Work begins on 2021 Oconto County budget

COVID-19 looms over projections for reduced revenues
By: 
Warren Bluhm
News Editor

Oconto County officials have formally begun work on their 2021 budget with the annual approval of a budget guidance letter to department heads.

Every year, the County Board chairman and finance committee are asked to provide guidance and recommendations to the full board regarding the next year’s budget in June or July. The document serves as a road map for administrators as they draft the tax-and-spending plan, which is adopted in November.

This year’s budget letter “is very similar to last year and the year before, and I expect it to be very similar next year,” Administrative Coordinator Kevin Hamann told the board at its July 23 meeting.

One very different feature of the letter is the proverbial elephant that lurks in every room this year.

“The 2021 budget will be greatly impacted by the fiscal impact of COVID-19 and the state budget response to COVID-19,” the letter states. “It impacts our revenues collections, especially the sales tax and loss in revenues from our closures. COVID-19 also caused additional response cost that may or may not be reimbursed by the state or federal government.”

Despite the reduction in revenues, employee costs and overall operating cost are expected to increase for all departments and agencies, while state-imposed property tax levy and mill rate limits are still in effect, the letter states. “Continued under-funded and unfunded state and federal mandates will compound the need to make very difficult decisions.”

The budget guidance letter calls for no across-the-board pay increase for county employees in 2021, although “step” increases will continue to be implemented in accordance to the county’s pay plan, which provides automatic raises for workers as they complete another year of employment. The increase amounts to $234,000 for 2021.

Department heads are being asked to cover personnel increases and operating costs at the same level as this year, and any increased outlay must be matched by a corresponding decrease in operating costs.

All requests that have been included in the county’s five-year capital budget plan — which generally is used to cover vehicles, equipment, buildings and other long-term needs — will be reviewed to determine if the project can be reduced, delayed or eliminated.

“The goal of this County Board and administration is to adopt a 2021 budget with a minimal increase in tax rate and levy that complies with any state-imposed rate/levy limits as well as fund the essential services that the residents of Oconto County expect,” the budget guidance letter states.

The letter was approved unanimously along with a schedule of budget hearings for the board’s various committees.

wbluhm@newmedia-wi.com