More Analysis of Webster County's "FrankenBudget"

As Webster County is recovering from the "FrankenStorm" of a few weeks ago, another scary problem faces its residents:  the County's "FrankenBudget."

As previously reported, from 2008 to 2012, revenues for the County declined a total of $509,968.40 but yet spending increased during that period a total of $1,192.276.14. To stay afloat, the County has dipped deep into its financial reserves. In the past fiscal year alone, the County spent $837,738.12 more than it took in.

Our last article concluded that the causes for the spending increase included: increased Regional Jail fees (27.9 percent of the increase); increased employee related expenses (64.2%); and other spending increases (7.9%).  

In a prior article, we noted that one of the causes for the declining revenues was a decline in coal severance revenues. From 2008 to 2012, coal severance revenues declined $184,972.18. In the prior article, we listed this as 36.3% of the total decline, but a further review of all declining revenue categories in the budgets show that the coal severance decline accounts for only 31.3% of the actual revenue declines.  We left for further analysis the question of what accounts for the remaining percent of the decline in revenues.

The County has five categories of revenue sources (the first four are classified as "major" funds and the last as a "non-major" fund): 

(1) General Fund, which includes taxes, intergovernmental revenues from the State and Federal government, charges for services, interest, fines and forfeitures, and a miscellaneous category.

(2) Coal Severance Fund, which includes taxes, interest, and a miscellaneous category.

(3) Assessor's Valuation Fund, which primarily consists of charges for services.

(4) 911 Center Fund, which includes charges for services, interests, and a miscellaneous category.

(5) Other Special Revenue funds, such as revenue from Home Confinement, Worthless Checks, Dog & Kennel, Concealed Weapons, etc.

From 2008 to 2012, only the Assessor's Valuation Fund and the Special Revenue funds increased in revenue ($11,446.54 and $69,360.07 respectively).

For the same time period, the General, Coal Severance, and 911 Center Funds declined considerably ($241,878.06, $184,972.18, and $163,924.77 respectively).  Since we have already analyzed the decline in the coal severance revenues, we now examine what part of the revenues in the General and 911 Center Funds that have declined.

In the General Fund, taxes and federal revenues increased ($89,197.40 and $158,354.70 respectively).  However, all other General Fund categories declined, including:  other taxes, down $61,368.03; charges for services, down $20,869.72; state revenues, down $157,462.71; fines, down $5,061.23; interest, down $12,217.68; and miscellaneous, down $206,950.79.

In the 911 Center Fund, all reported revenue categories declined, including:  charges for services, down $129,411.12; interest, down $6,354.18; and miscellaneous, down $28,159.47.

Considering all five of the fund categories listed above for the 2008 to 2012 time period, the decline in General Fund revenues accounts for 40.94% of the total decline, with the Coal Severance Fund accounting for 31.31% and the 911 Center Fund 27.75% of the total decline.

This reviews tells us where the decline in revenues exist; unfortunately, it does not explain why there is a decline in the Funds other than what has happened to the coal industry and the related drop in coal tax revenues. We hope to speak with County officials to answer why these other categories declined.

We further understand that a review of all four of our county budget articles may seem technical, but we believe we can rather simply summarize our review as follows:

1. In recent years, the County is spending considerably more than it takes in.

2. From 2008 to 2012, revenue has declined $509,968.40.

3. From 2008 to 2012, spending has increased $1,192,276.14.

4. Coal severance revenues account for only 31.31% of the decline in revenues.

5. Employee related expenses account for 64.2% of the spending increase.

6. Regional Jail fees account for 27.9% of the spending increase.

The County budget is certainly headed in the wrong direction with more spending than revenues.  It's scary.  It's a "FrankenBudget" that needs fixed.  Stay tuned.

Here are links to our three prior articles on the budget:

Part One: http://webstercommentator.blogspot.com/2012/10/the-webster-county-budget-more.html

Part Two: http://webstercommentator.blogspot.com/2012/10/the-webster-county-budget-part-two.html

Part Three: http://webstercommentator.blogspot.com/2012/11/expenses-for-county-employees-increased.html