October 7, 2003
I am here tonight to present my first Executive Budget. Sometimes it’s hard to realize that I’ve only been County Executive for six months! They’ve been very busy months.
I am pleased to report on two projects that I spearheaded when I was Sheriff. The Microwave Project is finished, and the system is up and running. This was a multi-million dollar project to replace the obsolete communication infrastructure for police, fire and EMS throughout Racine County.
The new Dispatch Center addition to the Substation will be completed within a couple of months. Once the new equipment is installed, it will provide for Racine County’s needs well into the future, and has space for any other municipalities that may choose to be part of a Joint Dispatch system. We are looking forward to inviting you and the public to the dedication of this facility in the near future.
During the campaign, I promised to hold an Economic Summit to allow the owners of small and medium sized manufacturing businesses to be heard. We held that summit last July, and we are working on the action plans identified by the participants. Based on the positive responses from the participants, we are looking at repeating the Summit with other sectors of the economy.
The successful Summit was held at the newly opened CATI Building in Sturtevant. Racine County was one of the founding partners in developing and building the Center for Advanced Technology and Innovation, which is set to be an important part of the County’s future economic development.
People have been talking about local communities working together and with the State. In that spirit, we have partnered with Milwaukee County in a program to funnel CDBG funds to assist Midwest Airlines, a company that employs more than 300 Racine County citizens. When this loan is repaid, we will have an additional $2 Million to use to encourage economic development throughout Racine County. Best of all, none of the money in this transaction comes from Racine County property taxes and there is no risk to our taxpayers in the future.
Earlier this year, the County Board agreed with me that we should not be in the business of running a school system, and we are now in the process of transferring the care of special education students west of I-94 to the various school districts. Progress is being made every day, and the ultimate result will be a downsized county government and continued quality educational opportunities for the children throughout the transitional period and beyond. I must thank Director Jan Voeks and her staff for working so hard to make this a success.
There have been a lot of stones in our path as we worked on this budget. The first thing we had to deal with was a $3 Million deficit in this current year, due to an increase in the numbers of Racine County youth sent to state juvenile correctional facilities and residential treatment facilities. We have taken steps – some drastic – to erase that deficit, and we did it without dipping into our reserves. However, taking care of that problem has left us in a tougher position to deal with these other obstacles to the 2004 budget:
 | We expect a cut of almost $700,000 in Shared Revenue from the State in
2004; |
| Like everyone else, we are seeing large percentage increases in our health
care provider costs. Our 2004 costs will be 25% higher than in 2003, an
increase of $2.4 Million for current employees; |
| A big part of our budget goes to wages, most of which are already set in
multi-year contracts approved by the County Board. The 3.5% contractual
increase for 2004 will cost us an additional $1.3 Million; |
| The change in the valuation of agricultural land continues to affect the
County’s revenues in a negative way. |
| Low interest rates have reduced the amount of money we make on our investments. |
Despite these problems, I kept the promise I made to bring in a budget that would fit the limits of the “tax freeze” proposed by the State.
It was not easy getting to this point. It was a painful process. We did it by focusing very clearly and closely on what we consider to be our CORE FUNCTIONS.
| First – What are we required to do? That comes first – and we try to do
it as economically as we can. We must, by law, run a Jail. We must, because
this Board has said so, run a nursing home. We must administer certain Human
Services programs, perform certain planning and zoning functions, maintain our
County highways, supervise elections, collect taxes, etc. |
| Second – What should we do – even though we are not required to do it –
because it saves money or increases efficiency? For example: We don’t have to
have an Information Systems Department or to have as many computers as we do.
However, if we didn’t have the computers, and if we didn’t support them, we
would be much less efficient and less accessible to the public. |
| Finally – What are things we would like to do if possible? There are very few of these items in this budget – we simply can’t afford it this year. This budget drastically reduces our funding for the Zoo and the Heritage Museum. I will recommend that all funding be eliminated in the 2005 budget. This puts these agencies on notice that they have one year to identify replacement sources for the funds that have been coming from Racine County. There is no funding in this budget for the Cultural Arts Grants or the Senior Enhancement Grants. This budget also cuts some Human Services funding we have included in the past – for the CHOICE program and the Community Action Agency. This serves notice that all non-mandated functions and programs are on the line. |
For many years now, County departments have been trimming their operating costs. There’s not a lot of fat left to get rid of. That means the only way this budget could come in where it did was for positions to be cut. In fact, this budget calls for cutting almost 60 positions. Although we tried to cut them through attrition or retirements, that will not be sufficient, and we will have to lay off county employees in 2004. If our employees agree to a reduction in their contracted salary increases for 2004, we could save some of those jobs.
One of the reasons we have had to cut so much to keep this budget low was because of the ever-increasing cost of health care. We all know that the costs we pay here in Southeastern Wisconsin are higher than almost anywhere else in the midwest. Costs in places as close as northern Illinois have gone up much less than they have here. The cost of health care was the biggest problem cited by the owners of small and medium sized businesses who attended the Economic Summit I held last summer. For them, I am working with the County’s health insurance consultant, Bowers & Associates, to see what kind of buying cooperative can be developed. For us, I can tell you this. In 2005 we can offer our employees higher wages or we can offer them continued health care on the level we have had for years. We cannot do both, and our negotiations with our labor unions will reflect that. The only alternative is to lay off even more employees.
Racine County’s employees are good people. They work hard and they do a good job of serving the people of the County. I do not like having to eliminate someone’s job, especially when the person is doing the work and doing it well. But the voice of the taxpayers was clear – they want us to hold the line on spending and let the levy go up no faster than their ability to pay. I listened to that voice.
For years now, we’ve been saying we’re going to be “doing more with less,” and each year we have. Here’s how we’re “doing more with less” in 2004:
| First, as I mentioned, we’re cutting almost 60 positions, which means
doing more with fewer employees in almost every department. |
| The Sheriff’s Department is deferring the purchase of 13 new vehicles.
Even with an increase in the maintenance budget to care for the older cars,
we’re still saving $200,000. |
| The Sheriff’s Department is also cutting seven Deputy positions. I must
compliment Sheriff Carlson. Immediately after he took office he was faced
with this awful budget situation. He and his staff worked very hard and did
what they had to do to generate the savings we needed without sacrificing
public safety. |
| The Human Services Department will be eliminating more outside contracts.
In addition to the contracts already brought in-house, in 2004 the department
will no longer contract out for Chapter 55 reviews. |
| To make the best use of scarce funding, the focus of specialized
transportation will be on medical, nutritional and vocational uses only. |
| The department is also working on ways to capture more federal medical
assistance funding for disabled adults residing in Adult Family Care Homes. |
| HSD and Ridgewood are working closely together to bring back 10
disabled adults currently residing in facilities outside of Racine County, at
a savings of $680,000. I applaud Debbie Jossart and Fran Petrick and their
staffs on working creatively and very hard to come up with these savings while
continuing to offer excellent service to the people of Racine County. |
| A grantwriter position that we expect to benefit the entire county has
been created through the elimination of a position in HSD. The position is
being funded through a partnership of Racine County with Gateway Technical
College. There have been indications that RCEDC and the United Way will also
help offset the cost of this position, which will seek grants not only for
Racine County, but also for non-profit agencies in the community; |
| The Public Works Department will be handling the same workload with 7.2
fewer employees, including people working in janitorial services at the
Courthouse and LEC, park maintenance and equipment maintenance. |
| To save $2,500 and free up staff for other duties, we have arranged with
the Convention and Visitors Bureau to handle campground reservations for us.
The Public Works Department was hit especially hard in this budget, and I want
to thank Glenn Lampark for his willingness to accept this difficult challenge. |
| The Planning and Development Department will be eliminating two positions,
saving about $131,000. In addition, the Land Conservation Department is
continuing to reduce its operating budget, cutting another $6,300 this year.
This represents a 50% reduction in the Land Conservation budget over the past
two years. I would like to acknowledge Julie Anderson. Even though she took
over the department in the middle of this process, she came up with some
creative ideas for the budget. |
| We are reorganizing the Planning and Development Department by moving the
Office of the Real Property Lister to the Register of Deeds. This change
makes sense from an operational point of view – their offices have been
physically connected for years – and it will save money because it allow us to
eliminate a position without sacrificing efficiency. |
| The Information Systems Department has eliminated three full-time
positions and three contracted positions. Rob Richardson and his remaining
staff are working hard to ensure that we get the same quality and level of
service, and I thank them for that. |
| This budget eliminates one County position and one position funded by our
133 Agreement in U.W. Extension. I am also discussing with Kenosha County
Executive Allan Kehl additional ways that we can combine Extension services
and staff between Racine County and Kenosha County. |
| At the end of this current school year, we will be eliminating five Social
Worker positions and one Assistant Director position at the County School
Office. A PST position will be eliminated at the semester break. |
| Every department in the County has made sacrifices and most have cut their
staff size. I am asking the County Board to do the same. This budget
proposes to share the time of the Legislative Secretary with the County
Clerk’s office. |
At the same time, we can’t just put everything on hold while we wait for the economy to pick up. We have responsibilities that we must take care of.
We must maintain our transportation infrastructure. This budget includes funds for work on these road projects:
| Work on CTH T, from CTH X to STH 11 |
| Work on CTH S, from Burmeister to CTH K |
| Work on CTH Y, from CTH KR to CTH X |
| Replacing a bridge on CTH S and performing repairs on a bridge CTH J |
We must also maintain County buildings and facilities. Plans call for the following work to be done in 2004:
| We are going to be constructing Juvenile Detention holding cells in the
Law Enforcement Center so that juveniles brought to court from the Detention
Center on Taylor Avenue can be held safely in the LEC.. |
| At Ridgewood, we will continue on schedule replacing whirlpool tubs used
for resident care. |
| Repairs will be made to the Eastern exterior wall of the Courthouse, based on a study performed last year. This is the first year of a four-year project. We have an obligation to keep the Courthouse in good repair. |
I consider one of the County’s most important missions to be assisting in the County’s economic development. To do that, I am creating a new initiative, the “Manufacturing Renewal Grant Program.” Qualifying manufacturing businesses in Racine County can apply for small matching grants from a fund of $25,000. These grants can be used for training or consulting services, thus helping these companies stay in business, retaining or providing jobs for Racine County residents. This initiative is consistent with the findings of the Economic Summit held in July and also supports the strategies identified in the Economic Development Plan.
This brings us to the bottom line. I made a promise to the people of Racine County that I would bring in a budget that would fit the limits of the proposed statewide “tax freeze.” What that proposal said is that the levy counties can collect in 2004 should be no larger than the levy we collected in 2003, plus an increase for the value of new construction. Racine County’s new construction this year has been 2%.
I am keeping my promise. This budget contains a 2004 tax levy that is LESS than the limit the legislature set and that I also set for Racine County. This budget increases the 2003 levy by 1.86%, the lowest percentage increase since 1987. As a result, the general county levy tax rate will be $3.81 per thousand, down from $4.02 per thousand this year. This is a 21¢ reduction per thousand, and the lowest rate since 1985. This is a win for Racine County taxpayers and shows that we don’t need Madison to tell local officials how to take care of our taxpayer dollars.
I am optimistic about Racine County’s future. I believe that the prosperity we enjoyed only a few years ago will return. In the meantime, however, difficult choices had to be made to keep our taxes from overwhelming the taxpayers of Racine County.
I am turning this budget over to you now, but let me tell you this. The bottom line on this budget will not change. If you choose to add money for some program, you had better find a way to take an equal amount of money out of something else. The promises I have made so far during my time in office I have kept, and I intend to keep the promise to the taxpayers of this levy limit. I will veto any change to this budget that increases the bottom line above the 1.86% that I am presenting to you now. This budget is a win for our taxpayers and I won’t let that change.
I also have a challenge for State government. We have met our goal here in Racine County. We have done our heavy lifting. Now it’s your turn. Keep the promise made years ago to fully take over the cost of operating the State court system. And do the right thing and take over the costs of juvenile corrections, just as you do when an adult is sent to adult corrections. Take this off the backs of the county taxpayers.
I have worked hard on this budget. I would like to commend Doug Stansil, Kris Tapp and the rest of the Finance Department staff, as well as the elected officials and department heads, for all the work they have put in. I also want to thank all the employees who sent in cost-savings ideas. We will be looking at them – and implementing a lot of them – during 2004.
Now you have work to do. This Board sets policy through your budget choices. Those choices will not be easy. You will be hearing from a lot of interest groups at the Public Hearing and at home. Remember that the theme of this budget is CORE FUNCTIONS, and that we are simply not able to continue to do it all at the same level. My staff is available to assist you, and I look forward to working with you to finalize the 2004 budget.
Thank you.
