Budget cuts affect salaries of local elected officials
By Melissa Caron
Rockbridge County is beginning to feel the pinch of the commonwealth’s $641 million budget shortfall after Gov. Tim Kaine slashed the state’s operating expenses by 5 percent earlier this month.
That 5-percent reduction will also affect the state’s portion of salaries for local elected officials and the elections registrar’s office. Statewide, that is expected to save the commonwealth more than $330,000, according to Kaine’s Budget Reduction Plan, released Oct. 1.
Unless Rockbridge County cuts salaries, it will have to make up the difference, said Bob Claytor, the county’s director of fiscal services. Claytor plans to present some options to the county supervisors soon.
“Unfortunately, when the state runs short of money, they [state officials] do what they can do and then they start throwing things down on us,” Claytor said.
The governor’s budget plan also requires localities to wait 90 days before filling vacancies in the offices of elected local officials such as the clerk, treasurer and sheriff, Claytor said. That’s expected to save the state almost $1.3 million.
If the county were to decide that a position could not go unfilled, the county would have to pay for the new employee’s entire salary and benefit package for the three months, Claytor said. There are no such vacancies in the county currently, but Claytor said that could change at any time.
In a news conference earlier this month, Kaine unveiled his plan to cut costs in the state’s general budget by $300 million for the budget cycle ending June 30.
Kaine said the shortage in revenues was driven mostly by a slowing housing market. Many other states are facing similar budget problems.
Kaine says he will look to recoup some of the additional $341 million from the state’s Revenue Stabilization Fund. The General Assembly must approve the use of the fund, which is a reserve for when revenues fall below what has been forecast for the year.
Several Republicans have already expressed opposition.
While Kaine’s plan was to take effect immediately, many of the state’s cuts will not be felt until Jan. 1. Still, Kaine estimates that nearly $66 million will be saved by the end of 2007.
Lexington faces cuts similar to those the county faces. City Finance Director Monty Higgins says the city does not see much employee turnover, but if a vacancy did occur it would be too expensive for the city to fill.
The city will face a 5-percent cut in state law-enforcement funding, or about $11,600, and a cut of $1,800 in state funding for the salaries of elected officials and those in the registrar’s office, Lexington City Manager John Ellestad estimated in his weekly report.
Funding cuts have also hit higher education statewide.
Virginia Military Institute, the nation’s oldest state-supported military college, will face funding cuts of nearly $1 million. Nearly 40 percent of the college’s $64 million annual budget comes from the state, said Stewart MacInnis, VMI’s assistant director of communications and marketing.
MacInnis said that while that’s a substantial cut, it will not be felt by cadets, because it will be absorbed through cuts in administration costs, not faculty. Vacant positions will go unfilled, and the college is working to economize in other ways, MacInnis said.
However, if the state makes similar cuts next year, cadets could begin to feel the effects, especially if vacancies arise, MacInnis said.
“The vacancy needs to be filled next year,” he said. “It’s not like it’s not an essential position. There is a job that is not being done or is being spread out over many people.”
While it may be too early to tell what will happen next year, MacInnis says the state has indicated that VMI can expect a regular budget.
Claytor says Rockbridge County could also be affected in ways not yet known as local agencies and departments learn of cuts to their funding.
“They will either have to reduce their services or they will be coming to the localities saying they need money to keep their services going,” Claytor said.
He said there is a particular concern for the sheriff’s department, which sees high turnover rates among communications employees. Those positions would go unfilled for three months.
Claytor said the county would work with agencies and departments to find room in their budgets to pay for those new costs. There may be some instances where cutting costs is not an option, and the county will have to find ways to pay for it. So far, there is a safety net.
“Right now we have a reserve that’s capable of absorbing this,” he said.
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Governor's spending plan leads to budget cuts
Produced by Washington and Lee journalism students.
Lead supervisor: Prof. Brian Richardson
Reporting supervisors:
Technical supervisor: Michael Todd