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State's "lazy" budgeting to impact local taxpayers

Posted: 9/17/02

by Jane Palen
Managing Editor

ìLazyî budgeting practices at the state level will mean increased costs for counties, according to County Board Chairman Kevin Kelleher.

Kelleher made his remarks at the regular meeting of the county board Tuesday, September 10, the day after he met with Minnsotaís Director of Finance Pam Wheelock. The legislature has directed the Department of Human Services (DHS) to cut its budget 10 percent across the board in an effort to address the stateís project $1.6-$2.7 billion deficit for the next biennium. In terms of dollars, that cut would amount to $700 million. What people refer to as ìwelfare,î said Kelleher, is just a small part of the services DHS provides. The greater portion is for services to the elderly, mentally ill, and for health care.

Kelleher said that the problem he has with across the board cuts is, ìIf you are lean and mean, you are punished.î

ìThis county is not fat,î Kelleher continued. ìItís poor and lazy budgeting. We try and provide services to people in the county who need them.î The state cuts will result in the county either having to cut services or increase property taxes to be able to provide the same level of services. When property taxes are increased, residents on fixed incomes are often forced out of their homes.

Houston County, said Kelleher, is one of the few counties that goes through budgets for each department line by line to determine where cuts can be made.

As the state was directing cuts in human services, it was also increasing funding for non-profits by three percent, said Kelleher. The reason for the three percent increase, he said, was so that non-profit entities such as nursing homes, who are experiencing an acute staff shortage, could afford pay increases for staff. However, the increase applied to all non-profits.

The remarks were made as commissioners were revisiting a previous decision not to sign a letter of support for a planning project on behalf of the Southeast Minnesota Area Agency on Aging. The commissioners did not actually vote on that issue; a motion by Commissioner Nels Gulbranson to sign the letter failed for lack of a second.

PHN Director Linda Grupa, Human Services Director Beth Wilms and Jan Lochner of the Public Health Department appeared before the board to discuss some additional information that came to light after the previous meeting.

Commissioners were told that the project for which SEMAA was seeking support is the former SAIL (Senior Agenda for Independent Living) program, said Grupa. The county has supported SAIL for the last 10 years. Failure to sign the letter could result in the loss of SAIL services, she said.

ìItís not a new program but an old program that has been renamed,î added Lochner. She added that only a letter of support was requested and not a financial commitment.

Commissioner Kelleher responded, ìWe are looking at new services ...unless they have a plan for funding, programs will be funded by other sources.î He said he understood that SEMAAA was seeking a grant to fund an administrative position for new services, and is concerned that the county will be asked to fund the those new services in the future.

ìI didnít see anything about chore service; they said they want to develop new services,î said Kelleher.

Commissioner Gulbranson noted that, ìThey are asking for a letter of commitment and not a financial commitment.î

Kelleher responded that unless they have a funding source in mind, it is likely that the county will be asked to come up with funding.

Commissioner Gulbranson noted that the county doesnít currently put money into chore service, it comes through Semcac. Commissioner Kelleher responded that his concern is that money for programs such as chore service go through two non-profits before it gets to the people .

ìWe could just take the money and provide the services,î said Kelleher.

Commissioners noted that they requested information from SEMAA and did not get the information.

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