WICK NEWS SERVICE

BISBEE — The Arizona Legislature wants the counties to “contribute” more than $73 million to help balance the state budget through cuts in funding.

Cochise County Administrator Mike Ortega said the county took a total hit of more than $1.48 million.

In the budget work session held on Tuesday, he told Board of Supervisors members that the sum includes a $520,125 reduction in Highway User Revenue Funds, the $416,940 payback for the state deficit, an increase of $133,012 for use of the state crime lab based on past county case loads, and a $410,761 reduction in Arizona Long Term Care Services, or ALTCS, funds.

Though the legislators did not put a due date on the payback of $416,940, Ortega expects to get a bill for that amount on Aug. 1. However, he emphasized it would take the whole fiscal year to pay that off.

“Our payment will probably be made on June 30, 2009, at 4:59 p.m.,” Ortega said. “However, we could get a bill with a due date on it. We just don’t know.”

As for the ALTCS loss, Ortega said it was a two-year hit. The county budgets $80,000 a year for the fund.

“The $410,000 is the amount we would have gotten back for monies the state accumulated for us,” Ortega said. “So, the actual hit to the general fund for the next two years is $80,000 for 2008-09 and 2009-10 fiscal years.”

That drops the loss to the general fund to around $990,000. By subtracting $117,768 for general funds earmarked for the county Highway and Floodplain Department, the loss then becomes $872,232.

Ortega met with department heads and targeted ways to cut more from their budgets.

One of those ways is curb utility use by 4 percent. Ortega said the county could see a reduction in those costs by educating employees to turn things off when they are done for the day and by raising the thermostat a few degrees in the summer and lowering it in the winter.

Reclassifications of some positions in the county will be postponed until later in the year, which will save more money.

“Everyone gave up something,” Ortega told the supervisors.

The department heads, whose efforts reduced the county deficit by $811,834, told him that the employees should be given a choice between taking the one-time disbursement that averages $500 per employee or taking three days off with pay over the year. The county would be paying to cover the needed $458,000 for the disbursement, but taking time off would save the county money.

That plan is to be funded through special funds available from flood control — $50,000, library — $30,000, ALTCS — $150,000, and the general fund — $228,605.

But that option did not sit well with the Board of Supervisors Chairman Richard Searle, who was concerned tax money meant for floodplain and the library departments was going to a purpose other than what it had been collected for.

“I’d rather not cross that line,” Searle said. “People pay those taxes for a purpose ...”

Ortega pointed out that the general fund assists those funds when necessary, so he did not see a problem.

Searle responded that perhaps special district taxes, such as the county library tax district, should be reduced since it has a carry-forward of $500,000.

“We have enough funds in contingency to cover the shortfall without robbing these funds,” he said.

Supervisors Paul Newman and Pat Call agreed with Ortega that use of the funds during economic hard times would be prudent.

Newman was inclined to do more for the employees than the one-time disbursement.

“I really want to see the COLA (cost of living adjustment) raised. We decided to do this when we thought the state was going to hit us for $2 million. We thought we’d be short and decided not to give COLA’s to the employees. To raise salaries now might be the wrong thing to do, but the economy is hurting lower income employees,” Newman said. “… Some employees say a third of their salaries is spent on gas. We need to help them.”

Call offered his viewpoint.

“My concern is that the proverbial low-hanging fruit has been plucked this year,” he said. “We know the economies of Phoenix and Tucson are not going to be recovering next year. But my concern is that next year there will be a steeper hill to climb. I would like to do something next year to help the employees. If something miraculously changes in the coming year and we’re not asked to participate in even more significant cuts by the state in the next fiscal year, then I have no problem putting (COLA) back in place.”

Searle and Newman were willing to revisit the budget in January and see where the county stands.

“I know what kind of burden our employees carry,” Searle lamented. “Arizona didn’t adjust last year’s budget when they saw what was coming. Maybe we can do two distributions this year.”

Searle told Ortega he wanted to go over the figures one more time before adopting the budget, so the supervisors will meet in another work session soon.

“I think it is fiscally responsible, both to employees and residents to hold the line where we have it,” Call said.

No date was given for the next budget work session, but there will be a public hearing on the budget during next Tuesday’s meeting.