State funding crunch limits city, county budgets

State funds are in a pinch that's no secret. But while Missouri legislators are working out budget details, city and county governments are experiencing a trickle-down effect, budget officers with Springfield and Greene County say.

"We've been hit about $500,000 across our total budget," said Jeff Reinold, Greene County budget officer.

Because the county's fiscal year runs by the calendar year, county officials have already been dealing with the shortfall.

City officials aren't sure what is expected for the 2003-2004 budget cycle, which begins July 1.

Early indications are that cuts won't be as severe as the county losses, according to Mary Mannix, Springfield budget administrator, but cuts are expected.

"The city hasn't been impacted nearly to the extent that the county has been," she said, noting that minimal health department reductions are likely.

County funding cuts

Greene County's largest single reduction in state funds is in its state prisoner per diem, Reinold said. The state has cut reimbursements for holding state prisoners from $22.50 per day to $20 a day.

"That ends up costing us about $300,000 a year," Reinold said.

Each prisoner costs the county about $50 per day in meals, security salaries and other costs associated with the jail. There are roughly 325 state inmates held in the Greene County Jail on any given day.

Another cut hit the county's assessor's fund. The county is out about $72,000 because state reimbursements for assessor's office services dropped from $6.20 per parcel to $5.50 per parcel; Greene County assessed 102,000 parcels in 2002.

"That 70-cent reduction, while it doesn't seem much, cost Greene County $72,000," Reinold said. "That's substantial."

The county also lost funds for juvenile services salaries, another state reimbursement. The state is withholding $140,000.

"There's a half-million dollars just like that," Reinold said. "There is nothing the county can do."

It has caused county budget officials to take a guarded approach this year. The 2004 budget talks begin in August. Greene County is operating on a $96 million budget this year.

The county's largest revenue source is sales tax, which is expected to bring in $40 million, or 44 percent of this year's budget. Next in line is $17.5 million of property tax revenues, which comprises 19 percent of the budget.

"We're looking at 2003 cautiously, with what's going on in the world," Reinold said "We're always fearful when we rely on the state for funding."

City budget

As for the city, a budget proposal will be presented to City Council April 28, and it must be approved by June 1. The 2002-2003 budget came in at $201 million. Mannix said it is hard to say where next year's budget will fall.

"It's a little too early in the process. We have to meet with all of the departments to review their programs and new proposals for next year," she said. "But we're still in the process of fine tuning all of that information and fine tuning revenue estimates."

A ray of hope is the city's sales tax revenue, which has been up 3.25 percent this year, compared to flat growth at this time last year, Mannix said. Last fiscal year sales tax revenues generated $61 million, the largest stake in the budget at 31 percent. City charges and fees contributed $44.9 million, or 22 percent of the budget last year.

"We've been very encouraged by that," she added.

"On the other side of things, the interest rates have really hurt our investment income, which is a pretty significant portion, particularly for our general fund. The interest rates will impact our budget revenue this year."

In recent years the city's investment income has reached nearly $1 million; Mannix expects only half that amount this year.

Reinold is hoping next year's state contributions to the county hold at 2003 levels, but he knows to be prudent in spending. "The state's in a mess financially," he said. "We've got to be on our toes here at the local level."