SNOW HILL- Worcester County is facing a $22 million shortfall as officials begin the budget process.
County staff advised the Worcester County Commissioners this week they’d need to reduce expenses or find additional revenues to balance the budget for FY 2016.
“It’s going to be challenging,” Commissioner Chip Bertino said. “The only thing we can do is be upfront and honest and ask a heck of a lot of questions.”
Estimated revenues for FY 2016 are $167.5 million, a roughly $10.4 million drop from the current year. At the same time, expenses have increased $11.8 million, according to Harold Higgins, the county’s chief administrative officer.
The largest potential increase comes in the area of education. The school board has requested $82.7 million from the county, $4.7 million more than was requested last year. During a school board meeting in February, school system officials said the budget included $2.6 million to fund a STEP increase and Cost of Living Adjustment for teachers as well as $1.3 million for rising health insurance costs. With the proposed pay increase, the annual salary for a new teacher would increase from $42,433 to $43,494.
The school system is also seeking $480,000 in non-recurring technology and school construction costs.
The budget as proposed includes a significant increase in roads funding at $1.9 million and in the amount of funding sought by the county’s municipalities at $2.6 million. In addition, Higgins said insurance and benefit costs were projected to increase $1.6 million in FY 2016.
In an effort to ensure they have as much flexibility as possible when working to balance the budget, the commissioners Tuesday confirmed a hiring freeze they put in place earlier this month. Although the county only has three open positions, staff said the move could help the commissioners as they began the budget process.
The $17.6 million the county has left in budget stabilization funds are also expected to play a role in balancing the budget, although it’s unclear how much of the funding will be used in FY 2016.
“We’ll be going into detail as we get into the work sessions,” Higgins told the commissioners Tuesday, adding that the budget included more than 600 pages of documentation.
Bertino requested that detailed minutes be kept during the work sessions, which begin Tuesday with the school board. He said he wanted to have notes to refer to as the months-long budget process progressed. Budget review sessions are scheduled March 24 and April 14, while the public hearing on the proposed budget will be held May 5 at 7 p.m. at Snow Hill Middle School.