Declining income tax revenues continue to cause concerns for Pulaski County officials.
A sudden drop in revenues from the “LIT Levy Freeze” tax was brought to the county council’s attention back in September. Now, Community Development Commission Executive Director Nathan Origer says the county’s Economic Development Income Tax isn’t looking much better. “What I noticed going through the state’s Gateway website, from 2014 to 2015, our revenues in that fund decreased by nine percent – and that’s mostly the taxes, but that’s also interest, if there are any payments we made or checks that never got cashed – but nine percent,” he told county council members Monday. “’15 to ’16, it was 12-percent loss, and ’16 to ’17 it was an eight-percent loss. So just like with every other fund we’ve seen.”
But while revenues are going down, Origer expects the need for that money will continue to grow. “Once the jail lease is paid off and once the jail CAGIT tax expires, my guess is that some of that CEDIT money currently going to the jail for the lease is going to be transferred to the jail operations and maintenance to replace that CAGIT tax,” he said, “and already, what we’re using from CEDIT for the jail is nowhere near what that annual budget looks like.”
Origer said the county needs to do something about its financial situation. “Looking at what we have to work with for potential investment in the county’s economic future and general county financial sustainability, I’m really concerned by these trends.”
When it comes to running the jail, Sheriff Jeff Richwine said the money the county makes by housing federal inmates could help cover some of the cost. He told council members the county’s on track to make $500,000 a year housing federal inmates, and that figure could be higher if the state takes action to lower the number of pre-trial detainees housed in jail. “If this program gets half of those people out and we can stick another 25 federal inmates in that jail, there’s a million dollars a year,” Richwine said.
Meanwhile, Origer plans to discuss the county’s economic development finances as part of his 2017 year-end report during tonight’s CDC meeting.
