July 9, 2009
Preble County, Ohio
Special Session:
Preble County Commissioners
Presentation by: Martin Votel, Chair of Budget Commission:
PREBLE COUNTY
BUDGET 2009
7/9/09
Page 2:
STATE OF OHIO
-2009 BUDGET WOES-
• STRICKLAND RELEASES STATE CUT SCENARIOS; SPEAKER HOLDS
FIRM ON REDUCTIONS VERSUS REVENUES TO FIX HOLE
• A glimpse into what severely reduced state government would look like was released
late Wednesday by the Strickland administration, however key players in the budget
deliberations continued to maintain that cuts alone would be pursued to close a
$3.2 billion shortfall.
• Released in spreadsheet formatting, the line item reports from state agencies were
requested by the Office of Budget and Management based on the potential for
additional cuts in the 10-30% range.
GONGWER OHIO, 6/17/2009
Page 3:
"CONSTITUENCIES STUNNED AT
BREADTH OF BUDGET CUTS"
Among the Governor's gravest hits:
• $21.3 million (28%) from the Department of Alcohol and Drug Addiction
Services' total,$75.8 million biennium budget.
• $51.2 million (16.5%) from the Department of Aging's total $309.4 million in
biennium appropriations approved by the Senate.
• $214.2 million (4%) from the Board of Regents' $5.43 billion.
• $178.5 million (16.5%) from Mental Health's $1.07 billion.
• $45.6 million (6.7%) from the MR/DDis $680 million.
• $80.7 million (2.4%) out of Rehabilitation and Correction's $3.24 billion.
• $29 million (5.3%) out of Youth Services' $541.3 million.
• $1.14 billion (5%) out ofJob and Family Services' $22.37 billion.
GONGWER OHIO, 6/22/2009
Page 4:
STATE OF OHIO
-2009 GENERAL REVENUE FUND-
2006 – 19.6 Billion
2007 – 19.5 Billion
2008 – 19.4 Billion
2009 -17.2 Billion*
~ll% DROP GRF, 2008-2009
*GONGWER OHIO, 5/29/2009 Estimate
Page 5:
LOCAL GOVERNMENTS
• Montgomery, Butler, Darke, Greene, Hamilton,
etc ….
Page 6:
2008
REVENUES/EXPENDITURES
$10,813,193
___$ 294,189(HEALTH INSURANCE)
$10,519,004 REVENUE
-vs-
___$11,047,945 EXPENSES
$ 528,941DEFICIT
Page 7:
2008
REVENUES/EXPENDITURES
• How could Preble County afford to run a deficit
of $528,941 in FY 2008?
FY2007"CARRYOVER" CASH BALANCE: $905,948
+ HEALTH INS. TRANSFER TO G. FUND: $294,189
$1,200,137
Page 8:
CERT. REVENUE HISTORY
2009
• 01/01/2009 $9,908,440
• 05/22/2009 $9,704,928
• 06/06/2009 $9,504,928
*As actual revenue figures continue to cotne in, it
is possible that further decreased atnendtnents
will be needed before the end of FY2009.
Page 9:
SOURCES OF GENERAL FUND
REVENUE
"THE BIG FIVE…."
• SALES TAX
• LOCAL GOVERNMEN TFUNDS (LGF)
• INTEREST INCOME ON COUNTY
RESOURCES
• FEES AND CHARGES OF COUNTY OFFICES
• PROPERTY TAX
Page 10:
REVENUE PERFORMANCE
JAN-MAY 2009
|
|
2009 BUDGET |
JAN-MAY 2009 |
MONTHLY AVG |
PROJECTION |
DIFFERENCE |
AMENDMENT |
|
INTEREST |
$450,000 |
$109,000 |
$21,800 |
$261,600 |
($188,400) |
DOWN 200K |
|
LGF |
$810,500 |
$313,500 |
$62,700 |
$752,400 |
($58,100) |
DOWN 100K |
|
SALES TAX |
$4,265,000 |
$1,657,912 |
$331,582 |
$3,978,989 |
($286,011) |
DOWN 100K |
|
FEES |
$1,366,550 |
$553,592 |
$110,718 |
$1,328,616 |
($37,934) |
NONE |
|
|
|
|
|
|
|
DOWN |
|
TOTAL |
|
|
|
|
($570,445) |
$400K |
Page 11:
RECENT HISTORY OF ANNUAL
DEFICIT SPENDING
|
YEAR |
REVENUE |
EXP. |
DIFF. |
|
2003 |
$9,088,392. |
$9,015,321 |
$73,071 |
|
2004 |
$9,233,374 |
$9,747,859 |
-$514,485 |
|
2005 |
$9,360,499 |
$9,645,369 |
-$284,870 |
|
2006 |
$10,336,164 |
$9,714,378 |
$621,786 |
|
2007 |
$10,180,842
|
$10,478,948 |
-$298,106 |
|
2008 |
$10,519,004* |
$11,047,945 |
-$528,941 |
|
2009 |
$9,504,928** |
$10,030,865 |
-?????? |
*Excludes $294,189 in Health Insurance transfer funds.
** Certified Revenue as of 6/24/09
Page 12:
REVENUE PERFORMANCE
JAN-MAY 2009
• PROPERTY TAXES – THE LONE BRIGHT SPOT?
• 2009 BUDGET PROJECTION $1,684,810
• 1ST HALF 2009 PROJECTION $926,646
• 1ST HALF ACTUAL RECEIPTS $1,027,375
+$100,729
• 2ND HALF 2009 PROJECTION $758,165
NOTE: 2ND HALF RECEIPTS '""17% LOWER THAN 1ST HALF
BASED ON 5-YEAR DATA, 2004-2008
Page 13:
ALTERNATIVE FORECASTING
METHODS
ASSUMPTION: AS GOES THE STATE, SO
GOES THE COUNTY…. (11 % REV
DECREASE FROM 2008).
2008 REVENUE:………………….$10,519,004
11 % REDUCTION:……………….$9,361,914
Page 14:
ALTERNATIVE FORECASTING
METHODS
ASSUMPTION: AS GO THE FIRST SIX
MONTHS, SO GOES THE REMAINDER
OF THE YEAR…
$4,819,069 X 2 =…………………………………..$9,638,138
LANDFILL PAYBACK………………………………-74,400
2nd l/2 RE. REDUCTION………………………….– 174,654
___________________________________$9,389,084
Page 15:
2009 REVENUE
ACTUAL vs BUDGET
JAN-JUNE 2009 REVENUE ACTUAL vs. BUDGET*:
$4,819,069* vs. $4,842,358 = $23,289
*Based on 9.5M certified revenue
*Includes $74,400 landfill payback
Page 16:
CASH
• AS OF 06/30/2009, CASH BALANCE:
$818,469
Can't we spend this to alleviate revenue shortfalls?
Page 17:
PARTIAL 2008 CASH BALANCES
|
|
RECEIPT |
EXP |
BALANCE |
|
JAN |
628,694 |
941,063 |
909,049 |
|
FEB |
603,623 |
807,210 |
705,462 |
|
MRC |
1,972,164 |
1,011,595 |
1,666,031 |
|
APL |
710,703 |
1,033,378 |
1,343,355 |
|
MAY |
700,480 |
1,043,806 |
1,000,030 |
|
JUN |
590,438 |
877,822 |
712,645 |
|
JLY |
612,600 |
736,615 |
588,631 |
|
AUG |
1,553,394 |
866,146 |
1,275,878 |
Page 18:
2009 CASH BALANCES
|
|
RECEIPT |
EXP |
BALANCE |
|
JAN |
446,550 |
962,058 |
471,158 |
|
FEB |
650,761 |
653,085 |
468,834 |
|
MRC |
1,893,854 |
824,736 |
1,537,952 |
|
APL |
486,851 |
747,336 |
1,277,467 |
|
MAY |
690,379 |
1,007,876 |
959,970 |
|
JUN |
650,670 |
792,171 |
818,469 |
|
JUL* |
43,361 |
228,278 |
633,552 |
*AS OF JULY 9, 2009
Page 19:
"RAINY DAY FUND"
"CERTIFICATED UNAPPROPRIATED FUND" (CUF)
AMT CERT. -AMT. APPR. (SPENT) = RDF
AMT. CERT. = EDUCATED GUESS
AMT. APPR. = VOLATILE CONCEPT
Page 20:
CERT. REVENUE HISTORY
2009
• 01/01/2009 __________________________ $9,908,440
• 05/22/2009 __________________________ $9,704,928
• 06/06/2009 __________________________ $9,504,928
Within three weeks, cert. amount reduced ~$400,000.
RDF went from ~$650,000 to $250,000 without
spending a dime of "real" money.
And then there are unanticipated expenses on the other
side of the ledger….
Page 21:
2009 BUDGET HISTORY
AS OF JAN 2009:
____ CERT. REV.: $9,908,440
____ AMT. APPR.: $10,570,447
AS OF MARCH 2009:
____ CERT. REV.: $9,908,440
____ AMT. APPR.: $10,030,865 (CUT =$561,553)
AS OF JUNE 2009:
____ CERT. REV.: $9,504,928
____ AMT. APPR.: $10,030,865
PJ DEFICIT: $525,937