Hernando County's tax-cutting game

Hernando County officials need to cut a total of nearly $9-million from their 2007-08 spending plan to meet the state's mandated reduction in property tax revenue. Here is the preliminary plan presented in July.

By the Times staff
Published August 19, 2007

STEP 1

The goal: Subtract $7,004,363 from the general fund

Budget writers started with the general fund, which pays for essential government services, and decided to cut $7-million.

Before they reached for the ax, they found ways to generate new dollars to help offset the cuts:

They did that by increasing charges for services that county administration provides to certain departments. As an example, the Utilities Department operates independently but pays the county to use services like the County Attorney's Office. (Ultimately, the cost of the higher rates are borne by taxpayers.): $923,053

They also added new beds to the county jail; more inmates means more money: $500,000

Then they cut from existing projects:

Officials tapped into three capital projects in the current budget year, eliminating funding for an expansion at Animal Services and renovations at the Hernando County Government Center: $1.85-million

(Officials are also considering doing away with a program to demolish derelict structures. A portion of the demolition is reimbursed, so the county would lose money: -$30,000)

AMOUNT CUT SO FAR: $3,243,053

STILL TO GO: $3,761,310 

STEP 2

County officials turned to other departments for the additional reductions.

Additional cuts made:

Reduced reserves: $1,170,722

Trimmed from the original budget request of the Sheriff's Office: $1-million

Halted second phase of new Cooperative Extension Service facility: $1.5-million

Eliminated unfilled county jobs and shaved operating costs such as office supplies and overtime: $1,630,588

AMOUNT CUT SO FAR: $8,544,363

STEP 3

The county at this point had cut $1.5-million more than necessary from the general fund. So officials decided to spend the money on urgent needs.

New spending on priority projects:

County road improvement and maintenance: -$1.25-million

Department of Public Works/MLK Compound cleanup account: -$290,000

TOTAL CUT: $7,004,363

GOAL: $7,004,363

STEP 4

With about $7-million parsed from the general fund, officials still needed to trim $2-million from other accounts in order to reach their ultimate goal of about $9-million.

These accounts also get property tax money, so cuts were made accordingly:

Transportation Trust Fund: $873,050

Health Unit Trust Fund: $136,003

Sensitive Lands: $104,141

Stormwater Management: $140,081

Emergency Medical Services MSTU: $111,225

Spring Hill Fire and Rescue MSTU: $560,785

AMOUNT  CUT FROM OTHER FUNDS: $1,925,285

TOTAL CUTS FROM THE PROPOSED 2007-08 HERNANDO COUNTY BUDGET: $8,929,648

[Last modified August 18, 2007, 22:44:43]