MANSFIELD, Ohio – Three significant cost-cutting measures put in place by Richland County Commissioners in 2015 have saved the county almost $500,000 – a trend commissioners hope to continue as they pass the 2016 budget in December.
Cutting costs was a high priority after commissioners passed their 2015 budget – only to discover the county had $1.2 million in expenses over revenues. Commissioner Marilyn John said commissioners took proactive steps in living within the county’s means.
“We can’t wait until next year to start looking and saying we have to make cuts,” John said. “You have to look down the road and say what expenses are out there that we have to anticipate. So that’s what we’re trying to do – none of us took these decisions lightly.”
The decisions made by the commissioners over the past year include increasing the county sales tax by 0.25 percent, consolidating services with the Richland County Sheriff’s Office, and implementing a spousal carve out within the county’s self-insured health care plan.
The county sales tax increased by 0.25 percent for 12 months beginning July 1, from 7 percent to 7.25 percent to help pay for general operations. The goal is to generate an estimated $3 million. Moving Richland County 911 Dispatch to a division of the Sheriff’s Office saved approximately $80,000 through the elimination of 911 coordinator Lisa Burdine as part of the reorganization.
John explained the spousal carve out within the county’s health insurance plan would make spouses who have insurance available through their employer ineligible for the county’s plan. The change affects 153 county spouses, 110 on primary coverage and 43 on secondary coverage.
“We looked at how can we lower the number of people we cover to keep our health insurance premiums down, but still have insurance offered to our employees and their dependents who are not covered,” John said.
Total health insurance premiums across the county costs more than $10 million annually. By covering fewer people, the county’s claims and insurance premiums will decrease.
John said if spouses were not cut from the plan, the county’s insurance premiums would have increased 8.1 percent, virtually saving more than $800,000 countywide.
“What would’ve been an $800,000 increase we were able to maintain, and about $240,000 of that is out of the General Fund, which is where we are — expenses over revenue — right now,” said John.
As expected, John said the decision to cut spousal coverage has not been popular. Grievances have been filed against the decision, and should the grievances overturn the decision spousal coverage would be re-implemented.
“These individuals do have insurance available through their employer, we’re not leaving anybody high and dry. It may cost them more because their employer may require the employee to pay a bigger percentage than what the county does,” John said. “But is it better to make that decision than to cut more people from staff and provide less service to the residents? What’s a better scenario?
“We looked at it as commissioners and thought we don’t want to have to go to cutting more staff yet.”
John said suggestions have been made to reduce costs in other departments; in 2009 the maintenance staff was cut in half and the Sheriff’s department cut 20 officers, and cleaning crews for the courthouse only visit three days a week.
John estimates those measures show a $450,000 savings in 2015 in the General Fund. However, there is more work to be done.
“When you look at the General Fund, it’s about a $31 million general fund and about 60 percent of that is salaries and benefits,” said John. “We have great employees, but we still have to live within our means, it’s a requirement. If we don’t, the state takes over Richland County, we go into fiscal emergency, and that’s not good for anybody.”
In the county’s $31 million General Fund, only $473,000 was carried over from 2014, not including $330,000 worth of bills paid. Historically, carryover rates in the county have fluctuated from $3.3 million in 2005 to less than $300,000 in 2009 and 2010.
The anticipated passing of the 2016 budget in December, a first in the county’s history, was John’s suggestion.
“I think it would make it so much easier for the departments and elected officials if they know starting Jan. 1 what their budget is and they can anticipate and prepare throughout the year,” she said. “I have to commend the departments because they’ve been very good about watching their spending, and revenues are a percentage or two up more than what we projected. Hopefully by the time we get the budget done, it’ll be closer than what we had anticipated.”
Ultimately, the commissioners’ goal is to take steps towards stabilizing and growing the General Fund for the benefit of the entire county.
“When a business is going to look at growing or moving to Richland County, they’re going to look at the climate around them,” said John. “We need to set the example as a government, and we also need to do that to benefit the residences and the businesses and offer good services at a reasonable rate.”
