Madison County braces for ‘unprecedented’ financial shortfall, ponders cutting raises
Some Madison County employees may not be receiving cost-of-living raises next year, as the financial toll of COVID-19 begins to rear its head on the government level.
The Madison County Personnel Committee unanimously voted to rescind a 2.24 percent cost-of-living increase originally approved in Dec. 2019. The cut will affect 362 non-union employees.
According to a statement, the freeze will save the county around $1 million in its spending plan and will be for both part-time and full-time employees. The county board will vote on the measure Wednesday at its monthly meeting.
Board Chairman Kurt Prenzler said the county board will be looking for further cost-saving measures as the 2021 fiscal year approaches. He said this coming year will be tough financially for the county.
“This will be our toughest budget year,” Prenzler said. “We’d rather not lay people off so we’re projecting a no cost-of-living increase. We’re starting there.”
Prenzler said income streams from fees, sales taxes and property taxes have shrunk significantly. He said the county also expects less money in 2021 from the state and the federal government, which funds payroll for many county employees through grants and other avenues.
COVID-19 has played a large part in the shrinking of those income streams, Prenzler said. Large contributors to the county’s tax collections like bars and restaurants have been closed down or are operating in a reduced capacity for months, Prenzler said.
He said while the county prepared for a possible shortfall in the spring, revenue will still most likely be at a negative or at zero.
“Things were rolling along really nicely in January and February and then the whole world changed,” Prenzler said. “We’ve encouraged departments to conserve but we’re going to be in the negative next year.”
The county also will request a cost-of-living freeze when it enters negotiations with the nine employee unions this year, Prenzler said. Those unions represent 579 county employees ranging from the sheriff’s department to the county clerk’s office.
See how much county employees made at https://www.bnd.com/publicpay
In a statement, personnel committee chair and county board member Erica Harriss called the current situation “unprecedented,” and said the committee’s decision was not an easy one to make.
“Despite an unprecedented revenue shortfall during this time, responsible fiscal management has afforded the county the ability to avoid employee layoffs,” Harriss said.