Commissioners request 20% cuts in county personnel costs

Because of a projected $2 million reduction in the county's General Fund income resulting from the pandemic, Seneca County commissioners Tuesday asked elected officials to decrease their personnel costs by 20% for the rest of the year. The reduction means reduced hours or potential layoffs and furloughs of county employees. The $2 million projection was the result of a Tuesday morning meeting of the Seneca County Budget Commission. The three budget commission members — Auditor Julie Adkins, Treasurer Paul Harrison and Prosecutor Derek DeVine — said it's hard to determine how much less money may be available to the county because there are many unknown factors such as the length of time businesses might be closed. However, they expect reductions in most of the county's top five revenue-generating lines, which are sales tax, property tax, casino tax, U.S. Immigration and Customs Enforcement and jail housing and local government funds from the state. Together, those five areas comprise more than 75% of annual revenue. DeVine said a $2 million reduction may be only the beginning. The extent of sales tax reductions won't be known for a few months because the county receives sales tax two months later. March and April sales tax numbers won't be known until May and June respectively. Adkins said she is projecting the loss of three months worth of casino revenue because casinos are closed and reductions in sales tax because many businesses are closed and others are open for limited business. Adkins said as much as $3 million in cuts may be needed, depending on the length of time businesses are closed. The budget commission meets again May 5 to review the situation. Later Tuesday, the commissioners met with elected officials in executive session during a special meeting to discuss personnel. "We have to get out ahead of it," Commissioner Shayne Thomas said. "We can't hope something is going to change." The commissioners are expected to consider a resolution to reduce the budget Thursday at their regular session. In addition to personnel cuts, the commissioners are making contract changes/cancellations as well as reductions to supplies, travel and equipment. "We are doing all we can to get the facts so we can make decisions for the betterment of the county," said Commissioner Tony Paradiso before the executive session. "These are some tough times. There's a bright light at the end of the tunnel. I just wish we knew when that might be." Commissioner Mike Kerschner commended the staff and the Budget Commission for deciding on a number while working within an uncertain environment. After the personnel discussion, the commissioners passed a resolution reducing the number of working hours required to remain eligible for benefits from 30 hours to 25 hours. Departments were asked to submit changes by Monday for review by the commissioners and County Administrator Stacy Wilson. Wilson then could make further reductions if necessary. Thomas said the commissioners will lead by example and announce cuts to their office. He said they are seeking ideas for the best ways to continue to provide adequate county services. "We want to maintain county services, but the financial reality is we have to balance our budget," he said. "We don't know what the future holds, but we do know the next 90 days' revenue is going to be significantly curtailed. "The sooner we get these cuts in place the less severe they will be down the road," he said. He said there are many unknowns. "It becomes a dynamic process," he said. "As we get further guidance we'll revisit it." According to information from the commissioners' office, a preliminary report from the Ohio Office of Budget and Management, sales tax revenue in March statewide could be 8.3% lower than projections. According to the Ohio Department of Job and Family Services, the state saw 272,117 jobless claims for the week ending March 28. The previous week saw about 196,297 claims in the state, making nearly 470,000 over a two-week period. In 2019, there were 364,603 initial unemployment claims filed. If there's any good news, Thomas said Seneca County was in good shape financially up to this point. "We came into this in solid financial position," he said. "We have put money aside for a rainy day, but we didn't expect a hurricane." The commissioners meet in regular session at 10 a.m. Thursday via Zoom online meeting service.