The state’s budget worries have Effingham County commissioners worried, too.
Gov. Sonny Perdue’s recent dictates to state agencies to cut their spending in the face of shrinking state revenues has Effingham commissioners concerned that those departments may pass the burdens of services onto local governments.
“I think we’re coming to a critical point with the economy,” commission Chairperson Myra Lewis said. “We are about to have real scrutiny about our money, and we don’t need to wait until June (to finish the budget). We’re going to have to start tightening our belts.”
Commissioner Hubert Sapp pointed to the decline in building permits and its impact on the county’s bottom line.
“You can’t hardly give away a house now,” he said.
Sapp said that the increase in home values has led to an increase in property taxes but asked what happens when the home values fall.
“Now that the market is going the other way, is the market going to carry their taxes down?” he queried. “I feel anytime the economy goes sour, the government needs to cut back as well.”
Commissioners passed a $30.7 million budget in June, trimming the millage slightly as part of the spending plan. They have started a program to reduce the money spent on non-mandated agencies but now there are concerns about other efforts that may need support if the state slashes spending.
“Those agencies are going to come to us to pick up the tab, and we can’t do that,” Lewis said.
Sapp also expressed his ire at unfunded mandates handed down from the state and said local governments should be able to tell the state they won’t fund them.
County finance director Joanna Wright said the commissioners have worked to put into place procedures and controls on how county money is spent. She added that department heads have been told that they don’t have to spend their entire individual budgets.
“It’s not carte blanche (that) just because it’s in your budget, you spend it,” she said.
Wright said the county’s revenues don’t look as good now as they will in November when property tax payments start rolling in.