Events Calendar
In This Section
Famous hobby rocket begins new voyage at museum
UA stadium crews driving toward opening goal
10 runs barely enough in Tribe's win
Patrick McManamon: Varejao's $50 million deal isn't really $50 million
Hospital connects to patients online
Cavs, Varejao agree on six-year deal
YRC, Teamsters reach tentative deal on concessions
Most Read Stories
Akron police investigate teen mob attack on family
Woman, 75, charged with beating fawn to death
Akron woman found dead at Brimfield Township store
Man shot outside his Akron home during robbery attempt
Man shot in back near Akron park
Suspect sought in Portage Path bar robbery
Tragic day puts man on path to be Pinnacle owner
Blogs:
Pets:
Dogs' Bark: Not fair! Study shows pups get jealous
The Heldenfiles:
HTTP Error 403
Patrick McManamon:
More on Varejao
Akron Zips:
Opponent outlook: Kent State
Browns Bulletin:
Quick thought on Browns rookies
Tribe Matters:
Wedge challenges relievers
Cleveland Browns:
Stallworth test showed marijuana
Kent State Sports:
Men's Basketball Scheduling update
Cleveland Cavaliers:
Andy’s Signed According to ESPN
All Da King's Men:
Does Medicare Have Lower Administrative Costs ?
Blog of Mass Destruction:
CIA Did Mislead Congress
Akron Law Café:
Breaking Story: CIA Lied to Congress about Secret Program
Varsity Letters:
East basketball update
See Jane Style:
Oh Baby!
Car Chase:
Where do We Go from Here?
Let's Talk Real Estate:
Closings….Not the Good Kind!
Ohio Travels with Betty:
Margy inquires-when is a Taste of Hudson?
Sound Check:
LeVert II live performance Saturday night — "Dedication" album due July 13,
HRLite House:
DDI One of Best Places to Work
Akron Gamer:
First 24 'Guitar Hero 5' songs announced
Low interest, consumer spending and foreclosure/housing crunch boost '08 deficit to $8.4 million
By Rick Armon
Beacon Journal staff writer
Published on Tuesday, May 06, 2008
Summit County planned to dip into reserves this year to pay for an expected $4.6 million gap in its operating budget. That was wishful thinking.
The gap is now projected to hit $8.4 million, thanks to lower interest from investments, lackluster consumer spending, the foreclosure crisis and a stagnant housing market that has dampened county revenue.
''What we've seen affecting Summit County is repeated throughout the state,'' county Finance and Budget Director Linda Phelps said. ''We're all suffering from the same interest rate crunch and the collapse of the housing industry.''
Phelps briefed County Council about the finance crunch Monday night, emphasizing that it isn't county expenses going wild, but lower revenue causing the problem.
''We have to take a serious look at this,'' Councilman Tim Crawford said.
The economy deteriorated faster in the first quarter this year and more than anyone anticipated, Phelps said.
The good news — if there is any — is that the county has $25 million in a rainy day fund and $28 million in reserves to help it through the economic downturn. But the budget gap could eat up nearly a third of those reserves just this year.
County leaders are searching for ways to reduce costs, County Executive Russ Pry said.
Layoffs are not being discussed.
''It's a sign of our economy,'' Pry said of the gloomy revenue forecast.
The county had projected $117.3 million in revenue for this year, but the council approved an operating budget of $121.9 million, putting the spending plan in the red from the start.
Now, revenue is expected to be only $113.5 million. The major difference between the two forecasts involves interest. The county planned for $11.4 million this year, but expects to receive only $8.4 million because interest rates have dropped.
The county will receive $1.2 million less than expected in property transfer fees because of the slumping housing market. And building projects are down, meaning another $500,000 that was expected won't come through.
Other revenue sources that are off from projections include recorder fees and property taxes.
Sales tax revenue is expected to be stagnant at $36.8 million.
''County revenues are not recession proof and are tied to consumer confidence,'' Phelps said.
She said that the forecast could have been even dimmer if Akron and Summit County had not persuaded Goodyear Tire & Rubber Co. last year to keep its worldwide headquarters and nearly 3,000 jobs in the city.
Two bright spots in the revenue forecast involve the Board of Elections and auditor fees. The elections board is expected to generate $900,000 more through reimbursements from communities and agencies.
The fiscal office also will collect $400,000 more in fees for homestead applications.
Phelps is expected to provide another council update on finances in July.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
Summit County planned to dip into reserves this year to pay for an expected $4.6 million gap in its operating budget. That was wishful thinking.
Get the full article here.
Comments
Click here to post your comments
