Starke County Auditor Rachel Oesterreich told the Starke County Council members Monday night that $345,000 needs to be cut from the 2021 County General Fund budget by January 1.
She said the Department of Local Government Finance discussed the need to cut the funds in a recent conversation after review of the budget. On top of that, insurance may go up $200,000 in 2021. Oesterreich said the county’s insurance agent has yet to go to market and negotiate options, but that is a rough estimate. She noted that the council did increase the insurance line item by over $100,000 to accommodate an anticipated increase, but it could be higher than that estimate. As a result, more money may need to be cut from the budget.
With that information in mind, and with the commissioners’ support, the Starke County Council members approved a hiring freeze. That means that no new county positions will be considered in 2021 that are paid out of County General. If there is an opportunity where an employee leaves and the office can get by without replacing that employee, the council encourages that action.
They will also address about a $642,000 shortfall in revenue in County General. According to paperwork provided to county officials, the majority of the lost revenue is in the EMS Department and Housing Prisoners in Transit which accounts for a little over $300,000. Interest on the bank balance is also at a loss of $138,000. It was stated that a lot of that has to do with the health pandemic. Comments were made that patients do not want to be transported to the hospital due to COVID-19 fear, and the Sheriff’s Department did not accept DOC prisoners for housing due to coronavirus concerns.
No budget cuts were determined during Monday night’s meeting, but the council and commissioners will look into that matter before the end of the year.
