as some bills are growing.

A major issue facing all counties, as well as cities, villages and towns, as they develop their budgets is the state is sending less money their way.

Gov. Scott McCallum has called the state Legislature back into session to cut more money from the just-passed 2001-2003 budget. Wisconsin Counties Association officials anticipate shared revenues will be decreased, County Board Chairman Clarence Hintz said at a meeting of the county's Finance Committee Monday, Sept. 24.

In the 1989-1991 biennium, 27 percent of the state budget was state aids to local governments, according to a Wisconsin Counties Association report using information collected from the Legislative Fiscal Bureau. By the 1995-1997 biennium, the percentage of the state budget allocated for local aids was down to 19 percent. In the current biennium, state aids to local governments is 15 percent of the budget.

The Wisconsin Counties Association report divided the state budget into four general categories - state aids to local governments, local education assistance, state operations and aids to individuals and organizations.

The percentage of the state budget funding state operations remained relatively constant at between 25 and 23 percent, as did aids to individuals and organizations at between 20 and 19 percent. Where the money has been going to is schools. In the 1989-1991 biennium local education assistance was 28 percent of the budget. In the 1999-2001 budget local education assistance had jumped to 43 percent.

Financial difficulties at the Central Wisconsin Airport, intensified by the drop in airline traffic following the World Trade Center and Pentagon attacks, are adding uncertainty to the upcoming county budget.

The Central Wisconsin Airport is a joint operation between Portage and Marathon counties, with Portage County picking up about 34 percent of the tab.
Supervisor Dwight Stevens, a member of the Finance Committee and the Joint Airport Board, said airline traffic has dropped about 30 percent at CWA.

The airport is having a hard time making debt payments, said DeDeker. The county had projected it would have to provide tax levy funding to the airport in 2003, but that date will probably have to be moved up because of the drop in passengers.

The Joint Airport Board has already adopted its 2002 budget, but it will need to be readjusted, said Hintz.

Portage County normally budgets $250,000 for contingencies. DeDeker recommends the county add another $150,000 to the 2002 contingency fund. That money wouldn't be committed to the airport, but would be available if needed to cover any shortcomings at the airport. The airport receives revenues from parking fees and passenger facility charges on each ticket as well as plus landing fees and fuel sales to airlines.

The federal government just created a $15 billion bailout for the airline industry - $5 billion in direct aids to airlines and another $10 billion in loans. The bailout doesn't include money for airports or the thousands of laid-off airline workers.

The county will also see less income from its investments. Fortunately, unlike many private investors who sunk large sums into technology stocks that have now plummeted in value, the county has stuck to conservative investments.

The county invests in certificates of deposit, Fannie Maes and Jennie Maes, DeDeker said. CDs that used to pay 8 percent interest are now paying 3 percent.

Good news for budgeters is the county's equalized property value increased 8.1 percent this year.

Like households and the business sector balancing their budgets, the county continues to look at ways to do more with less.

At the Portage County jail that means additional use of electronic home monitoring devices, such as ankle bracelets and sobriety testing units.

Right now the county has 10 "sobrieters" test units and 25 ankle bracelets. On Monday the Finance Committee authorized the Sheriff's Department to purchase another five units of each device. Jail assessment funds, a $10 surcharge tacked onto each citation and fine in the county, will be used to buy the units. About $75,000 goes into the jail assessment fund each year.

Twenty-one "clients" were on the units Monday, Sept. 24, saving the county the costs of shipping 21 inmates to jails in other counties, said Capt. Evan Hansen, jail supervisor. The cost to ship one inmate out of the county is $21,000 a year.

The Sheriff's Department is on track to stay within its shipping budget of $175,000.

The jail, which has a capacity of 79 adult inmates, was supervising 120 people on Monday - inmates in the jail, inmates shipped to other counties and persons on electronic home monitors, Hansen said.

Portage County judges are increasingly sentencing criminals to alternate forms of supervision, such as home monitoring and day reporting, instead of being locked up in jail, said Hintz.

State law limits the amount of money counties can raise for county operations through their property tax levies. Counties wishing to exceed their levy caps must get the voters' approval in a referendum.

Portage County's 2001 tax levy for county operations came in $1,070,647 under its allowable limit of $14,213,794, according to the Wisconsin Counties Association. Expressed as a percentage, the operating levy was 92.5 percent of allowable.

Portage County fared better in 2001 than its neighbors - Wood and Waupaca counties were at 100 percent of the allowable levy, while Marathon County was at 99.8 percent.

Six of Wisconsin's 72 counties were at their maximum levies in 2001, while 24 were within 95 percent and 38 within 90 percent.

"Probably the best thing for use has been our sales tax. That has kept us away from our cap," DeDeker said.

Wood County has been unable to pass a county sales tax.

Revenues from Portage County's one-half percent sales tax continues to grow 5 to 6 percent from last year.

"If the economy has slowed down, we haven't felt it in regard to our sales tax," DeDeker said.

The Finance Committee will start budget hearings with county departments next week. The County Board typically passes the county budget in November.

The Portage County budget was $79.9 million in 2001, funded by $16.1 million in property tax levy, $30.5 million in intergovernmental revenues, $3.9 million in county sales tax, $7.6 million in public charges for services and $13.6 million in intergovernmental charges for services.

County property owners paid $5.33 per $1,000 of equalized valuation, which was 2.3 percent increase from the previous year's property tax rate and 35 cents under the state-mandated property tax cap rate of $5.68.



	County sees revenues drop By BRIAN LEAHY of The Gazette County officials developing next year's budget are finding usual revenues will come in less than expected just as some bills are growing. A major issue facing all counties, as well as cities, villages and towns, as they develop their budgets is the state is sending less money their way. Gov. Scott McCallum has called the state Legislature back into session to cut more money from the just-passed 2001-2003 budget. Wisconsin Counties Association officials anticipate shared revenues will be decreased, County Board Chairman Clarence Hintz said at a meeting of the county's Finance Committee Monday, Sept. 24. In the 1989-1991 biennium, 27 percent of the state budget was state aids to local governments, according to a Wisconsin Counties Association report using information collected from the Legislative Fiscal Bureau. By the 1995-1997 biennium, the percentage of the state budget allocated for local aids was down to 19 percent. In the current biennium, state aids to local governments is 15 percent of the budget. The Wisconsin Counties Association report divided the state budget into four general categories - state aids to local governments, local education assistance, state operations and aids to individuals and organizations. The percentage of the state budget funding state operations remained relatively constant at between 25 and 23 percent, as did aids to individuals and organizations at between 20 and 19 percent. Where the money has been going to is schools. In the 1989-1991 biennium local education assistance was 28 percent of the budget. In the 1999-2001 budget local education assistance had jumped to 43 percent. Financial difficulties at the Central Wisconsin Airport, intensified by the drop in airline traffic following the World Trade Center and Pentagon attacks, are adding uncertainty to the upcoming county budget. The Central Wisconsin Airport is a joint operation between Portage and Marathon counties, with Portage County picking up about 34 percent of the tab. Supervisor Dwight Stevens, a member of the Finance Committee and the Joint Airport Board, said airline traffic has dropped about 30 percent at CWA. The airport is having a hard time making debt payments, said DeDeker. The county had projected it would have to provide tax levy funding to the airport in 2003, but that date will probably have to be moved up because of the drop in passengers. The Joint Airport Board has already adopted its 2002 budget, but it will need to be readjusted, said Hintz. Portage County normally budgets $250,000 for contingencies. DeDeker recommends the county add another $150,000 to the 2002 contingency fund. That money wouldn't be committed to the airport, but would be available if needed to cover any shortcomings at the airport. The airport receives revenues from parking fees and passenger facility charges on each ticket as well as plus landing fees and fuel sales to airlines. The federal government just created a $15 billion bailout for the airline industry - $5 billion in direct aids to airlines and another $10 billion in loans. The bailout doesn't include money for airports or the thousands of laid-off airline workers. The county will also see less income from its investments. Fortunately, unlike many private investors who sunk large sums into technology stocks that have now plummeted in value, the county has stuck to conservative investments. The county invests in certificates of deposit, Fannie Maes and Jennie Maes, DeDeker said. CDs that used to pay 8 percent interest are now paying 3 percent. Good news for budgeters is the county's equalized property value increased 8.1 percent this year. Like households and the business sector balancing their budgets, the county continues to look at ways to do more with less. At the Portage County jail that means additional use of electronic home monitoring devices, such as ankle bracelets and sobriety testing units. Right now the county has 10 "sobrieters" test units and 25 ankle bracelets. On Monday the Finance Committee authorized the Sheriff's Department to purchase another five units of each device. Jail assessment funds, a $10 surcharge tacked onto each citation and fine in the county, will be used to buy the units. About $75,000 goes into the jail assessment fund each year. Twenty-one "clients" were on the units Monday, Sept. 24, saving the county the costs of shipping 21 inmates to jails in other counties, said Capt. Evan Hansen, jail supervisor. The cost to ship one inmate out of the county is $21,000 a year. The Sheriff's Department is on track to stay within its shipping budget of $175,000. The jail, which has a capacity of 79 adult inmates, was supervising 120 people on Monday - inmates in the jail, inmates shipped to other counties and persons on electronic home monitors, Hansen said. Portage County judges are increasingly sentencing criminals to alternate forms of supervision, such as home monitoring and day reporting, instead of being locked up in jail, said Hintz. State law limits the amount of money counties can raise for county operations through their property tax levies. Counties wishing to exceed their levy caps must get the voters' approval in a referendum. Portage County's 2001 tax levy for county operations came in $1,070,647 under its allowable limit of $14,213,794, according to the Wisconsin Counties Association. Expressed as a percentage, the operating levy was 92.5 percent of allowable. Portage County fared better in 2001 than its neighbors - Wood and Waupaca counties were at 100 percent of the allowable levy, while Marathon County was at 99.8 percent. Six of Wisconsin's 72 counties were at their maximum levies in 2001, while 24 were within 95 percent and 38 within 90 percent. "Probably the best thing for use has been our sales tax. That has kept us away from our cap," DeDeker said. Wood County has been unable to pass a county sales tax. Revenues from Portage County's one-half percent sales tax continues to grow 5 to 6 percent from last year. "If the economy has slowed down, we haven't felt it in regard to our sales tax," DeDeker said. The Finance Committee will start budget hearings with county departments next week. The County Board typically passes the county budget in November. The Portage County budget was $79.9 million in 2001, funded by $16.1 million in property tax levy, $30.5 million in intergovernmental revenues, $3.9 million in county sales tax, $7.6 million in public charges for services and $13.6 million in intergovernmental charges for services. County property owners paid $5.33 per $1,000 of equalized valuation, which was 2.3 percent increase from the previous year's property tax rate and 35 cents under the state-mandated property tax cap rate of $5.68.