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Tom left this world with three wonderful children who are doing great things, and a loving companion in Elaine. We pray for them in particular as they mourn his passing.
David Pepper is the President of the Hamilton County Commission (Cincinnati), and a 2010 candidate to be Auditor of Ohio.
- On July 3, they proclaimed that we were planning to raise the sales tax. At the time, I said that was false, and it turned out to be.
- On August 7, they claimed we were "back again", this time with plans to raise an "arts" tax. Honestly, I still have no idea what they were talking about. Needless to say, no arts tax proposal has ever come forward.
- On August 7, they criticized us for spending too much--even though we had just imposed 6% across the board cuts, cutting even further into the unanimous (meaning, it was supported by their ally Pat DeWine) 2008 budget, which had already cut things that COAST and its allies had never bothered to cut when they actually were in charge.
- On August 7, they also attacked us for refusing to reallocate money that we invest promoting our region for conventions and visitors. I've repeatedly debunked how their proposed move would be both illegal, and economically unwise, as, due to our investment, this is one of the few parts of our economy that is growing--doing so at record pace. Oh well.
- And on October 24, they put out the false word that we had decided to spend County dollars on Planned Parenthood, another false accusation, but unfortunately one that effectively deceived thousands of concerned citizens. In a later newsletter, they even tried to fool their followers that the state money involved there could be spent on our general fund budget, another completely false statement.
- Then came our budget hearings. Once again, they said we planned to raise the sales tax, they pushed us again to illegally reallocate Convention Center money, said we had cancelled managed competition (when we have just implemented one successfully), etc. Yawn. More broadly, they said we were planning to continue our "spending binge," even though our prior two budgets, and the spending therein, had been unanimously approved with their ally (Commissioner DeWine), and we were about to pass a budget that reduced spending by $30m, to a level of 1999 spending--and far below the spending increases they oversaw when in charge.
- But their (and my) new favorite topic was their accusation that we were not cutting from our own so-called "bloated" commissioner and administrator budgets as we made tough cuts elsewhere. Ironically, it was when COAST leadership and allies ran the County that this part of the budget became, in their words, "grossly bloated" in the first place: on their watch, the Commissioners added administrative staff, several of whom made $140k+ per year; spent dollars on outside contracts, equipment, redesigned kitchens, rip-off consultants whose reports sit on shelves, etc.
- As I explained in an earlier blog, after COAST leadership and its allies left after my election, we have taken a hacksaw to all that spending--getting rid of high paid positions (both those who directly served the commissioners, and some who reported to the administrator), reducing other commissioner/administration spending dramatically, etc. In all, the commissioner/administration budget we inherited has been reduced by 45%. And in our 2009 budget, we reduced that budget by about 30%, and imposed furloughs for the greatly reduced staff that remains to do all the work that was previously done by the far larger and higher paid COAST leadership team.
- To cap it all off, on Monday we passed the most fiscally conservative budget in decades. We didn't raise taxes. We took spending to the level it was at in 1999. This was challenging, and involved a lot of painful cuts, but it was necessary--given the economy in particular.
Today, we passed our 2009 County budget.
For media summaries of what we did, go here, here, and here.
For the actual budget documents, go here (passed unanimously), and here (statement).
It’s safe to say that it was the toughest budget I’ve faced of the seven I’ve been a part of. It was difficult and challenging for all. But it also was an important, and necessarily tough, budget, given the times we are in.
Most important, at a tough time, County leadership came together across party lines and agreed to a fiscally prudent, economically competitive budget—with some very tough and unpleasant short-term pain, but one that positions us to make medium- and long-term gains. I commend the County's elected and appointed leaders, all of whom stepped up at this difficult time to cooperate and make tough choices. I also appreciate the very hard work of our elected representatives in Columbus--who enacted a number of items at the last minute that will have, long-term, millions of dollars in positive impact to all the governments in Hamilton County. This budget was all about bipartisanship.
Key points of our budget:
No tax increase. We resisted the temptation so many other governments are falling for to ask taxpayers to pay more—saying no to a sales tax increase and a property tax increase. In this economy, when families and businesses are already struggling to make ends meet, and we need to position ourselves to compete economically, raising taxes was the last thing we should do.
Dramatic reduction in spending. As a result of declining revenues, and without new taxes, the 2009 budget will be the most fiscally tight budget passed in decades in this county. Usually, government spending increases every year. Instead, we are reducing spending by more than $30M from the 2008 level, and will fall to a level of spending the County was at in 1999! People want government to live within it's means, and that is what we are doing.
Reforms and sacrifice—beginning at the top. We heard calls that sacrifice should start at the top, and that’s what exactly we are doing. In addition to having dramatically reduced a bloated commissioner and administrative budget that we inherited from the prior majority, we instigated 10-day furloughs for top management, our own staffs, and ourselves (although I will work the 10 days of the furlough, I will not be paid for them). Other items--such as no more free parking for elected officials, the Sheriff getting rid of many take home cars, and other reductions in administrative budgets--will all take place. These measures won't balance the budget, but they are critical to send the right message.
No phantom dollars. We are not allocating dollars we are not certain we will have. Some of the most costly mistakes made before I arrived at the Commission arose from budgeting with rose-colored glasses: committing to pay millions to Butler County, with no source of revenue locked in; or proposing vague cuts or new revenues, with no certainty they would lead to real savings—and then spending those possible savings before they ever came in. Call it the “red light camera” problem. Instead of relying on phantom revenues or cuts to get through a tough time, we refused to budget on anything but the most fiscally conservative projections, and the most certain savings. It made life more difficult in the short term, but far better in the long-term.
Priorities: Safety and Economic Growth. To the best of our ability, (since we have so many mandates we must meet), we prioritized two things—public safety, and economic growth.
Public safety. We delayed technology investments and made other cuts totaling close to $1 million, and reprogrammed those dollars to public safety priorities: such as the Sheriff’s department (for patrols and corrections--his discretion), Prosecutor’s Office (Project Disarm--federal prosecution of violent criminals), and our Hazardous Materials and SWAT training efforts. And we will allocate future revenues and savings to similar goals—particularly corrections and other core public safety needs. After hearing from many communities at our hearings, we also successfully lobbied for state legislation that 1) allows us to reduce the proposed 911 fee increase in a way that allows each jurisdiction to spend more of their dollars on core public safety; and 2) will allow some townships to access TIF dollars for public safety expenditures (including patrols) if they so desire.
Job and economic growth. We are continuing to invest, and are committed to improve, the County’s economic development efforts, because long-term, the only way we’re going to solve our budget problems is to grow our way out of them. We must compete for every job, every business, every development, and every resident we can—and we must be well-positioned to do that.
County workforce. No doubt, the most difficult part of this budget has been that some public servants will lose their jobs. While our goal has been to do everything possible (vacant positions, furloughs, other cuts in spending, etc.) to avoid actual layoffs, the sad reality is that too many people will be losing their jobs—and some already have. (We won't know the final number for some time). Of those affected, while I understand how little it helps, we deeply thank them for their service to the county, and our thoughts, prayers and best wishes go to them as they seek other opportunities. We also will be generating recall lists should opportunities arise for rehiring in the future.
Finally, we also know just how much those employees who remain are laboring under the current tight budgets of the County--and we understand their concern and frustration over what they have been asked to shoulder. As soon as the revenue picture improves, we hope to be able to improve this situation.
Broader public safety concerns. We also know that with some cuts, there remains real concern about public safety in this County, and we share those concerns. While the citizens have made it clear (twice) that they don’t want to pay more to operate our criminal justice system, we are working hard to find additional cuts, generate new revenues (without raising taxes) and take other steps to assure we have sufficient funding to provide top-notch public safety services in the long run. And through the Criminal Justice Commission, we will continue to work to assure we have the most cost-effective criminal justice system possible. And we are exploring process improvements and other reforms that will save money, improve the system, and improve public safety.
Potential savings and revenues. And finally, while we will not “bank” on the savings until they come in, we are exploring a number of other reforms, efficiencies, and revenue options that might help us in the coming years, such as:
- Requiring “pay to stay” in our jails, for those who can afford it, to offset the costs of jail stays
- Continuing to reduce our spending on everyday commodities such as office supplies, energy, consultants, travel, subscriptions—last year we saved more than $1.5M by applying spending caps to such items
- Using internet advertising for some of our websites—which has generated $100,000s for other governments
- Encouraging the state to more effectively collect revenue from private auto sales, which could lead to millions
- Finding an alternative way to fund the Hillcrest Youth Center (relieving the County taxpayer from this burden)
- Continuing to pursue managed competition and shared services opportunities, that could save millions of dollars in the long-term
- Continuing to lobby the state to reduce or reimburse more for mandates we can not afford—such as the public defender services that almost all other states cover.
Along with our economic growth efforts, these initiative all carry much promise to generate real revenues and savings in the coming year.
Finally, although he supported our Budget Consensus Motion, Commissioner DeWine also brought in, at the last minute, a motion to make additional cuts and to reallocate all the dollars we had committed to the Sheriff's budget.
I personally could not support this motion because: 1) it would have gutted our core economic development efforts, 2) would have inevitably led to layoffs of some Sheriff's deputies that our budget helped reinstate, and 3) it would have reallocated those dollars and committed them once again to a jail rental situation (with Campbell County, this time), without any forethought or deliberation.
The County's seen this trick before! The last thing we need to do is rush headlong and overcommit to renting jailspace elsewhere--that lesson has already been learned, at an incredibly high cost, with Butler County, and we're not going to do it again, particularly if doing so means we lay off our own deputies and end our own economic development efforts. (EMUs, Cambpell County, and other options do exist, and we will consider them over time--but we should only commit to them when we have identified real funds to support them.)
That's the 30,000 foot summary of a very challenging budget that we put to bed today.Budget Myth: At several public hearings and private meetings, some are suggesting that the budget is being balanced "on the backs of the Townships." (Some attribute this to the fact that the three commissioners used to be on Cincinnati City Council).
Budget Fact: This budget represents shared sacrifice by all. No one entity is being singled out. Unfortunately, if anything, the budget is actually being shouldered by the hardworking workforce of the County employees more than anyone else. And even though we are former Councilmembers, we have asked more of the City in recent years (budgetwise) than any other jurisdiction.
Explanation: Although we have not yet finalized the budget, the suggestion that this budget is being balanced "on the backs of the Townships" is misplaced. First, the basics of the budget show that most of the $40M in cuts is coming internally--from the employees of the County at all levels. And to the extent those cuts impact services, those services have a Countywide impact.
One aspect of the Administrator's proposed budget indeed involves the townships, in that he would ask the three largest Townships to pay for the patrols that they directly receive, and that they have traditionally received without having to reimburse the county. (They already pay for other patrol services provided by the Sheriff). Since the Administrator made that proposal, many questions have been raised about how to best pay for this arrangement, but this is an area that should and will ultimately be left up to the Sheriff to decide: how to best and most effectively patrol the County within his statutory authority, and within a limited budget. But even under the administrator's proposal, the budgetary impact of this is about 15% of the total cuts being discussed.
But before Township residents and leaders think that even this part of the administrator's proposal is somehow singling them out, we have actually spent the past two years having the very same conversation about other services we have traditionally provided (without reimbursement) . . . to the City of Cincinnati (yes, our former jurisdiction).
- in early 2008, for example, we began billing the City of Cincinnati for the cost of jail bed days used for citizens who violated City ordinances. For some reason, this had not been done since 2001 (even though it was required by contract). The City now pays the County $10,000s per month for this cost.
- later in 2008, I also learned that Ohio law requires that we be reimbursed for any public defender services we provide to citizens whose crimes involve the violation of the City's ordinances. Counter to the law, the public defender had not been asking for such reimbursements. Well, now we do (more accurately, as soon as we did, the City chose to do these services themselves going forward). Either way, we just relieved potentially hundreds of thousands of dollars in lawyer time from our public defender caseload.
So the concept of allocating cost to those who benefit from a service is not a new one at all, and was first applied to the City. While they at first weren't happy, they ultimately saw that our requests had merit.
Also, as we finalize this budget, we are also trying to help our Townships by:
- lobbying hard to make sure the State maintains its 911 wireless fee, which directly benefits all jurisdictions (including Townships), by reducing the local cost of running our regional communication center. This would allow each jurisdiction to put more money into local policing efforts.
- supporting legislation, requested by Anderson Township, that would allow Anderson, Green and Delhi Townships to use funds in their Tax Increment Finance Districts for more than just capital expenditures, including paying for Sheriff's patrols if they so choose.
Overall, in a tough time, we're trying to be fair to all taxpayers, residents and government partners. We are no doubt asking a little more from our partners in government, but usually because the law and fairness (or both), require it.
Even then, the sad truth is that no one is shouldering this budget and difficult economy nearly as much as our own County workforce.