And it’s not like the county is coming from a good starting point, as the 2024 budget already had a $5.9 million deficit, because of expenditures outpacing revenue, county administrator Jenny Hutchinson told commissioners Wednesday.
“We always rely on our carryover balance to help us balance, however what was a $2 million, $3 million deficit (annually) is now $7 million,” Hutchinson said.
Clark County Commissioners Melanie Flax Wilt, Sasha Rittenhouse and outgoing Commissioner Lowell McGlothin will vote on a temporary budget to provide continued operations at the group’s upcoming Friday meeting, which was rescheduled due to the Christmas holiday. A budget will be officially approved in January.
The county has around $2.6 million for use in first-time capital projects in 2025, Hutchinson said.
The county may experience a boost in sales tax revenue due to the legalization of recreational marijuana, but Hutchinson said it’s too early to determine exactly what that may look like.
Property tax revenues have remained at the same level, too, but Hutchinson said there should be some movement in 2025 that will also impact sales tax as new residents move into some upcoming housing developments like Melody Parks.
Expenditures have increased by about 3% — while not a large increase, without more revenue it is burdensome, Hutchinson said.
The Clark County Dog Warden’s Office expects more funding support from the county to maintain its staffing level due to lowered revenue. This is the first year the county has partnered with DocuPet for dog licensing services, which aims to reduce unlicensed dogs and dogs in the shelter. This could increase revenue.
The county will discuss proposed water and sewer rate increases at its Jan. 15 meeting.
Hutchinson said possible solutions to the deficit include:
- Requesting a 3% cut from all county departments funded through the General Fund, which would save about $1.4 million;
- Cancelling the second deputy that was requested to staff the AB Graham building where Common Pleas Court is being held while its building is undergoing renovations, which would save $152,000;
- Returning the Clark County Board of Elections to its pre-presidential year funding, which would save around $200,000;
- Skip funding the county’s reserves, which would save about $990,000;
- And to close outstanding purchase orders from 2023 and before, saving an estimated $3 million.
Flax Wilt said that likely options include reducing the board of elections’ funding, canceling AB Graham’s second deputy, closing purchase orders and asking all departments to find 3% to be cut from their own budgets. She said not hiring a requested public information officer for the county dog shelter in 2025 would also save some funds.
If revenue does not increase in 2025, Flax Wilt said commissioners may have to “make some really tough decisions.” She emphasized that the country tries to avoid cutting personnel as much as possible.
“If the sales tax does not start to pick up with all the economic development, then next year is going to be a worse conversation,” Hutchinson said. “It kind of helps if we’re able to put some of these changes in place this year and if sales tax does not increase like it’s expected to, that will help cushion next year.”
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