Cuts to jobs, programs loom over McHenry County budget

Potential cuts to county jobs and programs, in addition to delays in capital projects, loom over the McHenry County Board as it begins preparations for next year’s budget and property tax levy.

During a preliminary budget discussion Thursday, board members seemed to recognize cuts are on the table, and board member Michael Skala, the finance committee chair, asked county staff to follow up with lists of mandated and nonmandated programs, along with their cost. He said the personnel side will be “critical” with regards to numbers.

In an anonymous poll taken Thursday, board members were asked to indicate their preference for one of the following levy scenarios:

• Cutting the property tax levy by 3%
• Not taking any new growth or inflationary CPI increase
• New growth only
• New growth and some of the inflationary increase
• New growth and all of the inflationary increase

Six of the 18 board members voted for the 3% levy cut. Five board members supported new growth and some of the inflationary increase, four voted for new growth only, two voted for no new growth or inflationary increase, and one voted to seek the maximum levy possible.

The board is several months away from a final vote on the budget and levy, which happens in November, and county leaders said next year’s budget was still preliminary.

Projected revenues for next year are below expenses, county Chief Financial Officer Kerri Wisz said, and capital projects are excluded from anticipated expenses.

“We’re already starting with revenue that doesn’t cover expenses,” Wisz said.

In response to a board member question, she said the board needs to think about whether to cut nonmandated programs.

Board member Matt Kunkle said the board has to look at where it will make cuts to services or staff. If there are no other options and expenses are fixed, Kunkle said, “Cuts – that’s where we’re at, especially if we don’t want to raise the taxes again to McHenry County residents.”

Even if the county were to maximize its levy, preliminary numbers are indicating the county would not be able to fund capital projects or supplemental expenses next year, Skala said in reply to a question from board member John Collins.

The county last year lowered its levy by about $8.8 million following officials’ promises to take out the property tax dollars that previously went to the Mental Health Board before voters last year approved a sales tax to fund the mental health services. The board has been grappling with revenues from that sales tax coming in much lower than projected because county officials erroneously included vehicle sales in their estimates. They are not factored into that sales tax, according to state law.

Another financial pressure point is that, because the levy was lowered last year due to the mental health sales tax, the starting point for the inflationary increase is smaller this year, and the CPI itself is smaller.

Federal funding uncertainties could also trickle down to the county. Adam Letendre, the county’s director of procurement, said price fluctuation with economic volatility and tariffs could be an unknown. Tariffs already affected facilities and Division of Transportation projects, Letendre said.

Board member Pamela Althoff said the County Board should look at the benefits its members receive, which are “a cost to the taxpayer.”

Althoff said if the board can’t cut what its own members get, then they shouldn’t be talking about reducing programs and services for the people they were elected to represent.

Most board members take benefits, including health and dental insurance from the county, in addition to their salary of about $21,000 per year, according to county records. County Board Chair Mike Buehler receives a salary of about $82,200 but he does not take benefits.

“For those of us that constantly are looking at ways to reduce taxes, I think we better start with ourselves first,” Althoff said.