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State budget stalemate hits county

ESCANABA — The Delta County Board of Commissioners looked at $248,950 in proposed reductions to the county’s 2019-20 budget Tuesday. If talks between Gov. Gretchen Whitmer and the state legislature are productive, however, the cuts may not need to be made.

On Nov. 15, Michigan Association of Counties (MAC) Executive Director Stephan Currie and Board President Veronica Klinefelt wrote county board chairs in Michigan a letter focusing on MAC’s efforts to restore county funding in the state’s budget and how counties are dealing with state budget negotiations. The letter included a request for information on counties’ efforts to prepare for the possible loss of state funds due to a stalemate in the legislature.

Whitmer vetoed $947 million in funding on Sept. 30. She also used a board for the unilateral transfer of an additional $625 million when she was sent a spending plan without her input after road funding talks broke down. Although Whitmer and legislators want to reverse some of the vetoes, they are split on Republican efforts to limit the State Administrative Board’s power.

A discussion on the letter from MAC was included on the agenda for the board’s Nov. 25 meeting, but was tabled that time. Discussion resumed at the board’s Dec. 3 meeting.

During the meeting, board members looked at budget cuts that could be made in response to the potential loss of state funding.

“Before you, you have a list of possible budget reductions that I’ve looked at,” interim County Administrator Tom Sabor said.

Delta County stands to lose $331,000 in funding if Whitmer’s vetoes are not undone. A number of budget reductions have been proposed for the county as a result.

Potential cuts include a $100,000 reduction to the capital outlay fund, a $60,000 reduction in indirect childcare costs, a $23,000 reduction to building and zoning, $22,000 in administrator savings, a $14,300 reduction to the contingency fund and a $11,000 reduction to the fire fund, among other reductions. Even if these cuts were approved, Delta County would still have to cut $82,050 more from its budget to fully compensate for the state funding it stands to lose.

Sabor said he has heard from MAC that Whitmer and the legislature could make progress on the state budget in the near future.

“They basically said that the only hang-up is with what the governor’s doing with the transfer of funds,” he said.

If things go well, county funds that would be cut as a result of the vetoes could be reinstated — with the exception of funds for jail prisoners, the loss of which would cost Delta County about $33,000 — as soon as this month.

“They’re expecting … to have that done by Christmas,” Sabor said.

Because of this, the board’s decision on the proposed reductions was once again tabled at Sabor’s request. The board will resume its discussion in January if necessary.

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